Note 6 (i): The above inventory amount includes work in progress amounting to Rs. 1,306.94 Lakhs pertaining to one of the ongoing projects of the company which has been provided as security/mortgage towards a loan facility taken by the Company for the said project during the year as construction and working capital finance from a financial institution.

Note 6(ii): The inventory amount includes work in progress amounting to Rs. 6,303.22 Lakhs pertaining to two of the ongoing projects of the company which has been provided as security/mortgage as a mortgagor towards debentures issued by a group company identified as related party for construction finance of the respective projects.

12.2 : Note on Rights Issue made during the Year

The Company has made Rights Issue of Equity Shares during the year and raised Rs. 4,693.00 Lakhs whereby 1,56,45,700 fully paid-up rights equity shares of face value of Rs. 10/- each were issued at price of Rs. 30/- per rights equity share (including premium of Rs. 20/- per rights equity share) to the successful rights issue applicants in the ratio of 365 Rights Equity Shares for every 100 Fully Paid-Up Equity Share(s) held by the then existing equity shareholders on the record date i.e. July 03, 2023. Consequently, the issued and paid-up share capital of the Company stands increased to Rs. 2,020.05 Lakhs divided into 2,02,00,500 equity shares of Rs 10/- each.

12.3 : Terms / rights attached to equity shares

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.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.

1. Sushilaben Rameshchandra Bansal (Shares held as on 31st March 2024 : 41,600 equity shares; % of holding as on 31st March 2024: 0.21%)

2. Rameshchandra Jutharam Bansal (Shares held as on 31st March 2024 : 3,000 equity shares; % of holding as on 31st March 2024 : 0.01%)

3. Vikas Goyal (Shares held as on 31st March 2024 : 500 equity shares; % of holding as on 31st March 2024 : 0.00% [rounding off])

Above shareholders are therefore not classified as ‘Promoters’ for the above disclosure on promters holding. Further, there is increase in shares held by the promoter during the current year due to shares issued under rights issue.

a) Retained earnings - The cumulative gain or loss arising from the operations which is retained by the Company is recognised and accumulated under the heading of retained earnings.

b) Capital reserve - Upon redemption of shares, the excess of face value over redemption value is generally charged in Capital reserve

c) General reserve - The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes.

d) Securities premium - Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Act.

Note14 (i): The company has availed construction and working capital loan from a financial institution during the year where in 1 of the ongoing project of the company is provided as a security along with the said project’s receivables. The total sanctioned limit of the said loan was Rs. 4,500.00 lakhs (Previous Year - Nil) out of which Rs. 1,400.00 Lakhs has been availed upto 31st March 2024 (Previous Year - Nil). It has principal standstill period for 36 months from the date of disbursal and floating rate interest rate marked to the lenders internal benchmark rate which was 13.50% per annum on the santioned date . The managing director of the Company is co-borrower in the said facility availed.

Note 17(i): Secured borrowings consists of Rs. 2,355.82 Lakhs payable to a company under common management Shraddha Landmark Private Limited (‘SLPL’) identified as related party in Note 33. Two ongoing projects of the company are offered as security towards debentures issued by SLPL and the funds from debentures are used for Company’s ongoing construction cost and working capital requirement proportiantely as per the Debenture deed. The Company has provided Interest @ 14.5% p.a. on the said borrowing.

Trade payables are non-interest bearing and are settled in accordance with the contract terms with the vendors.

19.1 Disclosure of outstanding dues of Micro and Small Enterprise under Trade Payables is based on the information available with the Company regarding the status of the suppliers as defined under the Micro, Small and Medium Enterprises Development Act, 2006 and relied upon by the auditor.

Note 24.1: The company is a partner in 3 partnership firms and 1 limited liability partnership firm as on 31st March 2024. Its share in profit/(loss) after tax of the respective firms being a partner during the year as per the profit sharing ratio of the firms is considered under “Other Income” from the current year for better presentation. In the previous year, the said amount was directly added in the ‘Retained Earnings’ under ‘Other Equity’ and not routed through Other Income.

