A provision is recognised when the Company has a
present obligation (legal or constructive) as a result
of past event 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 time value of money is material, provisions are
discounted using a current pre-tax rate that reflects,
when appropriate, the risk 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 will not require an outflow of resources.
When there is a possible obligation or a present
obligation in respect of which likelihood of outflow of
resources is remote, no provision or disclosure is made.
Provisions, contingent liabilities, contingent assets and
commitments are reviewed at each balance sheet date.
3.18. Earnings per share
Basic earnings per share is computed using the net
profit for the year attributable to the shareholders’
and weighted average number of shares outstanding
during the year. The weighted average numbers of
shares also includes fixed number of equity shares that
are issuable on conversion of compulsorily convertible
preference shares, debentures or any other instrument,
from the date consideration is receivable (generally the
date of their issue) of such instruments.
Diluted earnings per share is computed using the net
profit for the year attributable to the shareholder’ and
weighted average number of equity and potential equity
shares outstanding during the year including share
options, convertible preference shares and debentures,
except where the result would be anti-dilutive. Potential
equity shares that are converted during the year are
included in the calculation of diluted earnings per share,
from the beginning of the year or date of issuance of
such potential equity shares, to the date of conversion.
3.19. Financial instruments
A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability
or equity instrument of another entity. Financial assets
and financial liabilities are initially measured at fair
value. Transaction costs that are directly attributable to
the acquisition or issue of financial assets and financial
liabilities (other than financial assets and financial
liabilities at fair value through profit or loss) are added
to or deducted from the fair value of the financial
assets or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to
the acquisition of financial assets or financial liabilities
at fair value through profit or loss are recognised
immediately in profit or loss.
3.19.1. Financial assets
All regular way purchases or sales of financial
assets are recognised and derecognised on a
trade date basis. Regular way purchases or sales
are purchases or sales of financial assets that
require delivery of assets within the time frame
established by regulation or convention in the
marketplace. All recognised financial assets are
subsequently measured in their entirety at either
amortised cost or fair value, depending on the
classification of the financial assets.
Debt instruments that meet the following
conditions are subsequently measured at
amortised cost (except for debt instruments that
are designated as at fair value through profit or
loss on initial recognition):
• the asset is held within a business model
whose objective is to hold assets in order to
collect contractual cash flows; and
• the contractual terms of the instrument give
rise on specified dates to cash flows that are
solely payments of principal and interest on
the principal amount outstanding.
All other financial assets are subsequently
measured at fair value.
Effective interest method
The effective interest method is a method of
calculating the amortised cost of a debt instrument
and of allocating interest income over the relevant
period. The effective interest rate is the rate that
exactly discounts estimated future cash receipts
(including all fees and points paid or received
that form an integral part of the effective interest
rate, transaction costs and other premiums or
discounts) through the expected life of the debt
instrument, or, where appropriate, a shorter period,
to the gross carrying amount on initial recognition.
Income is recognised on an effective interest basis
for debt instruments other than those financial
assets classified as at FVTPL. Interest income is
recognised in profit or loss and is included in the
"Other income" line item.
Investments in equity instruments at FVTOCI
On initial recognition, the Company can make
an irrevocable election (on an instrument-by¬
instrument basis) to present the subsequent
changes in fair value in other comprehensive
income pertaining to investments in equity
instruments. This election is not permitted if
the equity investment is held for trading. These
elected investments are initially measured at fair
value plus transaction costs. Subsequently, they
are measured at fair value with gains and losses
arising from changes in fair value recognised in
other comprehensive income and accumulated in
the 'Reserve for equity instruments through other
comprehensive income’. The cumulative gain or
loss is not reclassified to profit or loss on disposal
of the investments.
