(xiii) Provisions, contingent assets and contingent liabilities
A provision is recognized when:
• the Company has a present obligation 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 of the amount of the
obligation.
A disclosure for a contingent liability is made when there is
a possible obligation or a present obligation that may, but
probably will not, require an outflow of resources. Where
there is a possible obligation or a present obligation that the
likelihood of outflow of resources is remote, no provision or
disclosure is made.
(xiv) Earnings per share
Basic earnings per share are calculated by dividing the net
profit for the year attributable to equity shareholders by
the weighted average number of equity shares outstanding
during the year.
For the purpose of calculating diluted earnings per share, the
net profit for the year attributable to equity shareholders and
the weighted average number of shares outstanding during
the year are adjusted for the effects of all dilutive potential
equity shares.
(xv) Leases
The company follows IND AS 116. In accordance with IND AS
116, the company recognises right of use assets representing
its right to use the underlying asset for the lease term at the
lease commencement date. The cost of right of use asset
measured at inception shall comprise of the amount of the
initial measurement of the lease liability adjusted for any
lease payments made at or before commencement date
less any lease incentive received plus any initial direct cost
incurred and an estimate of cost to be incurred by lessee in
dismantling and removing underlying asset or restoring the
underlying asset or site on which it is located. The right of use
asset is subsequently measured at cost less accumulated
depreciation, accumulated impairment losses, if any, and
adjusted for any re-measurement of lease liability. The right
of use assets is depreciated using the Straight Line Method
from the commencement date over the charter of lease term
or useful life of right of use asset. The estimated useful life
of right of use assets are determined on the same basis as
those of Property, Plant and Equipment. Right of use asset are
tested for impairment whenever there is any indication that
their carrying amounts may not be recoverable. Impairment
loss, if any, is recognised in Statement of Profit and Loss.
The company measures the lease liability at the present value
of the lease payments that are not paid at the commencement
date of lease. The lease payments are discounted using the
interest rate implicit in the lease, if that rate can be readily
determined. If that rate cannot be readily determined, the
company uses incremental borrowing rate.
The lease liability is subsequently re-measured by
increasing the carrying amount to reflect interest on lease
liability, reducing the carrying amount to reflect the lease
payments made and re-measuring the carrying amount to
reflect any reassessment or lease modification or to reflect
revised-in-substance fixed lease payments. The company
recognises amount of re-measurement of lease liability
due to modification as an adjustment to write off use asset
and statement of profit and loss depending upon the nature
of modification. Where the carrying amount of right of use
assets is reduced to zero and there is further reduction in
measurement of lease liability, the company recognises any
remaining amount of the re-measurement in Statement of
Profit and Loss.
The company has elected not to apply the requirements of
IND AS 116 to short term leases of all assets that have a
lease term of 12 months or less unless renewable on long
term basis and leases for which the underlying asset is of low
value. The lease payments associated with these leases are
recognised as an expense over lease term.
Company as a lessor leases in which the Company does not
transfer substantially all the risks and rewards of ownership
of an asset are classified as operating leases. Rental income
from operating lease is recognised on a straight-line basis
over the term of the relevant lease. Initial direct costs
incurred in negotiating and arranging an operating lease
are added to the carrying amount of the leased asset and
recognised over the lease term on the same basis as rental
income. Contingent rents are recognised as revenue in the
period in which they are earned. Fit-out rental income is
recognised in the statement of profit and loss on accrual
basis.
Leases are classified as finance leases when substantially
all of the risks and rewards of ownership transfer from the
Company to the lessee. Amounts due from lessees under
finance leases are recorded as receivables at the Company's
net investment in the leases. Finance lease income is
allocated to accounting periods so as to reflect a constant
periodic rate of return on the net investment outstanding in
respect of the lease.
(xvi) Income Tax
i. Provision for current tax is made based on the tax
payable under the Income Tax Act, 1961. Current income
tax relating to items recognised outside profit and loss
is recognised outside profit and loss (either in other
comprehensive income or in equity).
ii. Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax
bases used in the computation of taxable profit.
Deferred tax liabilities and assets are measured at the
tax rates that are expected to apply in the period in
which the liability is settled or the asset realised, based
on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period.
The carrying amount of deferred tax liabilities and assets
are reviewed at the end of each reporting period.
