(ix) Provisions, contingent liabilities, and contingent assets Provisions
The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources, and a reliable estimate can be made of the amount of obligation.
If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows (representing the best estimate of the expenditure required to settle the present obligation at the balance sheet date) at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost.
Contingent liability
Contingent liabilities are possible obligations that arise from past events and whose existence will only be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote
Contingent assets
Contingent assets are possible assets that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.
(x) Property, plant and equipment (including Capital work-in-progress)
Becognition_andmeasurement
All items of property, plant and equipment are stated at historical cost less depreciation. Freehold land is carried at cost. All other items of property, plant and equipment are stated at cost net of recoverable taxes (wherever applicable), which includes capitalised borrowing costs less depreciation and impairment, if any.
Cost of an item of property, plant and equipment comprises its purchase price, including import duties and non-refundable purchase taxes, if any, after deducting trade discounts and rebates, any directly attributable cost of bringing the item to its working condition for its intended use and estimated costs of dismantling and removing the item and restoring the site on which it is located
\o\ /X
If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment.
Any gain or loss on disposal of an item of property, plant and equipment is recognised in the statement of profit and loss.
On transition to Ind AS, the Company had elected to continue with carrying value of all its property, plant and equipment recognised as at 1 April 2016 measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment.
Sub.sequentjexpenditure
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced.
All other repairs and maintenance are charged to the Statement of Profit and Loss during the reporting period in which they are incurred.
Depreciation methods, estimated useful lives and residual values
Depreciation is calculated on cost of items of property, plant and equipment less their estimated residual value over their useful life using straight line method and is recognised in the statement of profit and loss.
The estimated useful lives of items of property, plant and equipment for the current and comparative periods are as under and the same are equal to lives specified as per schedule II of the Act.
Based on technical evaluation and consequent advice, the management believes that its estimates of useful lives as given above best represent the period over which management expects to use these assets. Depreciation on addition to property, plant and equipment is provided on pro-rata basis from the date the assets are ready for intended use. Depreciation on sale/discard from property, plant and equipment is provided for up to the date of sale, deduction or discard of property, plant and equipment as the case may be.
Depreciation method, useful lives and residual values are reviewed at each financial year-end, and changes, if any, are accounted for prospectively.
(xi) Intangible assets
Recognition and measurement
An intangible asset is recognised when it is probable that the future economic benefits attributable to the asset will flow to the Group and where its cost can be reliably measured.
Intangible assets are initially measured at cost. Such intangible assets are subsequently measured at cost less accumulated amortisation and any accumulated impairment losses. Cost comprises the purchase price and any cost attributable to bringing the assets to its working condition for its intended use.
Amortisation
Amortisation is calculated to write off the cost of intangible assets over their estimated useful lives using the straight-line method and is included in depreciation and amortisation in the statement of profit and loss.
Amortisation method, useful lives and residual values are reviewed at each financial year-end, and changes, if any, are accounted for prospectively.
Losses arising from the retirement of and gain or losses arising from disposal of an intangible asset are determined as the difference between the net disposal proceeds and the carrying amount of asset and recognised as income or expense in the statement of profit and loss
(xii) Impairment of non-financial assets
The Company's non-financial assets, other than inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's or CGU's recoverable amount is estimated.
For impairment testing, assets that do not generate independent cash inflows are grouped together into cashgenerating units (CGUs). Each CGU represents the smallest group of assets that generates cash inflows that are largely independent of the cash inflows of other assets or CGUs.
i he recoverable amount of a CGU (or an individual asset) is the higher of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the CGU (or the asset).
An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its estimated recoverable amount. Impairment losses are recognised in the statement of profit and loss. Impairment loss recognised in respect of a CGU is allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets of the CGU (or group of CGUs) on a pro rata basis.
After impairment, depreciation/amortisation is provided on the revised carrying amount of the asset over its remaining useful life.
(xiii) Borrowing costs
Borrowing costs are interest and other costs incurred in connection with the borrowing of funds. Borrowing costs directly attributable to acquisition or construction of an asset which necessarily take a substantial period of time to get ready for their intended use are capitalised as part of the cost of that asset. Other borrowing costs are recognised as an expense in the period in which they are incurred.
Initial recognition and measurement
Trade receivables and debt securities issued are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the instrument.
