3.21 Provisions, Contingent Liabilities and Contingent Assets
a) Provisions
Provisions are recognized when the Company has a present obligation (legal or constructive) where, 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 to the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, the reimbursement
is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented
in the statement of profit and loss, net of any reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when
appropriate, the risk specific to the liability. when discounting is used, the increase in the provision due to the passage of time is
recognized as a finance cost.
Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. If it is no longer probable that an
outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed.
b) Contingent liabilities and contingent assets
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non
occurrence of one or more uncertain future events beyond the control of the Company or a present obligation which is not recognized
because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in
extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. Information on
contingent liabilities is disclosed in the notes to the standalone financial statements, unless the possibility of an outflow of resources
embodying economic benefits is remote.
A contingent asset is a possible asset that arises from past events and whose existence 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. Contingent asset is not
recognized, but its existence is disclosed in the financial statements.
3.22 Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision
Maker (‘CODM’) who regularly monitors and reviews the operating results. Refer note 50 of standalone financial statements for
segment information.
3.23 Dividend on Equity Shares
The Company recognises a liability to make cash distributions to equity holders when the distribution is authorised and the distribution
is no longer at the discretion of the Company. A corresponding amount is recognised directly in other equity.
3.24 Recent Accounting Pronouncements:
The Ministry of Corporate Affairs (“MCA”) issues new standards and amendments to existing standards under the Companies
(Indian Accounting Standards) Rules, from time to time. Ind AS that has been issued but is not yet effective and are relevant to the
Company is mentioned below:
Amendments to Ind AS 1, effective from April 1, 2026, clarify the classification of liabilities as current or non-current, including
liabilities subject to covenants. The amendments specify that classification is based on rights existing at the reporting date, unaffected
by management’s expectations, and that the right to defer settlement for at least twelve months must exist and have substance as at
that date. They also require additional disclosures where liabilities are subject to covenants to be complied with after the reporting
period. Based on its assessment, the Company does not expect any material impact on the classification of its liabilities.
8.1) As at March 31, 2026, the Company has pledged 1,44,000 equity shares of Mahindra Lifespace Developers Limited,14,50,000 shares
of Transindia Real Estate Limited and 2,91,600 equity shares of The Phoenix Mills Limited( previous year 2,51,000 equity shares of
CARE Ratings Limited and 2,91,600 equity shares of The Phoenix Mills Limited) to secure the commitment of the related party viz.
Sutlej Housing Private Limited, to erstwhile landowner for its proposed project (refer note 43 and 45). During the year, the pledge of
CARE Ratings Limited shares was substituted with a pledge of Mahindra Lifespace Developers Limited and Transindia Real Estate
Limited equity shares.
8.2) As at March 31, 2026, the Company has pledged 1,00,000 equity shares of Crest Habitat Private Limited as security for the loan
availed by its associate entity, Hill View Developers, for its ongoing project (refer Note 43 and 45). During the year, the earlier loan
secured by the said pledge was repaid and a fresh loan was availed by the associate entity, against which the shares have been re¬
pledged.
8.5) During the previous year, TBOF Foods Private Limited has ceased to be an associate of the Company on dilution of Company’s stake,
effective April 17, 2024. Due to this, the investment is classified as financial asset under Ind AS 109 “ Financial instruments” and
recorded at fair value. The investment is now classified as an equity instrument measured at fair value through Other Comprehensive
Income (FVTOCI). On the date of reclassification, the fair value of the investment exceeded its carrying amount, resulting in a
gain of '3,957.61 Lakhs, which has been recognised in the Statement of Profit and Loss. Subsequent changes in fair value are being
recognised in Other Comprehensive Income.
9.1) The Company had given unsecured deposits aggregating to '15,529.75 Lakhs with certain counterparties in connection with proposed
joint development and / or arrangements during the financial years 2022-23 and 2023-24. At the time of placing the deposits, the
Company had obtained and continues to hold comprehensive security in respect of these deposits, comprising the original title
documents of certain underlying land parcels / properties as security, and in some cases pledge of shares provided by the counterparties
and a mortgage charge over the said properties. Subsequently the Company has entered into a joint venture agreement over a part
of the land parcel, thereby establishing a clear development framework for monetisation of these assets. The independent valuation
of the mortgaged properties and land parcels confirms that the aggregate realisable and development value of the security held is
adequate to cover the carrying value of the deposits in full.