A financial asset is held for trading if:
• It has been acquired principally for the
purpose of selling it in the near term; or
• On initial recognition it is part of a portfolio
of identified financial instruments that the
Company manages together and has a
recent actual pattern of short-term profit¬
taking; or
• It is a derivative that is not designated
and effective as a hedging instrument
or a financial guarantee. Dividends on
these investments in equity instruments
are recognised in profit or loss when the
Company’s right to receive the dividends is
established, it is probable that the economic
benefits associated with the dividend will flow
to the entity, the dividend does not represent
a recovery of part of cost of the investment
and the amount of dividend can be measured
reliably. Dividends recognised in profit or loss
are included in the 'Other income’ line item.
Financial assets at fair value through profit or
loss (FVTPL)
Investments in equity instruments are classified
as at FVTPL, unless the Company irrevocably
elects on initial recognition to present subsequent
changes in fair value in other comprehensive
income for investments in equity instruments
which are not held for trading.
Financial assets at FVTPL are measured at fair
value at the end of each reporting period, with
any gains or losses arising on re-measurement
recognised in profit or loss. The net gain or
loss recognised in profit or loss incorporates
any dividend or interest earned on the financial
asset and is included in the 'Other income’ line
item. Dividend on financial assets at FVTPL is
recognised when the Company’s right to receive
the dividends is established, it is probable that
the economic benefits associated with the
dividend will flow to the entity, the dividend does
not represent a recovery of part of cost of the
investment and the amount of dividend can be
measured reliably.
The Company recognises loss allowances using
the expected credit loss (ECL) model based on
'simplified approach’ for the financial assets which
are not fair valued through profit or loss. Loss
allowance for trade receivables with no significant
financing component is measured at an amount
equal to lifetime ECL. For all other financial assets,
expected credit losses are measured at an amount
equal to the twelve month ECL, unless there has
been a significant increase in credit risk from initial
recognition in which case those are measured
at lifetime ECL. The amount of expected credit
losses (or reversal) that is required to adjust the
loss allowance at the reporting date to the amount
that is required to be recognised is recognised as
an impairment gain or loss in statement of profit
and loss.
De-recognition of financial asset
The Company de-recognises a financial asset
when the contractual rights to the cash flows
from the asset expire, or when it transfers the
financial asset and substantially all the risks and
rewards of ownership of the asset to another
party. If the Company neither transfers nor
retains substantially all the risks and rewards
of ownership and continues to control the
transferred asset, the Company recognises its
retained interest in the asset and an associated
liability for amounts it may have to pay. If the
Company retains substantially all the risks and
rewards of ownership of a transferred financial
asset, the Company continues to recognise the
financial asset and also recognises a collateralised
borrowing for the proceeds received.
On de-recognition of a financial asset in its entirety,
the difference between the asset’s carrying
amount and the sum of the consideration received
and receivable and the cumulative gain or loss
that had been recognised in other comprehensive
income and accumulated in equity is recognised
in profit or loss if such gain or loss would have
otherwise been recognised in profit or loss on
disposal of that financial asset.
On de-recognition of a financial asset other than
in its entirety (e.g. when the Company retains an
option to repurchase part of a transferred asset),
the Company allocates the previous carrying
amount of the financial asset between the part
it continues to recognise under continuing
involvement, and the part it no longer recognises
on the basis of the relative fair values of those
parts on the date of the transfer. The difference
between the carrying amount allocated to the
part that is no longer recognised and the sum of
the consideration received for the part no longer
recognised and any cumulative gain or loss
allocated to it that had been recognised in other
comprehensive income is recognised in profit or
loss if such gain or loss would have otherwise
been recognised in profit or loss on disposal of that
financial asset. A cumulative gain or loss that had
been recognised in other comprehensive income
is allocated between the part that continues
to be recognised and the part that is no longer
recognised on the basis of the relative fair values
of those parts.
3.19.2. Financial liability and equity instrument
Classification as debt or equity
Debt and equity instruments issued by the
Company are classified as either financial liabilities
or as equity in accordance with the substance of
the contractual arrangements and the definitions
of a financial liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences
a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments
issued by the Company are recognised at the
proceeds received, net of direct issue costs.
