m. Contingent liability
Contingent liabilities are disclosed in the notes, if any. Contingent liabilities are disclosed for
i. possible obligations which will be confirmed only by future events not wholly within the control of the
Company or
ii. present obligations arising from past events where it is not probable that an outflow of resources will
be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.
n. Employee benefits
Short-term obligations
Short-term employee benefits are expensed as the related service is provided. Liabilities for wages and
salaries, including non-monetary benefits that are expected to be settled wholly within one year after the
end of the period in which the employees render the related service are the end of the reporting period and
are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are
presented as current employee benefit obligations in the balance sheet.
Other long-term employee benefits obligations
The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after
the end of the period in which the employees render the related service. They are therefore measured as
the present value of expected future payments to be made in respect of services provided by employees
up to the end of the reporting period using the projected unit credit method. The benefits are discounted
using the market yields at the end of the reporting period on government bonds that have terms
approximating to the terms of the related obligation. Re-measurements as a result of experience
adjustments and changes in actuarial assumptions are recognised in profit or loss.
The company does not have an unconditional right to defer settlement for any of these obligations.
However, based on past experience, the company does not expect all employees to take the full amount
of accrued leave or require payment within the next 12 months and accordingly amounts have been
classified as current and non-current based on actuarial valuation report.
Post-employment obligations
The Company operates the following post-employment schemes:
i. defined benefit plan - gratuity; and
ii. defined contribution plans such as provident fund and superannuation fund.
Defined benefit plans
The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the
present value of the defined benefit obligation at the end of the reporting period less the fair value of
plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit
credit method. If the fair value of plan assets exceeds the present value of the defined benefit obligation
at the end of the balance sheet date, then excess is recognized as an asset to the extent that it will lead to,
for example, a reduction in future contribution to plan asset.
The present value of the defined benefit obligation is determined by discounting the estimated future
cash outflows by reference to market yields at the end of the reporting period on government bonds that
have terms approximating to the terms of the related obligation. The net interest cost is calculated by
applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan
assets. This cost is included in employee benefit expense in the statement of profit and loss.
Re-measurement gains and losses arising from experience adjustments and changes in actuarial
assumptions are recognised in the period in which they occur, directly in other comprehensive income.
They are included in retained earnings in the statement of changes in equity and in the balance sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or
curtailments are recognised immediately in profit or loss as past service cost.
Defined contribution plans
Retirement benefit in the form of provident fund and superannuation fund are defined contribution
schemes. The Company has no obligation, other than the contribution payable to the provident fund and
superannuation fund. The Company recognizes contribution payable to the provident fund and
superannuation fund as an expense, when an employee renders the related service. If the contribution
payable to the scheme for service received before the balance sheet date exceeds the contribution
already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution
already paid.
o. Financial instruments
Financial assets
Initial recognition and measurement
All financial assets are recognised initially at fair value, except for investment in subsidiaries, associates
or joint venture where the Company has availed option to recognise the same at cost in separate financial
statements.
The classification depends on the Company's business model for managing the financial asset and the
contractual terms of the cash flows. The Company classifies its financial assets in the following measurement
categories:
i. to be carried at fair value through other comprehensive income (FVOCI),
ii. to be carried at fair value through profit or loss (FVPL),
iii. to be carried at amortised cost, and
iv. to be carried at cost (investment in Subsidiaries/associates).
Subsequent measurement
For financial assets measured at fair value, gains and losses will either be recorded in profit or loss or
other comprehensive income. For investments in equity instruments, this will depend on whether the
Company has made an irrevocable election at the time of initial recognition to account for the equity
investment at fair value through other comprehensive income. Other financial assets are measured at
amortised cost, using the effective interest rate (EIR) method. Amortised 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. The
EIR amortisation is included in finance income in the statement of profit or loss.
Impairment of financial assets
The Company applies expected credit loss (ECL) model for measurement and recognition of impairment
loss financial assets that are not fair valued.
The Company follows 'simplified approach' for recognition of impairment loss allowance on Trade
receivables or contract revenue receivables; and all lease receivables resulting from transactions within
the scope of Ind AS 116. The application of simplified approach does not require the Company to track
changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each
reporting date, right from its initial recognition.
For recognition of impairment loss on other financial assets and risk exposure, the Company determines
that 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.
The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the
reporting date to the amount that is required to be recognized, is recognized under the head 'other
expenses' in the statement of profit and loss.
