b) Rights, preferences & restrictions in respect of each class of shares

The Company's authorised share capital consists of two classes of shares, referred to as Equity Shares and Preference Shares, having par value of Rs. 10/- each.

Each holder of Equity Share is entitled to one vote per share. The preferential shareholders have preferential right over equity shareholders in respect of repayment of capital.

The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting.

In the event of liquidation of the Company, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Nature and purposes of reserves

a. General Reserve

General Reserve represents appropriation of retained earnings and are available for distribution to shareholders.

b. Retained Earnings

Retained Earnings (excluding accumulated balance of remeasurements of defined benefit plans (net of tax)) represents surplus /accumulated earnings of the Company and are available for distribution to shareholders.

c. Equity Instruments through Other Comprehensive Income

It represents the cumulative gains/(losses) arising on the fair valuation of Equity Shares measured at fair value through OCI, net of amounts reclassified to Retained Earnings on disposal of such instruments.

d. Revaluation Surplus

The Company has elected to remeasure the value of its freehold land and the gain arising on revaluation has been recognised as a Revaluation Surplus in the other comprehensive income. The said reserve cannot be utilised for distribution to shareholders.

All pending litigations and proceedings against the Company and the carrying amount of the financial liabilities and claims have been reviewed at the balance sheet date and appropriate adjustment has either been made against existing provisions wherever required or disclosed the same as contingent liabilities, wherever applicable. The Company does not expect the outcome of these proceedings will have a material impact on its financial position and the future cash outflows in respect of the above is dependent upon the outcome of judgments/decisions. .

37. Financial risk management 37.1 Financial risk factors

The Company's principal financial liabilities comprise of lease liabilities, security deposits, trade and other payables. The main purpose of these financial liabilities is to manage finances for the Company's operations. The Company's principal financial assets include investment in equity instruments, investment in mutual funds, investment in bonds, security deposits, trade receivables and cash and bank balances that arise directly from its operations. The Company is exposed to market risk, credit risk and liquidity risk and the Company's senior management oversees the management of these risks.

i) Market risk

Market risk is the risk that fair value of future cash flows of a financial asset will fluctuate because of changes in market prices. The Company has investment in equity instruments, mutual funds, bonds and fixed deposits. The Company's investments in mutual funds are held in mutual fund schemes of leading fund houses. The tenure of investment in mutual funds is relatively short and hence the movement in market prices do not pose any significant price risk.

Fixed Deposits are held with highly rated banks and have a short tenure and are not subject to interest rate volatility. The Company is not an active investor in equity markets and continues to hold certain investments in equity instruments for long term value accretion which are accordingly measured at fair value through other comprehensive income. Investments in Bonds are measured at fair value through profit and loss to recognise market volatility, which is not considered to be significant.

ii) Credit risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities, primarily trade receivables and other receivables deposits with banks and investment in equity instruments, bonds and mutual funds. Company's deployment in fixed deposits are primarily with highly rated banks and financial institutions, bonds issued by highly rated banks and mutual fund schemes of leading fund houses. With respect to the Company's investing activities, mutual fund schemes and counter parties are shortlisted and explosure limits determined on the basis of there credit rating (by independent agencies), financial statements and other relevent information. As these counter parties are having investment grade/ sovereign credit ratings and taking into account the experience of the Company over time, the credit risk attached to such assets is considered to be insignificant. However, the company has made an expected credit allowance of Rs.0.34 lakh during the year.

Further the Company has determinded that an allowance or expected credit losses on loans giving to employees is not required as there is no credit risk involved owing to the fact that the Company can recover the entire loan amount from employee's dues like salary, gratuity, etc.

(a) Trade receivables and other receivables

The Company extends credit to customers in the normal course of business. Outstanding customer receivables are regularly monitored. The Company has also taken advances and security deposits from its customers, which mitigate the credit risk to an extent. An impairment analysis is performed at each reporting date on an individual basis for major customers.

Considering the inherent nature of business of the Company, Customer credit risk is minimal. The Company generally does not part away with its assets unless trade receivables are fully realised.

Based on prior experience and an assessment of the current economic environment, management believes there is no credit risk provision required, other than those made in the accounts. Further, the Company does not have any significant concentration of credit risk.

