2.18.Provisions, contingent assets and contingent
liabilities
Provisions are recognized only when there is a present obligation, as a result of past events and when a reliable estimate of the amount of obligation can be made at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. Provisions are discounted to their present values, where the time value of money is material.
Contingent liability is disclosed for:
• Possible obligations which will be confirmed only by future events not wholly within the control of the Company or
• Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.
Contingent assets are neither recognized nor disclosed except when realisation of income is virtually certain, related asset is disclosed.
Ind AS 116 supersedes Ind AS 17 Leases including its appendices. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to recognise most leases on the balance sheet.
The Company has adopted Ind AS 116 using the modified retrospective method of adoption under the transitional provisions of the Standards, with the date of initial application on 1st April, 2019. The Company also elected to use the recognition exemptions for lease contracts that, at the commencement date, have a lease term of 12 months or less and do not contain a purchase option (short-term leases), and lease contracts for which the underlying asset is of low value (low-value assets). Adoption of Ind- AS 116 doesn't have any material impact on the financial statements of the Company.
The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
Company as a lessee
The Company applies a single recognition and measurement approach for all leases, except for short term leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right-to-use the underlying assets.
Right-of-use assets
The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets.
If ownership of the leased asset transfers to the Company at the end of the lease term or the reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.
Right-of-use assets are also subject to impairment.
At the commencement date of the lease, the Company recognises lease liabilities measured a the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in substance fixec payments) less any lease incentives receivable variable lease payments that depend on an inde or a rate, and amounts expected to be paid unde residual value guarantees.
In calculating the present value of lease payments the Company uses its incremental borrowing rate a the lease commencement date because the interes rate implicit in the lease is not readily determinable After the commencement date, the amount of lease liabilities is increased to reflect the accretion o interest and reduced for the lease payments made In addition, the carrying amount of lease liabilitie: is remeasured if there is a modification, a change in the lease term, a change in the lease payment (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment o an option to purchase the underlying asset.
Short-term leases and leases of low-value assets
The Company applies the short-term lease recognition exemption to its short-term leases (i.e. those leases that have a lease term of 12 month or less from the commencement date and do no contain a purchase option). It also applies the lease of low-value assets recognition exemption to lease of offices, godowns, equipment, etc. that are o low value. Lease payments on short-term lease: and leases of low value assets are recognised a expense on a straight-line basis over the lease term
Company as a lessor
Lessor accounting under Ind AS 116 is substantially unchanged from Ind AS 17. Lessors will continue to classify leases as either operating or finance lease: using similar principles as in Ind AS 17. Therefore Ind AS 116 does not have an impact for lease where the Company is the lessor. Leases in which the Company does not transfer substantially al the risks and rewards incidental to ownership o an asset are classified as operating leases. Renta income arising is accounted for on a straight line basis over the lease terms. Initial direct cost: incurred in negotiating and arranging an operatin 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 rent are recognized as revenue in the period in which they are earned.
2.20.Financial Instruments
Initial recognition and measurement
Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the financial instrument and are measured initially at fair Value adjusted for transaction costs, except for those carried at fair value through profit or loss which are measured initially at fair value.
Subsequent measurement of Financial Assets
i) Financial assets carried at amortised cost - a financial asset is measured at the amortised cost, if both the following conditions are met:
• The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
• Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method.
ii) Investments in equity instruments of subsidiaries, joint ventures and associates - Investments in equity instruments of subsidiaries, joint ventures and associates are accounted for at cost in accordance with Ind AS 27 Separate Financial Statements.
De-recognition of financial assets
A financial asset is primarily de-recognized when the contractual rights to receive cash flows from the asset have expired or the Company has transferred its rights to receive cash flows from the asset.
Subsequent measurement of Financial Assets
Subsequent to initial recognition, all non-derivative financial liabilities are measured at amortised cost using the effective interest method.
De-recognition of financial liabilities
A financial liability is de-recognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss.