The Company does not have any purchased or originated credit-impaired (POCI) financial assets, i.e.,
financial assets which are credit impaired on purchase/ origination.
De-recognition of financial assets
The Company derecognizes a financial asset when -
i. 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 under Ind AS 109.
ii. it retains contractual rights to receive the cash flows of the financial asset but assumes a contractual
obligation to pay the cash flows to one or more recipients.
When the entity has neither transferred a financial asset nor retained substantially all risks and rewards of
ownership of the financial asset, the financial asset is de-recognised if the Company has not retained
control of the financial asset. Where the Company retains control of the financial asset, the asset is
continued to be recognised to extent of continuing involvement in the financial asset.
Financial liabilities
Initial recognition
All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.
Subsequent measurement
The subsequent measurement of financial liabilities depends on their classification, as described below:
Trade and other payables
These amounts represent liabilities for goods and services provided to the Company prior to the end of
financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of
recognition. Trade and other payables are presented as current liabilities unless payment is not due within
one year after the reporting period. They are recognised initially at their fair value and subsequently
measured at amortised cost using the effective interest method.
p. Earnings per share
The basic earnings per share is computed 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
Company does not have any potential equity share or warrant outstanding for the periods reported, hence
diluted earnings per share is same as basic earnings per share of the Company.
q. Segment reporting
Where a financial report contains both consolidated financial statements and separate financial
statements of the parent, segment information needs to be presented only in case of consolidated
financial statements. Accordingly, segment information has been provided only in the consolidated
financial statements.
r. Critical accounting estimates and judgements
Impairment of financial assets
The Company's management estimates the collectability of Loan receivables, Investments in associates and
Trade receivables by analysing historical payment patterns, credit-worthiness of party and current
economic trends. If the financial condition of the party deteriorates, additional allowances may be required.
Fair valuation of certain investment
Fair value of unquoted investment in Alternate Investment Fund (AIF) is not readily available. As per the
Scheme of the Fund, half-yearly valuation is provided by the Fund, after end of the reporting period, which
sometimes may not be available till approval of the Company's financial statement.
In such case the most recent valuation and other information (i.e. gain/loss) details provided by the Fund,
available till financial statement/financial results approval date, is used for calculation of fair value gain/
loss as on respective reporting date.
Income Taxes
Significant judgments are involved in determining the provision for income taxes, including amount
expected to be paid/recovered for uncertain tax positions.
Defined benefit obligation
The cost of the defined benefit plans and the present value of the defined benefit obligation are based
on actuarial valuation using the projected unit credit method. An actuarial valuation involves making
various assumptions that may differ from actual developments in the future. These include the
determination of the discount rate, future salary increases, employee turnover rate and mortality rates.
Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
The company's investment property consists of industrial land and buildings and commercial property in
India.
The company has no restrictions on the realisability of it's investment property and no contractual obligation
to purchase, construct or develop investment properties or for repairs, maintenance and enhancements. Refer
note 5(a) below.
Note 5(a):
Out of total land in Investment property, land of about 382 square meters has been surrendered to Municipal
Corporation for road widening purpose in the year 2007. However the mode and value of consideration,
including timing of receipt is still unascertainable. The Company is entitled to TDR with an out side chance of
cash compensation, and such this will be included in accounts when finally decided.
Note 7(a):
In the previous year 2013-14, the Company had converted one portion of land and certain land development
rights (TDR) costing ' 0.14 lakhs, from fixed asset (i.e. PPE) into stock-in-trade after revaluing the assets at
an amount of ' 1,441.67 lakhs; i.e. at fair value of the assets converted into stock-in-trade as on 23.10.2013
(date of conversion), ascertained by independent government approved valuer. The revaluation gain of
' 1,441.53 lakhs was credited to capital reserves in the same year. During previous years 2019-20 and 2020-21
the company sold the TDR including TDR received in 2019-20 and accordingly the proportionate revaluation
gain of ' 309.76 lakhs and ' 230.63 lakhs was transferred to Profit and Loss account in years 2019-20 and
2020-21 respectively.
