The investment properties comprises flats and have been classified based on expected usage. The company intends to held investment properties for the purpose of lease rental or for the purpose of capital appreciation.
The investment properties have been classified based on conveyance deed executed in favour of company/ possession taken but conveyance deed is pending to be executed. The investment properties for 10 no. of properties having gross value of Rs 663.32 Lacs have been classified based on conveyance deed executed in favour of company. The investment properties for 1 no. of properties having gross value of Rs 54.57 Lacs have been classified based on possession taken and agreement to sell executed but conveyance deed is pending to be executed.
The fair value of investment properties of company have been arrived at on the basis of valuation report taken from independent IBBI approved valuer as defined under Rule 2 of Companies ( Registered Valuers and Valuation Rule 2017). All company's investment properties are located in India and have been categorised as level 2.
Note 6.1
Security deposit - Considered Good Includes Rs 404.72 Lacs (March'22 Rs 367.92 lacs) (Net of Ind AS adjustment) given to related party namely Despecto Realtors India Pvt. Ltd,Rs.22.48 lacs (March'22 Rs 27.20 lacs) (Net of Ind AS adjustment) related to Pushp Products Private Limited & Rs.0.90 Lacs (March'22 Rs 0.90 lacs) related to Mrs.Gyanwati Misra.
15.4 The Company has not alloted any fully paid up equity shares pursuant to contracts without payment being received in cash during the period of five years immediately preceeding the balance sheet date.
15.5 Details of Dividend paid and proposed during the year ended 31.03.2023 are as under:
Dividend declared & paid during the year Year Ended 31.03.2023 Year Ended 31.03.2022
Final Dividend for the year ended 31.03.2022 (PY-31-03-2021) - 69.37
Final Dividend recommended by Board of Directors for year ended 31.03.2023 Rs Nil ( PY Rs Nil Per Share) subject to approval of shareholders in ensuing AGM.
Proposed Dividend on Equity Shares are subject to approval of shareholders in AGM and are not recognised as liability as at reporting date.
Nature and Purposes of Reserves:
a) - Securities Premium: Securities premium is used to record premium on issue of shares i.e. amount received in excess of face value of
share. The reserve can be utilised only for limited purpose in accordance with the provisions of Companies Act, 2013.
b) - General Reserve: The General Reserve is a free reserve which is used from time to time to transfer profit from/ to retained earning for
approprite purpose. As the general reserve is created by transfer from one component of equity to another and is not an item of other comprehensive income , items including in general reserve will not be re-clasified subsequently to statement of profit and loss
c) - Retained Earnings : This Represents undistributed earnings accumulated by the Company as at Balance Sheet date.
Details of Security:
**The above credit facilities is secured by way of:-
a) HDFC Bank Limited
"i) Fund Based Working Capital limit from HDFC Bank are secured by way of First Pari Passu charge by way of hypothecation of book debt, bills whether documentary or clean, outstanding monies, receivables both present & future and also cash margin of bank guarantee in the form of FDR with lien of HDFC bank and also equitable mortagage of property held by third party M/s Despecto realtors India Private Limited having its Address of Plot No 12, Sector 126, Gautam Budh Nagar, Noida Uttar Pradesh - 201309. The fund based working capital limits are also secured by way of unconditional & irrevocable personal / Corporate Guarantee of Mr. Pradeep Misra & M/s Despecto realtors India Private Limited. "
b) Kotak Mahindra Bank Limited
i) Equitable Mortagae on Investment property owned having its Address Flat No.H/10/04, 10th floor Block H, Clebrity Greens, GH-1, Sector B, Ansal API Sushant Golf City, Sultanpur Road, Amar Shaeed Path, Lucknow Uttar Pradesh- 226030
ii) Equitable Mortagae on Investment property owned having its Address Flat No.H/GF/04, Ground floor Block H, Clebrity Greens, GH-1, Sector B, Ansal API Sushant Golf City, Sultanpur Road, Amar Shaeed Path, Lucknow Uttar Pradesh- 226030
iii) Equitable Mortagae on Investment property owned having its Address Flat No.A/GF/01, Ground floor Block A, Clebrity Meadows, Sector -1, Ansal API Sushant Golf City, Sultanpur Road, Amar Shaeed Path, Lucknow Uttar Pradesh- 226002
iv) Equitable Mortagae on Investment property owned having its Address Flat No.A/01/01, First floor Block A, Clebrity Meadows, Sector -1, Ansal API Sushant Golf City, Sultanpur Road, Amar Shaeed Path, Lucknow Uttar Pradesh- 226002
v) Equitable Mortagae on Investment property owned having its Address Flat No.A/09/01, Ninth floor Block A, Clebrity Meadows, Sector -1, Ansal API Sushant Golf City, Sultanpur Road, Amar Shaeed Path, Lucknow Uttar Pradesh- 226002
c) Unconditional and Irrevocable Personal Guarantee of Director, Mr. Pradeep Misra.