Repurchase of the Company’s own equity
instruments is recognised and deducted directly
in equity. No gain or loss is recognised in profit or
loss on the purchase, sale, issue or cancellation of
the Company’s own equity instruments.
Financial liabilities
All financial liabilities are subsequently measured
at amortised cost using the effective interest
method or at FVTPL.
However, financial liabilities that arise when a
transfer of a financial asset does not qualify for de¬
recognition or when the continuing involvement
approach applies, financial guarantee contracts
issued by the Company, and commitments issued
by the Company to provide a loan at below-market
interest rate are measured in accordance with the
specific accounting policies set out below.
Financial liabilities are classified as at FVTPL
when the financial liability is either contingent
consideration recognised by the Company as
an acquirer in a business combination to which
Ind AS 103 applies or is held for trading or it is
designated as at FVTPL.
A financial liability is classified as held for trading if:
• it has been incurred principally for the
purpose of repurchasing it in the near term;
or
• on initial recognition it is part of a portfolio
of identified financial instruments that the
Company manages together and has a
recent actual pattern of short-term profit¬
taking; or
• i t is a derivative that is not designated and
effective as a hedging instrument.
A financial liability other than a financial liability
held for trading or contingent consideration
recognised by the Company as an acquirer in
a business combination to which Ind AS 103
applies, may be designated as at FVTPL upon
initial recognition if:
• such designation eliminates or significantly
reduces a measurement or recognition
inconsistency that would otherwise arise;
• the financial liability forms part of a
Company of financial assets or financial
liabilities or both, which is managed and
its performance is evaluated on a fair value
basis, in accordance with the Company’s
documented risk management or investment
strategy, and information about the grouping
is provided internally on that basis; or
• i t forms part of a contract containing one or
more embedded derivatives, and Ind AS 109
permits the entire combined contract to be
designated as at FVTPL in accordance with
Ind AS 109.
Financial liabilities at FVTPL are stated at fair
value, with any gains or losses arising on re¬
measurement recognised in profit or loss. The
net gain or loss recognised in profit or loss
incorporates any interest paid on the financial
liability and is included in the 'Other income’ line
item.
However, for non-held-for-trading financial
liabilities that are designated as at FVTPL, the
amount of change in the fair value of the financial
liability that is attributable to changes in the
credit risk of that liability is recognised in other
comprehensive income, unless the recognition of
the effects of changes in the liability's credit risk
in other comprehensive income would create or
enlarge an accounting mismatch in profit or loss,
in which case these effects of changes in credit
risk are recognised in profit or loss. The remaining
amount of change in the fair value of liability is
always recognised in profit or loss. Changes in
fair value attributable to a financial liability's credit
risk that are recognised in other comprehensive
income are reflected immediately in retained
earnings and are not subsequently reclassified to
profit or loss.
Gains or losses on financial guarantee contracts
and loan commitments issued by the Company
that are designated by the Company as at fair
value through profit or loss are recognised in profit
or loss.
Financial liabilities subsequently measured at
amortised cost
Financial liabilities that are not held-for-trading
and are not designated as at FVTPL are measured
at amortised cost at the end of subsequent
accounting periods. The carrying amounts
of financial liabilities that are subsequently
measured at amortised cost are determined
based on the effective interest method. Interest
expense that is not capitalised as part of costs
of an asset is included in the 'Finance costs' line
item. The effective interest method is a method
of calculating the amortised cost of a financial
liability and of allocating interest expense over
the relevant period. The effective interest rate is
the rate that exactly discounts estimated future
cash payments (including all fees and points
paid or received that form an integral part of the
effective interest rate, transaction costs and other
premiums or discounts) through the expected life
of the financial liability or (where appropriate) a
shorter period, to the gross carrying amount on
initial recognition.