(xvii) Cash and Cash Equivalent
Cash and Cash equivalent in the balance sheet comprises
cash at bank and cash on hand, demand deposits and short
term deposits which are subject to an insignificant change
in value. The amendment to IND AS-7 requires entities to
provide disclosure of change in the liabilities arising from
financing activities, including both changes arising from cash
flows and non cash changes (such as foreign exchange gain
or loss). The Company has provided information for both
current and comparative period in cash flow statement.
(xviii) Significant management judgement in applying
accounting policies and estimation of uncertainty
(a) Significant management judgements
When preparing the financial statements, management
undertakes a number of judgements, estimates and
assumptions about the recognition and measurement of
assets, liabilities, income and expenses.
(b) Recognition of deferred tax assets
The extent to which deferred tax assets can be
recognized is based on an assessment of the probability
of the Company's future taxable income against which
the deferred tax assets can be utilized.
(c) Recoverability of advances/receivables
At each balance sheet date, based on historical default
rates observed over expected life, the management
assesses the expected credit loss on outstanding
receivables and advances.
(d) Defined benefit obligation (DBO)
Management's estimate of the DBO is based on a number
of critical underlying assumptions such as standard
rates of inflation, medical cost trends, mortality, discount
rate and anticipation of future salary increases. Variation
in these assumptions may significantly impact the DBO
amount and the annual defined benefit expenses.
(e) Provisions
At each balance sheet date based on management
judgment, changes in facts and legal aspects, the
Company assesses the requirement of provisions against
the outstanding warranties and guarantees. However
the actual future outcome may be different from this
judgement.
(f) Inventories
Inventory is stated at the lower of cost or net realisable
value (NRV).
NRV for completed inventory is assessed including but
not limited to market conditions and prices existing at
the reporting date and is determined by the Company
based on net amount that it expects to realise from the
sale of inventory in the ordinary course of business.
NRV in respect of inventories under construction is
assessed with reference to market prices (by referring
to expected or recent selling price) at the reporting
date less estimated costs to complete the construction,
and estimated cost necessary to make the sale. The
costs to complete the construction are estimated by
management.
(g) Revenue from contracts with customers
The Company has applied judgements that significantly
affect the determination of the amount and timing of
revenue from contracts with customers.
(h) Lease
The Company evaluates if an arrangement qualifies
to be a lease as per the requirements of IND AS 116.
Identification of a lease requires significant judgement.
The company uses significant judgement in assessing
the lease term (including anticipated renewals) and the
applicable discount rate.
The company determines the lease term as the non¬
cancellable period of lease, together with both periods
covered by an option to extend the lease if the company
is reasonably certain to exercise that option and
periods covered by an option to terminate the lease if
the company is reasonably certain not to exercise that
option. In exercise whether the company is reasonably
certain to exercise an option to extend a lease or to
exercise an option to terminate the lease, it considers
all relevant facts and circumstances that create an
economic incentive for the company to exercise the
option to extend the lease or to exercise the option to
terminate the lease. The company revises lease term, if
there is change in non-cancellable period of lease. The
discount rate used is generally based on incremental
borrowing rate.
(i) Fair value measurements
Management applies valuation techniques to determine
the fair value of financial instruments (where active
market quotes are not available) and non-financial assets.
This involves developing estimates and assumptions
consistent with how market participants would price the
instrument / assets. Management bases its assumptions
on observable date as far as possible but this may not
always be available. In that case Management uses the
best relevant information available. Estimated fair values
may vary from the actual prices that would be achieved in
an arm's length transaction at the reporting date.
(j) Classification of assets and liabilities into current and
non-current
The Management classifies assets and liabilities
into current and non-current categories based on its
operating cycle.
Note 4.2: Investment held by the Company in wholly owned subsidiary company namely M/s Omaxe Forest Spa and Hills
Developers Limited at carrying amount of Rs. 3.99 Crore (PY Rs. 3.99 Crore) as at 31st March, 2025 have been pledged as
security for obtaining loan by subsidiary company.
Note 4.3: Investment held by the Company in wholly owned subsidiary company namely M/s Omaxe Heritage Private Limited
at carrying amount of Rs. 0.02 Crore (PY Rs. 0.02 Crore) as at 31st March, 2025 have been pledged as security for obtaining loan
by subsidiary company.
Note 4.4: The fair value of investments carried at fair value through OCI has been determined by registered valuer as defined
in Rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.