2.21.Earnings per share
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted-average number of equity shares outstanding during the period. The weighted-average number of equity shares outstanding during the period is adjusted for events including a bonus issue.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted-average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
2.22.Significant management judgement in applying accounting policies and estimation uncertainty
The preparation of the Company's financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the related disclosures.
Significant management judgements
Recognition of deferred tax assets -
At the end of the year the Company has net deferred tax assets as per the provision of Ind AS
- 12 "Income Taxes ", As a prudence policy the said Deferred Tax Assets has not been recognized which is in accordance with the Ind AS 12
Evaluation of indicators for impairment of assets
- The evaluation of applicability of indicators of impairment of assets requires assessment of several external and internal factors which could result in deterioration of recoverable amount of the assets.
Impairment of financial assets - At each balance sheet date, based on historical default rates observed over expected life, the management assesses the expected credit loss on outstanding financial assets.
Provisions - At each balance sheet date basis the management judgment, changes in facts and legal aspects, the Company assesses the requirement of provisions against the outstanding contingent liabilities. However, the actual future outcome may be different from this judgement.
Revenue and inventories - The Company recognizes revenue using the percentage of completion method. This requires forecasts to be made of total budgeted cost with the outcomes of underlying construction and service contracts, which
require assessments and judgements to be made on changes in work scopes, claims (compensation, rebates etc.) and other payments to the extent they are probable and they are capable of being reliably measured. For the purpose of making estimates for claims, the Company used the available Contractual and historical information.
Useful lives of depreciable/ amortisable assets -
Management reviews its estimate of the useful lives of depreciable/amortisable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technical and economic obsolescence that may change the utility of assets.
Defined benefit obligation (DBO) - Management's estimate of the DBO is based on a number of underlying assumptions such as standard rates of inflation, 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.
Fair value measurements - Management applies valuation techniques to determine the fair value of financial instruments (where active market quotes are not available). This involves developing estimates and assumptions consistent with how market participants would price the instrument. The Company used valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input i.e. significant to the fair value measurement as a whole.;
Level 1. Quoted prices (unadjusted) in active markets for identical assets and liabilities
Level 2. Input other than quoted prices included within level 1 that are observable for the assets or liabilities either directly (i.e. as prices) or indirectly (i.e. derived from prices)
Level 3. Inputs for the assets and liabilities that are not based on observable market data (unobservable inputs)
2.23.Recent accounting pronouncements
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. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.
b. Term/rights attached
The company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The Final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
During the year ended 31st March, 2024, the company has proposed the amount of per share dividend as distributions to equity shareholders was Rs.4.00 per share (Previous year Rs. 3.00 per share) as Final Dividend.
c. Aggregate numbers of bonus shares issued, share issued for consideration other than cash and shares brought back during the period of five years immediately preceding the reporting date: NIL
Note 19.1
Outstanding borrowings of Rs.33910.58 Lakhs (Previous Year Rs.71020.79 Lakhs) from HDFC Bank Limited (earlier HDFC Limited) having an effective rate of interest of 11.55% to 12.55% repayable in 4 to 6 years in specified monthly instalments secured against:
1 Exclusive charge on All those pieces and parcels of land bearing C.T.S. No. 1A/2 (corresponding to Survey No. 173/1 pt) admeasuring 72,778.9 square meters or thereabouts (i.e. excluding an area admeasuring 24,655.10 square meters shown as protected forest l.e. mangroves in the Property Register Card, out of 97,434 square meters in the aggregate), lying being and situate at Village Anik, Taluka Kurla, within the jurisdiction of the City Survey Office, Chembur in the Registration Sub-District of Mumbai Suburban, less 4410 sq. mtrs for Treon, 4152 sq. mtrs for Zeon and 3850 sq.mtrs. for Manhattan. Net area 60366.90 sq. mtrs, together with the construction thereon, schedule receivables and insurance proceeds, both present and future (Balance Land 1)