A financial asset or financial liability is initially measured at fair value plus, transaction costs that are directly attributable to its acquisition or issue, except for an item recognised at fair value through profit and loss. Transaction cost of financial assets carried at fair value through profit and loss is expensed in the statement of profit and loss.
Classification and subsequent measurement
FinanciaLassets
On initial recognition, a financial asset is classified as measured at:
• amortised cost,
• Fair value through other comprehensive income (FVOCI), or
• Fair value through profit and loss (FVTPL)
The classification depends on the entity's business model for managing the financial assets and the contractual terms of the cash flows.
Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company changes its business model for managing financial assets.
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL
• the asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and
• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding
A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:
• the asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment's fair value in OCI (designated as FVOCI - equity investment). This election is made on an investment by investment basis.
All financial assets not classified to be measured at amortised cost or FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Comnany may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI or at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise
Financial assets: Business model assessment
The Company makes an assessment of the objective of the business model in which a financial asset is held at a portfolio level because this best reflects the way the business is managed and information is provided to management. The information considered includes:
• the stated policies and objectives for the portfolio and the operation of those policies in practice. These include whether management’s strategy focuses on earning contractual interest income, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of any related liabilities or expected cash outflows or realising cash flows through the sale of the assets:
• how the performance of the portfolio is evaluated and reported to the Company's management;
• the risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed;
• how managers of the business are compensated - e.g., whether compensation is based on the fair value of the assets managed or the contractual cash flows collected; and
• the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and expectations about future sales activity.
Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales for this purpose, consistent with the Company's continuing recognition of the assets
Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value basis are measured at FVTPL.
Financial assets: Assessment whether contractual cash flows are solely payments of principal and interest For the purposes of this assessment, principal' is defined as the fair value of the financial asset on initial recognition. Interest is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs (e.g., liquidity risk and administrative costs), as well as a profit margin
In assessing whether the contractual cash flows are solely payments of principal and interest, the Company considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, the Company considers:
• contingent events that would change the amount or timing of cash flows;
• terms that may adjust the contractual coupon rate, including variable interest rate features; prepayment and extension features; and
• terms that limit the Company's claim to cash flows from specified assets (e.g., non- recourse features)
A prepayment feature is consistent with the solely payments of principal and interest criterion if the prepayment amount substantially represents unpaid amounts of principal and interest on the principal amount outstanding, which may include reasonable additional compensation for early termination of the contract Additionally, for a financial asset acquired at a significant discount or premium to its contractual par amount, a feature that permits or requires prepayment at an amount that substantially represents the contractual par amount plus accrued (but unpaid) contractual interest (which may also include reasonable additional compensation for early termination) is treated as consistent with this criterion if the fair value of the prepayment feature is insignificant at initial recognition.
Financial assets at amortised cost: These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses, if any. Interest income and impairment are recognised in the statement of profit and loss. Any gain or loss on derecognition is recognised in statement of profit and loss.
Financial assets at FVTPL: These assets are subsequently measured at fair value. Net gains and losses, including any interest income, are recognised in the statement of profit and loss.
Debts investments at FVOCI: These assets are subsequently measured at fair value. Interest income under the effective interest method, foreign exchange gains and losses and impairment are recognised in profit or loss Other net gains and losses are recognised in OCI. On Derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.
Equity investments at FVOCI: These assets are subsequently measured at fair value. Dividends are recognised as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in OCI and are not reclassified to profit or loss.
FinancialJiAbiLLtLes;.classification, subsequentjneasur.ement & gain and loss
Financial liabilities are classified as measured at amortised cost or FVTPI. A financial liability is classified as at FVTPL if it is classified as held for trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in the statement of profit and toss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in the statement of profit and loss. Any gain or loss on derecognition is also recognised in the statement of profit and loss.
Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the assets and settle the liabilities simultaneously.
Derecognition
Financial assets
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset.
If the Company enters into transactions whereby it transfers assets recognised on its balance sheet, but retains either all or substantially all of the risks and rewards c‘ the transferred assets, the transferred assets are not derecognised.
EiaancMJk.biiili.es
The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.
The Company also derecognises a financial liability when its terms are modified and the cash flows under the modified terms are substantially different. In this case, a new financial liability based on the modified terms is recognised at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognised in the statement of profit and loss.