Nature and Purposes of Reserve forming part of Other Equity
a) Equity component of compound financial instruments- represents equity component of 0.10% Non-Cumulative, Non¬
convertible, Redeemable Preference Share
b) Securities Premium- Securities premium represents amount received in excess of face value of shares and can be utilized
for the purpose and in the matter as mentioned as mentioned in Section 52 of Companies Act, 2013.
c) Retained Earnings/(Deficit)- This reserve represents accumulated earnings/(Deficit) of the Company as on the balance
sheet date.
d) General Reserve- The General Reserve is a free reserve which is used from time to time to transfer profit from / to
retained earnings for appropriation purpose. As the general reserve is created by transfer from one component of equity
to another and is not an item of other comprehensive income, item included in general reserve will not be reclassified
subsequently to statement of Profit & Loss.
e) Other comprehensive income- The Company has elected to recognize changes in the fair value of investment in equity
securities and remeasurement of defined benefit obligation in other comprehensive income that will not be reclassified to
statement of Profit & Loss.
Note 18.3: The Company is regular in repayment of principal and interest to Bank, Non- Banking Financial Companies,
Housing Finance Companies as per stipulation and there are no defaults in repayment of principal and interest to any lender
as at the balance sheet date.
Note 18.4: The Company has not been declared as willful defaulter by any Bank or any Government Authorities.
Note 18.5: The loans taken by the Company during the year has been utilized for the purpose for which they were obtained.
Note 18.6: Funds raised by the Company on short term loan have not been used for long term purposes.
Note 18.7: The Company has not raised any funds from Banks / Non-Banking Financial Companies / Housing Finance Company
and from any other entity or person on account of or to meet the obligations of Subsidiaries / Joint Venture or Associates.
Note 18.8: No funds were raised during the year on pledge of securities held in its Subsidiaries, Joint Venture or Associates.
Note 18.9: There are no charges or satisfaction of charges which are yet to be registered or satisfied beyond statutory period.
Note 41: Some of the balances of trade receivables, trade payables, advances given to others are subject to reconciliation and
confirmation from respective parties. The balances of said trade receivables, trade payables and advances given to others are
taken as shown by the books of accounts. The ultimate outcome of such reconciliation and confirmation cannot presently be
determined, therefore, no provision for any liability that may result out of such reconciliation and confirmation has been made
in the financial statement, the financial impact of which is unascertainable due to the reasons as stated above.
Note 42: During the earlier years, The Income Tax Department has filed writ petition before Hon'ble Supreme Court against the
order of Income tax settlement commission for assessment year 2000-01 to 2006-07, which is pending for hearing. Pending
final outcome of such petition filed, no provision of any potential liability has been made in the books of accounts, the amount
of which cannot presently be ascertained.
During the current financial year the company has filed a petition before the Hon'able Supreme Court against a demand
of Rs. 0.76 Crores raised for A.Y. 2015-16. During the earlier years, the Company has filed petition before the Hon'ble High
Court against demand of Rs. 23.06 Crores for A.Y. 2007-08 and an equal amount has been deposited by the company against
this demand under dispute. Further the Income Tax Department has also filed necessary appeals/writ petitions/ SLP with
appropriate authority against the relief given by various appellate authorities of Rs. 116.47 Crores to the Company. The
Company is in the process of filing an appeal before the ITAT against the demand of Rs. 16.86 Crores for the A.Y. 2012-13 &
2013-14 and an equal amount has already been deposited by the company against these demand under disputes. The company
has also filed appeals before the CIT(A) against demands raised of Rs. 605.88 Crores for A.Y. 2014-15 to 2022-23 on various
accounts and an amount of Rs. 15.59 Crores has been deposited by the company against these demands under dispute.
Based on the decision of various appellate authorities and the interpretations of relevant provisions of Income Tax Act, 1961,
the Company has been advised by the experts that the demand so raised is likely to be deleted.
Note 43: In the financial year ended 31st March 2022, search was initiated against the Company under section 132 of the
Income Tax Act, 1961 and pursuant to that demand under section 147/143(3) of the Income Tax Act, 1961 has been raised
pertaining to Assessment Years from 2014-15 to 2022-23. The Company has filed Appeals before Appellate Authority within
the timelines as allowed under the Act. The demand amount so raised has already been included in note 42 as above. Based
on the decision of various appellate authorities, interpretation of relevant provision of the Income Tax Act, 1961 and on the
basis of opinion from independent tax expert that the demands so raised will not be sustained on completion of the appellate
proceedings. Accordingly, pending the decision by the appellate authorities, no provision of any potential liability has been
made in the Financial Statements.
