M. Provisions, Contingent Liabilities and Contingent Assets:
"A provision is recognised when the Company has a present obligation (Legal and Constructive) as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made.
If the effect of the time value of money is material, provisions are discounted using a current pretax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably may not, require an outflow of resources. A contingent liability also arises in extreme cases where there is a probable liability that cannot be recognised because it cannot be measured reliably.
Where there is a possible obligation or a present obligation such that the likelihood of outflow of resources is remote, no provision or disclosure is made.
Contingent assets are not recognised in the financial statements but are disclosed.
N. Employee Benefits:
Short-term and other long-term employee benefits: -
The undiscounted amount of short-term employee benefits expected to be paid in exchange for
._______ . . ii.
the services rendered by employees are recognised during the year when the employees render the service. These benefits include performance incentive and compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related service.
The cost of short-term compensated absences is accounted as under:
(a) in case of accumulated compensated absences, when employees render the services that increase their entitlement of future compensated absences; and
• (b) in case of non-accumulating compensated absences, when the absences occur.
O. iLeases:
• The Company accounts for the lease arrangement as follows:
Ý As a lessee:
The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified as set for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:
, * (1) the contract involves the use of an identified asset
(2) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and
(3) the Company has the right to direct the use of the asset. ' . ' , ’ . "
At the date of commencement of the lease, the Company recognizes a right-of-use asset ("ROU") and a corresponding lease liability for all lease arrangements in which it is a lessee, except for ‘ , *
leases with a term of twelve months or less (short term leases) and low value leases. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straightline basis over the term of the lease.
The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.
Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.
The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of the leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the group changes its assessment if whether it will exercise an extension or a termination option.
Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.
As a lessor:
Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever
the terms of the Lease transfer substantially all the risks and rewards of ownership to the Lessee, the contract is classified as a finance Lease. ALL other Leases are classified as operating Leases.
For operating Leases, rental income is recognized on a straight Line basis over the term of the relevant Lease.
P. Inventories
Inventory of Property under development are stated 'at cost or net realisable value, whichever is Lower'. Property under development comprises cost of Land, rates & taxes, construction costs, overheads and expenses incidental to the project undertaken by the Company. Costs towards development of property are charged to statement of profit and Loss proportionate to area sold and when corresponding revenue is recognised.
Q. Significant management judgement in applying accounting policies and estimation uncertainty:
• * ,The preparation of the Company's financial statements requires management to make judgment,
Ý * « estimates and assumptions that affect the reported amount of revenue, expenses, assets and
Liabilities and the related disclosures.
♦ Significant management judgements:
• The following are significant management judgements in applying the accounting policies of the
Company that have the most significant effect on the financial statements.
1. Recognition of deferred tax assets:
The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the future taxable income against which the deferred tax assets can be utilized.
2. 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.
3. Contingent liabilities
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 warranties and guarantees. However the actual future outcome may be different from this judgement.
R. Significant management estimates:
Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, Liabilities, income and expenses is provided below. Actual results may be different.
1. 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.
2. 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 certain software, customer IT equipment and other plant and equipment.
I. Fair value disclosures:
Level 1 - Quoted prices (Unadjusted) in active markets for identical assets & Liabilities.
Level 2 - Inputs other than quoted prices included within level 1 that are observable for the asset & liability, either directly (i.e. prices) or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (Unobservable inputs).
II. Financial risk management objectives:
In the course of its business, the Company is exposed primarily to fluctuations in interest rates, equity prices, liquidity and credit risk, which may adversely impact the fair value of its financial m • . instruments. The Company assesses the unpredictability of the financial environment and seeks • , " , to mitigate potential adverse effects on the financial performance of the Company.
III. Market Risk:
» 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, interest rate risk and other price risk such as equity price risk and commodity price risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
Future specific market movements cannot be normally predicted with reasonable accuracy.
Currency risk:
The Company does not have foreign currency transactions. The company is not exposed to risk of change in foreign currency.
Interest rate risk: ' . ‘ .
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 is not exposed to the risk of changes in market interest rates as the Company does not have any long-term debt obligations with floating interest rates.
Other price risk:
The Company is not exposed to equity price risks arising from equity investments. Equity investments are held for strategic rather than trading purposes. The Company does not actively trade these investments.
IV. Interest risk management:
The Company's interest rate exposure is mainly related to debt obligations. The Company obtains debt to manage the liquidity and fund requirements for its day to day operations. The Company's exposure to debt in not material.
V. Credit risk management:
Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit.
Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, unbilled revenue, investments, derivative financial instruments, cash and cash equivalents, bank deposits and other financial assets. None of the financial instruments of the Company result in material concentration of credit risk.