Based on the mortgage charge created over the properties, the joint venture agreement, the independent valuation report confirming
the adequacy of security cover, and the pledge of shares held as collateral, the management is firmly of the opinion that the carrying
value of the deposits is fully recoverable and adjustable against future development obligations under the joint venture arrangements,
and that no additional provision for impairment is necessary .The Company is actively pursuing development and monetisation of the
underlying assets in terms of the joint venture arrangements, and expects the deposits to be fully adjusted / recovered in the ordinary
course of the development cycle.
The fair value of the Company’s investment properties has been determined by the management using either independent valuers’
reports, applicable ready reckoner rates or reference to recent market sale transactions. Accordingly, the fair value measurement has
been categorised as Level 3 in the fair value hierarchy.
12.4) The investment property of '5,594.82Lakhs (previous year ?5,594.82Lakhs) (gross carrying amount) is mortgaged by the Company
against loan availed from bank and financial institution (previous year - bank and financial institution) (refer note 18.1 and 18.5).
12.5) The title deeds of immovable properties are held in the name of the Company.
(a) Secured Term Loan from Banks:
18.1) Secured loan from bank of '3,862.75 Lakhs (previous year '3,976.52 Lakhs) is secured against mortgage charge on the office building
situated at Andheri (W), Mumbai 400058 and hypothecation of receivables from the said property, the corporate guarantee of the co¬
owner of the property and personal guarantee of a Director. The Loan is to be repaid in 180 monthly instalments, since the inception
of the loan i.e. July-2022 and having interest rate linked to their one year MCLR plus margin of 0.60%.
(b) Secured Term Loan from Financial Institutions:
18.2) Secured Loan of NIL (previous year '52.06 Lakhs) is secured against the mortgage charge on office premises of the Company situated
at Sharyans Corner, Bandra (W), Mumbai-400050 and realty work-in-progress of the Company situated 10/J, Veronica Street, Waroda
Road, Bandra (W), Mumbai-400050. The Loan is to be repaid in 120 equal monthly instalments, since the inception of the loan i.e.
February-2016 and having interest rate linked to their long term reference rate less margin offered of 7.85%.
18.3) Secured Loan of '22.83 Lakhs (previous year '83.70 Lakhs) is secured against the mortgage charge on office premises of the Company
situated at Sharyans Corner, Bandra (W), Mumbai-400050 and realty work-in-progress of the Company situated 10/J, Veronica
Street, Waroda Road, Bandra (W), Mumbai-400050, flat no. 401, Sharyans Corner, Bandra (W), Mumbai-400050 owned by the
holding company. The Loan is to be repaid in 100 equal monthly instalments, since the inception of the loan i.e. January-2018 and
having interest rate linked to their long term reference rate less margin offered of 7.85%.
18.4) Secured Loan of '561.28 Lakhs (previous year '611.77 Lakhs) is secured against the mortgage charge on office premises of the
Company situated at Sharyans Corner, Bandra (W), Mumbai-400050, realty work-in-progress of the Company situated 10/J, Veronica
Street, Waroda Road, Bandra (W), Mumbai-400050 and flat no. 401, Sharyans Corner, Bandra (W), Mumbai-400050 owned by the
holding company. The Loan is to be repaid in 120 equal monthly instalments, since the inception of the loan i.e. October-2021 and
having interest rate linked to their long term reference rate less margin offered of 7.85%.
18.5) Secured Loan of '1,278.12 Lakhs (previous year '1,385.17 Lakhs) is secured against the mortgage charge on residential property
owned by the Company at One Crest Apartment, Door No 33/114 Nungambakkam High Road,Chennai-600034 and at Crest Tower,
Phoenix Market City, Door No. 142, Velachery Main Road,Chennai-600042, office premises of the Company situated at Sharyans
Corner, Bandra (W), Mumbai-400050, realty work-in-progress of the Company situated 10/J, Veronica Street, Waroda Road, Bandra
(W), Mumbai-400050 and flat no. 401, Sharyans Corner, Bandra (W), Mumbai-400050 owned by the holding company. The Loan
is to be repaid in 120 equal monthly instalments, since the inception of the loan i.e. October-2023 and having interest rate linked to
their long term reference rate less margin offered of 10.10%.
18.6) Secured Loan of '4,134.66 Lakhs (previous year NIL) is secured against the mortgage charge on realty finished good of the Company
situated at Link Road, Khar (W) and hypothecation of receivables from the said property. The Loan is to be repaid in 156 equal
monthly instalments having interest rate linked to their long term reference rate less margin offered of 8.50%.
