s. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized only when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which there liable estimate can be made. When a provision is measured using the cash flows estimated to settle the present obligation, it carrying amount is the present value of those cash flows (when the effect of the time value of money is material) and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date adjusted to reflect the current best estimates.

Contingent liabilities and Contingent assets are not recognized in the Standalone Financial Statements.

t. Financial Instruments

Financial assets and liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value measured on initial recognition of financial asset or financial liability.

Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized in profit or loss.

• Effective Interest method

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

• Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual term so the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

• Financial assets at fair value through other Comprehensive income

Financial assets at fair value through profit or loss are measured at fair value at the end of each reporting period, with any gains or losses arising on re-measurement recognized in other comprehensive income.

• Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss are measured at fair value at the end of each reporting period, with any gains or losses arising on re-measurement recognized in profit or loss.

• Financial liabilities and equity instruments

Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered in to and the definitions of a financial liability and an equity instrument. Financial liabilities are measured at amortised cost using the effective interest method. Financial liabilities at FVTPL are

stated at fair value, with gains and losses arising on remeasurement recognized in profit and loss account.

u. Segment Reporting

In line with the provisions of Ind AS 108 - operating segments and basis the review of operations being done by the Board and the management, the operations of the Company fall under real estate business, which is considered to be the only reportable segment. The Company derives its major revenues from construction and development of real estate projects and its customers are widespread. The Company is operating in India which is considered as a single geographical segment.

Significant management judgement in applying accounting policies and estimation uncertainty

The preparation of the Company's Standalone Financial Statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the related disclosures.

Significant management judgements

The following are significant management judgements in applying the accounting policies of the Company that have the most significant effect on the Standalone Financial Statements.

(i) Revenue from contracts with customers

The Company has applied judgements that significantly affect the determination of the

amount and timing of revenue from contracts with customers.

(ii) Recognition of deferred tax assets

The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the future taxable income against which the deferred tax assets can be utilized.

(iii) Evaluation of indicators for impairment of assets

The evaluation of applicability of indicators of impairment of assets requires assessment of several external and internal factors which could result in deterioration of recoverable amount of the assets.

(iv) Provisions and Contingent liabilities

At each balance sheet date basis of the management judgment, changes in facts and legal aspects, the Company assesses the requirement of provisions against the outstanding contingent liabilities. However, the actual future outcome may be different from this judgement.

Recent Pronouncement

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

Details or terms or Repayment ana securities proviaea in respect or securea term loans are as unaer:

i) Term Loan from Banks

a) Anand Rathi Global Finance Ltd.

Sanctioned Amount: '2,500.00 (In Lakhs).

Primary Secutrity: Development rights/Land at Hinjewadi, hypothecation of trade receivables, Shop at Purva Plaza

Sadashiv Peth (Individual Asset of the Director), Personal Guarantee of Directors.

Rate of Interest: 15%

Terms of Repayment: Repayable on Demand

b) Prachay Capital Private Ltd.

Sanctioned Amount: '1,000.00 (In Lakhs).

Primary Security:

1. Registered mortgage of all that piece and parcel of land admeasuring 14,325 Square Meters out of Sr No. 27/1,27/5(P), 28/1(P), 28/B/1, 28/B/2, 28/B/3, 28/B/4, situated at village Hinjewadi, Taluka Mulshi and District Pune, However, excluding i) area admeasuring 741.76 Square Meters beating Survey No. 28/B/4 against PMRDA road widening, (fi) area admeasuring 1256.84 Square Meters for Amenity space - 2 and area admeasuring 425.09 Square Meters for Amenity Space - 1. Hence Net area to be mortgaged area is 11,901.31Square Meters and Excluding Building A & B already constructed thereon.

2. Hypothecation and escrow of Borrower's and Co-Borrower's share in all present and future receivables from the proposed project to be developed on Sr No. 27/1,27/5(P), 28/1(P), 28/B/1,28/B/2, 28/B/3, 28/B/4, situated at village Hinjewadi, Taluka Mulshi and District Pune. However excluding receivables from Building A and B already constructed thereon.

3. Negative Lien on unsold units in the proposed project to be developed on Sr No. 27/1, 27/5(P), 28/10P), 28/B/1. 28/B/2, 28/B/3, 28/B/4, situated at village Hinjewadi, Taluka Mulshi and District Pune. However excluding units in Building A. and B already constructed thereon.

Terms of Repayment: Loan will be repayable in 8-10 equal quarterly installments starting from the end of principal

moratorium.

Rate of Interest: 18% p.a. This rate shall increase to 30% p.a. post September 30, 2025.

ii) Vehicle Loans

Security: All the vehicles are secured by the respective vehicles only.

Rate of Interest: The rate of Loans are between 10% to 15%.

Other Disclosures:

Since Company is not declared as wilful defaulter by any bank or financial institution or any other lender, the required

disclosure as per Schedule III in this regards has not been given.

35 Contingent liabilities, contingent assets and commitments

Contingent liabilities and commitments (to the extent not provided for),

Contingent liabilities (a) Claims against the company not acknowledged as debt; a) Claims not acknowledged as debts represent cases filed in Civil Court and High Court.

March 31,2024 - '472.25 (In Lakhs) [Previous year March 31,2023 - '252.69 (In Lakhs)]

As at March 31, 2024 :

The complainant has filed complaint in previous year before MahaRERA and sought compensation '252.69 (In Lakhs) from the Company alleging that there was delay in handing over possession of the commercial Units in B building to him on the date as mentioned in Development Agreement. The Company filed its say in the matter contending that the Company is not liable to pay any compensation as mentioned in the complaint. Because the Company completed construction of B building within the time limit extended by MahaRERA. Extension to the project was granted by MahaRERA considering adverse impact of Covid Pandemic on construction activities of the project. The reasons for extension of timeline for completion of B building were beyond the control of the the Company, since there is no fault on the part of the the Company. During the year, an additional claim of '219.56 (In Lakhs) was raised by the complainant for additional delay in possession of the commercial units agreed with him in Tower CDE in place of Tower B agreed earlier.