33.4 : Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured and settlement occurs in cash. The above loans and advances have been given for general business purposes.

34 : SEGMENT INFORMATION

For management purposes, the Company is into one reportable segment i.e. Real Estate development.

The Managing Director is the Chief Operating Decision Maker of the Company who monitors the operating results of the Company for the purpose of making decisions about resource allocation and performance assessment. The Company’s performance as single segment is evaluated and measured consistently with profit or loss in the standalone financial statements. Also, the Company’s financing (including finance costs and finance income) and income taxes are managed on a Company basis.

35 : FINANCIAL INSTRUMENTS MEASUREMENT

The carrying amount of financial assets and financial liabilities measured at amortised cost in the standalone financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

Fair Value Maeasurement

The following table provides the carrying amounts and fair value measurement hierarchy of the Company’s financial assets and financial liabilities, including their levels in the fair value hierarchy.

36 : FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company’s principal financial liabilities comprise mainly of borrowings, lease liability, trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include investments, cash and cash equivalents and Other Financial Assets.

The Company is exposed through its operations to certain risks primarily identified by the management as following risks:

- Credit Risk

- Liquidity Risk

- Market Risk

- Interest Rate Risk

In order to manage the aforementioned risks, the Company operates a risk management policy and a program that performs close monitoring of and responding to each risk factor.

(i) Credit Risk Management

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and other financial instruments.

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the Company’s customer base, including the default risk of the industry and country, in which customers operate, has less influence on the credit risk.

The Company has entered into contracts for the sale of residential and commercial units on an installment basis. The installments are specified in the contracts. The Company is exposed to credit risk in respect of installments due. However, the possession of residential and commercial units is handed over to the buyer only after all the installments are recovered. In addition, installment dues are monitored on an ongoing basis with the result that the Company’s exposure to credit risk is not significant. The Company evaluates the concentration of risk with respect to trade receivables as low, as none of its customers constitutes significant portions of trade receivables as at the year end.

Credit risk from balances with banks and financial institutions is managed by Company in accordance with the Company’s policy. The company limits its exposure to credit risk by only placing balances with local banks of good repute. Given the profile of its bankers, management does not expect any counterparty to fail in meeting its obligations.

(ii) Liquidity Risk Management

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’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 due, under both normal and stressed condition, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of surplus funds, bank overdrafts, bank loans, and inter-corporate loans. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding.

The table below summarises the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments.

(iii) Market Risk Management

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk and other price risk such as equity price risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. All such transactions are carried out within the guidelines set by the Board of Directors.

Future specific market movements cannot be normally predicted with reasonable accuracy.

(iv) Interest Rate Risk Management

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s debt obligations with floating interest rates. The Company tries to manage its interest rate risk by having a balanced portfolio of fixed and floating rate loans and borrowings.

37 : 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. However in case of the Company, the provisions of section 135 of Companies Act,2013 are not applicable during the year since the applicable threshold limits of required net worth, turnover and net profit have not been met in the previous year.

Note 38 (i):

The Company in previous year entered into a 'Debenture Trust Deed' whereby it was a Mortgagor/guarantor for the debentures amounting to Rs. 165.00 crores out of which Rs. 135.00 crores was issued by Shraddha Landmark Private Limited (the "issuer"), the private company under common management which is a Related Party of the Company.

Two of the ongoing projects of the Company along with two projects of the issuer company were provided as a security for the said debentures. The Company received loan from the issuer company for construction finance of its mortgaged projects and working capital requirements. Outstanding Debentures payable by the issuer company on the said liability as on 31st March 2024 was Rs. 8,701.25 Lakhs.

