2.19 Provisions Contingent Liabilities and Contingent Assets
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date.
When the Company expects some or all of a provision to be reimbursed, the same is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax 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 recognized as a finance cost.
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which 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 or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.
Contingent assets are not recognised in the standalone financial statements if the inflow of the economic benefit is probable than it is disclosed in the standalone financial statements.
Both provisions and contingent liabilities are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent Liabilities are not recognized but are disclosed in the notes.
2.20 Earnings per share
Basic earnings per share is 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 year. The weighted average number of equity shares outstanding during the year are adjusted for events including a bonus issue, bonus element in right issue to existing shareholders, share split, and reverse share split (consolidation of shares).
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of equity shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.
2.21 Cash and Cash Equivalent
Cash and cash equivalent for the purpose of Cash Flow Statement comprise cash at bank and in hand and short term highly liquid investments which are subject to insignificant risk of changes in value.
2.22 Cash Flow Statement
Cash Flow Statement is prepared under the “Indirect Method” as prescribed under the Indian Accounting Standard (Ind AS) 7, Statement of Cash Flows.
The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.
2.23 Commitments
Commitments are future liabilities for contractual expenditure. The commitments are classified and disclosed as follows:
(a) The estimated amount of contracts remaining to be executed on capital accounts and not provided for; and
(b) Other non-cancellable commitments, if any, to the extent they are considered material and relevant in the opinion of the Management.
2.24 Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker regularly monitors and reviews the operating result of the whole Company as two segments viz “Real Estate Development” and “Hospitality”
The segments “real estate business” and “hospitality business”, which are characterised by their different business activities, industry, separate operating teams, separate chief operating decision makers, the availability of discrete financial information and considering the overall Company's corporate structure of conducting most of its business through separate special purpose vehicles. (Also Refer Note 38)
(B) Material Accounting Judgements, Estimates and Assumptions:
The preparation of Standalone Financial Statements is in conformity with the recognition and measurement principles of Ind AS which requires the management to make judgements for estimates and assumptions that affect the amounts of assets, liabilities and the disclosure of contingent liabilities on the reporting date and the amounts of revenues and expenses during the reporting period and the disclosure of contingent liabilities. Differences between actual results and estimates are recognized in the period in which the results are known/ materialize.
(i) Judgements
In the process of applying the Company's accounting policies, management has made the following judgements, which have the most material effect on the amounts recognised in the standalone financial statements:
a) Assessment of the status of various legal claims and other disputes where the Company does not expect any material outflow of resources and hence suitably disclosed. (Refer Note No. 47, 50 & 52)
b) In several cases, assessment of the management regarding executability of the projects undertaken. (Refer Note No. 11)
c) Assessment of the recoverability of various financial assets.
(ii) Estimates and Assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company has based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.
(a) Project estimates
The Company, being a real estate development company, prepares budgets in respect of each project to compute project profitability. The major components of project estimate are ‘budgeted costs to complete the project' and ‘budgeted revenue from the project. While estimating these components various assumptions are considered by the management such as (i) Work will be executed in the manner expected so that the project is completed timely (ii) consumption norms will remain same (iii) Estimates for contingencies and (iv) price escalations etc. Due to such complexities involved in the budgeting process, contract estimates are highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
(b) Impairment of Non Financial Assets
The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the assets recoverable amount. An asset's recoverable amount is the higher of an asset's fair value less costs of disposal and its value in use. When the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessment of the time value of money and the risk specific to the asset. In determining fair value less cost of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples or other available fair value indicators.
(c) Impairment of Financial Assets
The impairment provisions for financial assets are based on assumptions about the risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs for impairment calculation. Based on Company's past history, existing market conditions as well as forward looking estimates at the end of each reporting period.
