2.13: Provisions and Contingent Liabilities :
Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable
that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are
measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the end
of the reporting period.
A contingent liability exists when there is a possible but not probable obligation, or a present obligation that may, but probably will
not, require an outflow of resources, or a present obligation whose amount cannot be estimated reliably.
The Company does not recognize a contingent liability but discloses its existence in the financial statements.
2.14: Earnings Per Share policy:
Basic earnings per share are calculated by dividing the net profit for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during
the period is adjusted for events of bonus issue, bonus elements in a rights issue to existing shareholders; share split; and reverse
share split (consolidation of shares).
2.15: Cash and Cash equivalents policy:
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at
call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are
readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
2.16: Financial Instrument:
Financial Instrument:
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
Initial recognition and measurement
All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit
or loss, transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales of financial assets that
require delivery of assets within a time frame established by regulation or convention in the market place (regular day trades) are
recognised on the trade date, i.e., the date that the Company commits to purchase or sell the asset.
Subsequent measurement
Equity Investments. All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for
trading and contingent consideration recognised by an acquirer in a business combination to which Ind AS 103 applies are classified
as at FVTPL. For all other equity instruments, the Company may make an irrevocable election to present in other comprehensive
income subsequent changes in the fair value. The Company makes such election on an instrument by instrument basis. The
classification is made on initial recognition and is irrevocable.
If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding
dividends, are recognized in the oCi. There is no recycling of the amounts from OCI to Statement of Profit and Loss, even on sale
of investment. However, the company may transfer the cumulative gain or loss within equity.
Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the Statement of
Profit and Loss.
Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings,
payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
All financial liabilities are recognised initially at fair value and in the case of loans and borrowings and payables, net of directly
attributable transaction costs.
The Company's financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial
guarantee contracts and derivative financial instruments.
Subsequent measurement
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated
upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred
for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the
Company that are not designated as hedging instruments in hedge relationships as defined by Ind-AS 109.
Gains or losses on liabilities held for trading are recognised in the profit or loss.
De-recognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition
of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.
2.17: Exceptional Items:
When an item of income or expense within profit or loss from ordinary is of such size, nature or incidence that their disclosure is
relevant to explain the performance of the company for the year, the nature and amount of such items is disclosed as exceptional
items.
a. Defined Benefit plan :
Gratuity:
In accordance with the applicable laws, the Company provides for gratuity, a defined benefit retirement plan (“The Gratuity
plan”) covering eligible employees. The Gratuity plan provides for a lump sum payment to vested employees on retirement
(subject to completion of five years of continuous employment), death, incapacitation or termination of employment that are
based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by
actuarial valuation on the reporting date and the Company makes annual contribution to the gratuity fund administered by
Life Insurance Corporation of India under the respective scheme.
Note 3 : In Prime Mall Developers Financials for the Year ended 31st March, 2025, where the company is 50% Partner, the following
note is appearing:
"The contract for construction of Mall/Commercial space entered into with M/s. Reliance Prolific Traders Pvt Ltd in 2007 had been
cancelled on 31.08.2024, resulting in forgoing of advance of Rs. 27.19 crs made by M/s. Reliance Prolific Trade Pvt Ltd. The Owner of
the land was to obtain share in the construction which was part of its sale consideration.
The Firm continues to treat the above advance received in the financials as advance only in view of the Arbitration proceedings filed
before the Hon’ble Madras High Court with regard to disputes between the Land Owner who is also a Partner (Prime Urban Development
India Ltd) and other two partners and also against the Firm (Prime Mall). The related assets namely Contract Execution - Pre Operative
Expenses will be continued to be treated as pre-operative expenses.
Accordingly, in view of uncertainty there is no change in the treatment of the aforesaid advance in the books of accounts as on 31st
March 2025. The requisite adequate accounting treatment will be given according to the final award that may be passed in the Arbitration
proceedings whenever it is pronounced which may result in the accrual of income to the extent of Company's share (50%) and
consequential income tax liability thereon.”
21.12: Capital Management Note:
Capital Management Risk:
The Company's aim to manage its capital efficiently 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 judgment of the appropriate balance of key elements
in order to meet its strategic and day-to-day needs. The Company considers the amount of capital in proportion to risk
and manages the capital structure in light of changes in economic conditions and the risk characteristics of the underly¬
ing assets. In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to
shareholders, return capital to shareholders or issue new shares.
The Company policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain
investor, creditors and market confidence and to sustain future development and growth of its business. The company
will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.
The key objective of the Company's capital management is to ensure that it maintain a stable capital structure with the
focus on total equity to uphold investor, creditor and customer confidence and to ensure future developments of the
business. The company is focused on maintaining a strong equity base to ensure independence, security as well as
finance flexibility for potential future borrowings, if required, without impacting the risk profile of the Company.
21.13 Disclosure with regard to liquidity risk showing details of contractual cash outflow, Interest rate sensitivity, fair
value matrix as per Ind AS
The Company’s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose
of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include
loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.
