XXI. Provisions, contingent liabilities and contingent assets
A provision is recognized when an enterprise has a present obligation (legal or constructive) as result of past event and it is probable that an
outflow of embodying economic benefits of resources will be required to settle a reliably assessable obligation. Provisions are determined based
on best estimate required to settle each obligation at each Balance Sheet date. If the effect of the time value of money is material, provisions are
discountedusinga currentpre-taxratethatreflects,when appropriate, the risks specifictotheliability. When discounting is used, the increase in
the provision due to the passage of time is recognised as a finance cost.
Contingent liabilities are disclosed in respect of possible obligations that arise from past events, whose existence would be confirmed by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. A contingent liability also
arises, in rare cases, where a liability cannot be recognised because it cannot be measured reliably.
Contingentassetsareneither recognisednordisclosed in the financial statements.
XXII. Interest in Joint Arrangements
As per Ind AS 111 - Joint Arrangements', investment in Joint Arrangement is classified as either Joint Operation or Joint Venture. The classification
depends onthecontractual rightsandobligations of each investor rather than legalstructure oftheJointArrangement. The Company classifies
its Joint Arrangements as Joint Ventures.
The Companyrecognizes itsinterestinJoint Ventureas an investment and accounts forthatinvestmentusing theEquitymethod in accordance
with Ind AS 28.
Footnotes:
a. Due to the continued liquidity crunch being faced by Gujarat Akruti TCG Biotech Limited (GATCGBL), a subsidiary of the Company, the tenure of
the Compulsorily Convertible Debentures was extend by a further period of 2 (Two) year upto March 30 2027 and Non-Convertible Debentures
issued by GATCGBL was extended by a further period of 1 (One) year upto March 30, 2027, the other terms and conditions of issue thereof
remaining unchanged.
b. In earlier years,the Companyhadwritten off thecapitalamount givenfor projectdevelopmentamountingto? 775lakhs toa partnership firm
ShreenathRealtors for developmentandexploitationofareas atNirmalNagar,Sion,Mumbai.Sincetheapprovalfrom theGovernment has not
been received till date nor there is any scope of it being approved in the near future, operation cost has been mounting year on year in the said
firm.However,thefirm has not beendissolvedasondate.
c. The companyhad investedan amount of ? 1.60 lakhs in the capital of Primeria JV, which had been written off in the earlier years. However, the
JV has not been dissolved as on date.
d. The Company has investments in certain subsidiaries, jointly controlled entities and associates and loans and advances outstanding as at March
31, 2025. While some of entities have incurred losses and have negative net worth as at the year end, the underlying projects in such entities are
at various stages of real estate development and are expected to achieve adequate profitability on substantial completion and/ or have current
market values of certain properties which are in excess of the carrying values. The Company considers its investments in such entities as long term
and strategic in nature. Accordingly, no provision is considered necessary towards diminution in the value of the Company's investments in such
entities or in respect of loans and advances advanced to such entities, which are considered good and fully recoverable.
Sensitivity Analysis:
As of 31st March, 2025, every percentage point increase in discount rate will affect our gratuity benefit obligation ? 101.63 lakhs.
As of 31st March, 2025, every percentage point decrease in discount rate will affect our gratuity benefit obligation ? 121.33 lakhs.
As of 31st March, 2025, every percentage point increase in salary escalation rate will affect our gratuity benefit obligation ? 121.29 lakhs.
As of 31st March, 2025, every percentage point decrease in salary escalation rate will affect our gratuity benefit obligation ? 101.52 lakhs.
Sensitivity for significant actuarial assumptions is computed by varying one actuarial assumption used for the valuation of the defined benefit obligation
by one percentage, keeping all other actuarial assumptions constant.
Projected service costason31st March 2025 is ? 10.03 lakhs.
Narrations:
1 Analysis of Defined Benefit Obligation
The number of members under the scheme have decreased by 8.20 %. Similarly the total salary increased by 0.23 % during the accounting period.
The resultant liability at the end of the period over the beginning of the period has increased by 7.71%.
2 Expected rate of return basis:
EROA is the discount rate as at previous discount valuation date as per the accounting standard.
3 Description of Plan Assets and Reimbursement Conditions
100% of the Plan Asset is entrusted to LIC of India under their Group Gratuity Scheme. The reimbursement is subject to Insurer's Surrender Policy.
4 Investment / Interest Risk
The Company is exposed to Investment / Interest risk if the return on the invested fund falls below the discount rate used to arrive at present value
of the benefit.
5 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.
6 Risk of Salary Increase
The Company is exposed to higher liability if the future salaries rise more than the assumption of salary escalation.
7 Discount Rate
The discount rate has decreased from 7.09% to 6.66% and hence there is an increase in liability leading to actuarial loss due to change in discount
rate.
Footnotes:
a. Interest / penalty thatmayaccrue on originaldemands are not ascertainable, at present. TheCompanyhastaken necessarysteps to protect its
position with respect to the above referred claims, which in its opinion, based on professional / legal advice are not sustainable.
b. Contingent liabilities include corporate guarantees issued by the Company and are relied upon by the Auditors.
c. The managementis ofthe viewthatitwasnecessary to provide the corporate guaranteestofurtherthebusinessinterestoftheCompany in the
entities on whose behalf such guarantees have been provided and the management is of the view that there would be no sustainable claims on
the Companyinrespect ofthese corporateguarantees.
