Note: The company has filed a Writ Petition before the Hon'ble High Court of Telangana challenging notifications relating to taxation of Joint Development transactions under which the GST authorities issued summons, detained the Company's senior management personnel and initiated debit freeze in bank accounts of the company without any written notice or claim for their demand. The company paid Rs 5 crores under protest. The management strongly believes that there is no GST liability on the said transaction and that there is merit in its court case/ WP and is hopeful of a positive outcome. The matter is sub-judice.
c) (i) Rights and Preferences attached to equity shares
Every shareholder is entitled to such rights as to attend and vote at the meeting of the shareholders, to receive dividends distributed and also has a right in the residual interest of the assets of the Company. Every shareholder is also entitled to right of inspection of documents as provided in the Companies Act, 2013.
(ii) There are no restrictions attached to equity shares.
e) During the period of five years immediately preceding the reporting date including the current year, there were no shares issued for consideration other than cash, no issue of bonus shares and no shares bought back.
30. Additional Regulatory Requirement
a) There are no Immovable properties whose title deeds are not held in the name of the company
b) The company does not have investment property
c) The company has not revalued its Property, Plant and Equipment (including Right of Use Assets or Intangible assets)
d) The company has not granted any loans or advances in the nature of loans to promoters, Directors, KMPs and related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, either repayable on demand or without specifying any terms or period of repayment.
e) The Company does not have any Capital-Work-in Progress (CWIP).
f) The Company does not have any Intangible Assets under Development..
g) There have been no proceedings initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder
h) In respect of borrowings from a bank on the basis of security of current assets, the periodic returns / statements of current assets filed by the Company with the bank are in agreement with the books of accounts. The Company does not have any borrowings from financial institutions on the basis of security of current assets.
i) The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.
j) The company had no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
k) There are no charges or satisfactions yet to be registered with the Registrar of Companies beyond the statutory period.
l) The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.
n) Utilization of Borrowed Funds and Share Premium
No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity (ies),including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
o) Undisclosed Income
No tax assessments under the Income Tax Act, 1961 (43 of 1961) have been received during the year and hence, there have been no transactions not recorded in the books of account which have been surrendered or disclosed as income during the year. There has also not been any previously unrecorded income or related assets.
p) The Company is not covered under the provisions of Section 135 of the Companies Act, 2013.
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32. Commitments & Contingencies
(i) Bank guarantees 117.85 162.50
(ii) Income Tax
(a) The Company has appealed against the Assessment order for a demand of ^ 250.92 lakhs for the Assessment years 201213 and for the assessment year 2013-14.
(b) Tax deducted at Source amounting to ^ 8.60 lakhs for assessment years 2014-15 to 2017-18 is pending for resolution at the TDS circle.
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35. Employee benefits:
Gratuity Plan (defined benefit plan): Every employee is entitled to the benefit equivalent to 15 days of total basic salary last drawn for each completed year of service. Gratuity is payable to all eligible employees of the Company on retirement or separation or death or permanent disablement in terms of the provisions of the Payment of Gratuity Act, 1972.
Based on actuarial valuation necessary provisions have been created in the books to meet the liability as per IndAS 19 - Employee Benefits. Following table presents the disclosure requirements in respect of employee benefit pursuant to IndAS 19 - Employee Benefits:
The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all assumptions constant.
The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in the assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognized in the balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
36. Leases
Information on leases as per Indian Accounting Standards (Ind As) 116 on 'Leases'
(a) Lease Income
Company as a Lessor
Other Income includes ^ 3634.67 lakhs pertaining to Lease rentals received by the Company arising out of capitalization of a Property that had been given on Joint Development by the Company.
(a) Lease Expense
Company as a Lessee
(i)Future minimum lease payments* (iii)Impact of adoption of Ind AS 116
Effective 1st April 2019, the company has adopted Ind AS 116 "Leases " and applied the standard to all lease contracts existing on 1st April 2019 according to the provisions of standard.
On the transition date, the application of new accounting standard resulted in recognition of "Right of use asset" and corresponding "Lease Liability" to the extent of ^ 214.82 Lakhs.
b) Fair Value Hierarchy:
The Company has estimated all its financial assets and liabilities under Level 3 prescribed under the Indian Accounting Standards.
c) Valuation Techniques:
The discount rates considered is the borrowing rate charged by the lead lender of the Company after giving effect to the applicable tax rate. The carrying amount of current financial assets and liabilities are considered to be the same as their fair values due to their short-term nature. For financial assets and liabilities that are measured at fair value, the carrying amount is equal to their fair values.
39. Capital Management:
The Company monitors capital on the basis of total equity on periodic basis. Equity comprises of all components of equity including fair value impact and debt includes both long-term and short-term loans.
Deferred Tax asset as at 31st March,2023 and 31st March 2022 is recognized to the extent of Deferred tax liability arising out of temporary differences between accounting as per books and accounting as per IT Act,1961
b) Reconciliation of Tax expense and the accounting profit multiplied by the tax rate:
The Company is exposed to credit risk, which is the risk that counter party will default on its contractual obligation resulting in a financial loss to the Company. Credit risk arises from cash and cash equivalents, financial assets carried at amortized cost and deposits
with banks and financial institutions, as well as credit exposures to trade customers including outstanding receivables.
(i)Credit risk management
Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss.
Trade Receivable
The Company closely monitors the credit-worthiness of the debtors and only sells goods to credit-worthy parties. The Company's internal systems are configured to define credit limits of customers, thereby limiting the credit risk to pre-calculated amounts.
b.Liquidity risk:
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions.
The Company's objective in relation to its existing operating business is to maintain sufficient funding to operate at an optimal level.
Market risk is the risk that the fair values of future cash flows of a financial instrument will fluctuate because of volatility of prices in the financial markets. Market risk can be further segregated as:
i) Foreign currency risk:
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company has exposure foreign currency risk in case of Trade and other payables.
ii) 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's main interest rate risk arises from long-term borrowings with variable rates, which expose the Company to cash flow interest rate risk. During March 31, 2022 the Company's borrowings at variable rate were mainly denominated in Rupees. The Company's fixed rate borrowings are carried at amortized cost. They are therefore not subject to interest rate risk as defined in Ind AS -107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.
42. Previous Years Figures have been regrouped/reclassified wherever necessary to confirm to current years classification.
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