Compound financial instruments
The liability component of a compound financial
instrument is recognised initially at fair value
of a similar liability that does not have an equity
component. The equity component is recognised
initially as the difference between the fair value of
the compound financial instrument as a whole and
the fair value of the liability component. Any directly
attributable transaction costs are allocated to the
liability and the equity components, if material, in
proportion to their initial carrying amounts.
Subsequent to the initial recognition, the liability
component of a compound financial instrument
is measured at amortised cost using the effective
interest rate method. The equity component
of a compound financial instrument is not re¬
measured subsequent to initial recognition except
on conversion or expiry.
Offsetting of financial instruments
Financial assets and financial liabilities are offset
and the net amount is reported in the balance
sheet if there is a currently enforceable legal right
to offset the recognised amounts and there is an
intention to settle on a net basis, to realise the
assets and settle the liabilities simultaneously.
Reclassification
The Company determines classification of
financial assets and liabilities on initial recognition.
After initial recognition, no reclassification is made
for financial assets which are equity instruments
and financial liabilities. For financial assets which
are debt instruments, a reclassification is made
only if there is a change in the business model
for managing those assets. Changes to the
business model are expected to be infrequent. The
management determines change in the business
model as a result of external or internal changes
which are significant to the Company's operations.
A change in the business model occurs when
the Company either begins or ceases to perform
an activity that is significant to its operations.
If the Company reclassifies financial assets, it
applies the reclassification prospectively from
the reclassification date which is the first day of
the immediately next reporting period following
the change in business model. The Company
does not restate any previously recognised gains,
losses (including impairment gains or losses) or
interest.
De-recognition of financial liabilities
The Company de-recognises financial liabilities
when, and only when, the Company's obligations
are discharged, cancelled or have expired.
An exchange between with a lender of debt
instruments with substantially different terms
is accounted for as an extinguishment of the
original financial liability and the recognition of
a new financial liability. Similarly, a substantial
modification of the terms of an existing financial
liability (whether or not attributable to the financial
difficulty of the debtor) is accounted for as an
extinguishment of the original financial liability
and the recognition of a new financial liability.
The difference between the carrying amount
of the financial liability de-recognised and the
consideration paid and payable is recognised in
profit or loss.
3.20. Demand control account, trade receivable and
unbilled revenue
i. Demand control account represents amount billed
to customer as per the agreed payment plan with
respective customers reduced by the value of
revenue recognised as on the Balance Sheet date.
ii. Trade receivable represents the amount receivable
from customers as on the balance sheet date
against the amount billed to customers as per the
agreed payment plans with respective customers.
iii. Unbilled revenue represents revenue recognised
over and above the amount due as per the
payment plan agreed with the customers.
3.21. Business Combinations under common control
Business Combinations involving entities or business
under common control are accounted for using the
pooling of interest method.
Under pooling of interest method, the assets and
liabilities of the combining entities or businesses
are reflected at their carrying amounts after making
adjustments necessary to harmonise the accounting
policies. The financial information in the Standalone
Ind AS Financial Statements in respect of prior periods
is as if the business combination had occurred from
the beginning of the preceding period in the Standalone
Ind AS Financial Statements, irrespective of the actual
date of the combination. The identity of the reserves
is preserved in the same form in which they appeared
in the Standalone Ind AS Financial Statements of
the transferor and the difference, if any, between the
amount recorded as share capital issued plus any
additional consideration in the form of cash or other
assets and amount of share capital of the transferor is
transferred to capital reserves.
3.22. 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
31st March 2025, the MCA has notified Ind AS 117 -
Insurance Contracts and amendments to Ind AS 116
- Leases, relating to sale and leaseback transactions,
which are applicable to the Company with effect from
1st April 2024. The Company has reviewed these new
pronouncements and, based on its evaluation, has
determined that they do not have any impact on its
financial statements.
Notes:
4.1 The Company does not have any Capital Work in Progress (CWIP) which is overdue or has exceeded its cost compared to
its original plan and hence CWIP completion schedule is not applicable.
