15. Provisions, contingent liabilities and contingent assets
A provision is recognized if, as a result of a past event, the company has a present legal or constructive
obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be
required to settle the obligation.
Other Litigation claims Provision for litigation related obligations represents liabilities that are expected
materialize in respect of matters in appeal.
Contingent liabilities are disclosed in respect of possible obligations that have risen from past events and
the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the enterprise, or is a present obligation that arises from past
events but is not recognized because either it is not probable that an outflow of resources embodying
economic benefits will be required to settle the obligation, or a reliable estimate of the amount of the
obligation cannot be made.
A contingent asset is generally neither recognized nor disclosed.
A provision for onerous contracts is measured at the present value of the lower expected costs of terminating
the contract and the expected cost of continuing with the contract. Before a provision is established, the
Company recognizes impairment on the assets with the contract.
16. Leases
(i) Finance leases: Assets taken on lease are classified as Finance lease if the company has
substantially all the risks and rewards of ownership of the related assets. Assets under finance
leases are capitalized at the commencement of the lease at the lower of the fair value or the present
value of minimum lease payments and a liability is created for an equivalent amount each lease
rental paid is allocated between the liability and the interest cost, so as to obtain a constant periodic
rate of interest on the outstanding liability for each period.
(ii) Operating leases: Assets taken on lease which are not classified as finance lease are operating
leases. Lease payments for assets taken on operating lease are recognized as an expense in the
Profit and Loss Account on a straight-line basis over the lease term except where the lease
payments are structured to increase in line with expected general inflation. Assets leased out under
operating leases are presented separately under the respective class of assets. Rental income is
recognized on a straight line basis over the term of the relevant lease.
17. Dividends to equity holders
The Company recognizes a liability to make distributions to its equity holder when the distribution is
authorized and the distribution is no longer at the discretion of the Company, as per the corporate laws
in India, a distribution is authorized when it is approved by the shareholders. A corresponding amount
is recognized directly in equity.
Dividends paid/payable are recognized in the year in which the related dividends are approved by the
Shareholders or Board of Directors as appropriate.
18. Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.
Financial assets are recognized when the Company becomes a party to the contractual provisions of
the instrument. Financial assets are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets (other than financial assets at fair value through
profit or loss) are added to or deducted from the fair value measured on initial recognition of financial
asset.
Subsequent measurement
All recognized financial assets are subsequently measured at amortized cost using effective interest
method except for financial assets carried at fair value through Profit and Loss (FVTPL) or fair value
through other comprehensive income (FVOCI).
Equity investments in Subsidiaries and Associates:
The Company accounts for its investment in subsidiaries, joint ventures and associates and other equity
investments in subsidiary companies at cost in accordance with Ind AS 27- ‘Separate Financial
Statements’:
Equity investments (other than investments in subsidiaries and associates)
All equity investments falling within the scope of Ind-AS 109 are mandatorily measured at Fair Value
through Profit and Loss (FVTPL) with all fair value changes recognized in the Statement of Profit and
Loss. The Company has an irrevocable option of designating certain equity instruments as FVOCI.
Option of designating instruments as FVOCI is done on an instrument-by-instrument basis. The
classification made on initial recognition is irrevocable. If the Company decides to classify an equity
instrument as FVOCI, the all fair value changes on the instrument are recognized in Statement of Other
Comprehensive Income (SOCI). Amounts from SOCI are not subsequently transferred to profit and loss,
even on sale of investment.
De-recognition
The Company derecognizes a financial asset when the contractual rights to the cash flows from the
financial asset expire or it transfers the financial asset and the transfer qualifies for de-recognition.
Impairment of financial assets
The Company follows ‘simplified approach’ for recognition of impairment loss allowance on financial
assets:
The application of simplified approach does not require the Company to track changes in credit risk.
Rather, it recognizes impairment loss allowance based on lifetime Expected Credit Loss (ECL) at each
reporting date, right from its initial recognition.
For recognition of impairment loss on other financial assets and risk exposure, the Company determines
whether there has been a significant increase in the credit risk since initial recognition. If credit risk has
not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk
has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the
instrument improves such that there is no longer a significant increase in credit risk since initial
recognition, then the Company reverts to recognizing impairment loss allowance based on 12-month
ECL.
Lifetime ECL are the expected credit losses resulting from all possible default events over the expected
life of a financial instrument. The 12-month ECL is a portion of the lifetime ECL which results from default
events that are possible within 12 months after the reporting date.
ECL is the difference between all contractual cash flows that are due to the Company in accordance
with the contract and all the cash flows that the entity expects to receive (i.e. all cash shortfalls),
discounted at the original EIR.
Financial liabilities and equity instruments by the Company are classified according to the substance of the
contractual agreements entered into and the definitions of a financial liability and an equity instrument. The
Company’s financial liabilities include trade, other payables and loans and borrowings.
Subsequent measurement
Financial liabilities are subsequently carried at amortized cost using the Effective Interest Method (EIR)
method except for financial liabilities at fair value through profit or loss. Amortized cost is calculated by
taking into account any discount or premium on acquisition and fees or costs that are an integral part of the
EIR. Financial liabilities recognized at FVTPL, including derivatives, are subsequently measured at fair
value. For trade and other payables maturing within operating cycle, the carrying amounts approximate the
fair value due to the short maturity or these instruments.
De-recognition
A financial liability (or a part of a financial liability) is derecognized from the Company’s balance sheet when
the obligation specified in the contract is discharged or cancelled or expires
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet if
there is a currently enforceable legal right to offset the recognized amounts and there is an intention to
settle on a net basis, to realize the assets and settle the liabilities simultaneously.
