1.01 Basis of Preparation of Financial Statements
These financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the 'Ind AS1) as
notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 ('Act') read with of the Companies (Indian Accounting
Standards) Rules, 2015 as amended and other relevant provisions of the Act.
1.02 Use of Estimate
The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on
the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual
results and estimates are recognised in the period in which the results are known/ materialised.
1.03 Revenue Recognition
Revenue from sale of services is recognized on satisfaction of performance obligation upon transfer of control of promised services to customers in an
amount that reflects the consideration the Company expects to receive in exchange for those services.
The Company does not expect to have any contracts where the period between the transfer of the promised services to the customer and payment
by the customer exceeds one year. As a consequence, itdoes not adjust any of the transact! on prices for the time value of money.
Revenue for Real Estate project
During the year under review, the Company has started two Residential Real Estate projects Viz. Anjaneshwar CHS and Guruchhaya CHS Projects for
Redevelopment of the Society. All the direct expenses pertaining to particular project has been capitalised to the particular projects and all the
indirect general expenses has been allocated to the existing running projects based on the direct expenditure incurred for the particular projects
during the year.
In accordance with the principles of Ind AS-115, revenue in respect of real estate project is recognised on satisfaction of performance obligation at a
point in time by transferring a promised good or service (i.e. an asset) to a customer and the customer obtains control of that asset.
The satisfaction of performance obligation and the control thereof is transferred from the company to the buyer upon possession or upon issuance of
letter for offer of possession ("deemed date of possession"), whichever is earlier, subject to certainty of realization.
1.04 Property, Plant and Equipment
Property, plant and equipment are stated at cost, net of recoverable taxes, trade discount and rebates less accumulated depreciation and impairment
losses, if any. Such cost includes purchase price, borrowing cost if capitalization criteria are met and any cost directly attributable to bringing the
assets to its working condition for its intended use.
1.05 Depreciation
The Company depreciates its property, plant and equipment on the Straight Une Method over the useful life in the manner prescribed in Schedule II
to the Act, and management believe that useful life of assets are same as those prescribed in Schedule II to the Act. Depreciation for assets
purchased/sold during a period is proportionately charged.
1.0G Financial Instruments
Financial instruments is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
I) Financial Assets
i) Initial Recognition and Measurement
All financial assets are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets,
which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition. Purchase and sale of financial assets are
recognised using trade date accounting.
ii) Subsequent Measurement
a Financial Assets carried at amortised cost (AC)
A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual
cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding.
b Financial assets at fair value through other comprehensive income (FVTOCI)
A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and
selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding,
c Financial assets at fair value through profit or loss (FVTPL)
Afinancial asset which is not classified in any of the above categories are measured at FVTPL
iii) Investment in subsidiaries. Associates and Joint Ventures
The Company has accounted for its investments in subsidiaries, associates and joint venture at Fair Market Value. During the Previous year, the
Company has sold 1,00,00,000 Shares of subsidiary company Zodiac Developers Private limited held as Investments at Fair Market Valuation of Rs.
1.55 per shares done by the Registered Merchant Banker to the promoter and thereby incurred Loss on sale of Investment in subsidiary amounting
to Rs. 95.00 Lakhs. Due to sale of such investments, the Company's holding in subsidiary company reduced to 42.81% from 50.98% as a result it
ceases to be a Holding Company, however, it holds the controlling Interest in subsidiary company Zodiac Developers Private Limited.
However, during the year, as per the Fair Market Valuations, the Investment in subsidiaries has been tested for an impairment and accordingly, the
Company has revalued it's Investments as per the Fair Market Valuations at Rs. 2.58 per share done by the Registered Merchant Banker and thereby the
Company has reversed the impairment made in previous years and made revaluation of Investment in subsidiaries to the extent of Rs. 4,97,80,000/- in
the previous year and the balance of Investment of 5,24,00,000Shares Investment in subsidiariy Company hold by the Company stands at Rs.
13,10,00,000/-.
iv) Other Equity Investments
The Company subsequently measures all equity investments at fair value. There are two measurement categories into which the Company classifies its
equity instruments:
♦ Investments [n equity instruments at FVTPL: Investments in equity instruments are classified as at FVTPL, unless the Company irrevocable elects on
initial recognition to present subsequent changes in fair value in other comprehensive income for equity instruments which are not held for trading.
♦ Investments in equity instruments at FVTQCI: On initial recognition, the Company can make an irrevocable election (on an instrument-by-instrument
basis) to present the subsequent changes in fair value in other comprehensive income. This election is not permitted if equity investment is held for
trading. These elected investments are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains
and losses arising from changes in fair value recognised in other comprehensive income and accumulated in the reserve for 'equity instruments through
other comprehensive income'. The cumulative gain or loss is not reclassified to Statement of Profit and Loss on disposal of the investments.
v) Impairment of financial assets
In accordance with Ind AS 109, the Company uses 'Expected Credit Loss' (ECL) model, for evaluating impairment of financial assets other than those
measured at fair value through profit and loss (FVTPL). As per the Fair Market Valuations, the Investment in subsidiaries has been tested for an
impairment in previous year and thereby the Company has made an impairment of Investment in subsidiaries to the extent of Rs. 4,97,80,000/- and the
balance Investment of 5,24,00,000 Shares Investment in subsidiariy Company hold by the Company.
Expected credit losses are measured through a loss allowance at an amount equal to:
♦The 12-months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within
12 months after the reporting date); or
♦Full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument)
For trade receivables Company applies 'simplified approach' which requires expected lifetime losses to be recognised from initial recognition of the
receivables. The Company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these
historical default rates are reviewed and changes in the forward looking estimates are analysed.
For other assets, the Company uses 12 month ECLto provide for impairment loss where there is no significant increase in credit risk. If there is significant
increase in credit risk full lifetime ECL is used.
vi) De-recognition of financial instruments
The Company derecognizes a financial asset when 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. A financial liability (or a part of a financial liability) is de-recognized from the Company's
Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires.
11} Financial Liabilities
i) Initial Recognition and Measurement
All Financial Liabilities are recognized at fair value and in case of borrowings, net of directly attributable cost. Fee of recurring nature are directly
recognized in the Statement of Profit and Loss as finance cost.
jj) Subsequent Measurement
For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short
maturity of these instruments.
1.07 Borrowing Cost
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying
asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Profit and
Loss Statement in the period in which they are incurred.
1.08 Employee Benefits
The Statutory enactments relating to payment of Provident Fund, ESIC and Gratuity to employees are not applicable tothe company. The company does
not have any scheme for retirement benefits for its employee and as such no provision towards retirement benefits to employees is considered
necessary. Short term employee benefits in the form of leave encashment and Bonus is provided on accrual basis.
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