The Company is developing this land for constructing residential/commercial complex in project name" GREEN
VILLE", and expenditure of ' 542.61 lakhs (31-Mar-2024: ' 542.61 lakhs) till balance sheet date, incurred in this
regard is carried forward as 'Stock in trade - Other development' in Inventory. This “GREEN VILLE” project
is taking longer than normal operating cycle of 3 to 8 years for a real estate development project. As the
matter concerning applicability of repealed Urban Land ceiling (ULC) Act awaits clarity from Government. The
Company is pursuing this matter but it is not expected to realise this inventory within next 12 months from this
balance sheet date. However being an inventory item, the same has been classified as current asset.
Note 10(c): Nature and purpose of reserves
(i) Securities premium:
Securities premium reserve is used to record premium on issue of shares. The reserve is utilised in accordance
with the provisions of the Companies Act, 2013.
(ii) General reserve:
General reserve are portion of the accumulated earnings of a company, which are kept aside to meet any
business purpose or future (known or unknown) obligations.
(iii) Capital reserve:
Capital reserve comprises of :
i) ' 5.86 lakhs on reissue of forfeited shares
ii) ' 901.14 lakhs (31-Mar-2024: ' 901.14 lakhs ) on revaluation and conversion of land as stock in trade [refer
note 7(a)].
iii) ' 135.15 lakhs (31-Mar-2024: ' 135.15 lakhs ) on merger of wholly owned subsidiary as per scheme approved
by NCLT.
(iv) Retained earnings:
Retained earnings comprises of the Company's undistributed earnings after taxes.
(v) FVOCI equity instrument reserve:
The fair value changes of certain investments in equity instruments, designated as 'fair value changes through
other comprehensive income', is recognised in reserves under FVOCI equity instruments reserve.
(i) Leave obligations -
The leave obligation covers the Company's liability for accumulated leaves that can be encashed
or availed. The company does not have an unconditional right to defer settlement for any of these
obligations. However, based on past experience, the company does not expect all employees to take the
full amount of accrued leave or require payment within the next 12 months and accordingly amounts have
been classified as current and non current based on actuarial valuation report.
(ii) Defined benefit plans:
a Gratuity - The Company provides for gratuity for employees as per the terms of employment. Employees
who are in continuous service at least for a period of 5 years are eligible for gratuity. The amount of
gratuity payable on retirement/termination is calculated at the last drawn monthly basic salary
multiplied by 15 days salary for each completed years of service of the employee. The scheme is
funded with Life Insurance Corporation of India (LIC).
In addition, employees who have completed 20 years of service are eligible to additional gratuity
computed at last drawn monthly basic salary multiplied by 7 days salary for each completed years of
service of the employee. The additional gratuity benefit is unfunded.
The net liability disclosed above relates to unfunded plan. The Company has no legal obligation to settle
the deficit in the unfunded plans with an immediate contribution or additional contribution. The Company
intends to contribute in line with the recommendations of the fund administrator and the actuary.
ab As at 31-Mar-2025 and 31-Mar- 2024, plan assets were invested in funds managed by insurer (LIC).
ac Through its defined benefit plans, the group is exposed to number of risks, the most significant of which
are detailed below:
Asset Volatility: The Plan liabilities are calculated using a discount rate set with reference to government
bond yields. If plan assets underperform, this yield will create a deficit. The plan asset investments are in
funds managed by insurer. These are subject to interest rate risk.
Changes in bond yield: A decrease in government bond yields will increase plan liabilities, although this
may be partially offset by an increase in the returns from plan asset.
b Defined benefit liability and employer contributions:
ba The Company ensures that the investment positions are managed within an asset-liability matching
(ALM) framework that has been developed to achieve long-term investments that are in line with the
obligations under the employee benefit plans. Within the framework, the Company's ALM objective is to
match assets to the gratuity obligations by investing in funds with LIC in the form of a qualifying insurance
policy. The Company actively monitors how the duration and the expected yield of the investments
are matching the expected cash outflows arising from the employee benefit obligations. The Company
has not changed the process used to manage its risks from previous periods.
bb The Company expects to contribute ' 0.70 lakhs to the defined benefit plan during the next annual
reporting period.
c) Valuation technique used to determine fair value
Level 1: This hierarchy includes financial instruments measured using quoted prices. This includes listed equity
instruments and mutual funds that have quoted price. The fair value of all equity instruments which are traded
in the stock exchange is valued using the closing price as at the reporting period. The fair value of all mutual
funds are arrived at by using closing Net Asset Value published by the respective mutual fund houses.
Level 2: Fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximize the use of observable market data and rely as little as possible on entity-specific
estimates. If all significant inputs required to fair value an instrument as observable, the instrument is included
in level 2.