4.2 For details of assets given as security, refer note 20.
4.3 In the previous year, the Company had purchased office premises under Auction from Secured Creditors under SARFAESI
Act, 2002 under Deed for Sales Certificate dated 23rd February, 2024 and the same is registered with the Government
Authorities.
4.4 There are no contractual commitments for acquisition of property, plant and equipment.
4.5 There are no borrowing cost capitalised during the year.
4.6 On transition to Ind AS (i.e. 1st April, 2021), the Company has elected to continue with the carrying value of all property,
plant and equipment measured as per previous GAAP and use that carrying value as the deemed cost of property, plant
and equipment.
12.2 There were no trade receivables due from directors or any of the officers of the Company.
12.3 The Company has entered into contracts for the sale of residential/commercial units on structured instalment basis. The
instalments are specified in the contracts. The Company is exposed to credit risk in respect of instalments due. Generally,
the legal ownership of residential units are transferred to the buyer after all/ substantial instalments are recovered. In
addition, instalment due are monitored on an ongoing basis with the result that the Company’s exposure to credit risk is
not significant.
On conservative basis, though no significant credit risk involved, the allowances for credit losses (ECL) is provided for
trade receivables. In determining ECL provision, the Company has used a practical expedient by computing the expected
credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical
credit loss experience and is adjusted for forward looking information. The ECL is based on the ageing of the receivables
that are due and rates used in the provision matrix. Following is the movement of ECL during the year:
14.1 Balance with bank [Earmarked bank balance] includes balance in designated RERA bank accounts, lender escrow accounts
and proceeds of IPO bank account / preferential issue/warrant issue pending utilization of proceeds of IPO/preferential
issue/warrant issue.
14.2 Fixed deposit with bank includes (including interest accrued reinvested):
(i) Kept with bank against Debt Service Reserve Account (DSRA) for various loan facilities obtains - '167.14 Million (As
at 31st March, 2024: '46.09 Million).
(ii) Kept as margin money for various bank guarantee's given by Bank to various Government and other authorities -
'56.60 Million (As at 31st March, 2024: ' 746.70 Million).
(iii) Given to National Stock Exchange as security for Initial Public Offering refundable on fulfilment of conditions- ' Nil
(As at 31st March, 2024: ' 20.36 Million).
(iv) Unutilised proceeds of an Initial Public Offering, pending utilisation kept as fixed deposit with Scheduled Bank - ' Nil
(As at 31st March, 2024: ' 200.66 Million).
(v) Unutilised proceeds of an Preferential/ Warrant Issue of equity shares, pending utilisation kept as fixed deposit with
Scheduled Bank - ' 28.00 Million (As at 31st March, 2024: ' Nil).
19.1 Nature and purpose of reserves
(a) Securities Premium Reserve
Securities premium account is used to record the premium on issue of equity shares. The same is utilised in
accordance with the provisions of the Companies Act, 2013.
(b) Debenture Redemption Reserve (DRR)
The Company is required to create a debenture redemption reserve out of the profits which is available for payment
of dividend and for the purpose of redemption of redeemable non convertible.
(c) Money received against share warrants
During the year, the Company has allotted 13,30,000 Convertible warrants of ' 750 each on preferential allotment
basis to certain identified non-promoter person in accordance with the provision of the Securities and Exchange Board
of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 and other applicable rules/regulations/
guidelines. The total amount is payable within 18 months from the date of allotment at the time of exercising the
option to apply for fully paid-up equity shares of ' 5 each of the Company, against each warrant held by the warrant
holder. On conversion of such warrants into equity shares., the Company shall transfer the amount therefrom to the
Securities Premium and Share Capital. The Company has received 50% of the warrant subscription amount upto 31st
March, 2025.
