2.12 Provisions, Contingent Liabilities and Contingent Assets:
A provision is recognized if, as a result of a past event, the company has a present legal or constructive obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Provisions are determined based on the best estimate required to settle the obligation at the balance sheet date.
A contingent liability is disclosed unless the possibility of an outflow of resources embodying economics benefits is remote. Contingent assets are not recognised in standalone financial statements since this may result in the recognition of income that may never be realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and its recognition is appropriate.
A contingent asset is not recognized in the financial statements but is disclosed, where an inflow of economic benefits is probable.
2.13 Foreign Currency Transactions:
Functional currency
The functional currency of the Company is Indian Rupees ('INR'/'?'/'Rs.'). These standalone financial statements are presented in Indian Rupees and the all values are rounded to the nearest Lakh, except otherwise indicated.
Transactions and translations
Foreign-currency denominated monetary assets and liabilities are translated into the relevant functional currency at exchange rates in effect at the balance sheet date. Gains and losses, if any, at the year-end in respect of monetary assets and monetary liabilities not covered by the forward contracts are transferred to Profit & Loss Account except for
Long Term Foreign Currency Monetary Items. Transaction gains or losses realized upon settlement of foreign currency transactions are included in determining net profit for the period in which the transaction is settled.
Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and nonmonetary liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of the transaction.
Revenue, expense and cash-flow items denominated in foreign currencies are translated into the relevant functional currencies using the exchange rate in effect on the date of the transaction.
2.14 Borrowing Cost:
Borrowing costs that are attributable to acquisition and construction of qualifying assets are capitalized till the asset is ready for its intended use, based on borrowings incurred specifically for financing the asset or the weighted average rate of all other borrowings, if no specific borrowings have been incurred for the asset. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. The Company has not capitalized any borrowing costs during the year.
All other borrowing costs are recognized as expenditure in the year in which they are incurred.
2.15 Earnings per Equity Share:
Basic earnings per share
Basic earnings per share are calculated by dividing:
- the profit attributable to owners of the Company
- by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares.
Diluted earnings per share
Diluted earnings per share adjust the figures used in the determination of basic earnings per share to take into account:
- the afterincome tax effect of interest and other financing costs associated with dilutive potential equity shares, and
- the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.
The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as at the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.
The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any share splits and bonus shares issues including for changes effected.
2.16 Employee Benefit:
All employee benefits payable wholly within twelve months rendering services are classified as short-term employee benefits. Benefits such as salaries, wages, short-term compensated absences, performance incentives etc., and the expected cost of bonus, ex-gratia are recognised during the period in which the employee renders related service.
Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered the service entitling them to the contribution.
The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method with actuarial valuations being carried out at each balance sheet date, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measure each unit separately to build up the final obligation.
Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through other comprehensive income in the period in which they occur. Remeasurements are not reclassified to the statement of profit and loss in subsequent periods.
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset.
The Company recognises the following changes in the net defined benefit obligation under employee benefit expenses in the statement of profit and loss.
• Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine settlements,
• Net interest expense or income.
Long-term employee benefits
Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised as a liability at the present value of the defined benefit obligation at the balance sheet date.
Termination benefits
Termination benefits are recognised as an expense in the period in which they are incurred.
Employee Stock Option Scheme (ESOS)
The Company recognizes compensation expense relating to share-based payments in net profit based on estimated fair values of the stock options on the grant date. The estimated fair value of stock options is recognized as an expense in the Statement of Profit and Loss on a straight-line basis over the requisite service period for each separately vesting portion of the stock options as if the stock option was in substance multiple stock options with a corresponding increase to share options outstanding account.
In case, the fair value of the stock options granted at the grant date cannot be estimated reliably, the options are measured at their intrinsic value, initially at the date the entity obtains the service and subsequently at the end of each reporting period and at the date of final settlement, with any change in intrinsic value recognised in profit or loss. For a grant of share options, the share-based payment arrangement is finally settled when the options are exercised, are forfeited (at upon cessation of employment) or lapse ( at the end of the option's life)
2.17 Cash Flow Statement:
Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.
2.18 Cash and Cash Equivalents:
Cash and cash equivalents comprise cash on hand and demand deposits with banks which are short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.
