p. Provisions; Contingent Liabilities and Contingent Assets:
Provisions
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 has been 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. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.
Contingent liabilities
Contingent liabilities are disclosed when there is a possible obligation arising from past events, 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 Company. A present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or reliable estimate of the amount cannot be made, is termed as contingent liability.
Contingent Assets:
A contingent asset is disclosed, where an inflow of economic benefits is probable.
q. Earnings per share
In determining earnings per share, the company considers the net profit after tax and includes the post-tax effect of any extraordinary items. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period.
r. Cash flow statement
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.
s. Use of Estimates
The preparation of these financial statements in conformity with the recognition and measurement principles of Ind AS requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities, disclosures relating to contingent liabilities as at the date of the financial statements and the reported amounts of income and expense for the periods presented.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and future periods are affected.
Key sources of estimation of uncertainty at the date of the financial statements, which may cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year, is in respect of impairment of investments, useful lives of property,plant and equipment, valuation of deferred tax assets, provisions and contingent liabilities.
t. Current versus non-current classification
The assets and liabilities reported in the Balance Sheet are classified on a "current/non-current basis", with separate reporting of assets held for sale and liabilities. Current assets, which include cash and cash equivalents, are assets that are intended to be realized, sold or consumed during the normal operating cycle of the Company or in the 12 months following the Balance Sheet date; Current liabilities are liabilities that are expected to be settled during the norma! operating cycle of the Company or within the 12 months following the close of the financial year.
The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. ? An asset is treated as current when it is:
? Expected to be realised or intended to be sold or consumed in normal operating cycle
? Held primarily for the purpose of trading
? Expected to be realised within twelve months after the reporting period, or
? Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period
All other assets are classified as non-current.
A liability is current when:
? It is expected to be settled in normal operating cycle
? It is held primarily for the purpose of trading
? It is due to be settled within twelve months after the reporting period, or
? There is no unconditional right to defer the settlement of the liability for at least twelve months after th< reporting period
The Company classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company has identified twelve months as its operating cycle.
u. Cost Recognition
Costs and expenses are recognised when incurred and have been classified according to their nature.
The costs of the Company are broadly categorised in purchase of goods, employee benefit expenses, finance costs, depreciation and amortisation and other operating expenses.
Employee benefit expenses include employee compensation, allowances paid, contribution to various funds and staff welfare expenses. Other operating expenses mainly include fees to its external consultants, cost of running its facilities, travel expenses, communication costs, allowances for delinquent receivables and advances and other expenses. Other expenses is an aggregation of costs which are individually not material such as commission and brokerage, recruitment and training, entertainment etc.
30. Contingent Liabilities:
a. Disputed income tax liabilities -Rs. 16.74 Lakhs (Previous Year -Rs. 16.74 Lakhs) and Service Tax Rs. 93.03 Lakhs (Previous Year -Rs. 93.03 Lakhs).
b. Contingent Liabilities as may arise due to delayed/non-compliance of certain fiscal statutes - Amount Unascertainable (Previous Year-Amount Unascertainable).
31. The Management of the Company has decided to reduce its focus of Wellness activities and concentrate on Films, Media and TV Channel business. Accordingly, it has been decided to terminate the Company's agreements with two parties to whom security deposits have been given and utilize the resources so realized for Entertainment business. Accordingly, the Company is in discussions with both the parties for the refund of the said security deposit along with interest after necessary adjustments if any as agreed mutually. The Company has not recognized interest income amounting to Rs. 5,415.80 Lakhs on the security deposit given. The Company has not provided for rentals payable to one of the Company amounting to Rs. 1,826.08 Lakhs for the premises being used in lieu of the unreceived interest income. In case of one of tire Company, provisional liquidator has been appointed. In respect of the other Company, only principal recovery is currently being done and based on conservative approach, the Company has decided to recognise the said income only on receipt basis of such income. Further, the Company also contemplates certain adjustments from the said Companies which is currently under discussion.
32. a. In the earlier years, the Company had given an interest-free Security Deposit of Rs. 1,500 Lakhs to Shree Ram Urban Infrastructure Ltd. (SRUIL) as per Memorandum of Understanding (MoU) for establishment and running of wellness centre in the upcoming project of SRUIL, as per the terms of which the Company is entitled to share revenue with SRUIL/society for a specific period. However, the Company is in discussion with the said party for refund of deposit.
b. In tire earlier years, tire Company had entered into a Revenue Sharing Agreement for occupying commercial spaces of SKM Real Infra Limited (formerly SKM Fabrics (Andheri) Ltd.) (SKM). As per the Agreement, the Company had given an interest-free Security Deposit to SKM in relation to running business of Wellness Academy, other allied activities and Films, Media and TV Channel etc. The Company had acquired larger space in the past and thus on non-usage of such larger spaces, the same was returned to SKM and certain potion of deposit was received back from SKM, The closing balance of the said deposit as on 30th June 2022 is Rs. 2,218.28 lakhs which is higher than the space occupied by the Company. The Management has evaluated that the deposit for the space occupied by the Company should be approximately Rs. 1,000 lakhs. Hence, the Company is in advanced discussion with SKM for proportionate refund i.e. Rs. 1218.28 lakhs and is hopeful for recovery in near future.
33. The Company has not carried out actuarial valuation as per the recommendations of Ind AS 15 issued by ICAI, and instead provided for Gratuity on accrual basis as per Management Estimates. The management is of the opinion that the provision created in the books is sufficient considering the number of employees & it has provided the same in current year on ad-hoc basis. Provision towards retirement benefits has been considered in the Company's books, as per the recommendations of the Indian Accounting Standard - 15, Employee Benefits given in table below: -
37. (a). Provision for current tax has been made as per tire law stated in the Income Tax Act, 1961.
