(ii) Capital Redemption Reserve
The parent company has recognised Capital Redemption Reserve during the financial year 2021-22 and in the financial year 2019-20, as per the order passed by the Hon’ble
National Compnay Law Tribunal on account of extinguishment of shares. the equity shares of the parent compnay have been reduced from 3,31,23,913 (of face value ? 10/-
each) to 33,143 (of face value ? 10 each) and equity Share Capital reduced from ? 33,12,39,130 to ? 3,31,430/-, a total of ? 33,09,07,700/- has been transferred to Capital
Redemption Reserve.
(iii) Capital Reserve
Capital Reserve is a reserve arising on business combination under common control due to difference between carrying amount of net assets acquired and consideration paid
(as adjusted for amount recognized in retained earnings). The amount is not available for distribution to shareholders.
(iv) General Reserve
Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable
regulations. The purpose of these transfers was to ensure that if a dividend distribution in a given year is more than 10% of the paid-up capital of the Company for that year,
then the total dividend distribution is less than the total distributable results for that year. Consequent to introduction of Companies Act 2013, the requirement to mandatorily
transfer a specified percentage of the net profit to general reserve has been withdrawn. However, the amount previously transferred to the general reserve can be utilised only
in accordance with the specific requirements of Companies Act, 2013.
(v) Revaluation Reserve
On transition to Ind AS, the Company had elected to revalue its leasehold land in accordance with stipulations of Ind-AS 101 with the resultant impact being accounted for in
the revaluation reserve.
Note i
The Company has recognised its share of losses in the joint venture up to the extent of its interest in accordance with Ind AS 28 - Investments in Associates and Joint
Ventures. The interest includes the carrying amount of the investment and any other long-term interests that, in substance, form part of the Group’s net investment in the joint
venture.
Note ii
In FY 18-19 an amount of ? 5000 lacs was received on July 11,2018 from the erstwhile Resolution Applicant (RA), Formation Textiles LLC in lieu of performance bank
guarantee as part of the CIRP in terms of the process memorandum and later on November 6, 2018 the funds were transferred to a fixed deposit with Bank of Baroda.
Further on December 24, 2019 the Committee of Creditors, citing the RA’s failure to implement the Resolution Plan invoked the Performance Guarantee and forfeited the
amount by transferring the amount out of the account of the group. However, since the DevLand Housing Private Limited ('DLH' or 'parent company') has received the fund as
a conduit, the parent compnay has presented the amount forfeited by Committee of Creditor (COC) as reduction from the 5000 lacs received from erstwhile Resolution
Also an a mount of ? 500 lacs of Earnest Money Deposit given by the erstwhile Resolution Applicant as per terms of the process memorandum is shown under current
liabilities and the funds are still parked in fixed deposits with Bank of Baroda. (refer note 36).
Further the infusion of ? 3799.01 lacs by the erstwhile Resolution Applicant toward share application money are kept in escrow account with Bank of Baroda. (refer note 36).
However, the erstwhile RA has filed additional application praying the NCLT to refund ? 9299.01 Lacs deposited in the group towards the resolution plan along with interest.
The NCLT is still to hear on this additional application moved by the RA. Till the NCLT gives its verdict, the treatment given in the books of accounts for the performance bank
guarantee and EMD is subject to settlement by erstwhile RA and the CoC.
During the financial year 2018-19, an amount of ?5,000 lakhs was received on July 11, 2018, from the erstwhile Resolution Applicant, Formation Textiles LLC, towards
Performance Bank Guarantee in accordance with the terms of the Process Memorandum issued under the Corporate Insolvency Resolution Process (CIRP). The said funds
were initially placed in fixed deposit with Bank of Baroda on November 6, 2018. Subsequently, on December 24, 2019, the Committee of Creditors (CoC), citing the
Resolution Applicant’s failure to implement the approved Resolution Plan, invoked the Performance Guarantee and forfeited the amount, which was accordingly transferred
out of the Group’s accounts.
As Dev Land Housing Private Limited (“the Company”) was acting solely in the capacity of a conduit for these funds, the forfeiture has been presented as a reduction from the
amount originally received and is not recognized as income or expense in the financial statements.
Additionally, an amount of ?500 lakhs received as Earnest Money Deposit (EMD) from the same Resolution Applicant, in accordance with the Process Memorandum,
continues to be held in fixed deposit with Bank of Baroda and is presented under "Other Current Liabilities" as at the reporting date. Further, an amount of ?3,799.01 lakhs
infused by the Resolution Applicant toward share application money is maintained in an escrow account with Bank of Baroda.
