Provisions & Contingent Liabilities
Provisions are recognized when the Company has a present legal or constructive
obligation as a result of a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
Where the effect of time value of money is material, provisions are measured at present
value using a pre-tax discount rate that reflects current market assessment of the time
value of money and risks specific to liability. The increase in the provision due to
passage of time is recognized as interest expense.
Events after Reporting date
Where events occurring after the Balance Sheet date provide evidence of conditions
that existed at the end of the reporting period, the impact of such events is adjusted
within the financial statements. Otherwise, events after the Balance Sheet date of
material size or nature are only disclosed
30. EMPLOYEE BENEFITS
The disclosures as per Indian Accounting Standards - 19, “Employee Benefits”
prescribed under the Companies (Indian Accounting Standards) Rules, 2015 are as
below:
Defined Contribution Plans
Contribution to Defined Contribution Plans, recognized as an expense for the year is
as under:
Defined Benefit Plans
The Company operates three defined benefit plans, viz., Gratuity, Leave Encashment
(Earned Leave) and Leave Encashment (Sick Leave) for its employees.
Under Gratuity Plan, every employee who has completed at least five years of service
gets a gratuity on departure @ 15 days of last drawn salary for each completed year of
service. The liability is unfunded.
Under Leave Encashment (Earned Leave) Plan, every employee who has completed
at least one year of service is eligible to get 15 earned leaves. The liability is unfunded.
Under Leave Encashment (Sick Leave) Plan, every employee who has completed at
least three months of service is eligible to get 6 sick leaves on proportionate basis in a
year. The liability is unfunded.
The estimates of future salary increase, considered in actuarial valuation, take into
account: inflation, seniority, promotion and other relevant factors such as supply and
demand in the employment market.
* Leave Encashment includes Liability for outstanding Sick Leave and Earned Leave.
The above information is certified by independent actuary and bifurcation of provision
for gratuity and leave encashment plans into current and non-current portion is
mentioned as per actuarial valuation report.
31. SEGMENT INFORMATION
The Company is primarily engaged in the business of “Property Developers and Allied
Services”, which as per Indian Accounting Standards - 108 is considered by the
management to be the only reportable business segment. The Company is primarily
operating in India, which is considered as a single geographical segment.
33. In the opinion of the management, all current assets, loans, advances and non-current
investments unless stated otherwise have a value on realization in the ordinary course
of the business at least equal to the amount at which they are stated in the books of
accounts and the provision for depreciation and for all known liabilities is adequate
and considered reasonable.
Some of the advances paid to contractors and suppliers, account of trade receivables
& payables are subject to confirmation, due reconciliation and consequential
adjustments arising there from, if any, however, the management does not expect any
material variation.
34. Information to be disclosed in accordance with Indian Accounting Standard 116
on “Leases”
During the year, the Company does not have Operating Leases Assets Given on Lease.
35. Recent pronouncements
The Ministry of Corporate Affairs has notified Companies (Indian Accounting
Standards) Amendment Rules, 2023 dated 31 March 2023 to amend the following Ind
AS which are effective for annual periods beginning on or after 1 April 2023. The
Company applied for the first-time these amendments, as below: -
Definition of Accounting Estimates - Amendments to Ind AS 8
The amendments clarify the distinction between changes in accounting estimates and
changes in accounting policies and the correction of errors. It has also been clarified
how entities use measurement techniques and inputs to develop accounting estimates.
The amendments had no impact on the Company’s standalone financial statements.
Disclosure of Accounting Policies - Amendments to Ind AS 1
The amendments aim to help entities provide accounting policy disclosures that are
more useful by replacing the requirement for entities to disclose their ‘significant’
accounting policies with a requirement to disclose their ‘material’ accounting policies
and adding guidance on how entities apply the concept of materiality in making
decisions about accounting policy disclosures.
The amendments have had an impact on the Company’s disclosures of accounting
policies, but not on the measurement, recognition or presentation of any items in the
Company’s financial statements.
Deferred Tax related to Assets and Liabilities arising from a Single Transaction
- Amendments to Ind AS 12
The amendments narrow the scope of the initial recognition exception under Ind AS
12, so that it no longer applies to transactions that give rise to equal taxable and
deductible temporary differences such as leases.
The Company previously recognized for deferred tax on leases on a net basis. As a
result of these amendments, the Company has recognized a separate deferred tax asset
in relation to its lease liabilities and a deferred tax liability in relation to its right-of-
use assets. Since, these balances qualify for offset as per the requirements of paragraph
74 of Ind AS 12, there is no impact in the balance sheet. There was also no impact on
the opening retained earnings as at 1 April 2022.