In determining the allowances for expected credit losses on trade receivables, the Company has used a practical expedient by computing the allowance for expected credit loss on trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. The allowance for expected credit loss is based on the ageing of the receivables that are due and rates used in the provision matrix.

(b) Investments and deposits with Banks

The Company considers factors such as track record, market reputation and service standards to select mutual funds, bonds and banks with which balances and deposits are maintained. The Company does not maintain significant cash balances other than those required for its day t o day operations.

In determining the allowances for expected credit losses on financial assets (other than those measured at fair value through profit and loss and fair value through other comprehensive income) and deposits with banks, the Company has considered the credit ratings of those banks/ financial institutions.

(c) Loan given to Employees

The Company extends loan to its employees in the ordinary course of business. These loans are a part of our comprehensive employee benefits program designed to support the financial well-being of our workforce. We regularly monitor the prepayment of these loans to ensure timely and efficient repayment. In addition, we have implemented robust controls and continuous tracking of outstanding loan balances. These measures ensure the sustainability and integrity of our loan program while safeguarding the company's financial interests.

iii) Liquidity risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The company's approach in managing liquidity is to ensure that it will have sufficient funds and marketable securities to meet its liabilities when due without incurring unacceptable losses. The company closely monitors its liquidity position through forecasts on the basis of expected cash flows.

Maturities of Financial Liabilities

The table below analyse the Company's financial liabilities into relevant maturity groupings based on their contractual maturities. The amounts disclosed in the table are the contractual undiscounted cash flows of financial liabilities.

37.2. Capital management

For the purpose of the Company's capital management, capital includes issued equity share capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company's capital management is to safeguard continuity, maintain healthy capital ratios in order to support its business and maximize shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions. The funding requirement is met through equity and internal accruals.

38. Fair value of Financial Assets and Liabilities

Set out below is a comparison by class of the carrying amounts and fair value of the Company's financial instruments that are recognised in the financial statements.

39. Fair valuation techniques

The Company maintains policies and procedures to value financial assets/other assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets/other assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate certain fair values:

i) The fair values of investment in equity instruments are based on their quoted market prices at the reporting date.

ii) The fair values of the mutual funds are based on their published Net Asset Values at the reporting date. The fair value of quoted bonds are valued using closing price at the reporting date. The fair value of unquoted bond is determined using valuation techniques using observable market data.

iii) Fair value of cash and deposits, trade receivables, trade payables and other current financial assets and liabilities approximate to their carrying amounts largely due to the short-term maturities of these instruments. Lease liabilities have fair values that approximate to their carrying amounts as it is based on the net present value of the anticipated future cash flows.

iv) Fair value of Freehold Land is based on Sales Comparison method under Market Approach as carried out by an independent registered valuer.

Fair Value hierarchy

The following table provides the fair value measurement hierarchy of Company's asset and liabilities, grouped into Level 1 to Level 3 as described below:

i) Quoted prices/published NAV (unadjusted) in active markets for identical assets or liabilities (level 1). It includes fair value of financial instruments such as investment in equity shares and bonds traded in active markets and are based on quoted market prices at the balance sheet date and financial instruments like mutual funds for which net assets value (NAV) is published by mutual fund operators at the balance sheet date.

ii) Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2). It includes fair value of the financial instruments that are not traded in an active market and are determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on the company specific estimates. If all significant inputs required to fair value an instrument are observable, then the instrument is included in level 2.

iii) Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3). If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

During the year ended 31st March, 2024 and 31st March, 2023, there were no transfers between Level 1 and Level 2 fair value measurements and no transfer into and out of Level 3 fair value measurements.

The Company has set up Provident Fund Trusts in respect of certain categories of employees which are administered by Trustees. The Trusts invest funds following a pattern of investments.

The interest rate payable to the members of the Trusts is not lower than the rate of interest declared annually by the Government under The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, if any, on account of interest is to be made good by the Company.

Accordingly, the Actuary has carried out actuarial valuation of plan's liabilities and interest rate guarantee obligations as at the Balance Sheet date using Projected Unit Credit method. Based on such valuation, an amount of Rs Nil lakhs (31st March, 2023: Rs. Nil Lakhs) has been provided towards future anticipated shortfall with regard to interest rate obligation of the Company.

(2) The Company 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. The amount of gratuity payable on retirement/termination is in accordance with Provision of Payment of Gratuity Act, 1972.