20.1 Details of security and terms of repayment on term loan facilities from Bank outstanding on 31st March, 2025 (Including
Current Maturities)
(a) Saraswat Co-operative Bank Limited
Total Facility Amount ' 160.00 Million, Amount disbursed till 31st March, 2025:- ' 146.60 Million
1. Mortgage Charge of ' 160.00 Million on Commercial premises on 4th Floor in the building known as "Aman
Chambers" situated on SVS Marg (Cadell Road), Opp Bengal Chemicals, Prabhadevi, Mumbai - 400 025 along
with 6 car parking spaces
2. Legal Mortgage of C.S. No. 2034, F.P No. 638, TPS III, Mahim Division, Lady Jamshedji Road, Mahim West,
Mumbai - 400 016 (Excluding rights of tenants and occupants) owned by Mulani and Bhagat associates;
3. Personal Guarantee of directors (Mr. Rajan Meenathakonil Thomas, Mr. Rahul Rajan Jesu Thomas, Mrs. Sujatha
Rajan Thomas). This loan was repaid during the year.
(b) Saraswat Co-operative Bank Limited
Total facility of upto ' 10.00 Mn, of which ' 10.00 Mn was disbursed till 31st March, 2025. This loan is secured against
hypothecation of 2 Cranes and Collateral Security by way of Legal Mortgage of "Nanabhay Manzil "Project at C.S.
No. 2034, F.P. No. 638, TPS III, Mahim Division, Lady Jamshedji Road, Mahim West, Mumbai-400 016 owned by
Partnership Firm (M/s Mulani & Bhagat Associates) and Personal Guarantee of Directors (Mr. Rajan Meenathakonil
Thomas, Mr. Rahul Rajan Jesu Thomas, Mrs. Sujatha Rajan Thomas).
(c) Saraswat Co-operative Bank Limited
Total facility of upto ' 0.95 Mn, of which ' 0.95 Mn was disbursed till 31st March, 2025. This loan is secured against
hypothecation of Car Ertiga and Personal Guarantee of Directors (Mr. Rajan Meenathakonil Thomas, Mr. Rahul Rajan
Jesu Thomas, Mrs. Sujatha Rajan Thomas). This loan was repaid during the year.
(d) Saraswat Co-operative Bank Limited
Total facility of upto ' 1.21 Million out of which ' 1.21 Mn is disbursed till 31st March, 2025. Secured against
hypothecation of Car KIA Seltos and Personal Guarantee of Directors (Mr. Rajan Meenathakonil Thomas, Mr. Rahul
Rajan Jesu Thomas, Mrs. Sujatha Rajan Thomas). This loan was repaid during the year.
(e) Saraswat Co-operative Bank Limited
Total facility of upto ' 10.00 Mn, of which ' 10.00 Mn was disbursed till 31st March, 2025. This loan is secured against
hypothecation of 2 Cranes and Collateral Security by way of Legal Mortgage of "Nanabhay Manzil "Project at C.S.
No. 2034, F.P. No. 638, TPS III, Mahim Division, Lady Jamshedji Road, Mahim West, Mumbai-400 016 owned by
Partnership Firm (M/s Mulani & Bhagat Associates) and Personal Guarantee of Directors (Mr. Rajan Meenathakonil
Thomas, Mr. Rahul Rajan Jesu Thomas, Mrs. Sujatha Rajan Thomas).
(f) Saraswat Co-operative Bank Limited
Total Facility Amount is ' 80.00 Million, Amount disbursed till 31st March, 2025 is ' 80.00 Million.