(d) Impairment of investment in subsidiaries, associates and joint ventures
The Company conducts impairment reviews of investments in subsidiaries, associates and joint ventures whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable or tests for impairment annually. Determining whether the investments in subsidiaries, associates and joint ventures are impaired requires an estimate of the value in use of investments. In considering the value in use, the management has anticipated future cash flows and other factors of the underlying businesses / operations of the subsidiaries, associates and joint ventures and a suitable discount rate in order to calculate the present value. Any subsequent changes to the cash flows due to changes in the above-mentioned factors could impact the carrying value of investments.
(e) Deferred Tax Assets
In assessing the realisability of deferred tax assets, management considers whether some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which the temporary differences become deductible.
Management considers the scheduled reversals of deferred tax Assets, projected future taxable income. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes that the Company will realize the benefits of those deductible differences.
The Company has not recognised Deferred tax assets on unrealised tax losses and credits, unabsorbed depreciation considering no reasonable certainty on reversal of deferred tax assets on prudence basis in near future.
(f) Defined benefit plans
The cost and present value of the gratuity obligation and compensated absences are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, attrition rate and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
(g) Fair value measurements
When the fair values of the financial assets and liabilities recorded in the Balance Sheet cannot be measured based on the quoted market prices in active markets, their fair value is measured using valuation technique. The inputs to these models are taken from the observable market wherever possible, but where this is not feasible, a review of judgement is required in establishing fair values. Any changes in assumptions could affect the fair value relating to financial instruments.
(h) Estimation of provisions and contingencies
Provisions are liabilities of uncertain amount or timing recognized where a legal or constructive obligation exists at the balance sheet date, as a result of a past event, where the amount of the obligation can be reliably estimated and where the outflow of economic benefit is probable. Contingent liabilities are possible obligations that may arise from past event whose existence will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events which are not fully within the control of the Company. The Company exercises judgment and estimates in recognizing the provisions and assessing the exposure to contingent liabilities relating to pending litigations. Judgment is necessary in assessing the likelihood of the success of the pending claim and to quantify the possible range of financial settlement. Due to this inherent uncertainty in the evaluation process, actual losses may be different from originally estimated provision.
2.25 Recent 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.
23.1 The Company has utilised the funds raised from banks and financial institutions for the specific purpose for which they were borrowed in the earlier year.
23.2 The loan taken from ICICI Bank Limited was received for the purpose of financing the cost of constructions of the project DB Skypark, Sahar, Andheri - East, a joint venture in which the Company is a venturer. Further during the previous year, as per the restructuring & settlement proposal, the Company has repaid the entire outstanding principal amount and the unpaid interest amount had been converted into funded interest bearing term loan carrying Interst at I-Base 4.5% p.a payable at monthly rests which will be repaid over 24 months from 1st April 2022.
During the year, the Company has repaid the entire amount of funded interest term loan in the current year and no dues certificate is also received by the Company and charges created on the securties are also released by the lender.
23.3 The loan taken from Reliance Home Finance Limited (RHFL) was received for general purpose and carried interest rate of 18% p.a. Loan was repayable in 24 months with bullet repayment on March, 2019. The Company had not provided for interest on loan amounting to Rs. 3,270.21 lacs pertaining to year ended March 31,2023 considering the ongoing discussions / negotiations with lenders as regards to one time settlement.
During the year the Company has settled the outstanding amount (including interest accrued) of borrowing to Reliance Commercial Finance Limited (RCFL) (loan assigned to RCFL by RHFL pursuant to the Resolution plan). No dues certificate is also received by the Company. Further, the Company is in process of closure of charges created on the underlying securities such as project land of Orchid Golf view situated at S.No. 191A/2A/1/2, Plot No.2 Yerwada, Pune, together with all buildings and structures thereon, etc.
(A) Basis of Segment
Pursuant the acquisition of interests in the Hospitality sector during the year and the strategic decision taken by the Company following the raising of the qualified institutional placement of equity to inter alia expand its Hospitality operations, the Company has now identified two reportable operating segments in standalone financials. The segments are “real estate business” and “hospitality business”, which are characterised by their different business activities, industry, separate operating teams, separate chief operating decision makers, the availability of discrete financial information and considering the overall Company's corporate structure of conducting most of its business through separate special purpose vehicles.