Note 19.2 The company has availed working capital limits from bank on the security of immovable prpperties and other ( refer Note
19.1 ). The quarterly returns or statement of current assets filed by the company with bank are generally in agreement with book of
accounts.
Note- 21.2 Trade Payable inculuded due to wholly owned subsidiary company Rs.29.74 Lacs [March'2022 Rs. 64.40 Lacs]
Note- 21.3 Trade Payable due to other related parties are fully disclosed in Note No.40
The disclosure under section 22 of Micro, Small and Medium Enterprises Development Act,2006, to the extent information available with the company is as under:
Note - 34Defined Benefit Plan
The Company has funded defined benefit plan for gratuity. Every employee who has completed at least five years of service gets a gratuity on departure at 15 days of last drawn salary for each completed year of service.
The present value of the defined benefit obligation and the related current service cost were measured using the Projected Unit Credit Method with actuarial valuations being carried out at each balance sheet date.
Defined Contribution Plan
The company makes contribution towards Provident Fund to Regional fund commissioner and ESI to Employee State Insurance Corporation. The company has recognised Rs. 68.92 Lacs (P.Y. Rs.35.75 Lacs) related to employer's Contribution to Provident fund & other fund in statement of Profit & Loss
The Management assessed that carrying amount of loans, investments in subsidiaries, Trade receivables, financial assets, cash and cash equivalent, bank balances, trade payables and financial liabilities approximates their fair value largely due to short term maturities of these instruments.
Note - 36
Financial Risk Management
The company's activities expose it to a variety of financial risks:interest rate risk, credit risk and liquidity risk. The company's overall risk management strategy seeks to minimise adverse effects from the unpredictability of financial markets on the company's financial performance. These risks are managed by the Management of the company under Board of Directors of the company to minimise potential adverse effects o the financial performance of the company.
Interest rate risk
Interest rate risk primarily arises from floating rate borrowings.The loans given to wholly owned subsidiary company is interest bearing and, therefore, interest rate risk is minimised. The company has taken secured working capital facilities at variable rate ( Repo rate plus).
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. The company has made expected credit loss allowance of Rs 108.56 Lacs on its trade receivables and in its opinion such allowance is sufficient to cover any future credit risk.
Investments / Inter Corporate Loan
The company has given loan to its wholly owned subsidiary which is also interest bearing and therefore less prone to credit risk. The company has also invested in real estate properties by giving advances and are also less prone to credit risk.
Cash & cash equivalents
With respect to credit risk arising from financial assets which comprise of cash and cash equivalents, the Company s risk exposure arises from the default of the counterparty, with a maximum exposure equal to the carrying amount of these financial assets at the reporting date. Since the counter party involved is a bank, Company considers the risks of non-performance by the counterparty as non-material.
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due. The Company's
The company has secured borrowings and has adequate and sufficient liquidity as detailed above to meet any kind of exigencies. In addition, the company has recourse to recall loans given to wholly owned subsidiary company. These measures are considered by the management adquate to ensure that the company is not exposed to any kind of liquidity risk.
The company's total owned funds of Rs 10416.04 Lacs is considered adequate by the management to meet its business interest and any capital risk it may face in the future.