The rate of interest, processing fees, any other charges levied by the lenders on the entities availing loans are based on internal guidelines of the
lenders depending on the merits of the underlying projects and their estimated cash flows. Majority of the corporate guarantees issued by the
Company are basically to provide comfort by the Company as a shareholder of the Borrower entity to the Lenders. These corporate guarantees, in
any case, donotresultin any additionalbenefitsto the borrowers. Accordingly, thefinancialliabilityonaccountoffinancial guarantee contracts
have not been fair valued as these are expected to be immaterial.
The Company's activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company's focus is to foresee the
unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.
1) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument which fluctuate because of changes in market prices. Market
risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity/real estate risk.
Financial instruments affected by market risk include loans and borrowings.
a) Interest rate risk
Majority of the long-term borrowings of the Company bear fixed interest rate. Thus the interest rate risk is limited for the Company.
b) Foreign currency risk
TheCompany isengagedinreal estate businessandonlyimportscertainmaterial/servicesagainst payments for whichhedginginstruments
are not required.
c) Equity price risk
The Company's equity securities are not majorly susceptible to market price risk. However, the Company's Board of Directors reviews and
approves all equityinvestment decisionsafterexercisingduediligencewhichmay minimisethe market related risk.
2) Credit Risk
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure of the financial
assetsare contributedby trade receivables,cashandcashequivalentsandreceivablesfrom group companies.
a) Receivables resulting from sale of properties: Customer credit risk is managed by requiring customers to pay advances before transfer of
ownership, thereby,substantially eliminating theCompany'screditrisk inthis respect.
b) Receivablesresultingfromotherthansaleofproperties:Creditriskrelated tosuchreceivablesismanaged asper theCompany'sestablished
policy, procedures and control. Outstanding customer receivables are regularly monitored. The impairment analysis is performed at each
reportingdate on an individual basis for major receivables. The Company does not hold collateral as security. The Company's credit period
generally ranges from 30 to 90 days.
c) Credit riskoncash andcashequivalentsislimited astheCompany generallyinvests depositwith bankswhichhavehighcreditratings.
3) Liquidity risk
The Company'streasury department isresponsibleforliquidity,funding as wellas settlement management.In addition,processes and policies
related to such risks are overseen by senior management. The Management monitors the Company's net liquidity position through rolling
forecastsonthebasisof expected cashflows.
For the purpose of the Company's capital management, capital includes issued equity capital and all other equity reserves attributable to the equity
holders of the Company. The primary objective of the Company's management is to maximise shareholders value.
The Company manages its capital structure and makes adjustments in the light of changes in economic conditions and the requirements of the financial
covenants. To maintain or adjustthe capital structure, the Company may issue new shares. Consistent with others in the industry, the Company monitors
its capital using the gearing ratio which is total net debt (borrowings offset by cash and cash equivalents) divided by total capital of the Company.
Gearing Ratio
In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets financial covenants
attached to the borrowingsthatdefinethe capital structure requirements. Breaches in meeting thefinancialcovenantswould permit the lenders to
immediately call loans and borrowings.
Note 42
Loans and advances, other receivables, debtors and creditors are subject to confirmations and are considered payable / realisable, as the case may be.
Note 43
Previous year figures have been regrouped / reclassified wherever necessary, to make them comparable with current year figures in the Financial
Statements.
NOTE 46. OTHER STATUTORY INFORMATION FOR THE YEAR ENDED 31 MARCH 2024 :
i) 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 (45 of 1988) and rules made thereunder.
ii) The Company does not have any transaction during the current financial year with companies struck off under Section 248 of the Companies Act,
2013.
iii) The Company does not have any charge or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.
iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
v) "The Company has not advanced or loaned or invested funds to any other person(s) orentity(ies),includingforeignentities(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."
vi) "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 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."
vii) The Company do not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income
in the tax assessments under the Income-tax Act, 1961
viii) The Company has not been declared wilful defaulter by any bank or financial institution or Government or any Government authority or other
lender in current financial year, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.
ix) The Companyhascompliedwith the numberof layers prescribed under Clause (87)ofSection2 ofthe CompaniesAct, 2013 read with the
Companies (Restriction on number of Layers) Rules, 2017 from the date of their implementation.
The accompanying notes are an integral part of the financial statements
As per our report of even date Forandonbehalf oftheBoardof Directors
For J B T M & ASSOCIATES LLP
Firm Registration No. W100365 HEMANT M. SHAH VYOMESH M. SHAH
CHARTERED ACCOUNTANTS EXECUTIVE CHAIRMAN MANAGING DIRECTOR
DIN:00009659 DIN: 00009596
DHAIRYA BHUTA
PARTNER SHIVIL KAPOOR SUNIL MAGO
Membership No. 168889 COMPANY SECRETARY CHIEF FINANCIAL OFFICER
UDIN: UDIN : 25168889BMTFFU4531
Mumbai Mumbai Mumbai
May 22, 2025 May 22, 2025 May 22, 2025
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