Level 3: If one or more of the significant inputs is not based on observable data, the instrument is included in
level 3. This is the case for unlisted equity securities.
d) As per Ind AS 107 "Financial Instrument: Disclosure", fair value disclosures are not required when the carrying
amounts reasonably approximate the fair value. Accordingly fair value disclosures have not been made for the
following financial instruments:-
1. Trade receivables
2. Loans
3. Cash and cash equivalent
4. Other bank balances
5. Unbilled Revenue
6. Security deposits
7. Trade payables
8. Other financial liability
Note 22:-FINANCIAL RISK MANAGEMENT
The Company's business activities are exposed to a variety of financial risks, namely liquidity risk, market risks
and credit risk. The Company's senior management has the overall responsibility for establishing and governing
the Company's risk management framework. The Company's risk management policies are established to
identify and analyze the risks faced by the Company, to set and monitor appropriate risk limits and controls,
periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key
risks and mitigating actions are also placed before the Audit Committee of the Company.
a. MANAGEMENT OF CREDIT RISK
Credit risk is the risk that a counterparty will not meet its obligations under a contract, leading to a financial
loss. The Company is exposed to credit risk from its operating activities and from its investing activities,
including loans, deposits with banks and other financial instruments.
i) Trade Receivables
Trade receivables are generally unsecured. Customer credit risk has always been managed by the
company through credit approvals, establishing credit limits and continuously monitoring the credit
worthiness of customers to which the Company grants credit terms in the normal course of business.
For real estate project the Company's average execution cycle ranges from 12 to 36 months based on the
nature of project. The company's credit period generally ranges from 15-60 days.
The Company follows 'simplified approach' for recognition of impairment loss allowance on Trade
receivables, as explained in note 2(o).
During the period, the Company made certain write-offs of trade receivables. It does not expect to receive
future cash flows or recoveries from receivables previously written off.
ii) Other financial assets:-
The Company maintains exposure in cash and cash equivalents, loans and investment in group companies,
investments in money market, mutual funds etc. Investments of surplus funds are made only with approved
counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are
reviewed by the Company on an annual basis, and may be updated throughout the year. The limits are
set to minimise the concentration of risks and therefore mitigate financial loss through counterparty's
potential failure to make payments.
Other financial assets that are potentially subject to credit risk consists of inter corporate loans. The
company assesses the recoverability from these financial assets on regular basis. Factors such as business
and financial performance of counterparty, their ability to repay, regulatory changes and overall economic
conditions are considered to assess future recoverability. The company charges interest on such loans
is at arms length rate considering counterparty's credit rating. Based on the assessment performed, the
company considers all the outstanding balances of such financial assets to be recoverable as on balance
sheet date and no provision for impairment is considered necessary.
The Company's maximum exposure to credit risk is the carrying value of each class of financial
assets.
iii) Financial Guarantee given:
The Company has given a corporate financial guarantee to banks on behalf of AMJ Land Developers
(the "Subsidiary Entity") for credit facility of 15 crores (31-Mar-24: 15 crores). The credit facility of the
Subsidiary Entity is for the period up to repayment of loan.
As per Ind AS 109, the Company is required to recognise financial guarantee commission income and
financial guarantee liability based on fair value of such financial guarantee. However, the Company has
not directly or indirectly received any commission or benefit by whatever name called, for providing such
guarantee. Also there is no future right to receive any benefit/ commission. As per the Management's
assessment, there would not be any change in rate of interest, commission, other charges charged by the
banks to the Subsidiary Entity on the said credit facility or in any if the terms of the credit facility, with
or without the corporate financial guarantee given by the Company. Hence based on the Management's
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 to meet
its liabilities when due without incurring unacceptable losses or risking damage to company's reputation. In
doing this, management considers both normal and stressed conditions.
Management monitors the rolling forecast 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 loan from banks .The company invests its
surplus funds in bank deposits and debt based mutual funds.
The following table shows the maturity analysis of the Company's financial liabilities based on contractually
agreed undiscounted cash flows along with its carrying value as at the Balance Sheet date.