VI. Liquidity risk:
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
Note 28 - Related party transactions
a) Related party and nature of the related party relationship with whom transactions have taken place during the year
Directors / Key Management Personnel
Mr. Sanjay Mehta - Whole-time Director (w.e.f. 16.12.2023)
Mr.Dinesh Patel - Executive Director » Mr. Kishor Patel - Executive Director ♦ Mr. Hareshkumar Sambhaji Suthar - Independent Director * . Mr. Jinang Dineshkumar Shah - Independent Director
Mrs. Nidhi Mistry - Independent Director (w.e.f. 16.12.2023)
Mrs.Pooja Narendrabhai Joshi - Independent Director (10.04.2024) , ' , ‘ , * , * ,
. Mr.Abhishek Patil - Chief Financial Officer (upto 31.12.2023)
Mr.Mandar Chavan - Company Secretary and Compliance Officer Mr. Rahul Thakkar - CFO (w.e.f. 07.02.2024)
Mr. Rahul Patel - CEO (w.e.f. 23.05.2024)
b) Enterprises owned or Significantly influenced by Directors or Key Management Personnel or their Relatives
M/s. Renaissance Buildcon
M/s. Golden ARC Ventures LLP
M/s. Unique Property Enterprises Private Limited
M/s. Catapult Realty Consultants
M/s. Arihant Construction Co
M/s. Renaissance Construction (Janata Sevak Nagar)
M/s. Renaissance Homes
M/s. Generic Engineering Construction and Project Limited M/s. Heben Chartered Resources Pvt Ltd
Note 29: Contingent Liabilities (to the extent not provided for):
Claims against the Company not acknowledged as debt:
Claims in respect of disputed income Tax matters (pending in appeal) - Rs. 121.43 Lakhs Note 30 - Other disclosures:
30.1 Valuation of Property Plant & Equipment, intangible asset:
The Company has not revalued its property, plant and equipment or intangible assets or both during the current or previous year.
30.2 Loans oradvances to specified persons:
No loans or advances in the nature of loans are granted to promoters, directors, KMPS and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are repayable on demand or without specifying any terms or period of repayment.
30.3 Title deeds of Immovable property
There is no such immovable property held by the Company presented/classified as 'Property, plant and equipment', 'Investment Property' or as 'Non-Current Assets Held for Sale' as on 31.03.2024.
30.4 Details of benami property held:
The Company does not have any Benami property, where any proceedings have been initiated or are pending against the Company for holding benami property under The Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
30.5 Borrowing secured against current assets:
The Company does not have borrowings from banks on the basis of security of current assets.
30.6 Wilful defaulter:
The Company has not been declared wilful defaulter by any bank or financial institution or other Lender.
30.9 Relationship with struck off companies:
The Company has no transactions with the companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.
30.10 Registration of charges or satisfaction with Registrar of Companies (ROC):
The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
• 30.11 Compliance with number of layers of companies:
• .The Company has complied with the number of layers prescribed under the Section 2(87) of the
• .Companies Act, 2013 read with Companies (Restriction on number of layers) Rules, 2017. . * . * .
Reason for variances for % change >25%:
Debt Equity Ratio : Due to new recognition of Leased Liability has resulted in the increase in the ratio.
Debt Service Coverage Ratio : Due to new recognition of leased liability has resulted in the decrease in the ratio.
Return on Equity Ratio: Decrease in profit after due to increase in other expense for new project resulted in decrease in the ratio.
Return on Capital Employed: Decrease in the earnings before tax in the current year as compared to the previous year and new recognition of leased liability in the current year has resulted in the decrease in the ratio.
30.13 Utilisation of borrowed funds and share premium:
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
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,
30.14 Corporate Social Responsibility:
The provision of Section 135 of the Companies Act, 2013 in respect of Corporate Social Responsibility is not applicable to the Company as the net worth, turnover and profit during the financial year is less than the stipulated amount. Accordingly, no policy has been framed by the Company on Corporate Social Responsibility and there is no reporting requirement pursuant to provisions of Section 134 (3) (o) of the Companies Act.
30.15 Undisclosed income:
There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded previously in the books of account.
30.16 Details of crypto currency or virtual currency:
The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
30.17 Utilisation of borrowings availed from banks and financial institutions:
No borrowings availed by the company from banks and financial institutions.
As per our report of even date
For NAMITA & CO. For and on behalf of the Board of Directors
Chartered Accountants Firm number: 151040W
Sanjay Mehta Dinesh Patel
Whole time Director Chairman and Managing Director
(DIN:03591761) (DIN:00462565)
CA Namita Agrawal Proprietor
Membership No. 188559
Rahul Thakkar Mandar Chavan
UDIN:24188559BKGRVT9607 Chief Financial Officer Company Secretary
Place: Mumbai Place: Mumbai
Date : May 23, 2024 Date : May 23, 2024
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