Hence, in the opinion of management SBGL has shown its readiness and willingness to handover units to the complainant. Hence, the above claim is not sustainable.

39 Financial risk management

In the course of its business, the Company is exposed primarily to fluctuations in interest rates, equity prices, liquidity and credit risk, which may adversely impact the fair value of its financials instruments.

The company assesses the unpredictability of the financials environment and seeks to mitigate potential adverse effects on the financial performance of the Company.

The Company has exposure to the following risks arising from financial instruments:

- credit risk - see note (a) below

- liquidity risk - see note (b) below

- market risk - see note (c) below

(a) 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.

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk associated with the industry and country in which customers operate.

Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess impairment loss or gain. The Company uses a matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors and Company's historical experience for customers.

(i) The Company has not made any provision on expected credit loss on trade receivables and other financials assets, based on the management estimates as none of the financial instruments of the Company result in material concentration of credit risk.

(ii) Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks and financial institutions with high credit ratings assigned by domestic credit rating agencies.

(b) Liquidity risk:

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.

The Company's treasury department is responsible for liquidity and funding. In addition, policies and procedures relating to such risks are overseen by the management.

The company's principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from the operations.

Intangible assets which comprise of the development expenditure incurred on new product and expenditure incurred on acquisition of user licenses for computer software are recorded at their acquisition price.

(c) Market risk:

Market risk is the risk that the fair value or future cash flows of the financials instruments will flucturate because of the changes in the market prices. Market risk comprises two types of risk: interest rate risk and other price risk, such as equity price risk and commodity/real estate risk.

(1) Foreign currency risk :

The Company has its revenues and other transactions in 'which is the functional currency.Accordingly, the Company is not exposed to any currency risk and hence, this risk is not applicable.

(2) Interest rate risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's debt obligations with floating interest rates. The management is responsible for the monitoring of the Group's interest rate position. Various variables are considered by the Group's management in structuring the Group's borrowings to achieve a reasonable, competitive, cost of funding.

40 Capital management

The Company's capital comprises equity share capital, surplus in the statement of profit and loss and other equity attributable to equity holders.

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.

42 Employee Benefits

The details of employee benefits as required under Ind AS 19 'Employee Benefits' is given below:

A. Defined Benefit Plans Gratuity

Gratuity is payable to all eligible employees on retirement, death while in employment or termination of employment in terms of the provisions of the Payment of Gratuity Act or as per the Company's policy whichever is beneficial to the employees. Vesting occurs on completion of five years of service.

The following tables summarise the components of net benefit expense recognised in the statement of profit and loss, the funded status and amounts recognised in balance sheet for the plan.

Liability Risks

1. Asset-Liability mismatch risk- Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching duration with the defined benefit liabilities, the company is successfully able to neutralize valuation swings caused by interest rate movements. Hence companies are encouraged to adopt asset-liability management.

2. Discount rate risk- Variations in the discount rate used to compute the present value of the liabilities may seem small, but in practise can have a significant impact on the defined benefit liabilities.

3. Future salary escalation and inflation risk - Since price inflation and salary growth are linked economically, they are combined for disclosure purposes. Rising salaries will often result in higher future defined benefit payments resulting in a higher present value of liabilities especially unexpected salary increases provided at management's discretion may lead to uncertainties in estimating this increasing risk.

Unfunded Plan Risk

This represents unmanaged risk and a growing liability. There is an inherent risk here that the company may default on paying

the benefits in adverse circumstances. Funding the plan removes volatility in company's financial and also benefit risk through

return on the funds made available for the plan.

46 Additional Regulatory Information Details of Benami Property held

The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

Details of Loans and advances

The Company has not granted any loans and advances to promoters, directors, key managerial personnel (KMPs) and the related parties which are repayable on demand or without specifying any terms or period of repayment.

Wilful Defaulter

The Company has not been declared as a wilful Defaulter by any Financial Institution or bank as at the date of Balance Sheet. Relationship with Struck off Companies

The Company do not have any transactions with companies struck off.

Registration of charges or satisfaction with Registrar of Companies (ROC)

The Company has no pending charges or satisfaction which are yet to be registered with the ROC beyond the Statutory period. Compliance with number of layers of companies

The Company has complied with the provision of the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

Discrepancy in utilization of borrowings

The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date. There are no discrepancy in utilisation of borrowings.

Utilisation of Borrowed funds and share premium:

(A) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or

kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries).

(B) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party).

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;

47 Additional Information Undisclosed income

The Company has no transaction that 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).

Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual Currency.

48 Operating Segments

Description of segments and principal activities

The Company is primarily engaged in the business of construction and sale of Building.

49 Additional Information

Previous year's figures have been regrouped/reclassified wherever necessary to confirm current year's presentation.

The accompanying notes form an integral part of the standalone financial statement As per our report of even date

For Parag Patwa & Associates For and on behalf of Board of Directors of

Chartered Accountants Suratwwala Business Group Ltd.

ICAI Firm's Registration No. 107387W CIN: L45200PN2008PLC131361

Sd/- Sd/- Sd/-

CA. T. J. Trivedi Jatin Suratwala Hemaben Sukhadia

Partner Managing Director Non-Executive Director

M. No. 143690 DIN: 0198032 DIN: 01980774

UDIN: 24143690BKBHHR4468

Place: Pune Sd/- Sd/-

Date: May 24, 2024 Prathama Gandhi Deepak Kalera

Company Secretary Chief Financial Officer

M. No. A46385