The Resolution Applicant has filed an additional application before the Hon’ble National Company Law Tribunal (NCLT) seeking a refund of ?9,299.01 lakhs, along with
interest, representing the cumulative amounts deposited under the Resolution Plan. The matter is currently pending adjudication. Accordingly, the accounting treatment for the
Performance Bank Guarantee, EMD, and share application money remains subject to the final outcome of the proceedings before the Hon’ble NCLT and the settlement
between the Resolution Applicant and the CoC.
31 Financial Instruments
a. Recognition and initial measurement :
The Company recognises financial assets and financial liabilities when it becomes a party to the contractual provisions of the intrument.All financial assets and liabilities are measured at fair
value on initial recognition except trade receivables which are initially recognised at transaction price as they do not contain a significant financing component. T ransaction costs in relation to
financial assets and financial liabilities, other than those carried at fair value through profit or loss (FVTPL), are added to the fair value on initial recognition.Transaction costs in relation to
financial assets and financial liabilities which are carried at fair value throughprofit or loss (FVTPL), are charged to the Statement of Profit and Loss.
b. Classification and subsequent measurement of financial assets :
For the purpose of subsequent measurement, financial assets are classified as follows:
(i) Amortised Cost :
Financial assets that are held within a business model whose objective is to hold the asset in order to collect contractual cash flows that are solely payments of principal and interest are
subsequently measured at amortised cost less impairment, if any. Interest income calculated using effective interest rate (EIR) method and impairment loss, if any are recognised in the
Statement of Profit and Loss.
(ii) Fair Value through OCI (FVTOCI) :
Financial assets that are held within a business model whose objective is achieved by both holding the asset in order to collect contractual cash flows that are solely payments of principal and
interest and by selling the financial assets, are subsequently measured at fair value through other comprehensive income. Changes in fair value are recognized in the other comprehensive
income (OCI) and on derecognition, cumulative gain or loss previously recognised in OCI is reclassified to the statement of profit and loss. Interest income calculated using EIR method and
impairment loss, if any are recognised in the Statement of Profit and Loss.
(iii) Fair Value through profit or loss (FVTPL) :
A financial asset which is not classified in any of the above categories are subsequently measured at fair value through profit or loss. Changes in fair value and income on these assets are
recognised in the Statement of Profit and Loss.
c. Classification and subsequent measurement of financial liabilities :
For the purpose of subsequent measurement, financial liabilities are classified as follows:
(i) Amortised Cost :
Financial Liabilities are classified as financial liabilties at amortised cost by default. Interest and expense calculated using EIR method is recognised in the Statement of Profit and Loss.
(ii) Fair value through profit or loss (FVTPL) :
Financial liabilities are classified as FVTPL if it is held for trading, or is designated as such on initial recognition.Changes in fair value and interest expense on these liabilities are recognised in
the statement of profit and loss.
d. Derecongition of financial assets and financial laibilities :
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows including
risks and rewards of ownership. A financial liability is derecognised when the obligation under the liability is discharged or expires.
e. Impariment of financial assets :
For trade receivables, the Company provides for expected credit losses based on a simplified approach as per Ind AS 109 - Financial Instruments. Under this approach, expected credit losses
are computed basis the probability of defaults over the lifetime of the asset
f. Fair value measurement :
Fair value of financial assets and liabilities is normally determined by references to thetransaction price or market price. If the fair value is not reliably determinable, the company determines the
fair value using valuation techniques that are appropriate in the circumstances and for which sufficient data are available, maximising the use of relevant observable inputs and minimising the
use of unobservable inputs.
32 Financial Risk Managaement :
In the course of its business, the Company is exposed to a number of financial risks: liquidity risk, credit risk and market risk. This note presents the Company’s objectives, policies and processes
for managing its financial risk.
(i) Liquidity risk :
The Company actively manages liquidity risk to ensure it can meet its financial obligations as they fall due. Liquidity requirements are assessed through regular monitoring of cash flows, including
scheduled debt servicing and operational outflows. Short-term liquidity is reviewed on a daily, weekly, and rolling 30-day basis, while long-term needs are evaluated monthly over 180-day and
360-day periods.
To maintain sufficient liquidity, the Company holds cash and marketable securities for immediate needs and secures long-term funding through committed credit lines and the flexibility to
liquidate financial assets. Investment planning is structured to ensure timely availability of funds for business requirements.