2.19 Lease:
Operating Lease
The Company has applied Ind AS 116 using the modified retrospective approach and therefore the comparative information has not been restated. The adoption of Ind AS 116 as on April 1, 2019 did not require any adjustments to the assets and liabilities as on that date.
As a lessee
The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. Certain lease arrangements include the option to extend or terminate the lease before the end of the lease term. The right-of-use assets and lease liabilities include these options when it is reasonably certain that the option will be exercised.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, Company's incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.
Lease payments included in the measurement of the lease liability comprises of fixed payments, including in-substance fixed payments, amounts expected to be payable under a residual value guarantee and the exercise price under a purchase option that the Company is reasonably certain to exercise, lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company's estimate of the amount expected to be payable under a residual value guarantee, or if Company changes its assessment of whether it will exercise a purchase, extension or termination option.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
Short-term leases and leases of low-value assets
The Company has elected not to recognise right of use assets and lease liabilities for short term leases that have a lease term of less than or equal to 12 months with no purchase option and assets with low value leases. The Company recognises the lease payments associated with these leases as an expense in statement of profit and loss over the lease term. The related cash flows are classified as operating activities.
As a lessor
Lease income from operating leases where the Company is a lessor is recognised in income on a straight-line basis over the lease term unless the receipts are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases. The respective leased assets are included in the balance sheet based on their nature.
2.20 Exceptional Items:
Certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary activities of the Company is such that its disclosure improves the understanding of the performance of the Company, such income or expense is classified as an exceptional item and accordingly, disclosed in the notes accompanying to the standalone financial statements.
2.21 Current and Non-Current Classification:
The Company presents assets and liabilities in the balance sheet based on current/non-current classification.
An asset is current when it is:
• Expected to be realised or intended to sold or consumed in normal operating cycle,
• Held primarily for the purpose of trading,
• Expected to be realised within twelve months after the reporting period, or
• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
All other assets are classified as non-current.
A liability is current when:
• It is expected to be settled in normal operating cycle,
• It is held primarily for the purpose of trading,
• It is due to be settled within twelve months after the reporting period, or
• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
Deferred tax assets/liabilities are classified as non-current.
All other liabilities are classified as non-current.
NOTE 35: IMPLEMENTATION OF RESOLUTION PLAN
a. Pursuant to final approval to the Resolution Plan by the erstwhile lenders of the Company and the Shareholders of the Company in their Extra-Ordinary General Meeting held on June 10, 2022, Malpani Parks Private Limited ("MPPL" or "Acquirer"), became the successful bidder following the Swiss challenge bid process, under the Reserve Bank of India ("RBI") (Prudential Framework for Resolution of Stressed Assets) Directions, 2019 dated June 7, 2019 as amended from time to time.
b. In accordance with the Resolution Plan:
i. the Acquirer had paid an amount of ' 41,500 Lakhs and had been allotted 27,14,19,228 equity shares of ' 10/- each at an issue price of ' 15.29 per equity share on preferential basis on June 22,2022.
ii. The Company made payment of ' 41,500 Lakhs to the ARC towards part payment of the Assigned Debt (which had been used by the ARC for making payment to the erstwhile lenders towards the assignment consideration).
iii. The Company had issued 4,90,51,667 equity shares of ' 10/- each at an issue price of ' 15.29 per equity share towards conversion of debt of the erstwhile secured lenders into equity aggregating to ' 7,500 Lakhs.
iv. The erstwhile lenders had transferred and assigned all their rights, title and interest in the Assigned Debt to ARC in previous year 2022-23 i.e. on June 23, 2022 by executing an Assignment Agreement in this regard. An amount of ' 5,000 Lakhs out of the Assigned Debt was restructured and reconstituted as the principal amount of a term credit facility of the same amount, as per the terms and conditions set out in the Debt Restructuring cum Settlement Agreement dated June 23, 2022 (DRSA). The said amount of sustainable debt i.e. ' 5,000 Lakhs along with interest had been paid on the due date in previous year 2022-23 i.e. December 22, 2022.