Accordingly, during the year, the Company has updated its reportable business segments as (i) real estate business and (ii) hospitality business along with comparable year as applicable. Since the Company has acquired investment in hospitality business during the year, figures for the year ended 31st March, 2023 are not comparable.
(B) Geographical Information
Geographical information provides an analysis of the Company's revenues and non-current assets by country of domicile and other countries. However, as the Company's operations are limited to India, separate geographical segment information is not required by Ind AS 108 Operating Segments.
(C) Information about major customers
There is no income from customers in current year. In the previous year, revenue from operation (excluding other operating income) pertain to sale of transferrable development right / land is related to one customer.
2 The sensitivity analysis presented above may not be representative of the actual change in the defined obligations as it is unlikely that the change in assumptions would occur in isolation of one another as some assumption may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the project unit credit method at the end of the reporting period, which is same as that applied in calculation of defined benefit obligation liability recognised in the balance sheet.
3 Sensitivity analysis is done by varying one parameter at a time and studying its impact.
VIII. Risk Exposure and Asset Liability Matching
Provision of a defined benefit scheme poses certain risks, some of which are detailed hereunder, as companies take on uncertain long term obligations to make future benefit payments.
1 Liability Risks
a. Asset-liability Mismatch Risk -
Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching duration with the defined benefit liabilities, the Company is successfully able to neutralize valuation swings caused by interest rate movements. Hence companies are encouraged to adopt asset-liability management.
b. Discount Rate Risk -
Variations in the discount rate used to compute the present value of the liabilities may seem small, but in practise can have a significant impact on the defined benefit liabilities.
c. Future Salary Escalation and Inflation Risk -
Since price inflation and salary growth are linked economically, they are combined for disclosure purposes. Rising salaries will often result in higher future defined benefit payments resulting in a higher present value of liabilities especially unexpected salary increases provided at management's discretion may lead to uncertainties in estimating this increasing risk.
2 Unfunded Plan Risk
This represents unmanaged risk and a growing liability. There is an inherent risk here that the Company may default on paying the benefits in adverse circumstances, Funding the plan removes volatility in company's financials and also benefit risk through return on the funds made available for the plan.
Notes:
1 The obligation towards Gratuity is unfunded and therefore, the following disclosures are not given:
a. Reconciliation of Opening and Closings Balance of fair value of plan assets.
b. Details of Investments
B.2 Other Long Term Employee Benefits - Compensated Absenses
The obligation of Leave Encashment is provided for on actuarial valuation by an independent valuer and the same is unfunded. The amount debited /(reversal) in the Statement of Profit and Loss for the year is Rs. 0.58 lacs (Previous Year (Rs. (12.19) lacs)*).
* The amount are shown as negative due to excess recovery from group entities on account of transfer of employees.
41 Sale of investment (including investment in subsidiary and joint ventures)
41A The Company redeemed preference shares in Marine Drive Hospitality and Realty Private Limited (MDHRPL) at face value. The same has resulted into:
(a) gains of Rs. 20,927.22 lacs, being difference between carrying value and redemption proceeds - unwinding of financial instruments which is accounted under other income with respect to 74,443 CRCPS, which were measured at amortised cost.
(b) reversal of impairment loss of Rs 9,186.47 lacs accounted under exceptional items with respect to 2,17,630 ROCCPS Series C which were measured at FVTPL.
(c) reversal of impairment loss of Rs 5,556.50 lacs accounted under other comprehensive income with respect to 98,600 ROCCPS Series D and 3,13,478 ROCCPS Series B, which were measured at FVTOCI.
Further, equity investment in MDHRPL which were measured at FVTOCI were sold to related parties leading to reversal of impairment loss of Rs. 345.45 lacs under other comprehensive income.