- Leave Encashment Scheme whereby employees can encash their accumulated leave balance in a lump sum at time of retirement/withdrawal/death/disability.

- Pension Scheme whereby employees will be entitled to fixed payment(s) as per plan after retirement/death.

The following table sets out the details of amount recognised in the financial statements in respect of employee benefit

schemes:

(vi) Risk exposure

These plans are exposed to the actuarial risks such as interest rate risk, salary inflation risk and demographic risk and change in leave balances.

Interest rate risk : The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

Salary inflation risk: Higher than expected increase in salary will increase the defined benefit obligation. Demographic risk : This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

Change in Leave Balances : This is the risk of variability of results due to a significant variation from expected accumulation of leave balances. All other aspects remaining same, higher than expected increase in the leave balances will increase the defined benefit obligation.

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (projected unit credit method) has been applied as when calculating the defined benefit obligation recognised within the Balance Sheet. The methods and type of assumptions used in preparing the sensitivity analysis did not change compared to prior period.

Presentation in the Statement of Profit and Loss, Other Comprehensive Income (OCI) and Balance Sheet

Gratuity, pension and provident fund are in the nature of post-employment benefits and re-measurement gains/(losses) on it are shown under OCI as ‘Items that will not be reclassified to profit or loss', including the income tax effect on the same. Leave encashment benefits is an Other long term employee benefit and re-measurement gains/(losses) on it are shown under Employee Benefits Expense.

Expense for service cost, net interest on net defined benefit liability/(asset) is recognised in the Statement of Profit and Loss. Ind AS 19 does not require segregation of net defined liability/(asset) into current and non-current, however net defined liability/(asset) is bifurcated into current and non-current portions in the balance sheet, as per Ind AS 1 on “Presentation of Financial Statements”.

(c) Disclosure in respect of Material Related Party Transaction with KMP and Post Employment Benefit Plans

during the year (excluding reimbursement):

1. Remuneration includes amount paid to Mr. Amitabha Chakrabarti Rs.57.30 Lakhs (Previous Year: Rs 52.73 Lakhs).

2. Sitting fees includes amount paid to Mr. Krishna Kumar Bangur Rs. 0.75 Lakh (Previous Year - Rs. 0.75 Lakh), Kishor Shah Rs. 1.35 Lakhs (Previous Year - Rs. 1.35 Lakhs), Mr. Mohit Bhuteria Rs. 1.35 Lakhs (Previous Year -Rs. 1.50 Lakhs) , Mr. Shiva Balan Rs. 1.05 Lakhs (Previous Year - Rs. 1.50 Lakhs) , Mrs. Rusha Mitra Rs. 0.45 lakhs (Previous Year: Rs. 1.05 lakh).

3. Contributions made include amount paid to GKW Limited Management Staff Provident Fund Rs. 6.07 lakhs (Previous Year: Rs. 5.56 lakhs), GKW Limited Gratuity Fund Rs. 4.95 Lakhs (Previous Year: Rs 6.47 Lakhs) and GKW Limited Management Staff Pension Fund Rs. 5.55 Lakhs (Previous Year: Rs. 42.26 Lakhs).

The amounts disclosed in the table are the amounts recognised as an expense during the reporting period.

All Related Party Transactions entered during the year were in ordinary course of business and on arm's length basis.

43. Segment Information

The Company has identified two broad reportable segments viz. “Warehousing” and “Investment and Treasury''. Segments have been identified and reported upon taking into account the nature of activities, the different risks and returns and the internal business reporting systems. These business segments are reviewed by the Chief Operating Decision Maker of the Company. The following are the additional policies for Segment Reporting:

- Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to the Company as a whole and are not allocable to a segment on a reasonable basis have been disclosed as “Unallocable”.

- Segment Assets and Segment Liabilities represent assets and liabilities in respective segments. Tax related assets and other assets and liabilities that cannot be allocated to a segment on a reasonable basis have been disclosed as “Unallocable”.

ii) Information about major customers

Revenue under the segment ‘Warehousing' includes revenue from one external customer (Previous Year : one external customer) aggregating to Rs. 332.10 lakhs (Previous Year: Rs.332.95 lakhs) contributing to more than 10% of the total revenue.

44. Leases

(a.) Leases as Lessee

The Company has adopted Ind AS 116 “Leases” effective from April 1, 2019 which resulted in recognition of Right-of-use Assets and Lease Liability each amounting to Rs. 164.23 lakhs as at April 1,2019.