Impairment of financial instruments
The Company recognises loss allowances for expected credit losses on>
Financial assets measured at amortised cost; and Financial assets measured at FVOCI- debt investments
At each reporting date, the Company assesses whether financial assets carried at amortised cost and debt securities at FVOCI are credit impaired. A financial asset is credit-impaired' when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial asset is credit - impaired includes the following observable data:
• significant financial difficulty of the borrower or issuer;
° a breach of contract such as a default or being past due for agreed credit period;
• the restructuring of a loan or advance by the Company on terms that the Company would not consider otherwise;
• it is probable that the borrower will enter bankruptcy or other financial reorganisation; or
• the disappearance of an active market for a security because of financial difficulties.
Expected credit loss
Loss allowances for trade receivables are always measured at an amount equal to lifetime expected credit losses.
Lifetime expected credit losses are the expected credit losses that result from all possible default events over the expected life of a financial instrument.
12-month expected credit losses are the portion of expected credit losses that result from default events that are possible within 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).
In all cases, the maximum period considered when estimating expected credit losses is the maximum contractual period over which the Company is exposed to credit risk.
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating expected credit losses, the Company considers reasonable and supportable information
that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company's historical experience and informed credit assessment and including forward looking information.
The Company assumes that the credit risk on a financial asset has increased significantly if it is more than agreed credit period.
The Company considers a financial asset to be in default when:
• the borrower is unlikely to pay its credit obligations to the Group in full, without recourse by the Group to actions such as realising security (if any is held); or
• the financial asset is past due and not recovered within agreed credit period,
Measurement of expected credit losses
Expected credit losses are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e., the difference between the cash flows due to the Company in accordance with the contract and the cash flows that the Company expects to receive).
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets disclosed in the Balance Sheet.
Write-off
The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. This is generally the case when the Company determines that the debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company's procedures for recovery of amounts due
(xv) Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the period The weighted average numbers of equity shares outstanding during the period are adjusted for events such as bonus issue, share split or consolidation of shares,
For calculating diluted earnings per share, the net profit or loss for the year 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. The dilutive potential equity shares are deemed converted into equity shares as at the beginning of the period unless they have been issued at a later date.
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.
In accordance with Ind AS 108 - Operating Segments, the operating segments used to present segment information are identified on the basis of internal reports used by the Company's Management to allocate resources to the segments and assess their performance.
Segment profit is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries. Inter-segment pricing is determined on an arm's length basis.
The operating segments have been identified on the basis of the nature of products/services, Further:
1. Segment revenue includes sales and other income directly identifiable with / allocable to the segment including inter-segment revenue
2. Expenses that are directly identifiable with / allocable to segments are considered for determining the segment result. Expenses which relate to the Group as a whole and not allocable to segments are included under unallocable expenditure.
3. Income which relates to the Group as a whole and not allocable to segments is included in unallocable income.
4 Segment assets and liabilities include those directly identifiable with the respective segments. Unallocable assets and liabilities represent the assets and liabilities that relate to the Group as a whole and not allocable to any segment
The Board of Director(s) are collectively the Company's ’Chief Operating Dec'S'O" Maker' or 'CODM' within *hn meaning of Ind AS 108 Refer Note 46 for segment information
B. Term Loan from Housing Development Finance Corporation Limited
During the financial year 2015-16, the Parent company had taken a long term loan from Housing Development Finance Corporation Limited of * 500.00 Lacs as per agreement dated July 31, 2015. The closing balance of said loan is f 368.86 Lacs and f 368 86 Lacs, as at March 31, 2023 & March 31, 2023 respectively.
Interest rate
This loan carries floating rate of interest at HDFC's RPLR adjusted tor spread Repayment
The loan is repayable in HI equal monthly instalments of ? 6.89 Lacs (including interest) each starting from August 30, 2015 and payable till Apn| 30, 2027 Owing to severe liquidity crises the Parent company is under financial stress and has defaulted in repayment/servicmg of aforesaid loan and therefore the same has been classified as Non-Performing Assets (NPAs) by the banks/lenders No provision of interest has been made after the date of classification of loan as NPA till January 30. 2024 Co-borrowers
M/s Bhama Properties Private Limited. Mrs Prem Lata Sureka, Mr Vishnu Sureka and Mrs Deepa Sureka.