The Company is hardly much exposed to market risk, interest rate risk, credit risk and liquidity risk. The Company’s risk
management is carried out by a corporate finance team under the policies approved by the Board of Directors under the
broad parameters;
i) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument may fluctuate due to change in
market price. The value of financial instruments may change as result of change in interest rates and other market
changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial
instruments including payable, deposits, loans & borrowings. The Company management evaluates and exercise control
over process of market risk management. The Board recommends risk management objective and policies which
includes management of cash resources, borrowing strategies and ensuring compliance with market risk limits and
policies The Company assumes that the sensitivity of the relevant profit or loss item is the effect of the assumed changes
in respective market risks. This is based on the financial assets and financial liabilities held at 31 March 2025 and
31 March 2024.
ii) 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 long-term debt obligations with interest rates.
The Company manages its interest rate risk by having a portfolio of loans and borrowings. In order to optimize the
Company’s position with regards to interest income and interest expense, the Company performs a comprehensive
corporate interest rate risk by using different type of economic product of floating rate of borrowings in its total portfolio.
Interest rate sensitivity
In view of any inadequate expose to disruptive borrowings, there is hardly any possible change in interest rates on that
portion of borrowings. With all other variables held constant, the companies profit before tax is hardly affected through
the impact on interest rate borrowings
iii) Credit Risk
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. Trade receivables
are typically unsecured and are derived from revenue earned from customers located in India. Credit risk has always
been managed by the company through continuously monitoring the creditworthiness of customers to which the
company grants credit terms in the normal course of business. Accordingly in terms of Ind AS 109, the company does not
foresee any expected credit loss.
The company has not disclosed the fair value of inventories, trade receivables, cash and cash equivalents, and trade
payables because their carrying amounts are a reasonable approximation of fair value.
The Company maintains exposure in cash and cash equivalents and term deposits with banks. The Company has
investment with a Mutual Fund which has a good track record and reputation and hence there is hardly any risk to be
reported. The Company assumes that the sensitivity of the relevant profit or loss item is the effect of the assumed
changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 March 2025
and 31 March 2024.
Trade receivables and other financial assets
Trade receivables are typically unsecured and are derived from revenue earned from customers. Other financial assets
are security deposits. Credit risk has been managed by the Company through 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 does not foresee any expected credit loss model to assess the impairment loss
or gain. The company uses a provision matrix and forward looking information and an assessment of the credit risk over
the expected life of the financial asset to compute the expected credit loss allowance for trade receivables. There are
no significant credit risks pertaining to financial assets.
iv) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an
adequate amount of committed credit facilities to meet obligations when due. Due to the dynamic nature of the
underlying businesses, company's finance team maintains flexibility in funding by maintaining availability under
committed credit lines..
21.14 There are no proceedings initiated or pending against the Company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988)
21.15 There is no any immovable property having title deeds not held in the name of the company.
21.16 Disclosure on PPE & Intangible Assets
(1) There is no restriction on the title of Property, Plant and Equipment and Property, Plant & Equipment was not pledged
against any liabilities.
(2) Company has not constructed any item in Property, Plant & equipment.
(3) Company has no contractual commitments for the acquisition of Property, Plant & Equipment.
(4) Company had written off discarded furniture during the year. Refer Note No. 3.
(5) Company has not revalued any items of Property, Plant & Equipment's during the Year
(6) Carrying amount of Property, Plant & Equipment are not retired from active use and not held for disposal.
(7) The existence and carrying amounts of intangible assets whose title is not restricted and the carrying amounts of
intangible assets are not pledged as security for liabilities
21.17 The company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related
parties during the year under review.
21.18 The company has not borrowed any money from banks or financial institutions on the security of current assets during the
year under review and hence disclosure requirement in this regard does not apply to the company.
21.19 The company has not been declared willful defaulter by any bank or financial institution or government or any government
authority or any other lender.
21.20 The company does not have any charge or satisfaction yet to be registered with the Registrar of Companies (ROC)
beyond the statutory period.
21.21 The company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act,
2013 read with Companies (Restrictions on number of Layers) Rules, 2017.
21.22 The company has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign entities
(intermediaries) with the understanding 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.
21.23 The company has not received any funds from any person(s) or entity(is), 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 to or on behalf of the Ultimate Beneficiaries.
21.24 There were no transactions relating to previously unrecorded income that have been sur-rendered and disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961
21.25 Company shall not be required to comply with Corporate Social Responsibility (CSR) as provisions of section 135 of the
Companies Act, 2013 is not applicable.
21.26 The company has not traded or invested in crypto currency or virtual currency during the financial year.
21.27 The Company has not declared any dividend to shareholders during the year.
21.28 The figures have been rounded off to the nearest rupees in Lakhs in compliance with Schedule III to Companies Act, 2013.
As per our report of even date attached For and on behalf of the Board
For L.U.Krishnan & Co Purusottamdas Patodia
Chartered Accountants Chairman
FRN 001527S (DIN 00032088)
P.K. Manoj
Partner: M.No. 207550
UDIN : 25207550BMJDIN9533
Place : Mumbai S.Udayananda Darshi Shah
Date : 29.05.2025 GM(Finance) & CFO Company Secretary & Compliance Officer
| 