v. The Company had issued 4,80,00,000 0.01% 20 years Non-Convertible Redeemable Preference Shares of ' 100/- each (NCRPS) aggregating to ' 48,000 Lakhs to the ARC in previous year 2022-23 (which have been acquired by the promoter company Malpani Parks Private Limited from the ARC in previous year 2022-23) by way of preferential allotment at par in conversion of the outstanding debt. Pursuant to the approvals of the Shareholders of the Company in the extra ordinary general meeting held on November 16, 2022, the Board of Directors of the Company at its meeting held on February 8, 2023 and the Shareholders of the Company at their meeting held on March 10, 2023, 4,80,00,000 0.01% 20 years Non-Convertible Redeemable Preference Shares (NCRPS) aggregating to ' 48,000 Lakhs have been converted into 0.01% 20 years Optionally Convertible Redeemable Preference Shares (OCRPS) which are convertible into equity shares at the option of the holder (subject to applicable laws) within a period of 18 months from the date of conversion of NCRPS into OCRPS, at a price of ' 36.81 per equity share in accordance with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. Accordingly, the conversion when exercised in accordance with the terms of the OCRPS on approval of the Shareholders, would result in issue of additional 13,03,99,348 equity shares to the Promoters @ ' 36.81 per equity share with consequent increase in the Promoter's stake to the said extent. The Company received in - principle approval from the stock exchanges for the issue of OCRPS on March 28, 2023. The said OCRPS has been credited on April 7, 2023 to the account of the holder with the reclassification date as November 16, 2022.
The Promoter company viz., Malpani Parks Private Limited (MPPL) in the Current Financial Year i.e. 2023-24 has expressed its desire to exercise the option of converting OCRPS into equity to achieve the shareholding as per the Resolution Plan. Accordingly, vide letter dated May 22, 2023 MPPL has partially exercised option to convert 2,57,67,000 OCRPS into 7,00,00,000 equity shares of the Company at the conversion price of '36.81 per equity share. Accordingly, the Company has made allotment of equity shares in this regards after obtaining approval from the Board on May 26, 2023.
Subsequently, in April 2024, MPPL exercised its option to convert the balance 2,22,33,000 OCRPS into 6,03,99,348 equity shares of the Company at the conversion price of '36.81 per equity share.
Hence after the said conversion of OCRPS the number of units balance in OCRPS/NCRPS stands to be NIL as on date of the request.
vi. During the year, the Company has written back the remaining amount (unsustainable portion) of the Assigned Debt of ' 57,176 Lakhs (after making payment of ' 100 Lakhs), consequent to the write off of the same by the ARC in accordance with the DRSA. The ARC vide its letter dated June 14, 2023, has confirmed that the loans have been repaid and there are no amounts outstanding against the sustainable and unsustainable portion of the debt in terms of the DRSA.
c. The Company has complied with the provisions of the Companies Act, 2013, SEBI, RBI Regulations and other applicable laws and regulations for the purpose of giving effect to the terms of the Resolution Plan.
B. Proposed Sale of Surplus Land and sale of Investment in Wholly Owned Subsidiary Company
Further to the Resolution Plan approved, the shareholders of the Company, at its extra ordinary general meeting held on November 16, 2022, approved the sale of surplus land held by the company and Investment in its erstwhile wholly owned subsidiary, Walkwater Properties Private Limited (WPPL).
In lieu of the same the Company had entered into Share Purchase Agreement with a buyer for sale of the shares held in the aforesaid subsidiary for a total consideration of ' 10,600 Lakhs. Accordingly, the investment in the said subsidiary has been derecognized by the Company in the financial year 2022-23 and WPPL ceased to be subsidiary of the Company w.e.f. March 1, 2023. The Company had received ' 2,400 Lakhs towards cash consideration and 82,00,000 0.01% non-participating non-cumulative Non-Convertible Redeemable Preference Shares (NCRPS) of the face value of ' 100/- each which are redeemable within 20 years from the date of allotment, for the balance consideration of ' 8,200 Lakhs.