Note - 37 Leases
The principal portion of the lease payments and interest have been disclosed under cash flow from financing activities. The weighted average incremental borrowing rate of 10% has been applied to lease liability recognised in balance sheet at the date of initial application.'On application of IndAs 116, the nature of expense has changed from lease rent in previous periods to depreciation cost for right to use asset and finance cost for interest accured on lease liability.
Depreciation on right of use asset is Rs 81.34 Lacs and interest on lease liability for year ended 31.3.2023 is Rs.21.06 Lacs
Lease Contracts entered by the company majorly pertains to land & building taken on lease to conduct the business activities in ordinary course.
Imapct of Covid-19
The leases that the company has entered with lessors towards properties are long term in nature and no charges in terms of those leases are expected due to Covid-19.
The Company has contributed to a related party for fulfillment of CSR obligation The company have obtained utilization certificate from chartered accountant of the turst dated 24th May 2023 signifying there in that amount contributed has been utilized towards educational activities.
Note - 45
Event reported after the Balance Sheet date
The Board of Directors of the Company have not recommended any final dividend for the financial year ended 31, March'2023.
Note - 46
The Indian parliament has approved the Code of Social Security, 2020 which would impact the contribution by the company toward provident fund and gratuity. The Ministry of Labour and Employment has relesed draft rules for the Code on Social Security, 2020 on November 13, 2020. The company will asses the impact and its evaluation once the subject rules are notified. The conmpany will give appropriate impact in its financial statement in the period in which, the code become effective and the related rules to determine the financial impact are published.
(i) Details of Benami property : No proceedings have been initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition ) Act , 1988 ( 45 of 1988 ) and the rules made thereunder.
ii) No funds have been advanced/loaned/invested (from borrowed fund or from share premium or from any other sources/kind of fund) by the
company to any otherperson(s) orentity(ies), including foreign entities(intermediaries), withthe understanding (whetherrecorded in writing
or otherwise) that the intermediary shall (i) directly or indirectlylendor invest in otherperon or entities identified in anymanner whatsoeverby or on behalf of the company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or like to or on behalf of the Ultimate Beneficiaries. No funds have been received by the company from any person(s) or entity(ies), including foreign entities (funding Parties), 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.
(iii) Compliance with number of layers of Companies: The Company has complied with number of layers prescribed under the Companies Act , 2013.
(iv) Compliance with approved scheme(s) of arrangements : The Company has not entered into any scheme of arrangement which has an accounting impact on current financial year.
(v) Undisclosed Income: There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961 that has not been recorded in the books of accounts.
(vi) Details of crypto currency or virtual currency: The company has not traded or invested in crypto currency or virtual currency during the current or previous year.
(vii) Valuation of PP&E, intangible asset or investment property : The company has not revalued its property , plant and equipment ( including right-of-use assets ) or intangible assets or both during the current or previous year.
(ix) Working Capital Borrowings on security of Current Assets : The quarterly return or statement of current assets filed by the company with bank are generally in agreement with book of accounts.
(x) Registration of charges : There are no charges or satisfaction of charges which are yet to be registered / satisfied with Registrar Of Companies beyond the statutory period.
Note - 48Standards issued and amended but not effective
The Ministry of Corporate Affairs (MCA) notifies new Indian Accounting Standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 23, 2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015 by isssuing the Companies (Indian Accounting Standards) Amendment Rules, 2023 applicable from April 1,2023, as below:
IND AS 1 - Presentation of Financial Statements - The amendments requires companies to disclose their material accounting policy rather than their significant accounting policies. Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general purpose financial statements. The company does not expect this amendment to have any significant impact in its financial statement.
IND AS 12- Income Taxes - The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transaction that, on initial recognition, give raise to equal taxable and deductible temporary differences. The company is evaluating the impact, if any, in its financial statements.
Ind AS 8- Accounting Policies, Changes in Accounting Estimates and Errors - The amendments will help entities to distinguish between accounting policies and accounting estimates, The definition of a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are "monetary amounts in financial statement that are subject to measurement uncertainty". Entities develop accounting estimates if accounting policies require item in financial statement to be measured in a way that involves measurement uncertainty. The company does not expect this amendment to have any significant impact in its financial statements.
Note - 49
Previous Year figures have been re-arranged/re-grouped, wherever necessary to confirm to current year classification
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