36. The Company does not have any Benami property, where any proceeding has been
initiated or pending against the Company for holding any Benami property under the
Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.
37. The Company has not been declared willful defaulter by any bank or financial
institution or other lender.
39. The Company does not have any charges or satisfaction which is yet to be registered
with ROC beyond the statutory period.
40. The Company does not have any layer of companies and hence no compliance is
required prescribed under clause (87) of section 2 of the Act read with the Companies
(Restriction on number of Layers) Rules, 2017.
41. The Company has not traded or invested in Crypto currency or Virtual Currency during
the financial year.
42. The Company has not advanced or loaned or invested funds to any other person(s) or
entity(ies), including foreign entities (Intermediaries) with the understanding that the
Intermediary shall: (a) 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 (b) provide any guarantee, security or the like to or on behalf of the
Ultimate Beneficiaries.
43. The Company elected to exercise the option permitted under section 115BAA of the
Income-tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance,
2019.
44. 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 Group shall: (a) 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 (b) provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.
45. The Company does not have 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 as, search or survey or any other
relevant provisions of the Income Tax Act, 1961).
46. The provisions of section 135 of the Act relating to Corporate Social Responsibility
are not applicable on the Company.
47. No loans or advances in the nature of loans are granted to promoters, Directors, KMPs
and the related parties (as defined under Companies Act, 2013), either severally or
jointly with any other person, that are repayable on demand or without specifying any
terms or period of repayment.
48. During the year under review, total assets of the company is 3,613.39 lakh out of which
3,561.73 (98.57% of total assets) is financial assets and gross income of the company
is 274.20 lakh out of which 269.52 (98.29% of gross income) income is from financial
assets. Therefore, as per the provisions of Section 45-IA of the Reserve Bank of India
Act, 1934 (2 of 1934) is applicable to the Company, because the company’s financial
assets constitute more than 50 per cent of the total assets and income from financial
assets constitute more than 50 per cent of the gross income. The company has not
obtained registration under the provision of Section 45-IA of the Reserve Bank of
India Act, 1934, because as per the management of the company the transaction
entered are temporary in nature and it has breached the limit specified under the
provision Section 45-IA due to certain specific transactions.
Reason for variance
1. Increase in current ratio due to increase in current assets.
2. Decrease in return on equity ratio due to decrease in profit during the year.
3. Decrease in trade receivables turnover ratio due to decrease in revenue from
operation.
4. Increase in trade payable turnover ratio due to more decrease in trade payable as
compare to other expenses.
5. Decrease in net capital turnover ratio due to decrease in revenue from operation.
6. Decrease in net profit ratio due to decrease in profit during the year.
7. Decrease in return on capital employed due to decrease in profit during the year.
8. Decrease in return on investment due to sale of investment during the year.
50. CONTINGENT LIABILITIES AND COMMITMENTS
Contingent Liabilities not provided for, in respect of:
(a) During the financial year 2011 - 2012, company had received a demand of Entry Tax
for ? 0.37 Lakhs u/s 22 of UPVAT Act, for the year 2007 - 2008, against which
rectification application has already been filed under section 31(1) under UPVAT Act,
with the Assistant Commissioner, Ward - 3, Commercial Tax, Noida, which is still
pending for disposal.
(b) During the financial year 2018-2019, the Company had received a notice bearing
reference no. LIST/COMP/537707/Reg.34-Mar18/988/2018-19 dated November 16,
2018 from BSE Ltd. (‘BSE’) regarding non-submission of Annual Report for the year
ended March 31, 2018 and levied a penalty of ? 0.38 Lakhs. The Company has
deposited said demand during the current financial year 2023-24.
(c) The Revision Order dated 31-03-2018 was issued by Principal CIT under Section 263
of the Income Tax Act, 1961 for the Assessment Year 2013-14 wherein the Assessing
Officer was directed to frame the assessment afresh as per the provisions of the Income
(d) Tax Act. The Company filed a petition before hon’ble ITAT for relief and the said
order was quashed. The Income Tax Department has filed a petition with the High
Court of Delhi against ITAT order and the matter is pending adjudication. However,
there is no outstanding demand as on date against the company.
(e) Commitments - Nil
In terms of our audit report of even date annexed
for VSD & Associates for and on behalf of the Board
Chartered Accountants
F.R.No. 008726N
Sd/- Sd/- Sd/-
(VINOD SAHNI) (NITIN ASHOK KUMAR KHANNA) (AFSANA MIROSE KHERANI)
Partner Director Director
M.No. 086666 DIN 09816597 DIN 09604693
Sd/-
(SANJANA RANI)
Company Secretary
Place: New Delhi
Date: May 10th, 2024
UDIN: 24086666BKCAM19058
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