The weighted average incremental borrowing rate applied to lease liabilities is 13.31%.

The table below provides details regarding the contractual maturities of lease liabilities on an undiscounted basis:

45. Additional Regulatory Information

(i) Revaluation of Property, Plant and Equipment -

The Company has not revalued its property, plant and equipment in financial year 2023-24. However, it had revalued its freehold land as on March 31, 2022 based on valuation report of an independent registered valuer. As a result of revaluation, value of freehold land had increased from ? 36.59 lakhs to ? 253326.59 lakhs. The said increase of ? 253290 lakhs had been recognized in Other Comprehensive Income and credited to Revaluation Surplus in Other Equity in the 2021-2022. The related deferred tax liability of ? 59006.44 lakhs had been recognised.

Such Revaluation surplus is not available for distribution to shareholders.

(ii) 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 during the year ended March 31st, 2024 and March 31st, 2023.

(iii) The Company has not been declared as wilful defaulter by any bank or financial Institution or other lender during the year ended March 31st, 2024 and March 31st, 2023.

(iv) The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

(v) The Company does not have any subsidiary as at March 31st, 2024 and March 31st, 2023 and accordingly clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable.

(vi) Undisclosed Income

There are no transactions not recorded in the books of accounts during the year ended March 31st, 2024 and March 31st, 2023 that has been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961.

There are no previously unrecorded income and related assets to be recorded in the books of account during the year ended March 31st, 2024 and March 31st, 2023.

(vii) Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended March 31st, 2024 and March 31st, 2023.

viii) Utilisation of Borrowed funds and share premium:

(A) During the year ended and as at March 31st, 2024 and March 31st, 2023, 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) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall :

(i) 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

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(B) During the year ended and as at March 31st, 2024 and March 31st, 2023, 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 :

(i) 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

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

(ix) As at March 31st, 2024 and as at March 31st, 2023 the Company does not have any Scheme of Arrangement that has been filed or approved by the Competent Authority in terms of section 230 to 237 of the Companies Act, 2013.

46. Registration of charges or satisfaction with Registrar of Companies

The Company has pending satisfaction of charge with Registrar of Companies (ROC),Kolkata relating to working capital facilities extended by a bank to erstwhile demerged undertaking of the Company in accordance with scheme of arrangement in 2009. The Company had settled all its dues in full and final relating to fund based and non-fund based facilities of the bank as per books of account in 2008.

However, satisfaction of charges will be made with Registrar of Companies (ROC), Kolkata on receipt of “No-Objection Certificate” from the bank and compliance of certain formalities.

(i) Debt-equity ratio and debt service coverage ratio are not relevant for the Company as it has no debt.

(ii) Inventory turnover ratio is not relevant for the Company as it has no inventory.

(iii) Trade payables turnover ratio is not relevant for the Company as it has no credit purchases.

(a) Current Assets = Trade Receivables Cash and Cash Equivalents Other Bank Balances Other Current Assets Current Liabilities = Trade Payables Provisions Other Current Liabilities

(b) Net Income = Profit after Tax

Equity = Share Capital Free Reserves (i.e. excluding OCI and Revaluation surplus)

(c) Net Sales of services from warehousing activities

Average Trade Receivables = (Opening Accounts Receivable Closing Accounts Receivable)/?

(d) Net Sales of services from warehousing activities Net Assets = Total Assets - Current Liabilities

(e) Net Profit = Profit After Tax Revenue from Operations

(f) Earnings before Interest & Tax (EBIT) = Profit Before Tax Finance cost Capital Employed = Total Assets - Current Liabilities

(g) Net Return on investment = Final value of investment - Initial cost of investment Investment = Book value of investment (at cost)

Note 1- Due to higher net income in the current year as compared to previous year.

Note 2- Due to higher net sales of various and improvement of collections

48. Other Expenses includes Rs 793.75 lakhs paid during the year ended March 31,2024 (Previous year - Rs 35 Lakhs ) being amount paid (including consultancy charges) for obtaining confirmation in order to avoid future litigation/disputes towards certain parcels of land of the Company and resolution of certain disputes.

49. Previous year's figures have been rearranged/regrouped, wherever necessary, to make them comparable with those of the current year.