Re-classification of financial instruments
The Company determines classification of financial assets and liabilities on initial recognition. After initial
recognition, no reclassification is made for financial assets, such as equity instruments designated at FVTPL
or FVOCI and financial liabilities. For financial assets which are debt instruments, a reclassification is made
only if there is a change in the business model for managing those assets.
18.3 Fair value measurement
The Company measures financial instruments at fair value on initial recognition and uses valuation
techniques that are appropriate in the circumstances and for which sufficient data are available to measure
fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
Fair value is the price 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 fair value measurement is based on the presumption that the transaction to sell the asset or transfer
the liability takes place either:
* In the principal market for the asset or liability, or
* In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would
use when pricing the asset or liability, assuming that market participants act in their economic best interest.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorized within the fair value hierarchy, described as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable.
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.
For assets and liabilities that are recognized in the financial statements on a recurring basis, the
Company determines whether transfers have occurred between levels in the hierarchy by re-assessing
categorization (based on the lowest level input that is significant to the fair value measurement as a
whole) at the end of each reporting period.
19. Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term
deposits with an original maturity of three months or less, which are subject to an insignificant risk of
changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash, short-term
deposits, as defined above, and liquid funds as they are considered an integral part of the Company’s
cash management process.
15. The Company is engaged in construction and estate dealing activity and as such in view of management
it is not possible to give additional information as required by the companies Act, 2013.
16. No provision has been made for penal interest, if any, (amount unascertainable) payable as per
agreements for delayed payment to land Vendors. The same will be accounted as and when claimed,
ascertained and settled.
17. As per information and explanation given by company there are no Micro, Small and Medium sized
enterprises to whom the company owes the dues as at 31.3.2025, however, the outstanding payables as
on 31.03.2025 have been paid in time and there is no interest cost applicable. The information regarding
Micro, Small and Medium sized enterprises has been determined to the extent such parties have been
identified on the basis of information.
18. In the opinion of Board, the current assets if realized in ordinary course of business will be at least of the
value stated in the Balance Sheet. Provisions for all known liabilities are made in the accounts and are not
in excess of amount considered necessary.
19. Previous year’s figures have been regrouped/ re casted wherever considered necessary to confirm with
current year’s presentations of accounts.
20. Sundry Debtors, Sundry Creditors, Advance from Customer, Advances to Suppliers, other loans and
advances balances are as per Books of account and are subject to confirmation from the respective
parties.
21. RERA Registration:
In the opinion of the management, Registration under real Estate Regulatory Authority (RERA) is obtained
for applicable projects of the Company.
22. Insurance
The company has not obtained insurance of movable assets, stock in trade and other immovable assets
except for Vehicles and Investment Property.
23. Trade receivables
Trade receivables amounting to Rs. 138.45 Lakhs (Rs. 100.45 Lakhs Previous Year F.Y. 2023-24) are
outstanding for a period of more than three years. In the opinion of the management, considering the
nature of the business, the amounts have not been received as the obligations have not been fulfilled.
24. There are no imports or any other transactions entered in foreign currency during the year.
25. The Company does not have any transaction which are not recorded in the books of accounts that have
been surrendered or disclosed as income during the year in the tax assessments under the Income Tax
Act, 1961.
26. The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
27. Ratios-
Following are analytical ratios for year ended March 31,2025 and March 31,2024.
28. Additional Information-
I) With respect to immovable properties (other than properties where the Company is the lessee
and the lease agreements are duly executed in favor of the Company) disclosed in the financial
statements included in property, plant and equipment and investment and according to the
information and explanations given to us and based on the examination of the property tax
receipts, registered sale deed / transfer deed, we report that, the title deeds of such immovable
properties are held in the name of the Company as at the balance sheet date, except for as
provided below:
ii) There is no revaluation of company’s Property, Plant and Equipment as on 31.03.2025 and
31.03.2024.
iii) There are no Loans and advances in the nature of loans granted to promoters, KMPs, directors and
related parties either severally or jointly with any other person as on 31.03.2025 and 31.03.2024.
iv) There is no Capital-Work-in-Progress as on 31.03.2025 and 31.03.2024.
v) Intangible assets under development are nil as on 31.03.2025 and 31.03.2024.
vi) There is no Benami property held as on 31.03.2025 and 31.03.2024.
vii) The company is not declared as wilful defaulter by any authority.
viii) As per information provided to us, the company does not have any transactions with companies
struck off u/s 248 or 560 of the Companies Act, 2013.
ix) Section 2(87) of Companies Act, 2013 is not applicable to this company.
Compliance with approved scheme of arrangements u/s 230 to 237 of Companies Act, 2013 is not
applicable to this company.
x) There are no loans/funds advanced to any Intermediaries or funds to be received from Funding
Parties.
xi) The Company has no borrowings from banks or financial institutions on the basis of security of
current assets as on 31st March, 2025.
xii) The company has not declared/proposed any interim and final dividend for the year and previous
financial year.
xiii) As per Rule 11 (e) of Companies (Audit and Auditors) Rules, 2014, the company has not loaned or
advanced or invested or received any funds to/from any entity(ies) or person(s) including foreign
entities.
For M/s.Karwa Malani Kalantri & Associates For and on behalf of the Board of Directors
Chartered Accountants JITENDRA M. THAKKER
Firm Reg. No. 136867W. Chairman (DIN 00082860)
CA Sagar R. Malani RAJENDRA M. THAKKER
Partner M. No.: 145049 Managing Director (DIN 00083181)
Place: Nashik NARENDRA M. THAKKER
Date: May 29, 2025. Director (DIN 00083224)
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