18.7) Secured Loan of NIL (previous year '731.38 Lakhs) is secured against mortgage charge on development rights of realty work in
progress of the Company at 14th Road, Khar(W), Mumbai (“the Project”) and hypothecation of the Project receivables, Project
collection account and moveable assets of the Project, cross-collaterization of cashflow of associate entity personal guarantee of the
Director and corporate guarantee of two of the Promoter group entities. The Loan is to be repaid as defined in repayment schedule
during the period of 3 years from first disbursement of the loan i.e. February-2024 and having fixed interest rate of 13.20%.
18.8) Secured loan of ' 147.10 Lakhs (previous year NIL) is secured against hypothecation of vehicles purchased thereof. The vehicle loan
is for a term of 5 years, to be repaid in equal monthly instalments and having interest rate of 8.00% p.a.
18.9) Secured loan of '109.93 Lakhs (previous year NIL) is secured against hypothecation of vehicles purchased thereof. The vehicle loan
is for a term of 5 years, to be repaid in equal monthly instalments and having interest rate of 8.30% p.a.
18.10) Secured loan of '82.00 Lakhs (previous year NIL) is secured against hypothecation of vehicles purchased thereof. The vehicle loan
is for a term of 5 years, to be repaid in equal monthly instalments and having interest rate of 8.00% p.a.
(c) Unsecured Term Loan from Financial Institutions:
18.11) Unsecured Loan of NIL (previous year '14.72 Lakhs) secured against the mortgage charge on flat no. 401, Sharyans Corner, Bandra
(W), Mumbai-400050 owned by the holding company. The Loan is to be repaid in equal monthly instalments for the period of 120
months since the inception of the loan i.e. February-2016 and having interest rate linked to their long term reference rate less margin
offered of 7.85%.
24.5) Shares held under Employee Welfare Trust:
Crest - Employees Stock Option Plan 2022 (“ESOP”) has been approved by the Board of Directors of the Company at its meeting held
on July 23, 2022 and by the shareholders at their Fortieth Annual General Meeting of the Company held on September 24, 2022. The
Scheme is in line with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 “SBEB Regulations”.
ESOP is the primary arrangement under which shared plan service incentives are provided to certain specified employees of the
Company, its Holding Company, Subsidiary Companies, Associate Companies and Group Companies. For the purpose of the scheme,
the Company purchases equity shares from the open market under Employee Welfare Trust (“EWT”). The Company treats EWT as
its extension and shares held by EWT are treated as treasury shares.
For the details of shares reserved for issue under the Employee Stock Option Plan (ESOP) of the Company refer note 36.
24.6) Rights of equity shareholders:
The Company has only one class of equity shares having a par value of '10 each. Each holder of equity shares is entitled to one vote
per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual
General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets
of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares
held by the shareholders.
24.7) Authorised preference capital:
The Company has 9,00,000 authorised 5% optionally convertible preference shares of '100 each amounting to '900 Lakhs as on
March 31, 2026 ( '900 Lakhs in March 31, 2025) and 12,00,000 authorised 3% Cumulative Redeemable Preference shares of '100
each amounting to '1,200 Lakhs as on March 31, 2026 ( '1,200 Lakhs in March 31, 2025).
Nature and purpose of Reserves:
General Reserve
The General Reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As General Reserve is
created by a transfer from one component of equity to another and is not an item of other comprehensive income. Items included in the
General Reserve will not be reclassified subsequently to the statement of profit and loss.
Securities Premium
Securities Premium is used to record the premium received on issue of shares. The reserve is utilised in accordance with the provision of the
Companies Act, 2013.
Statutory Reserve u/s. 45-IC of the RBI Act, 1934
Statutory reserve u/s. 45-IC of the RBI Act, 1934 represents the reserve created pursuant to the Reserve Bank of India Act, 1934 (the “RBI
Act”) and related regulations. Under the RBI Act, a non-banking financial company is required to transfer an amount not less than 20%
of its net profit to a reserve fund before declaring any dividend. Appropriation from this reserve fund is permitted only for the purposes
specified by the RBI.
Retained Earnings
Retained earnings represents profits that the Company earned till date, less any transfers to General Reserve, Statutory Reserves, Dividends
and other distributions paid to the shareholders.