The Company had entered into agreement for sale of balance surplus land on "as is where is" basis whose original cost of acquisition is ' 5,800.50 Lakhs for a total consideration of ' 5,500 Lakhs. The Company has received ' 1,600 Lakhs towards cash consideration in the previous year and 39,00,000 0.01% non-participating non-cumulative nonconvertible Redeemable Preference Shares (NCRPS) of the face value of ' 100/- each in the current year which are redeemable within 20 years from the date of allotment, for the balance consideration of ' 3,900 Lakhs. The difference of ' 300.50 Lakhs between the fair value of land and the sale consideration and the loss of sale consideration and the carrying value and loss on fair value of the said NCRPS amounting to ' 3,611.37 Lakhs has been accounted for as exceptional item.
During the year, the Company has transferred part of the land with consideration of ' 4,381 Lakhs to JBCG Advisory Services Private Limited on January 5, 2024 and the balance land is disclosed as "Non-Current Asset Held for Sale".
NOTE 36: Provision for Tax
The Company has unabsorbed losses/ unabsorbed depreciation under the Income Tax Act, 1961 which can be set off against the Profits of the Company. Unsustainable portion of the debt which has been written back during the year ended March 31,2023 and March 31, 2024, had arisen on account of interest payable to the erstwhile lenders of the company in the earlier years before implementation of the Resolution Plan referred to in Note 35 hereinabove. In the Assessments for the earlier years the same was offered for tax as disallowance u/s 43B of the Income Tax Act, 1961. The Company is of the view that since the said amount has already been offered for tax, the income arising during the year on account of write back will not be subjected to income tax during the current financial year.
Considering the above, no provision for current tax has been considered necessary.
NOTE 37: Exceptional Items
Exceptional items for the year ended March 31 , 2024 represent;
a) The write back of unsustainable debt of ' 57,176.25 Lakhs;
b) Fair value change in OCRPS aggregating to ' 2,457.84 Lakhs;
c) Difference between fair value and carrying value of surplus land held for sale aggregating to ' 300.50 Lakhs;
d) Fair value change in NCRPS aggregating to ' 3,507.43 Lakhs;
e) For Financial Year 2022-23 the write back of ' 5,767.46 Lakhs.
NOTE 41 : Post Retirement Benefit Plans Defined Benefits Plan Gratuity
The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972.The gratuity plan is funded through an 'Approved Trust'. The Trust has taken a Policy from the HDFC Life Insurance and the management / investment of the fund is undertaken by the insurer.
The Company Contributes all ascertained liabilities towards gratuity to the "Imagicaaworld Entertainment Limited Employee's Gratuity Trust" The Trustees administer contributions made to the trust. As of March 31, 2024, the plan assets have been primarily invested in insurer - managed funds.
The Gratuity Plan provides a lumpsum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and the tenure of employment with the Company.
Liabilities with regard to the Gratuity Plan are determined by actuarial valuation, performed by an independent actuary, at each Balance Sheet date using the projected unit credit method.
The Company recognizes the net obligation of a defined benefit plan in its Balance Sheet as an asset or liability. Gains and losses through remeasurements of the net defined benefit liability/(asset) are recognized in other comprehensive income and are not reclassified to profit or loss in subsequent periods. The actual return of the portfolio of plan assets, in excess of the yields computed by applying the discount rate used to measure the defined benefit obligation is recognized in other comprehensive income. The effect of any plan amendments is recognized in net profit in the Statement of Profit and Loss.
Financial Instrument by category and hierarchy
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values:
Fair value of cash and short-term deposits, trade and other short-term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short term maturities of these instruments.
Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
The fair values for Non-Current borrowings, loans and security deposits were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counter party credit risk.
NOTE 44: Financial Risk Management Objectives and Policies
The Company's financial risk management is an integral part of how to plan and execute its business strategies. The Company's financial risk management policy is set by the Management Board.
Market Risk is the risk of loss of future earning, fair values or future cash flow that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market Risk is attributable to all market risk sensitive financial instruments including investment and deposits, foreign currency receivables, payables and loans and borrowings.
The Company manages market risk through its finance department, which evaluate and exercises independent control over the entire process of market risk management. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures, borrowing strategies, and ensuring compliance with market risk limits and policies.
