Q. Provisions, Contingent Liability & Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be outflow of recourses.
Contingent liabilities is not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.
R. Earnings per Share
Basic earnings per share is computed by dividing net profit or loss for the period attributable to equity shareholders by the weighted average number of shares outstanding during the year. Diluted earnings per share amounts are computed after adjusting the effects of all dilutive potential equity shares. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share, and also the weighted average number of equity shares, which could have been issued on the conversion of all dilutive potential shares. In computing dilutive earnings per share, only potential equity shares that are dilutive and that decrease profit per share are included.
S. Cash Flows
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, financing and investing activities of the Company are segregated.
As required by Ind AS19, Provident fund and gratuity are defined contribution scheme and the contributions made are charged to profit & loss account. Leave encashment liability is a defined benefit obligation and is provided for on the basis of actuarial valuation done using projected unit credit method at the end of the financial year.
A. Gratuity
The liability or asset recognized in the balance sheet in respect of defined benefit gratuity plans is the present value
of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. Management estimates the defined benefit obligation annually with the assistance of independent actuaries. This is based on standard rates of inflation, salary growth rate and mortality. Discount factors are determined close to each year-end by reference to high quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the terms of the related gratuity liability. Actuarial gains and losses arising from past experience and changes in actuarial assumptions are credited or charged to the statement of profit and loss in the year in which such gains or losses are determined.
37.1 Reportable Segments:-
Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the Chief Operating Decision Maker (‘CODM'), in deciding how to allocate resources and in assessing performance.
Operating segments are identified based on the internal organization at the financial reporting date. The Management has identified the business segments as reportable segments, which comprise:
1) Real Estate Division (Revenue received from Sale of Plots, Lease of Building, Plant & Machinery)
2) Investment Division (Revenue received from Interest and Profits from Investment in Securities)
With the stagnation of the operations of welding division and its revenues being of the similar nature with real estate division, separate disclosure of ‘Welding' division has been discontinued during the current period and disclosed as a combined segment with ‘Real Estate' Segment. Following the change in the composition of the reportable segment, the company has restated the corresponding amounts. Revenues and expenses directly attributable to the segments are reported under each reportable segment. The accounting principles used in the preparation of the segment information are consistently applied to record revenue and expenditure in individual business segments
37.2 Information about geographical areas
The Company does not have geographical distribution of revenue; hence secondary segmental reporting is not applicable to the company.
37.3 Other Notes:
Segmental Revenue includes Rs. 49,173 (Previous Year 35,662) and Rs. 10,25,821 (Previous Year 40,39,281) as interest income for each of the divisions i.e. Real estate Division and Investment division respectively .
Segmental Expenses includes Rs. 69,962 (Previous Year 1,58,965) and Rs. 54,26,485 (Previous Year 28,45,364) as interest expense for each of the divisions i.e. Real estate Division and Investment division respectively .
Segmental Expenses includes Rs. 30,70,824 (Previous Year 34,31,488) and Rs. 15,17,724 (Previous Year 83,313) as depreciation expense for each of the divisions i.e. Real estate Division and Investment division respectively.
39. (a) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any
other sources or kind of funds) by the company to or in any other person(s) or entity(ies), 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 person(s) or entity(ies), 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.
40. The Company has not been declared as willful defaulter by any bank or financial Institution or other lender.
41. During the year, the company has not entered into transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
42. The Company has not number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.
Carrying amounts of Loans, Trade Receivables, Cash and Cash Equivalents, Other Financial assets, Borrowings, Trade Payables and Other Financial Liabilities approximate the fair value.
b. Fair Value Hierarchy
The Fair Value Hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consist of the following three levels:
Level 1- Inputs are quoted prices (unadjusted) in active markets for identical assets and liabilities.
Level 2- Inputs are other than quoted prices included in Level 1 that are observable for assets or liabilities, either directly or indirectly.
Level 3- Inputs are not based on observable market data (unobservable inputs).
The financial instruments included in level 3 of Fair Value Hierarchy, i.e. Fair Value of Investment in Unquoted Equity Shares is determined based on the Net Asset Value of the Investee Company as on the Balance Sheet Date.
50. Value of Consumption of Raw Material & Stores Consumed:
The company has not imported or exported any raw materials and spare parts during the financial year.
51. In the opinion of the Board, the current assets, loans and advances have a value on realization on the ordinary course of business, at least equal to the amount at which the same is stated in the Balance Sheet. There are no contingent liabilities.
52. The financial statements were approved for issue by the board of Directors on 29th May,2024.
53. Corporate Social Responsibility (CSR)
The Company has formulated CSR committee and has set responsibility thereon to plan for expenditures on CSR as per the applicable provisions of the Companies Act, 2013. The company has incurred an amount of Rs. INR 11,75,000/- for Corporate Social Responsibility for F.Y. 2023-24, at the rate of 2% of the average adjusted Net Profit for the previous three years. The CSR policy and the procedures in relation to it are in line with the requirements of
Ashutosh A. Maheshwari
For Arora Banthia & Tulsiyan
(Chairman cum Whole Time Director)
Chartered Accountants Firm Reg. No.: 007028C
Gitanjali A. Maheshwari
(Whole Time Director)
CA Ajay Tulsiyan (DIN: 00094596)
Partner
Membership No.: 74868 Kishore Kale
(Whole Time Director)
UDIN: 24074868BKLTCZ9565 (DIN: 01743556)
Navin S. Patwa
Place: Indore
Date: 29/05/2024 (Company Secretary)
Gopal P. Shrivastava
(Chief Financial Officer)
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