41B The National Company Law Tribunal approved the scheme of amalgamation of Platinum Corp Affordable Builders Private Limited with Royal Netra Constructions Private Limited and post such approval, the Company sold its investment in equity shares, recognizing a gain of Rs. 179.85 lacs. Against the loan granted by the Company, Royal Netra issued 8% NCD along with redemption premium linked to the value of identified units. The fair value of redemption premium is not yet accounted considering that the underlying project is at early stages of development.
41C The Company exited joint venture with Eversmile Construction Company Private Limited and Konark Conwell LLP, with a right to receive specified area in the project at agreed timelines & terms. Gain on exit of Rs. 5,000.24 lacs based on RERA price after considering time value of money has been recognised.
41D In respect of Real Gem Buildtech Private Limited (Real Gem) (a wholly owned subsidiary Company (WOS) of the Company) being "DB Crown" Project, during the year ended March 31, 2024, has decided not to reapply to NCLT for the earlier proposed slump sale and subsequently has entered into share transfer agreement for transfer of entire stake of the subsidiary to Kingmaker Developers Private Limited (KDPL) for a consideration of Rs. 23,141 lacs. Gain on sale of investment of subsidiary of Rs. 14,194.32 lakhs has been accounted during the year. Out of the total consideration, Rs. 4,000 lacs will be received on final outcome as regards disputed service tax demand on the subsidiary for which the Company has given an indemnity. On the basis of opinion obtained from the consultant, the risk associated with the said proceeding is low and hence the Company has considered said receivables as good.
41E During the year ended March 31, 2024, the Company has executed securities purchase agreement and deed of transfer of partnership Interest for disinvestment of its entire holding (equity shares as well as preference shares) / interest in two joint ventures of the Company i.e. Prestige (BKC) Realtors Pvt Ltd and Turf Estate Joint Venture LLP for a consideration of Rs. 97,870.05 lacs and Rs. 19,779.08 lacs, respectively. Both the transactions has been completed in the current quarter and all the condition precedent to the said agreement / deed of partnership has been fulfilled and hence the Company has recognised gain on such disinvestment of Rs. 41,490.18 lacs on sale of its stake in Prestige (BKC) Realtors Pvt Ltd on and Rs. 621.23 lacs on sale of its stake in Turf Estate Joint Venture LLP. The Company has also repaid its entire dues of Rs. 51,732.90 lacs (interest free) to its related parties i.e., Prestige (BKC) Realtors Private Limited. Further, The Company has also repaid loan of Rs. 23,794.93 lacs along with interest payable of Rs. 6,629.64 lacs to other Prestige Group entities.
42 Acquisitions (including investment in subsidiary and joint ventures)
42A Acquisition of Subsidiaries:
1 The Board of Directors of the Company on August 11,2023 and members resolution on September 16, 2023 had approved the following acquisitions from its related party:
(i) 78,250 equity shares of Goan Hotels & Realty Private Limited (Goan Hotel) for a total purchase consideration of Rs 1,41,068 lacs at a price of Rs. 1,80,279 per equity share as per fair valuation report obtained from a registered valuer. Goan Hotel owns a five-star hotel under the brand of Grand Hyatt, situated at Bambolim, Goa which is amongst the most successful luxury hotels in India.
(ii) 2,12,69,325 equity shares of BD & P Hotels (India) Private Limited (BD & P Hotels) for a total purchase consideration of INR 33,912 lacs at a price of Rs. 159.44 per equity share as per fair valuation report obtained from a registered valuer with an option to acquire additional shares in the said entity after prior approval from the members of the Company. BD & P owns a five star hotel under the brand of Hilton, situated near the International Airport, Andheri, Mumbai.
Procedural formalities with regards to transfer of equity shares of the aforementioned acquired entities is in process. Post such acquisition, Goan Hotels and BD &P Hotels has become a wholly owned subsidiary of the Company.