Note 38 (ii):

Two of the subsidiary firms have availed dropline overdraft facility during the year from a bank in which the company along with the Managing Director is a co-applicant/co-borrower. The total amount sanctioned by the bank is Rs. 4,780.00 Lakhs while the maximum balance as borrowed by the firms was Rs. 1,938.14 Lakhs during the year and the closing balance outstanding as on March 31,2024 was Rs. 1,855.51 Lakhs.

Note 38 (iii):

The Income Tax Department ("the Department") conducted a search activity ("the search") under section 132 of The Income Tax Act, 1961 at various premises of the Company and certain entities under the common management of the promoter including certain key managerial person after the balance sheet date i.e. during the month of May 2024. Further the Company has provided all the necessary support and cooperation to the Income-tax officials during the search and provided all the necessary information including documents and data sought by the Department including repiles towards the summons received under section 131(1A) of The Income Tax Act, 1961. The Company has not received any further written communication from the department regarding the outcome of the search, therefore, the consequent impact on the financial results for the financial year ended 30 March 2024 or any prior period is, if any, is not ascertainable.

While the uncertainly exist regarding the outcomes of the proceedings by the Department, the Company after considering all available records and facts known to it, has not identified any adjustments to the current or prior period standalone financial results at this stage. No contingent liability is ascertainable in this regard as on date.

Note 38 (iv) :

The Contingent Liabilities exclude undeterminable outcome of pending litigations.

39 : LEASES (Company as a Lessee)41 : GRATUITY OBLIGATION

Gratuity is payable to all eligible employees of the Group on death or on resignation, or on retirement after completion of 5 years of service

The following tables summarise the components of gratuity expense recognised in the statement of profit or loss and amounts recognised in the balance sheet:

(Amounts in this Note are in absolute figures and not in lakhs so as to avoid rounding off issue in presentation of smaller figures)

(m) Sensitivity Analysis:

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate and expected salary increase rate. Effect of change in mortality rate is negligible. Please note that the sensitivity analysis presented below may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated. The results of sensitivity analysis are given below:

Note: Basis for deriving numerator and denominator for Ratios calculation of previous year have been revised wherever

deemed fit by taking same base as current year to make them fairly comparable.

Explanation on Variances

(a) Increase in Current Ratio due to major increase in Inventories funded by rights issue and long term borrowings.

(b) Reduction in Debt - Equity Ratio due to issue of fresh equity shares at premium through rights issue during current year.

(c) DSCR is not available for previous year since there was no borrowing except rom related parties repayable on demand. In current year, secured borrowing from a financial institution taken against security of one of the ongoing project.

(d) Increase in Return on Equity due to higher operating revenue and recognition of sales as compared to previous year.

(e) Inventory Turnover Ratio is not available for previous year due to Zero Cost of Goods Sold in absence of any sales recognition in previous year.

(f) Trade Receivable Turnover Ratio is zero in both the years since there is net advance balance from customers and not receivable.

(g) Reduction in trade payable turnover ratio due to increase in operations thereby leading to increase in average trade payables amount as compared to previous year.

(h) Net Capital Turnover Ratio is not available for previous year since there was no Revenue form Operation in the previous year.

(i) Net Profit Ratio is not available for previous year since there was no Revenue from Operations in the previous year.

(j) Increase in Return on Capital employed due to positive PBIT in current year.

(k) Increase in Return on Investments due to increased share in profit from the subsidiary partnership firms.

43 : OTHER INFORMATION

43.1 The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

43.2 The Company does not have any transactions with companies struck off.

43.3 The Company has not traded or invested in Crypto currency or Virtual Currency during the year.

43.4 The Company has entered in a partnership deed during the year through which it has acquired 50% share in Roopventures LLP w.e.f. 4th December 2023.

43.5 The Company 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 company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

43.6 The Company 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 in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

43.7 The Company does not have any transaction which is not recorded in the books of account 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).

43.8 The figures for the corresponding previous year have been regrouped/ reclassified, wherever considered necessary, to make them comparable with current year classification.