Security
Equitable Mortgage of Property by way of deposit of the title deeds in respect of the agricultural Land admeasuring 12 Bigha out of Khasara No. 921/lmm(1 -9). 922(5-5) and 923|5-6). situated at Village Rajokari. Tehsil Vasant Vihar. New Delhi owned by M/s Bhama Properties Private Limited
The Parent company after negotiations has entered into a One Time Settlement COTS"} with Housing Development finance Corporation Limited settlement vide settlement letter dated January 31. 2024 As per the terms and conditions of the said OTS, total liability of ? 2,083.07 lacs has been settled a*. * 2,050.00 lacs to be paid before September 29, 202*4 by the Parent company The Parent company has discharged ? 500.00 lacs as on the balance sheet date The Parent company has enhanced the due date for the balance payment of ? 1.550.00 lacs after negotiaion with the Bank to be paid along with interest in the next financial year
C. Term Loan from Housing Development Finance Corporation Limited
During the financial year 2012-13. the Parent company had taken a long term loan from Housing Development Finance Corporation Limited of ? 2.500.00 Lacs as per agreement dated April 26. 2012. The closing balance of said loan is * 1,214 21 Lacs and * 1,71421 Lacs, as at March 31. 2024 & March 31. 2023 respectively.
Interest rate
This loan carries floating rate of interest at RPLR - 3.50% p.a Repayment
The loan is repayable in 155 equal monthly instalments of ? 31.63 Lacs (including interest) each starting from May 1, 2012 and payable till March 1. 2025.
Owing to severe liquidity crises the company is under financial stress and has defaulted in repayment/servicmg of aforesaid loan and therefore the same has been classified as Non-Performing Assets (NPAs) by the banks/lenders. No provision of interest has been made after the date of classification of loan as NPA
Due to classification of aforesaid loan as NPA, Housing Development Finance Corporation Limited has recalled entire outstanding principal amount of said loan and all the other charges including interest and penal interest payable thereon Tnerefore. it has been wholly classified as current borrowings.
Co-borrowers
Mr. Navneet Sureka. M/s 3hama Proped es Private Limited. Mrs Prem Lata Sureka. Mr Vishnu Sureka and Mrs Deepa Sureka Security
Equitable Mortgage of Property by way of deposit of the Mle deeds >n respect of the agricultural Land ad measuring 12 B gha out of Khasara No 92V1mm(1-9). 922(5-5) and 923(5-6), situated at Village Rajokari, Tehsil Vasant Vihar New Delhi ownpd ov M/s Bhama Properties Private 'miteri
TheParent company after negotiations has entered into a One Time Settlement (“OTS") with Housing Development Finance Corporation Limited settlement vide settlement letter dated January 31. 2024 As per the terms and conditions of the said OT5, total liability of ? 2.083.07 lacs has been settled at ? 2.050 00 lacs to be paid before September 29. 2024 by the Parent company The Parent company has discharged ? 500 00 lacs ais on the balance sheet date The Parent company has enhanced the due date for the balance payment of ? 1.550.00 lacs after negotiaion with the Bank to be paid along with interest in the next financial year
D. Term Loan from Kotak Mahindra Bank Limited
During the financial year 2017-18. the Company had taken a long term loan from Kotak Mahindra Bank Limited of ? 1,650.00 Lacs as per agreement dated August 22, 2017. The closing balance of said loan is ? nil and t 1.193.43 Lacs, as at March 31, 2024 & March 31. 2023 respectively
Interest rate
This loan carries floating rate of interest at 1 year MCLR 4.35% p.a.