As at March 31, the contractual maturities of the Company’s financial liabilities are summarized below:
(ii) Credit risk :
Credit risk refersto risk of financial loss to the Company if a customer or a counter-party fails to meet its contractual obligations. The Company has following categories of financial assets that are
subject to credit risk evaluation:
Investments :
Company invests in liquid mutual funds, deposit with banks etc. Funds are invested in accordance with the Company’s established Investment policy that includes parameters of safety, liquidity
and post tax returns. Company avoids the concentration of credit risk by spreading them over several counterparties with good credit rating profile and sound financial position.The Company’s
exposure and credit ratings of its counterparties are monitored on an ongoing basis. Based on historical experience and credit profiles of counterparties, the company does not expect any
significant risk of default.
Trade receivables :
Credit risk arising from trade receivables is managed in accordance with the Company’s established policy with regard to credit limits, control and approval procedures. The Company provides for
expected credit losses on trade receivables based on a simplified approach as per Ind AS 109. Under this approach, expected credit losses are computed basis the probability of defaults over the
lifetime of the asset. This allowance is measured taking into account credit profile of the customer, past experience of defaults, estimates for future uncertainties etc.
(iii) Market Risk :
Interest rate risk
Since the Company does not have any interest bearing financial liabilities, it is not exposed to any significant interest rate risk.
Price Risk:
Price risk refers to risk that the fair value of a financial instrument may fluctuate because of the change in the market price. The Company is not exposed to the significant price risk as there are
no equity investments other than investment in subsidiary which are measured at cost.
Foreign currency risk and foreign currency sensitivity :
As at the reporting date, the Company has no significant foreign currency exposure, as all monetary items are denominated in INR and there are no outstanding foreign currency balances. Any
foreign currency transactions, if any, were settled in line with the Company’s exchange management policy. Accordingly, no sensitivity analysis is presented, as the impact is not considered
material.
33 Corporate social responsibility :
The requirement of Section 135 of the Companies Act, 2013, pertaining to Corporate Social Responsibility (CSR), is not applicable to the Company for the financial year ended March 31, 2025.
38 Audit Trail :
Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 became applicable to the Company from April 1, 2024, mandating the use of accounting software that maintains an audit trail
(edit log) of every transaction change, including dates, and ensures the audit trail cannot be disabled. However, it is noted that the software in use does not have an audit trail feature.
39 Additional regulatory information required by Schedule III of the Companies Act, 2013 :
(a) Valuation of PP&E, intangible asset and investment property:
The Company has not revalued its property, plant and equipment or intagible assets or both during the current or previous year.
(b) Loans and Advances in the nature of Loans to Promoters, Directors and KMPs:
The Company has not granted loans and advances in the nature of loans to Promoters, Directors and KMPs either severally or jointly with any other person.
(c) Details of Benami property:
No proceedings have been initiated on or are pending against the company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made
thereunder.
(d) Wilful defaulter:
The Company has not been declared wilful defaulter by any bank or financial institution or Government or any Government Authority.
(e) Relationship with Struck off Companies :
The Company does not have any transaction/relationship with any struck off Company.
(f) Registration of Charges or Satisfaction with Registrar of Companies :
The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(g) Compliance with approved scheme of arrangements:
The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.
(h) Utilisation of borrowed funds and share premium:
The Company has not advanced or loaned or invested funds to any other person or entity, 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 group (Ultimate Beneficiaries) or;
b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
The Company has not received any fund from any person or entity, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company
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.
(i) Undisclosed Income :
There isno 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.
(j) 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.
(k) Utilisation of borrowings availed from banks and financial institutions:
The Company has not obtained any borrowings from banks or financial institutions during the year.
40 Balances subject to confirmation and reconciliation :
The balances of trade payables, trade receivables, advances received, advances given (including capital advances), and Goods and Services Tax (GST) balances are subject to confirmation,
reconciliation, and consequential adjustment, if any.
41 Prior Year Comparatives:
The figures of the previous year have been regrouped/reclassified , where necessary, to conform with the current year's classification.
As per our report of even date attached For and on behalf of the Board of Directors of
For Bhuta Shah & Co LLP GB Global Limited
Chartered Accountants CIN: L17120MH1984PLC033553
Firm Registration No.101474W / W100100
Sd /- Sd /- sd/- Sd /-
Atul Gala Vijay Thakkar Dev Thakkar Kishan Jaiswal
Partner Managing Director Chairman CFO
Membership No. 048650 DIN: 00189355 DIN: 07698270 PAN: AHPTJ5324L
Place : Mumbai Place : Mumbai
Date : 29 May 2025 Date : 29 May 2025
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