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of fluctuation in market prices. These comprise three types of risk i.e. currency rate , interest rate and other
price related risks. Financial instruments affected by market risk include loans and borrowings, deposits and
investments.
i. ) Currency Risk and sensitivity:-
The Company does not have any currency risk as all operations are within India.
ii. ) Interest Rate Risk and Sensitivity:-
Interest rate risk is the risk that the fair value or future cash flows on a financial instrument will fluctuate
because of changes in market interest rates. The management is responsible for the monitoring of the
company's interest rate position. Various variables are considered by the management in structuring the
company's investment to achieve a reasonable competitive, cost of funding.
Exposure to interest rate risk
The exposure of the company's borrowing to interest rate changes at the end of the reporting period are as
follows:
Cash flow sensitivity analysis for variable rate instruments
The Company does not have any variable rate instrument/loan. Hence there will be no change in profit due to
change in interest rates.
iii) Price Risk and Sensitivity:
The Company is mainly exposed to the price risk due to its investment in debt mutual funds, alternative
investment fund (AIF) and investment in equity instruments carried at FVOCI. The price risk arises
due to uncertainties about the future market values of these investments. As on 31st March 2025, the
investments in debt liquid mutual funds amounts to ' 2,950.28 lakhs (31-Mar-2024: 2,555.59 lakhs),
debt mutual funds amounts to ' 65.82 lakhs (31-Mar-2024: 60.72 lakhs), alternative investment funds to
' 408.76 lakhs (31-Mar-2024: 440.40 lakhs) and the investment in equity instruments carried at FVOCI
is ' 6,168.47 lakhs (31-Mar-2024: 3,973.19 lakhs). These investments are exposed to price risk. Change
in price of debt liquid mutual funds are very minimal, hence not considered in price risk sensitivity
disclosure.
The Company has laid policies and guidelines which it adheres to in order to minimise price risk arising
from investments in debt mutual funds and alternate investment fund.
A 1% increase in prices would have led to approximately an additional ' 4.75 lakhs gain in the Statement
of profit and loss (31-Mar-2024: ' 5.01 lakhs gain). A 1% decrease in prices would have led to an equal
but opposite effect.
The company also have investment in equities of group companies. The company treats such investment
as strategic and thus fair value the investment through OCI. Thus the changes in the market price of
the securities are reflected under OCI and hence not having impact on profit and loss. The profit or loss
on sale will be considered at the time of final disposal or transfer of the investment. The investment in
associates and subsidiaries are carried at cost.
Note 23:- Capital Risk Management
(a) Risk management
The Company's policy is to maintain an adequate capital base so as to maintain creditor and market confidence
and to sustain future development. 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 monitors capital using gearing ratio, which is net debt divided by total capital plus net debt. Net
debt comprises of long term and short term borrowings less cash and bank balances and liquid investments.
Equity includes equity share capital and other equity that are managed as capital.
(a) Company as Lessee:
The Company have certain lands on operating lease term of 25 years. Full lease payment have been
in advance at the time of obtaining possession. As per Ind AS 116, the prepaid lease rent have been
reclassified to Right-of-use assets and being depreciated over lease term.
(b) Company as Lessor:
The company leases various offices, land and buildings under operating lease. On renewal, the terms of the
leases are renegotiated. Management has placed appropriate safeguard for rights the Company retains on
assets given on operating lease. Further as per indemnity clauses of the lease agreement, the Company
will be compensated for any loss resulting from whatever reason on the assets given on operating lease
other then normal wear and tear.
No proceedings has been initiated or pending against the Company for holding any benami property
under the Banami Transaction (Prohibition) Act 1988 or rules made thereunder. Hence no further disclosure
required.
Note 31: Layers of Companies
The Company is not in non compliance with number of layers of companies prescribed under clause (87) of
section 2 of the Companies Act 2013 read with the Companies (Restriction on number of layers) Rules, 2017.
Hence no further disclosure required.
Note 32: Registration of Charges
There has been no delay in registration of charges or satisfaction with ROC.
Note 33: Reclassification
Previous year figure's have been reclassified to conform to this year's classification.
The accompanying notes are integral part of the financial statements.
As per our report of date attached For and on behalf of the Board of Directors of AMJ Land Holdings Limited
For J M AGRAWAL & CO.
Firm Registration No: 100130W SUDHIR V. DUPPALIWAR A. K. JATIA
Chartered Accountants Director Chairman
PUNIT AGRAWAL CHINMAY PITRE S. K. BANSAL
Partner Company Secretary Director (Finance)&
Membership No: 148757 Chief Financial Officer
Place: Pune Place: Pune
Date: 14th May, 2025 Date: 14th May, 2025
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