Repayment
The loan is repayable in 60 equal monthly instalments of ? 38.25 Lacs (including interest) each starting from October 5, 2018 and payable till September 5, 2022
Owing to severe liquidity crises the company is under financial stress and has defaulted in repayment/servicing of aforesaid loan and therefore the same nas been classified as Non-Performing Assets (NPAs) by the banks/lenders. No provision of interest has beer made after the cate of classification of loan as NPA
Due to classification of aforesaid loan as NPA. Kotak Mahindra Bank has recalled entire outstanding principal amount of said loan and all the other charges including interest and penal interest payable thereon. Therefore, it Has beer wholly classified as current borrowings
Security
Exclusive charge on farm land area ad measuring 68 bighas & 19 b<swas (14.568 acres) in jhatikra Village, Tehs.le Kapashera, District South West Delhi - 110043 owned by M/s Strawberry Star India Private Limited •
Corporate guarantee of M/s Strawberry Star India Private Limited Letter of Comfort from M/s Jotindra Steel & Tubes Limited
Personal Guarantees of Mr. Navneet Sureka, Mr. Vishnu Sureka and Mr Akhil Sureka
The Parent company after negotiations has entered into a One Time Settlement COTS') with Kotak Mahindra Bank vide settlement letter dated June 14. 2023
As per the terms and conditions of the said OTS. total Lability of f 1.193.43 lacs ~>as been settled a* ? 1 2C0 00 'net *•: L • j a..-. .. •.?• ISC day ‘ . .i~ct nr nf proposal. The Parent company has discharged ? 13 00 lacs along vi/ith interest as on the balance sheet date
50 Operating segments A. Basis for Segmentation
Segment information is presented in respect of the Group's key operating segments. The operating segments are based on the Group's management and internal reporting structure. The chief operating decision maker identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly. All operating segments* operating results are reviewed regularly by the Board of Directors to make decisions about resources to be allocated to the segments and assess their performance
The ’Board of Directors' have been identified as the Chief Operating Decision Maker C'CODM’). since they are responsible for all major decision w.r.t. the preparation and execution of business plan, preparation of budget, planning, expansion, alliance, joint venture, merger and acquisition, and expansion of any facility
Fair value hierarchy
Level 1: It includes financial instruments measured using quoted prices.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or mo-re of the significant inputs is not based on observable market data, the instrument -s included in level 3 The fair value of financial assets and liabilities included in Level 3 is determined in accordance with generally accepted pricing models based on discounted cash flow analysis using prices from observable current market transactions and dealer quotes of similar instruments
The carrying amounts of trade receivables, cash and cash equivalents and other financial assets and liabilities, approximates the fair values, due to their shortterm nature. Fair value of financial assets and financial liabilities is similar to the carrying value as there is no significant differences between carrying value and fair value
Valuation processes
The Management performs the valuations of financial assets and liabilities requi-erl for financial reporting purposes on a periodic basis, including level 3 fair
values
(Ý*). Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are fallen due, under both normal anc stressed conditions, without incurring unacceptable losses or risking damage to the Group's reputation.
The Group believes that its liquidity position of ? 406.45 lacs as at March 31. 2024 [March 31, 2023: ? 73.71 lacs) and the anticipated future internally generated funds from operations will enable it to meet its future known obligations in the ordinary course of business exceDt certain borrowings
The Group is under financial stress and has defaulted in repayment/servicing of certain borrowings and is actively pursuing the lenders for restructuring/rescheduling of such borrowings to avoid any untoward liquidity risk.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of credit facilities to meet obligations when due. The Group's policy is to regularly monitor its liquidity requirements to ensure that t maintains sufficient reserves of cash and funding from Group companies to meet its liquidity requirements in the short and long term The Group's liquidity management process as monitored by management, includes the following - Day to day funding, managed by monitoring future cash flows to ensure that requirements can be met • Maintaining rolling forecasts of the Company's liquidity position on the basis of expected cash flows
(iii). Market risk
Market risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes n market prices Market rusk Group three tyoes of risk: interest rate risk, currency risk and other price risk, the Group mainly has exposure to two type of market risk namely: currency risk and interest rate risk The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return
a. interest rate risk
Interest rate risk is the risk thar the future cash flows of a financial instrument will fluctuate because of changes m market interest rates The Group's mam interest rate risk arises from long-term borrowings with variable rates, which expose the Company to cash flow interest rate risk
Exposure to interest rate risk
The risk is managed by the Group by maintaining an appropriate mix between fixed and floating rate borrowings
For the purpose of the Group's capital management, capital includes issued equity share capital and all other equity reserves attributable to the equity holders of the Group
Management assesses the Group's capital requ»rements in order to maintain an efficient overall financing structure. The Group manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets To maintain or adjust the capital structure, the Group may return capital to shareholders, raise new debt or issue new shares
The Group monitors capital on the basis of the debt to capital ratio, which is calculated as interest-bearing debts divided by total capital (equity attributable to owners of the parent plus interest-bearing debts)
(C). Reasons for significant changes (25% or more)
i ).Debt equity ratio has reduced due to increase in equity as share application money Deeding allotment and repayment of borrowing.
ii) , Debt service coverage ratio has improved as earning increased and repayment of many loans were done as on Macrh 31.2024
iii) Return on equity ratio has improved due to profits in the current year
iv) . Net profit ratio has increased due to profits in the current year
v ). Inventory Turnover Ratio has increased in account of increased purchases during the yea-.
vi) .Trade receivables turnover ratio has improved on account of increase in revenue in the current financial year
vii) .Trade payables turnover ratio has increased in account of increased purchases during the year
viii). Net capital turnover ratio has decreased due to increase in revenue in the current financial year. Average working capital has turn negative due to reclassification of certain trade receivables as non-current.