Note 44: The Company had received an Award dated 31.05.2024 with respect to its Township Project situated in Patiala, Punjab
namely "Omaxe City, Patiala”, whereby the Majority Bench of the Arbitral Tribunal directed the Company to surrender the 60
Acre land earmarked for development of IT & Bio Tech Park and declared that PUDA was entitled to forfeit 20% of the revenue
share. i.e. 53 Crore (kept in Escrow Account) alongwith interest accrued thereon w.e.f. 08.08.2018 among other directions.
The Management of the Company offered to surrender the 60 Acre land earmarked for development of IT & Bio Tech Park
back to PUDA as its development was not viable at its current location. Accordingly, provision for impairment of inventory of
60 acres land amounting to Rs. 28.55 crore has been made in the financial statements during the quarter ended June 30,
2024 and grouped in changes in inventories of finished stock & projects in progress. However, regarding forfeiture of 20% of
revenue share amounting to Rs. 53 crore and interest thereon, the Company has filed an appeal against the Award. Based on
the opinion of an independent expert on this matter, the management of the company is of the opinion that the forfeiture of
revenue share will not be sustained in the court. Accordingly, pending decision by the appellate authorities, no provision of any
potential liability towards forfeiture of revenue share has been made in the financial statements.
Note 45:The Company had received an Order dated July 30, 2024 from SEBI under section 11, 11B of SEBI Act, 1992 covering
the period from 2018-19, 2019-20 and 2020-21, against which company had filed an appeal with the Securities Appellate
Tribunal (SAT) and SAT vide order dated October 01, 2024 had granted stay on directions at para 41 (i) of SEBI order dated
July 30, 2024 relating to restricting company and others from accessing securities market and to deal in securities, enabling
the company to raise capital and continue all business activities as usual without any restriction. The proceeding with SAT is
undergoing and in the opinion of the management of the Company, the said order has no impact on the financial results of the
company.
o. Description of Risk Exposures:
Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is
exposed to various risks as follow-
A. Salary Increases- Actual salary increases will increase the Plan's liability. Increase in salary increase rate
assumption in future valuations will also increase the liability.
B. Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment return on assets lower
than the discount rate assumed at the last valuation date can impact the liability.
C. Discount Rate: Reduction in discount rate in subsequent valuations can increase the plan's liability.
D. Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can
impact the liabilities.
E. Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal
rates at subsequent valuations can impact Plan's liability.
2) Leave Encashment
Provision for leave encashment in respect of un-availed leaves standing to the credit of employees is made on actuarial
basis. The Company does not maintain any fund to pay for leave encashment. The total leave encashment liability of Rs.
2.95 Crore (PY Rs. 2.29 Crore) is classified as non-current and Rs. 0.96 Crore (PY 0.78 Crore) as current and does not
require disclosure as mentioned in para 158 of IND AS 19.
3) Defined Contribution Plans
The Company also has defined contribution plan i.e. contributions to provident fund in India for employees. The Company
makes contribution to statutory fund in accordance with Employees Provident Fund and Misc. Provision Act, 1952. This
is post-employment benefit and is in the nature of defined contribution plan. The contributions are made to registered
provident fund administered by the government. The provident fund contribution charged to statement of profit & loss for
the year ended 31 March, 2025 amount to Rs. 1.18 Crore (PY Rs. 0.92 Crore).
Note 50: SEGMENT INFORMATION
The Company's business activities which are primarily real estate development and related activities falls within a single
reportable segment as the management of the Company views the entire business activities as real estate development.
Accordingly, there are no additional disclosure to be furnished in accordance with the requirement of IND AS 108 - Operating
Segments with respect to single reportable segment. Further, the operations of the Company is domiciled in India and therefore
there are no reportable geographical segment.
Note 51: In the current financial year, in pursuance of one-time full and final resolution of all disputes and differences including
those related to shareholding, management, and other family matters etc., final settlement was made between the Promoter/
members of promoter group of the Company—Mr. Rohtas Goel (Promoter & Chairman) and the SG Group (comprising Mr.
Sunil Goel, M/s Sunil Goel HUF, and Mrs. Seema Goel). Pursuant to this settlement, all legal proceedings between the parties
have been withdrawn or quashed, and the SG Group's entire shareholding in the Omaxe Group Companies has already been
transferred to Mr. Rohtas Goel and/or his legal heirs/nominees.
