b. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ('Intermediaries') with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company ('Ultimate Beneficiaries'). The Company has not received any fund from any party(s) ('Funding Party') with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
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Nature of Borrowings
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1
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Term Loan from Capri Global Capital Limited is secured by ;
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Interest Rate & Terms Of Repayment
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a. First and Exclusive Charge by way of Registered Mortgage over the Development Rights, Title, Interests of the Developer/ Borrower and all the present and future structures there upon to the extent of the Developer/Borrower's share.
b. First & Exclusive charge by the way of registered hypothecation over all the present and future cash fbws of the project including receivables from sold area, recoverable from the bank guarantee in respect of the project.
c. The said loan is further secured by assignment ofi nsurance policies of the adequate value for the project in favour of the Lender.
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1) Repayable in 48 months from the date of first disbursement including moratorium period of 24 months. Interest is 16.35% p.a (P.Y. - 16.35%). 2) Repayable in 24 months from the date of first disbursement including moratorium period of 24 months. Interest is 16.35% p.a (P.Y. - 16.35%).
3) Entire loans have been repaid during the current year.
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Term Loan from ICICI Bank
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Secured against Mortgage of Unit No 401 and 402, 4th floor, X-cube, Mumbai, property owned by Promoters and their Relatives, of the Company,
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Repayable in 176 months from the date of first disbursement. Interest 9.55%(P.Y. 9.80%)
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6% Non Cumulative Optionally Convertible Preference Shares
All other terms and conditions of the 70,00,000 6% Non Cumulative Optionally Convertible Preference Shares of FV Rs 10/- fully paid will remain the same as of the 70,00,000 9% Cumulative Optionally Convertible Preference Shares of FV Rs 10/- fully paid. The original preference shares were for a term of 20 Years from 31st March, 2008 being the date of allotment, accordingly the 70,00,000 6% Non Cumulative Optionally Convertible Preference Shares of FV Rs 10/- fully paid would mature on 31st March, 2028. The component part of compound financial instrument is classified as financial liability.
2 Working Capital Loan from Indian Oversaes Bank
Working Capital Loan from Indian Overseas Bank is repayable on demand and is secured by way of lien over Term Deposits and further Personal Guarantee of Managing /Wholetime Directors. It carries interest rate of 7.15% p.a. (Previous Year 7.71%).
3 Loans from Related Parties and Others
Unsecured Loans from Related Parties and Others carries interest @ 12%. (Previous year 12%) and are repayable on demand. The unsecured loan holders have given their consent regarding waiver of interest for Financial Year 2024-25, on their unsecured loan except for two parties for whom interest provision is made. No provision has been made for the waived interest portion.
NOTE 27
A. CAPITAL MANAGEMENT
For the purpose of Company's Capital Management, capital includes Issued Equity Capital, and Retained Earnings attributable to of the Company. The primary objective of the Company's Capital Management is to maximise the Share Holder Value.
The Company manages its capital structure and makes adjustments in the light of changes in economic conditions and requirements of the financial covenants and to continue as a going concern. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.
The Company monitors capital using a ratio of 'Net Debt' to 'Equity'. For this purpose, net debt is defined as total borrowings less Cash & Bank Balances and Other Current Investments.
B. FINANCIAL RISK MANAGEMENT
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 operations of the Company. The principal Financial Assets include Trade and Other Receivables, Investments in Mutual Funds and Cash and Short term Deposits.
The Company has assessed market risk, credit risk and liquidity risk to its financial liabilities.
i) Market Risk
Market Risk is the risk of loss of future earnings, fair values or cash flows that may result from a change in the price of a financial instrument, as a result of interest rates and other price risks. Financial instruments affected by market risks, primarily include loans & borrowings, investments and other receivables, payables and borrowings.
Interest Rate Risks
Interest rate risk can be either fair value interest rate or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rate. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.
Fair value sensitivity analysis for fixed-rate instruments
The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.
Commodity Price Risk
The Company's activities are exposed to steel and cement price risks and therefore its overall risk management program focuses on the volatile nature of the steel and cement market, thus seeking to minimize potential adverse effects on the group's financial performance on account of such volatility. The Board reviews risk management policies.
Foreign Currency Risks
Currency risk is not material, as the Company's primary business activities are within India and does not have significant exposure in foreign currency.
ii) 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 and investments in debt securities.
The carrying amount of following financial assets represents the maximum credit exposure.
Trade and Other Receivables
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. However credit risk with regards to trade receivable is almost negligible in case of its residential sale business as the same is done to the fact that in case of its residential sell business it does not handover possession till entire outstanding is received.
Investments in Debt Securities, Limited Liability Partnerships, Loans to Related Parties and Project Deposits
The Company has investments in mutual funds, limited liability partnership firms and project deposits. The settlement of such instruments is linked to the completion of the respective underlying projects. Such Financial Assets are not impaired as on the reporting date.
Cash and Bank balances
The Company holds cash and cash equivalents with banks which are having highest safety rankings and hence has a low credit risk.
iii) 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, as far as possible, 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.
Management monitors rolling forecasts of the Company's liquidity position on the basis of expected cash flows. This monitoring includes financial ratios and takes into account the accessibility of cash and cash equivalents.
The Company has access to funds from debt markets through bank loan. The Company invests its surplus funds in bank fixed deposit and debt based mutual funds.
Note 28
Fair Values and Hierarchy
This section explains the judgements and estimates made in determining the fair values of the financial instruments that are a) recognised and measured at fair value and b) measured at amortised cost and for which fair values are disclosed in the Standalone Financial Statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed in the Indian Accounting Standard.
The carrying amounts of Trade Receivables, Cash and cash Equivalents, Bank balances other than Cash and Cash Equivalents, Other Receivables, Trade Payables and Unclaimed Dividend are considered to be the same as their fair values due to the current and short-term nature of such balances.
NOTE 29
The Company has no tax liability for the year ended March 31, 2025 and March 31, 2024 and accordingly reconciliation of tax expense is not given.
(i) The Company is engaged interalia in the "Real Estate Development and Services". These in the context of Ind AS 108 " Operating Segment" are considered to constitute one single primary segment. The Company does not have any operations outside India. Hence disclosure as envisaged inthe Accounting Standard is not required. Non-reportable segments have not been disclosed as unallocated reconciling item in view of their materiality. In view of the above, primary and secondary reporting disclosures for business/geographical segment are not applicable.
d) Terms and conditions of transactions with related parties;
The transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. For the year ended 31 March 2025, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (31 March 2024: Rs. Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.
g) Commitment
(i) Uncalled amount of Rs.Nil (Previous Year: Rs 4,500 ) on Nil Units (Previous year 250 units) of Kotak India Growth Fund - Rs.Nil (Previous year Rs.11.25 Lacs)
h) During the year 2014-15, the Company had entered into a Memorandum of Understanding (MOU) with one of the vendors for Purchase of Transfer of Development Rights (TDR) to be used in the Company's upcoming projects. The Company had paid Rs. 2.28 Crores to the said vendor as advance as per the MOU. The party was unable to fulfill its commitment as envisaged in the MOU even after repeated reminders by the Company. The Company has initiated the legal process for recovering the advance paid due to the breach of contract and fraud conducted on the Company. Pending outcome of the legal process, the amount paid has been reflected under Short T erm Loans and Advances.
k) The Company did not have any material transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act ,2013 during the financial year.
l) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for hol ding any Benami property.
m) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries), other than mentioned in the financial statements, with the understanding that
n) 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
o) 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.
The Company has not any such transaction which 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
p) as, search or survey or any other relevant provisions of the Income Tax Act, 1961
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