2 Exclusive mortgage and charge on all those pieces and parcels of land bearing C.T.S. No. 1A/2 (corresponding to Survey No. 173/1 pt) admeasuring 21,757.10 square meters or thereabouts and forming a part of Larger Property lying being and situate at Village Anik, Taluka Kurla, within the jurisdiction of the City Survey Office, Chembur in the Registration Sub-District of Mumbai Suburban, together with the construction thereon, schedule receivables and insurance proceeds, both present and future ("Balance Land 2")
3 Residential project "Ajmera Aeon" with the underlying land and scheduled receivables and insurance proceeds admeasuring approximately 9,313.50 sq.mt situated at sub plot A bearing CTS No. 1A/7 and 1A/8 of village Anik at Chembur
4 Residential cum Commercial project "Ajmera Zeon" with the underlying land and scheduled receivables and insurance proceeds admeasuring approximately 4,152 sq.mt situated at sub plot A bearing CTS No. 1A/2 of village Anik at Chembur admeasuring 72,778.9 sq.mt
5 Residential cum Commercial project "Ajmera Treon" with the underlying land and scheduled receivables and insurance proceeds admeasuring approximately 4,410.0 sq.mt situated at sub plot A bearing CTS No. 1A/2 of village Anik at Chembur admeasuring 72,778.9 sq.mt
6 Commercial project 'Sikova' with underlying land bearing CTS no. 174A & 174B at Village Ghatkopar, Mumbai along with scheduled sales receivables and insurance proceeds.
7 Also above borrowings have been secured by way of personal guarantee of Promoters.
Note 19.2
Outstanding borrowings of Rs.18,666.77 Lakhs (Previous Year NIL) each from ICICI Bank Limited and Standard Chartered Bank having an effective rate of interest of 11.10% repayable in 4 Years in specified monthly instalments secured against:
1 All parcel of land bearing CTS No. 1A/2 admeasuring 3850 sq mtrs together with Buildings 3A and 3B situated at Village Anik, Taluka Kurla with receivables and insurance proceeds.
2 Above borrowings has been secured by way of personal guarantee of Promoters.
Note 35.2 Corporate Social Responsibility
As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief, and rural development projects. A CSR committee has been formed by the company as per the Act. The funds were primarily allocated to a corpus and utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013:
Note 38 : The Company primarily deals in the business of Real Estate and hence there is no Primary reportable
segment in the context of Ind AS 108.
Note 39 : Disclosure under Micro, Small and Medium Enterprises Development Act, 2006:
a) The principal amount Rs.12.80 (Previous Year Rs. 429.95) lakhs and the interest due thereon is Rs. 0.07 Lakhs (Previous Year NIL) remaining unpaid to any supplier at the end of each accounting year 2023-24.
b) The amount of interest paid by the buyer in terms of section 16 of the Micro, Small and Medium Enterprises Development Act, 2006, along with the amount of the payment made to the supplier beyond the appointed day during each accounting year.
c) The amount of Interest due and payable for the period of delay in making payment but without adding the interest specified under the Micro, Small and Medium Enterprises Development Act, 2006..
d) The amount of Interest accrued and remaining unpaid at the end of each accounting year Rs. 0.07 Lakhs (Previous Year NIL)
e) The amount of further interest remaining due and payable even in the succeeding years until such date when the interest dues above are actually paid to the small enterprise, for the purpose of disallowance of a deductible expenditure under section 23 of the Micro, Small and Medium Enterprises Development Act, 2006 is Nil. (Previous Year NIL)
The above information to be read with Note No. 20 & 25 - "Trade Payables" regarding Micro and Small enterprises has been determined to the extent such parties have been identified on the basis of information available with the company.
Note 40 : Capital Management policy
- Safeguard our ability to continue as a going concern, and
- Maintain an optimal capital structure to reduce the cost of capital
The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of balance sheet.
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, subject to relevant permissions and compliances, adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.
Note 41 : Employee Benefit Defined contribution plans
The Company makes contributions towards a provident fund under a defined contribution retirement benefit plan for qualifying employees. The Company contribute a specified percentage of payroll cost to fund the benefits.