Equity Settled Share Based Payment Reserve
Equity Settled Share Based Payment Reserve is created as required by Ind AS 102 ‘Share Based Payments’ on the Employee Stock Option
Scheme operated by the Company for certain specified employees of the Company, its Holding Company, Subsidiary Companies, Associate
Companies and Group Companies. The fair value of employee stock options is transferred to General Reserve once the shares have been
allotted on exercise of the options.
Treasury Shares
Treasury shares represent a Company’s own equity that has been purchased from open market and held by Crest- Employee Welfare Trust.
Other Comprehensive Income
(a) Remeasurement of Post Retirement Benefit Obligation
Remeasurement of gains and losses related to both defined benefit obligations and fair value of plan assets arising from experience adjustments
and changes in actuarial assumptions are recognized in equity in Other Comprehensive Income in the period in which they arise.
(b) Equity Instruments Through Other Comprehensive Income
The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income.
These changes are accumulated within the FVTOCI equity investments reserve within equity. The Company transfers amounts from this
reserve to retained earnings when the relevant equity securities are derecognised.
g. Above includes a contribution of '87.22 Lakhs (previous: '31.50 Lakhs) to related party-
(i) EVE Foundation, a charitable trust registered under the Bombay Public Trusts Act, 1950. The objective of EVE Foundation
includes promoting healthcare including preventive healthcare, promoting education, livelihood enhancement among the
neo-literate youth from challenged backgrounds.
(ii) Art Cornerstone Foundation, registered under section 8 of the Companies Act,2013, for Protection of national heritage, art
and culture including restoration of buildings and sites of historical importance and works of art; setting up public libraries,
promotion and development of traditional arts and handicrafts.
36 Share Based Payments:
The Company has setup Crest - Employee Welfare Trust (“CEWT”) for implementing Crest-Employee Option Plan 2022 (“ESOP).
The Company purchases equity shares from the open market under CEWT and issues them to the eligible employees as per the
recommendations of the Nomination and Remuneration Committee (NRC) to the employees of the Company, its Holding Company,
Subsidiary Companies, Associate Companies and Group Companies.
Under the ESOP 2022 scheme, the Company has granted stock options at an exercise price of '200 per share. The scheme is
administered through CEWT and accounted for as equity-settled share-based payments in accordance with Ind AS 102 - Share-
based Payment. The fair value of options granted is determined using the Black-Scholes valuation model and is recognised as an
employee benefits expense over the vesting period.
The expected volatility is based on the historical volatility of the Company’s share price and comparable peer companies. The risk-free
interest rate is based on government bond yields for the corresponding maturity.
During the year ended March 31 2026, the Company recognised share based payment expense of ' 262.45 lakh (Previous year: '25.00
Lakhs) in relation to equity-settled share-based payment arrangements. In respect of options granted to employees of the holding
company and subsidiary of the holding company, the amount of ' 65.71 Lakhs(Previous year: '4.78 Lakhs) has been recognised as
receivable from the respective entities.
37 As per the Ind AS 19 “Employee benefits”, the disclosures as defined in the Standard are given below :
(a) Defined contribution plan
The Company makes contribution determined as a specified percentage of employee salaries, in respect of qualifying employees towards
Provident Fund and Employees’ State Insurance Scheme which are defined contribution plan. The Company has no obligations other
than the said funds to make the specified contributions. The contributions are charged to the statement of profit and loss as they
accrue. The amount recognised as an expense towards contribution to Provident Fund and Employees’ State Insurance Scheme for
the year is as under :
(b) Defined benefit plan
The Company offers its employee’s defined-benefit plan in the form of a gratuity scheme. Benefits under the defined benefit plans are
typically based on years of service and the employee’s compensation (immediately before retirement). The gratuity scheme covers all
regular employees of the Company.
The Company’s liabilities under the Code on Social Security, 2020 which is effective from November 21, 2025 are determined on
the basis of actuarial valuation made at the end of each financial year using the projected unit credit method. Gratuity scheme is non
funded and provision as per the Ind AS 19 has been made in the standalone financial statements. The plan is of a final salary defined
benefit in nature which is sponsored by the Company and hence it underwrites all the risks pertaining to the plan. The actuarial risks
associated are:
(i) Investment or Interest Risk
Since the scheme is unfunded the Company is not exposed to Investment or Interest risk.
(ii) Longevity Risk
The Company is not exposed to risk of the employees living longer as the benefit under the scheme ceases on the employee separating
from the employer for any reason.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or
most advantageous) market at the measurement date under current market conditions, regardless of whether that price is directly
observable or estimated using a valuation technique. The Financial Instruments are measured subsequent to initial recognition at fair
value, grouped into Level 1 to Level 3, as described below:
Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities;
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly (i.e. as
price) or indirectly (i.e. derived from prices).