(b). No Deferred Tax Assets have been recognized in the accounts by the Company in respect of brought forward losses under the Income Tax Act, 1961, keeping in view the prudence aspect.
38. Related Party Disclosure
As per Indian Accounting Standard - 24 Related Party Disclosures as prescribed under Companies (Accounting Standard) Rules, 2006, the Company's related parties and transactions are disclosed below:
i. Holding/Subsidiary: None
ii. Investing parties/promoters having significant influence on the Holding Company
directly or indirectly: None
iii. Key Management Personnel:
(a) K. R. Mahadevan- Whole Time Director& Chief Financial Officer (CFO from 20lh April
2022)
(b) Vidhi Kasliwal
(c) IshaBakre- Company Secretary and Compliance Officer -upto September 2023
(d) Jalmeen Kaur Kalsi- From 3rd January 2024
iv. Relatives of Key Management Personnel:
(a) Vikas Kasliwal
(b) Arnav Vikas Kasliwal
(c) Dhruv Vikas Kasliwal
(d) R S Kasliwal
(e) Anuradha Kasliwal
v. Enterprises over which key management personnel and their relatives exercise significant influence where the Company has entered into transactions during the year:
(a) Shree Ram Urban Infrastructure Limited
(b) K U Enterprises Pvt. Ltd.
Carrying value of all the above financial assets and financial liabilities as at March 31, 2024, and March 31, 2023 approximate the fair value because of their short-term nature. Difference between carrying amounts ad fair values of the said assets and liabilities subsequently measured at amortized cost is not significant in each of the years presented.
(b) Fair value hierarchy
This section explains the judgments and estimates made in determining tire 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 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 under the accounting standard. An explanation of each level follows underneath the table.
(c) Valuation technique used to determine fair values
The carrying amount of current financial assets and liabilities are considered to be the same as their fair values, due to Difference between carrying amounts ad fair values of the said
assets and liabilities subsequently measured at amortized cost is not significant in each of the years presented.
The fair value of security deposits and borrowings has been considered same as carrying value since there have not been any material changes in the prevailing interest rates. Impact on account of changes in interest rates, if any has been considered immaterial.
Note
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.
Level 2: The fair value of financial instruments that are not traded in an active market (for example over-the-counter derivatives) 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 are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities which are included in level.
There were no transfers between any levels during the year.
(a) Credit risk
The company is exposed to credit risk, which is the risk that counterparty will default on its contractual obligation resulting in a financial loss to the company. Credit risk arises from cash and cash equivalents and financial assets carried at amortised cost
Credit risk management
Credit risk is managed at company level depending on the policy surrounding credit risk management. For banks and financial institutions, only high rated banks/institutions are accepted. Generally, all policies surrounding credit risk have been managed at company level.
(b) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, company treasury maintains flexibility in funding by maintaining availability under committed credit lines.
Management monitors rolling forecasts of the company's liquidity position and cash and cash equivalents on the basis of expected cash flows. This is generally carried out at local level in the operation of the company in accordance with practice and limits set by the company.
Maturities of financial liabilities
The amounts disclosed in the below are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.
42. Capital Management (a) Risk Management
The company's objectives when managing capital are to safeguard the company's ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure/ the company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The Company monitors capital on basis of total equity on a periodic basis. Equity comprises all components of equity includes the fair value impact. The following table summarizes the capital of the Company:
43. Outstanding amounts payable to Micro, Small and Medium Enterprises included under Current Liabilities, as per the information available with the Company and relied upon by the Auditors - Nil (Previous Year-Nil).
44. The Management of the Company has in its previous year made a fresh issue of 0% 2,54,000 Redeemable Cumulative Preference Shares of Rs.100/- each to the same shareholders whose preference shares are due for redemption.
45. Travelling expenses include Directors' travelling expenses (foreign & domestic) of Rs. Nil (Previous Year - Rs. Nil).
46. The Company in the current year deals in only one segment i.e. Film Production and Presentation and hence there are no reportable segments during the year.
48. The Company has not traded in crypto currency or virtual currency during the year.
49. The Company is not declared a willful defaulter by any bank or financial institution or other lenders.
50. The Company has no transactions with the struck off Companies under Section 248 or 560 of the Act.
51. No proceedings were initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988.
52. There are no ultimate beneficiaries to whom the Company has lent/invested nor received any fund during the year within the meaning of Foreign Exchange Management Act 1999 and Proven lion of money Laundering Act 2002.
53. The Company has Compliance related to number of layers prescribed under clause (87) of section 2 of the Companies Act read with the Companies (Restriction on number of Layers) Rules, 2017.
54. There we no transaction in the Company 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 as, search or survey or any other relevant provisions of the Income Tax Act, 1961.
55. The Company does not have any charges or satisfaction, which is yet to be registered with Registrar of Companies beyond the statutory period.
56. The Company has not borrowed any money from any issue of securities and long-term borrowings from banks and financial institutions and hence utilization for the specific purpose for which the funds were raised is not applicable.
57. The Company not done any borrowings from banks or financial institutions on the basis of security of current assets and hence disclosure pertaining to it are not applicable to the Company.
58. The Company has given Interest free Loans to a party for amounting to Rs. 316.19 Lakhs for which term sheet and other documents are in process of regularization.
59. In terms of SEBI order dated January 20, 2022 the company its directors and CFO have deposited tire penalty imposed upon them.
60. The Company during the year has not complied with the provision of maintaining edit log as required under Companies Act.
64. Previous year's figures have been regrouped /rearranged wherever considered necessary. For and On behalf of the Board
Whole Time Director & CFO Director Independent Director
K. R, MaRadevan Vidhi K&sliwcil Jitcndi^ Chciudlicuy
DIN-07485859 DIN-00332144 DIN-09462142
(\oA?c) *2-(Ady
| 