2 On December 7, 2023, Vanita Infrastructure Private limited, a wholly owned subsidiary of the Holding Company has acquired 1,00,000 equity shares of DB conglomerate Realty Private Limited (DB conglomerate) for a total consideration of Rs 1 lacs. Thus, post-acquisition of such shares, DBCRPL has become a step-down subsidiary of the Holding Company.
42B Acquisition of additional stake in associates and became wholly owned subsidiary
During the previous year, the Company had entered in Memorandum of Understanding (MOU) dated 4th April 2022 and accordingly given an advance of Rs. 480 lacs to various parties for purchase of additional stake in three associate companies of the group. Durng the current year, the Company has acquired balance stake in its associates i.e., Shiva Realtors Suburban Private Limited, Shiva Buildcon Private Limited and Shiva Multitrade Private Limited for a consideration of Rs. 3,200 lacs and consequently the said entities have become wholly owned subsidiaries from associates.The Compnay has paid Rs. 251.77 lakhs to the shareholders of the 3 assocaite companies as compensation for delay in completion of this transaction.
42C Acquisition of joint ventures:
The Board of Directors of the Company on August 11,2023 had approved the acquisition of 10,10,000 equity shares of Bamboo Hotel and Global (Delhi) Private Limited (Bamboo Hotels) from its related party. The said entity has been acquired on September 30, 2023, for a total purchase consideration of Rs. 60,888 lacs at a price of Rs. 6,028.51 per equity share as per fair valuation report obtained from a registered valuer. Bamboo Hotels is constructing a hotel complex comprising of the St. Regis and the Marriott Marquis, a large conferencing facility of 200,000 sq. ft and approx. 6.15 lakh sqft of leasable office / business centre / food & beverage space titled as Prestige Trade Centre at Aero city, New Delhi. Procedural formalities with regards to transfer of equity shares of the said acquired entities is in process. Post such acquisition, Bamboo Hotels became joint venture of the Company.
43 The Board of Directors of the Company ("the Board") at its meeting held on February 9, 2024 has approved the proposal to demerge its hospitality business consisting of hotel business and assets including Goan Hotels & Realty Private Limited (a wholly owned subsidiary of the Company), BD and P Hotels (India) Private Limited (a subsidiary of the Company) and Bamboo Hotel And Global Centre (Delhi) Private Limited (a joint venture of the Company) subject to shareholder's approvals. Pending necessary approvals, no effects have been given in the financial statements.
44 Financial Instruments
The material accounting policies, including the criteria of recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial assets and financial liabilities are disclosed in note 2.13 of the Standalone financial statements.
44.2 Financial Risk Management:
The Company's Board of Directors has overall responsibility for the establishment and oversight of the Company's risk Management framework. The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company's activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.
44.2(A)Market Risk:
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market conditions. Market risk comprises three types of risk: interest rate risk, credit and default risk and liquidity risk Financial instruments affected by market risk include investments, loans, trade receivables, borrowings, trade payables and and other financial liabilities.
44.2(B)Interest Risk:
Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the 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.
(a) With respect to guarantees or securities given by the Company
(i) In the earlier year, the Securities Exchange Board of India (SEBI) had issued a show cause notice to the Company for various non-compliances including non-provision of expected credit loss / additional provision with respect to financial guarantees aggregating to Rs 59,130.18 lacs which has been disputed by the company. During the year, the Company has filed an appeal with SAT to pass an order to keep the proceedings initiated by the show cause notice in abeyance. Hearing held in the month of March 2024 has been adjourned and next hearing date is June 24, 2024. Considering the development as stated below, the Company does not expect any liability in respect of this matter.
(ii) In connection with corporate insolvency resolution proceedings (CIRP) initiated by lender of an entity inter alia secured by the corporate guarantee given by the Company, in the current quarter, the Borrower has entered One-time settlement (OTS) with the lender dated March 21,2024 for Rs. 70,335.00 lakhs, out of which Rs. 41,319.00 lakhs already deposited by the holding company of the said borrower and the balance of Rs. 29,016.00 lakhs is payable within 90 days from the date of the OTS along with interest at 10% p.a. Considering the same, National Company Law Appellate Tribunal (NCLAT) has passed an order for closure of ongoing CIRP with the condition that in case of nonpayment as per OTS terms then the said proceeding will be again revived by the lender. Also Refer Note 44.2 (D) (xi) & Note 44.2 (D) (xii) above.