Level 3: Inputs for assets and liabilities that are not based on observable market data (unobservable inputs).
Methodology:
(i) The management assessed that fair value of cash and cash equivalents, other bank balances, trade receivables, trade payables,
and other financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these
instruments.
(ii) The fair values of the equity investment which are quoted, are derived from quoted market prices in active markets.
(iii) The fair values of investments held under FVTPL have been determined under level 1, level 2 and level 3 wherever applicable.
(iv) Remaining financial assets and liabilities are stated at carrying value which is approximately equal to their fair value.
(c) Derivative Financial Instruments
The Company has not entered into any derivative financial contracts during the current and previous financial year.
49 Financial Risk Management
The Company has exposure to the following risks arising from financial instruments:
(i) Credit risk;
(ii) Liquidity risk; and
(iii) Market risk (including currency risk and interest rate risk)
The Company has a Board approved risk management framework which not only covers the market risks but also other risks associated
with the financial assets and liabilities such as interest rate risks and credit risks. This framework is driven by the Board through the
Audit Committee, Risk Management Committee and the Asset Liability Management Committee. Risk Management Committee
inter alia is responsible for identifying, reviewing, monitoring and taking measures for risk profile and for risk measurement system of
the Company.
(a) Credit Risk
Credit Risk refers to risk that a counter party will default on its contractual obligations resulting in financial loss to the Company.
Credit risk arises primarily from financial assets such as trade receivables, investments, other balances with banks, loans and other
receivables.
The Company has a comprehensive framework for monitoring credit quality of all loans on days past due. The customer repayment
and portfolio is tracked regularly and required steps for recovery are taken through follow ups and legal recourse. For customer
concentration risk kindly refer note 53(t).
Credit Quality of Financial Assets
i) Loans
The following table sets out information about credit quality of loans and investments measured at amortized cost primarily based on
days past due information. The amount represents gross carrying amount.
The Company calculates impairment on loans as per ECL approach prescribed under Ind AS 109 ‘Financial Instruments’. ECL
uses three main components: PD (probability of default), LGD (loss given default) and EAD (exposure at default) along with an
adjustment considering forward macro economic conditions. For further details of computation of ECL please refer to material
accounting policies note no 3.5.
(ii) Trade Receivables
The Company extends credit to customers in normal course of business. All trade receivables are reviewed and assessed for default
on an individual basis. Historical experience of collecting receivables of the Company is supported by low level of past default and
security deposits from its customers, hence the credit risk is perceived to be low.
As per simplified approach, the Company makes provision of expected credit losses on trade receivables using a provision matrix to
mitigate the risk of default payments and makes appropriate provision at each reporting date wherever outstanding is for longer period
and involves higher risk. Credit risk arising from trade receivables are reviewed periodically.
Cash and Cash equivalents, bank balances and other financial assets:
The Company maintains exposure in cash and cash equivalents and deposits with banks. Cash and cash equivalents and bank
deposits are held with high rated banks/financial institutions and short term in nature, therefore credit risk is perceived to be low.
Short term, highly liquid investments in mutual fund units are carried at fair value through profit and loss and the Company does not
have significant concentration of credit risk.
Deposits have been considered to enjoy low credit risk as they meet the following criteria:
- they have a low risk of default, and
- the Company expects, in the longer term, that adverse changes in economic and business conditions might, but will not necessarily,
reduce the ability of the counterparty to fulfil its obligations.
Financial guarantees
The Company has given guarantee/corporate guarantees/ put option of ' 11,695.00 Lakhs(previous year '11,695.00 Lakhs) loan/
bank guarantee/ put option outstanding '11,231.2 Lakhs (previous year '8,637.60 Lakhs) in favour of other entities.
(b) Liquidity Risk
Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has established Asset and Liability
Management Committee (ALCO) for the management of the Company’s short, medium and long-term funding and liquidity
management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve
borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial
assets and liabilities.
(c) Market Risk
Market risk is the risk that the fair value of future cash flow of financial instruments will fluctuate due to changes in the market
variables such as interest rates, foreign exchange rates and equity prices. The Company do not have any exposure to foreign exchange
as on balance sheet date.
Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s major
borrowings (other than debt securities) with floating interest rates. Loans given by the Company are at fixed rate.