Additionally, a Family Settlement Cum Separation Agreement was also entered into between the Promoter/members of
promoter group of the Company—Mr. Rohtas Goel (Promoter & Chairman) and the SG Group (comprising Mr. Sunil Goel, M/s
Sunil Goel HUF, and Mrs. Seema Goel during FY 2024-25.
This has no impact on the financial statements of the Company so far other than inter-se change in promoter holding upon
effecting transfer of shares within promoter.
(ii) Fair Value Hierarchy
This section explains the judgments and estimates made in determining the fair values of the financial instruments that
are recognised and measured at fair value. To provide an indication about the reliability of the inputs used in determining
fair value, the group has classified its financial instruments into the three levels prescribed under the Indian Accounting
Standard. An explanation of each level follows underneath the table.
Note 53: RISK MANAGEMENT
'The Company's activities expose it to market risk, liquidity risk and credit risk. The management has the overall responsibility
for the establishment and oversight of the Company's risk management framework. This note explains the sources of risk
which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.
Credit risk
Credit risk is the risk that counterparty fails to discharge its obligation to the Company. The Company's exposure to credit
risk is influenced mainly by cash and cash equivalents, trade receivables and financial assets measured at amortised cost.
The Company continuously monitors defaults of customers and other counterparties and incorporates this information into
its credit risk controls.
(a) Capital Management
The Company's capital management objectives are to ensure the Company's ability to continue as a going concern as well
as to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.
The Company monitors capital on the basis of the carrying amount of equity plus its subordinated loan, less cash and
cash equivalents as presented on the face of the statement of financial position and cash flow hedges recognised in other
comprehensive income.
'The Company manages its capital structure and makes adjustments to it in the light of changes in economic conditions
and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may
adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares. The amounts
managed as capital by the Company are summarised as follows:
Note 56.4: The Company has complied with the number of layers prescribed under Companies Act 2013.
Note 56.5: The Company has not entered into any scheme of arrangement which has an accounting impact on current or
previous financial year.
Note 56.6: There is no income surrendered or disclosed as income during current or previous year in the tax assessment
under the Income Tax Act 1961 that has not been recorded in books of accounts.
Note 56.7: The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
Note 56.8: The Company has not revalued its Property, Plant and Equipment or intangible assets or both during the current
or previous year.
Note 58: Standards issued and amended but not effective
The Ministry of Corporate Affairs (MCA) notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. MCA has not notified any new standards or amendments to
the existing standards applicable to the Company subsequent to 31st March 2025.
Note 59:
(a) No funds have been advanced/loaned/invested (from borrowed fund or from share premium or from any other sources/
kind of fund) by the company to any other person(s) or entity (ies), including foreign entities(intermediaries), with the
understanding (whether recorded in writing or otherwise) that the intermediary shall (i) directly or indirectly lend or invest
in other person or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or like to or on behalf of the Ultimate Beneficiaries.
(b) No funds have been received by the company from any person(s) or entity (ies), including foreign entities (funding Parties),
with the understanding (whether recorded in writing or otherwise) that the company shall (i) 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 (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
Note 60: The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post employment
benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. Certain sections
of the Code came into effect on 3 May 2023. However, the final rules/interpretation have not yet been issued. Based on a
preliminary assessment, the Company believes the impact of the change will not be significant.
Note 61: The Company has used an accounting software for maintaining its books of account for the year ended 31st March
2025 which have 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 audit trail feature has been preserved by the company as per the statutory
requirements for record retention.
Note 62: The previous year figures have been regrouped/reclassified, wherever necessary, to make them comparable with
current year figures.
The notes referred to above form an integral part of standalone financial statements.
As per our audit report of even date attached
For and on behalf of For and on behalf of Board of Directors
B S D & Co.
Chartered Accountants
(Firm Reg. No. 000312S)
Sd/- Sd/- Sd/-
Sujata Sharma Mohit Goel Vinit Goyal
Partner DIN: 02451363 DIN: 03575020
M. No. 087919 Managing Director Wholetime Director
Sd/- Sd/-
Place: New Delhi Manoj Kumar Dua Deshabandhu Rajesh Srikanta
Date: 28 May, 2025 Chief Financial Officer Company Secretary
M. No. F3992
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