(b) Furthermore, the Company is involved in various legal proceedings arising in ordinary course of business and does not foresee an adverse impact on its financial condition, results of operations or cash flows.
51 Managerial remuneration:
a) In view of inadequate profit during the current and previous year, the Company has not paid any managerial remuneration to any managing director in both years.
b) Sitting fees amounting to Rs. 11.80 lacs (Previous Year Rs. 9.00 lacs) have been paid to the independent directors and non-executive director of the Company in compliance with section 197 (5) of the Companies Act, 2013.
52 Legal matters involving cases filed by Investigating Authorities, against which the Company has received acquittal order(s) from the Special Court, have pending appeals before the Delhi High Court, with no developments during the year.
53 The Company has made investments in various AOPs for the purpose of execution of separate real estate projects. The accounting of its share of accumulated losses in each of the AOPs has been made in the financial statment. Further, based on the assessment of the project, impairment loss has also been provided wherever required.
54 During the year, the Company has completed one time settlement with its lenders and also monetised certain investments leading reduction in the current liabilities as against liquid current assets as compared to previous year. The promoter's group entities have also infused funds in the Company. Further, the Company has also raised additions funds through issue of new equity shares through QIP (refer note 55). Accordingly, the accounts are prepared on a going concern basis.
55 Qualified Institutional Placements (QIP) Issue
During the Year, the Company has allotted 356.66 lakhs equity shares of Rs. 10 each at Rs. 258 per share, aggregating to Rs. 92,020.02 lakhs under Qualified Institutional Placement (QIP) on March 14, 2024.
Notes
(a) Earnings available for debt service = Net profit after taxes ( ) Depreciation and amortisation ( ) Interest expenses ( ) other adjustments like loss on sale of fixed assets, notional income and expenses etc. (-) Gain on sale of investments (-) Exceptional items
(b) Debt service = Interest and lease payments Principal repayments
(c) All the projects are under initial stage of development and hence, Company has not recognised any revenue from the same (except for a small portion of a being vat refund received during the year), based on the same Inventory Turnover Ratio, Trade Receivable Turnover Ratio and Net Capital Turnover Ratio are not required to be calculated.
(d) Capital Employed = Tangible net worth deferred tax liabilities (assets) Total debt
(e) The Company is not having any market linked investments.
(f) During the year, the Company has divested various investment and realised gain on such divestement (refer note 41). Further, the Company has also received money by way of issue of equity shares against share warrants (refer note 19.4) and also infused fund through issue of QIP which leads to significant increase in shareholders fund as compared to previous year (Refer note 55).
60 Additional Information as required by para 7 of General Instructions for preparation of Statement of Profit and Loss (other than already disclosed above) are either Nil or Not Applicable
61 Pursuant the acquisition of the Companies engaged in the hospitality business, figures for the current year are not comparable with previous year. The figures for the previous year have been regrouped/ reclassified, wherever considered necessary.
The accompanying notes form an integral part of the Standalone Financial Statements
As per our attached report on even date. For and on behalf of the Board of Directors of
Valor Estate Limited (formerly known as D B Realty Limited)
For N. A. Shah Associates LLP Chartered Accountants
Firm registration No.: 116560W / W100149
Vinod Goenka Shahid Balwa Jagat Killawala
Chairman & Managing Director Vice Chairman & Managing Director Director
DIN:00029033 DIN:00016839 DIN:00262857
Prashant Daftary Jignesh Shah Atul Bhatnagar
Partner Company Secretary Chief Financial Officer
Membership No.: 117080 Membership No. A19129
Place: Mumbai Date: May 29, 2024
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