Credit Risk
Credit risk arises from the possibility that counter party may not be able to settle their obligation as agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking in to account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limit are set accordingly. The maximum amount of credit risk to which the company is subject is the amount of trade receivables.
NOTE 45: Capital Risk Management
The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to our shareholders.
The capital structure of the Company is based on management's judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital structure.
NOTE 47: In meeting dated September 14, 2020, the Board of Directors of Imagicaaworld Entertainment Limited had approved grant of Employee Stock Option under the Scheme approved under SEBI (Share Based Employee Benefits) Regulations, 2014, as amended, in order to retain key talents and also to compensate the key talent, subject to Shareholders approval. The total number of such ESOPs under said grant were 39,94,891 (ThirtyNine Lakhs Ninety Four Thousand Eight Hundred and Ninety One) Options exercisable into not more 39,94,891 (Thirty Nine Lakhs Ninety Four Thousand Eight Hundred and Ninety One) Shares of face value of ' 10/- (Rupees Ten Only) Each Fully paid-up, with each such Option conferring a right upon the Employee to apply for one Share of the Company. Upon receipt of due shareholders and stock exchange approvals, the said ESOPs were duly granted in the FY 2020-2021.
However as per the terms of grant of options, the granted option got vested to the grantees on February 4, 2022 ("First Vesting"). The ESOS Allotment Committee is granted the powers to allot such shares in line with the Resolution passed by the Nomination and Remuneration Committee on February 9, 2022. Based upon the options exercised by the eligible employees, the ESOS Allotment Committee during the year approved the allotment of 3,65,464 fully paid-up equity shares of face value of ' 10/- exercised by the said employees as on March 31, 2024.
a) No funds have been advanced or loaned or invested by the Company to or in any other persons or entities, including foreign entities ("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.
b) No funds have been received by the Company from any persons or entities, including foreign entities ("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.
c) The Company does not have any long-term contracts including derivative contracts for which there are any material forseeable losses.
d) There were no amounts which were required to be transferred to the Investor Education and Protection by the Company.
e) No proceedings have been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988).
f) The Company has not been declared as wilful defaulter by any bank or financial Institution or other lender.
g) During the year, the Company has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
h) There are no transactions which have not been recorded in the books of accounts and which have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.
i) There are no charges or satisfaction yet to be registered with the registrar of companies beyond the statutory period.
j) The Company does not have layers beyond the number prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.
k) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
l) The Company has not paid or declared dividend during the year.
NOTE 51: The Loan for FY 2023-2024 is Secured by mortgage of all Fixed Assets and Current Assets (Including immovable and movable) of the Company including present and future assets and as a collateral Personal Guarantee of the Promoter Directors of the Company in favour of Security Trustee namely IDBI Trusteeship Services Limited.
NOTE 52: During the year, consequent to the change in the software used by the Company, the Company has changed the accounting policy for valuation of inventories of Merchandise and Stores and Spares from First-in-First-Out Method to Weighted Average Cost Method. The said change in the accounting Policy has been given effect to from the current financial year as it is impracticable to quantify the effects of the change in the previous periods. The change in accounting policy is not expected to have a significant impact on the profit / (loss) for the current or previous periods.
NOTE 53: The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and postemployment received Indian Parliament approval and Presidential assent in September 2020. The Code has been published in the Gazette of India and subsequently on November 13, 2020 draft rules were published and invited for stakeholders' suggestions. The Central Government on March 30, 2021 has deferred the implementation of the said Code and the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will account for the related impact in the period the Code becomes effective.
As per our report of even date
For V. Sankar Aiyar & Co For and on behalf of the Board of Directors of
Firm Registration No : 109208W Imagicaaworld Entertainment Limited
Chartered Accountants
S. Nagabushanam Rajesh Malpani Jai Malpani Dhimant Bakshi
Partner Chairman Managing Director Chief Executive Officer
Membership No: 107022 DIN: 01596468 DIN: 08180943 Place: Mumbai
Place: Sangamner Place: Pune
Place: Mumbai Mayuresh Kore Reshma Poojari
Date : May 28, 2024 Chief Financial Officer Company Secretary
Place: Mumbai Membership No. A34554
Place: Mumbai
Date : May 28, 2024
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