NOTE 2C Assets Classified as Held for Sale:
Accounting Policy
Non-current assets or disposal group are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sale of such asset or disposal group and its sale is highly probable. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification. As at each balance sheet date, the management reviews the appropriateness of such classification.
Non-current assets or disposal group classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Property, plant and equipment and intangible assets once classified as held for sale are not depreciated or amortised.
Equity share:
• The company has one class of equity shares having a par value of Rs. 2/- each. Each shareholder is eligible for one vote per share held.
• In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distributing of preferential amounts, in proportions to their shareholding.
** On and from Record Date of 27th October ,2023, the equity shares of the Company have been sub-divided, such that 1 (One) equity share having Face Value of Rs.10/- (Rs. Ten only) each, fully paid-up, stands sub-divided into 5 (Five) equity shares having Face Value of Rs.2/- (Rs Two only) each, fully paid-up, ranking pari-passu in all respects. The Earnings per share for the prior periods have been restated considering the face value of Rs. 2/- each in accordance with Ind AS 33 -"Earnings per share"
15.1) Terms of Repayment
A) Term Loan from Kotak bank is secured by way of hypothecation of plant & machinery.
B) The vehicle loan is secured by way of hypothecation of respective vehicles
C) Repayment profile of term loan is set out as below
D) Home Loan From ICICI Bank is secured against mortgage of Flat purchased at Valsad
E) Borrowings has not been used for any other purpose in accordance with the sanction letter.
18.1) Working Capital Loan from The Saraswat Co-Operative Bank Ltd. secured as primary security by way of first charge of present and future Book debt of the Company and is further secured as secondary security by way of
office situated at Plot No. 209, Shop No. 23, 2nd Floor and personal property of director i.e shop no 23, 3rd floor, Girnar Khushboo Plaza, GIDC, and shop no 2 Maitry tower Chala VAPI. Further, directors are also collaterally secured by way of personal guarantee.
18.2) Overdraft facility from the The Saraswat Co-Operative Bank Ltd, Vapi Branch
18.3) Raw Material Assistance from The National Small Industries Corporation Ltd. Against Bank Guarantee of Bank of Baroda on behalf of Saraswat Co- Operative Bank Ltd.
18.4) Reconciliation and reasons for discrepancies in quarterly statement filed with the bank as compare to books.
1. Method used to determine the contract revenue:-
Contract Revenue has been determine on the basis of percentage of total contract revenue with respect to the stage of completion as on the date of balance sheet and where contract is on Lumpsum Basis the Contract Revenue is determined on Completion per square meter basis.
2. Method used to determine stage of completion:-
Stage of completion of a particular contract is determined as a proportion of contract cost incurred for work performed upto the reporting date to the estimated total contract cost.
NOTE: 31 CONTINGENT LIABILITY
Income tax department raised a demand under section 143(3) of Income tax Act, 1961 of Rs. 11,13,145/- for AY 2018-19 vide assessment order dated 25th March, 2021. Our company has filed an appeal to the Commissioner of Income tax (Appeals) and this matter is still pending. The company believes that in appeal the demand will be removed or will get substantial relief. Also, the Income Tax Department has adjusted the tax demand for the AY 2018-19 of Rs. 11,13,145/- along with interest of Rs. 64,512/- against the tax refund due for the AY 2020-21 vide intimation Order dated 14th September, 2021.
(IV) ACTUARIAL ASSUMPTION:
We have used actuarial assumptions selected by the Company. The Company has been advised that the assumptions selected should be unbiased and mutually compatible and should reflect the Company's best estimate of the variables of the future. The Company has also been advised to consider the requirements of Para 144 of Ind AS19 in this regard.
The salary growth rate indicated above is the Company's best estimate of an increase in salary of the employees in future years, determined considering the general trend in inflation, seniority, promotions, past experience and other relevant factors such as demand and supply in employment market, etc.
(V) The company operates gratuity plan wherein employee is entitled to the benefit as per scheme of the company for each completed year of service. The same is payable on retirement or termination whichever is earlier. The benefit vests only after five years of continuous service.
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 Managing Board. Market risk is the risk of loss of future earnings, fair values or future cash flows 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 investments and deposits, foreign currency receivables, payables and loans and borrowings
(i) Equity Price Risk
The company's investment portfolio consists of investments in publicly traded companies, quoted instruments carried at fair value in the balance sheet
(ii) Credit risk
Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly
The company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information such as : (i) Actual or expected significant adverse changes in business, (ii) Actual or expected significant changes in the operating results of the counterparty, (ii) Financial or economic conditions that are expected to cause a significant change to the counterparty's ability to meet its obligations
(iii) Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price.
The Company's corporate treasury department is responsible for liquidity, funding as well as settlement management.
In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company's net liquidity position through rolling forecasts on the basis of expected cash flows
The Company is mainly engaged in the business of Construction of residential buildings/commercial complexes and activities connected and incidental thereto and company also engaged in managing and operating lake which taken on lease. Company operating various recreational activities on lake. On that basis, the Company has two reportable business segment - Construction and government infrastructure, the results of which are embodied below. The Company operates in only one geographical segment-within India.
# Pertains to government infrastructure division being classified as discontinued operation.
The business activities of the company are in two segments, i.e Works contract and Revenue from Nagarpalika Lake. However, during the current quarter vapi nagarpalika has terminated their contract to develop and operate of all three lake taken on the lease. Hence during this quarter company is working under single segment only. The company discloses information to enable its users regarding its financial statements to evaluate the nature and financial effects of the business activities in which it engages and the economic environments in which it operates as per IND AS 108. The Company Derecognise the Assets and Liabilities as per applicable IND AS.
The Company's Construction segment includes Construction and Development of Immovable Properties. This segment grew by -22.20 % and contributed 99.74% to the total revenues.
Revenue from discontinuing includes managing and operating Government Infrastructure like Lake's. This segment grew by -73.86 % and contributed .26% to the total revenues.
(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 and rules made thereunder.
(ii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iii) The Company has not been declared as a Wilful Defaulter by any bank or financial institution or Government or any Government authority.
(iv) The Company has not traded or invested in Cryptocurrency or Virtual Currency during the year ended March 31, 2024.
(v) The Company do not have any transactions with struck off companies.
(vi) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
(vii) The company does not have any subsidiary, so non-compliance with number of layers prescribed under section 2(87) of the Act is not applicable.
(viii) The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
1. 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
2. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(ix) The Company has not received any fund from any persons or entities, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
1. 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
2. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
Previous year figures have been reclassified / regrouped/ recast, wherever necessary.
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