62 The Group has not entered into any such transaction which is not recorded in the books of accounts that has doom surrenderee 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
63 The Group has not traded or invested in cryptocurrency or virtual currency during the year
64 The Group does not have any charges or satisfaction which is yet to be registered with the Registrar of Group's beyond the statutory period
65 The Group does not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any Benami property
66 The Group has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) , directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Group (Ultimate Beneficiaries), or
(b) . provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
67 The Group has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) , directly or indirectly lend or invest in other persons or entities identified ir any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries: or
(b) . provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
68 The Parent company had entered into certain transacfons with Amraoali Group of Companies in past years In conseauent to which forensic audit was conducted as per the Directions of Hon’ble Supreme Court of India to look into transactions between Amrapali Group of Companies and Sureka Group ol Companies. After which the Hon'ble Supreme Court vide its order No Writ Petition(s>(Civil) No 940/2017 dated December 2, 2019 had directed M/s Jotindra Steel & Tubes Limited and Mauria Udyog Limited including associated companies and Directors viz Mr, Navneet Kumar Sureka and Mr Akhil Kumar Sureka to deposit ? 16.700.00 Lacs. In response to the order of the Hon'ble Supreme Court, it had filed an application on December 9. 2019 before the Hon'ble Supreme Court to accept the title deeds of immoveable properties belonging to Sureka family members and associate companies (based on latest valuation report) worth amounting ? 16,897.00 Lacs, net of incumbency amount of ? 3,934.00 Lacs including Properties amounting ? 10,182.00 Lacs belonging to Mauria Udyog Limited.
In the financial year 2019-20, the Parent company had charged ? 15,00.00 Lacs in the Statement of Profit and Loss against the above matter on an estimated basis and reduced the value of properties (property which is deposited to Hon’ble Supreme Court).
The management is of the opinion that, based on issues and the legal advice that the ultimate outcome of the leaal oroce^dinos m resoect to the matter will not have material adverse effect to the financial position of the Parent company Hence, the Paren; company has neither provided for liability aga^st this matter, nor any amount has been shown as contingent liability as required by Ind AS 37 'Provisions. Contingent Liabilities and Contingent Assets'.
69 Securities & Exchange Board of India (SEBI) vide its interim order cum show cause notice number WTM/SM/IVD/ID9/275 32/202 3-2024 dated 19 June 2023 under sections 11(1), 11(4). 11(4)(A), 11(8)1, 11(B)2 and 11(5) of SEBI Act 1992 read along with SEBI rules 2005, issued interim directions restraining the Company from accessing the securities market till further orders and also directed the Company to deposit jointly and severally with other notices an amount of ?
2,619.69 Lacs.
The Holding Company submitted its reply on 22 July 2023 and has fried an appeal against the said interim order to Securities Appellate Tribunal (''SAT") The SAT vide its decision dated 18 August 2023 has disposed off the appeal and directed the Company to file a re ply/objection to the show cause notice further, the management believes that the impugned order is untenable and is liable to set aside Accordingly, no liability has been recorded by the Company against the amount sought by SEBI in the said interim order
70 These financial statements were approved for issue by the Board of Directors on May 29, 2024.
71 Previous year figures have been re-grouped and re-arranged wherever necessary to conform to the current year classification.
For NKSC & Co. O ($ For behalf of the Board of* Directors of
Chartered Accoc Weiss' \ MaurkaiU^-pg Limited
Firm Registration 020076N \* \ y. \\ / A i . \
PFlyank Goyal -----Navneet Kuma/bur»*ka Atul Kumar
Partner Managing Director Director
Membership No.: 521986 DIN: 00054929 - DIN. 00060233
UDIN: 2452T986BKFKTC8126 Vo ^ ^ C JL
Davinder Kumar Gupta Divya Agrawai
Chief Financial Officer Company Secretary
PAN: AONPG0703M ACS:A21071
Place: New Delhi Place: Faridabad
Date: May 29, 2024 Date: May 29. 2024
|