Defined Benefit Plan
The Company has a funded post-employment defined benefit plan. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary per year of completed service. Vesting occurs upon completion of 5 years of service. The present value of defined benefit obligation and the related current service cost were measured using the Projected Unit Credit Method, with actuarial valuation being carried out at each Balance Sheet date.
The following table sets out the funded status of the gratuity plan (a funded, post-employment defined benefit plan) and the amounts recognised in the Company's financial statements as at March 31,2024.
No other post-retirement benefits are provided to the employees.
The most recent actuarial valuation of the present value of the defined benefit obligation was carried out at March 31,2024. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.
The employee's gratuity fund scheme managed by HDFC LIFE is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
Types of Risk and its management
The company's activities expose it to market risk, liquidity risk and credit risk. Board of Directors has overall responsibility for the establishment and oversight of the company 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.
1. Credit Risk
The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business environment in which the entity operates. Expected Credit Loss is based on actual credit loss experienced and past trends based on the historical data.
2. Liquidity Risk
Liquidity risk is the risk that the company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The company approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due.
Management monitors rolling forecasts of the company liquidity position and cash and cash equivalents on the basis of expected cash flows. The company takes into account the liquidity of the market in which the entity operates.
Capital and other commitments on account of revenue as well as capital nature is Rs. 1062.46 Lakhs (Previous Year Rs. 863.25 Lakhs)
Note no 46
No proceedings have been initiated during the year or are pending against the Company as at March 31, 2024 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.
Note no 47
The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
Note no 48
There were no transactions relating to previously unrecorded income that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).
The Board of Directors is of the opinion that none of the assets other than Property, Plant and Equipment, Intangible Assets and non-current investments have realisable value less than their carrying amount in the ordinary course of business.
Note no 50
No funds have been advanced or loaned or invested by company to any intermediary and no funds have been received by the company to act as intermediary.
Note no 51 Relationship with Struck off Companies
Disclosure for the relationship with any struck off company for the year ended as on March 31, 2024 and March 31, 2023:
Note no 52
The company has not traded or not invested in Crypto currency or Virtual currency during the financial year.
Note no 53
There are no any charges or satisfaction of charges which is yet to be registered with Registrar of Companies beyond the statutory period.
Note no 54
The Company has complied with Companies (Restriction of Number of Layers) Rules, 2017, and there are no downstream companies beyond the specified layers.
Note no 55
The company has borrowings from banks or financial institutions on the basis of security of current assets, the quarterly returns or statements of current assets filed by the company with banks or financial institutions are as per the books of accounts.
Note no 56
The Company has used the borrowings from banks and financial institutions for the specific purpose for which they were availed.
Note no 57
The balance in debtors, creditors are subject to confirmation and reconciliation, if any. However as per management opinion, no material impact on financial statements out of such reconciliation is anticipated.
Note no 58
The Company has used accounting software for maintaining its books of account for the financial year ended March 31, 2024 which has a 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, the audit trail feature was not tampered with at any point of time
Note no 59 Subsequent events
There is not any subsequent event reported after the date of financial statements.
Note no 60 Regrouping of Previous Year Figures.
The company has regrouped / rearranged and reclassified previous year figures to conform to current year's classification.
As per our report of even date For & on behalf of Board Of Directors of
For V.Parekh & Associates Ajmera Realty & Infra India Limited
Chartered Accountants
Firm Reg. No. 107488W Rajnikant S. Ajmera Manoj I. Ajmera
Chairman & Managing Director Managing Director (Din : 00010833) (Din : 00013728)
Rasesh V. Parekh - Partner
Membership No. 38615 Nitin D. Bavisi Chandra Prakash Jugani
UDIN : 24038615BKBFJW2378 Chief Financial Officer Company Secretary
Place : Mumbai Place : Mumbai
Date : 9th May 2024 Date : 9th May 2024
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