Interest rate sensitivity analysis:
The following table provides a break-up of the Company’s fixed and floating rate borrowings:
If interest rates had been 50 basis points higher/lower and all other variables were held constant, the Company’s profit before tax
for the year ended March 31, 2026 would decrease / increase by '34.90 Lakhs (for the year ended March 31, 2025 would decrease /
increase by '12.06 Lakhs). This is mainly attributable to the Company’s exposure to interest rates on its variable rate borrowings.
Equity Price Risk
Equity price risk is related to the change in market reference price of the instruments in quoted and unquoted securities. In general,
these securities are not held for trading purposes.
Equity Price Sensitivity analysis
The fair value of equity instruments other than investment in subsidiaries, associates and Joint Venture as at March 31, 2026 and
March 31, 2025 '18,614.74 Lakhs and '14,398.60 Lakhs respectively. A 2% change in price of equity instruments held as at March
31, 2026 and March 31, 2025 would result in:
50 Segment Reporting
The Company has presented Segment information on the basis of the consolidated financial statements as permitted by Indian
Accounting Standard 108 “Operating Segments”.
The Company is not reliant on revenues from transactions with any single external customer and does not receive 10% or more of its
revenues from transactions with any single external customer.
51 Events after reporting date
There have been no events after the reporting date that require adjustment/disclosure in these standalone financial statements.
58 Following are the additional disclosures required as per Schedule III to the Companies Act, 2013:
a. As per Section 248 of the Companies Act, 2013, there are no balances outstanding with struck off companies.
b. The Company has complied with the number of layers prescribed under clause (87) of Section 2 of the Act read with Companies
(Restriction on number of Layers) Rules, 2017.
c. During the financial year ended March 31, 2026, other than the transactions undertaken in the normal course of business and
in accordance with extant regulatory guidelines as applicable:
No funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either
from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or
entity, including foreign entity (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that
the Intermediary shall, whether, 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 provide any guarantee, security or the like on behalf
of the Ultimate Beneficiaries.
No funds (which are material either individually or in the aggregate) have been received by the Company from any person or
entity, including foreign entity (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the
Company shall, whether, 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 provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.
d. The Company does not have any transactions 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). Also, there are no previously unrecorded income and related assets that have been
properly recorded in the books of account during the year.
e. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
f. The Company does not have any Capital Work in Progress (CWIP) and Intangible asset under development.
g. The Company has not revalued its Property, Plant and Equipment and Intangible Assets during the year as well as in previous
financial year.
h. No proceedings are initiated or pending against the Company for holding benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988).
i. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
j. The Company has utilised all the borrowings for the purpose for which they have been borrowed.
59 The Company had previously placed a deposit of '2,800.00 lakhs, recoverable and/or adjustable in accordance with the terms of the
agreement executed. During the year, the said deposit has been refunded and interest income of '1,423.05 lakhs, accrued from the
date of the initial deposit, has also been received and duly accounted for.
60 The Board of Directors, at their meeting held on December 18, 2025, approved a Scheme of Arrangement (“Scheme”) under
Sections 230 to 232 and other applicable provisions of the Companies Act, 2013, between Crest Ventures Limited (“the Company”
or “Demerged Company”) and Crest Capital and Investment Limited (“Resulting Company”), and their respective shareholders and
creditors.
The Scheme provides for the demerger of the Demerged Undertaking of the Company into the Resulting Company on a going-
concern basis, on an “as is where is” basis, subject to applicable regulatory and statutory approvals. Upon the Scheme becoming
effective, the Resulting Company shall issue equity shares to the eligible shareholders of the demerged Company in accordance with
the share entitlement ratio as specified in the Scheme.
Pursuant to the Board approval, the Scheme has been filed with the concerned Stock Exchanges. Pending the requiste regulatory and
statutory authorities approval, no impact is given in the Standalone Financial Statement for the year ended March 31, 2026.
61 As required under the Companies (Audit and Auditors) Amendment Rules, 2021, read with sub-section 3 of Section 143 of the
Companies Act, 2013, the Company has used accounting software for maintaining its books of account for the financial year ended
March 31, 2026 which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all
relevant transactions recorded in the software. Further, the audit trail records have been preserved by the Company in accordance
with the applicable statutory requirements relating to the retention of books of account.
62 Previous year’s figures have been regrouped and reclassified, wherever considered necessary, to correspond with current year’s
classification and disclosure.
|