1. Additional charge of ' 300.00 Lakhs on C.S. No. 2034, F.P No. 638, TPS III, Mahim Division, Lady Jamshedji
Road, Mahim West, Mumbai - 400 016 (Excluding rights of tenants and occupants) owned by Partnership Firm
(M/s Mulani and Bhagat Associates);
2. Additional charge of ' 500.00 Lakhs on FP no 782, TPS No IV of Mahim Division excluding rights of tenants and
occupants of building Panchasheel, Suyog and Lumiere owned by New Siddharth Enterprise
3. Legal Mortgage of C.S. No. 2034, F.P. No. 638, TPS III, Mahim Division, Lady Jamshedji Road, Mahim West,
Mumbai - 400 016. (Excluding rights of tenants and occupants) (Owned by Partnership Firm (M/s Mulani and
Bhagat Associates)
4. Personal Guarantee of directors (Mr. Rajan Meenathakonil Thomas, Mr. Rahul Rajan Jesu Thomas, Mrs. Sujatha
Rajan Thomas).
5. Corporate Guarantee:
(a) Mulani and Bhagat Associates
(b) New Siddharth Enterprises
This loan was repaid during the year.
(g) Saraswat Co-operative Bank Limited
Total Facility Amount is ' 16.50 Million, Amount disbursed till 31st March, 2025 is ' 16.50 Million.
1. Hypothecation Charge of ' 16.50 Million on edge protecting system;
2. Additional Charge of ' 250.00 Million on C.S. No. 2034, Plot No.45, Final Plot No. 638, TPS III, Mahim Division,
Lady Jamshedji Road, Mahim West, Mumbai - 400 016 (Excluding Rights of tenants and Occupants) owned by
Mulani and Bhagat associates;
3. Additional Charge of ' 115.00 Million on FP no 782, TPS No IV of Mahim Division excluding rights of occupant of
building Panchasheel, Suyog and Lumiere owned by Partnership Firm (New Siddharth Enterprise) - Performance
Bank Guarantee
4. Legal Mortgage of C.S. No. 2034, Plot No. 45, Final Plot No. 638, TPS III, Mahim Division, Lady Jamshedji Road,
Mahim West, Mumbai-400 016 (Excluding rights of tenants and occupants) owned by Mulani and Bhagat
Associates.
5. Additional Charge ' 8.30 Million on C.S. No. 2034, Plat no 45, F.P. No. 638, TPS III, Mahim Division, Lady Jamshedji
Road, Mahim West, Mumbai - 400 016 (Excluding rights of tenants and occupants) owned by Partnership Firm
(M/s Mulani and Bhagat Associates)
6. Personal Guarantee of directors (Mr. Rajan Meenathakonil Thomas, Mr. Rahul Rajan Jesu Thomas, Mrs. Sujatha
Rajan Thomas).
7. Corporate Guarantee of:
(a) M/s Mulani and Bhagat Associates
(b) M/s New Siddharth Enterprises
(h) IndusInd Bank Limited
Total Facility Amount is ' 1,750.00 Million, Amount disbursed till 31st March, 2025 is ' 1,200.00 Million.
1. Exclusive first charge by way of registered mortgage on the project "Palette", being developed on land ad
measuring - 3266.75 sq. mtr. and all its development rights incidental thereto, both present and future and
on the rights, title, interest, claims, benefits, demands under the projects documents, both present & future, as
applicable;
2. Exclusive first charge of all project assets (including movable assets) of Project "Palette" (from sold & unsold
stock), both present & future, including escrow of the same;
3. Personal Guarantees of Directors (Mr. Rajan Meenathakonil Thomas, Mr. Rahul Rajan Jesu Thomas, Mrs.
Sujatha Rajan Thomas);
4. Corporate Guarantee of Partnership Firm (M/s SR Enterprises);
5. Exclusive 1st charge by way of registered mortgage on Project Land and all Buildings/Structures of "FP 103" at
Lucky Chawl, Mahim, along with development rights;
6. Exclusive 1st charge by way of hypothecation of all project assets including movable assets of Project "FP 103"at
Lucky Chawl, Mahim (including from sold & unsold stock), both present & future, including escrow of the same;
7. Exclusive 1st charge by way of registered mortgage on Project Land and all Buildings/Structures of "FP 280",
TPS IV, Mahim Division, SK Bhole Road, Dadar (West) known as 'Gudekar House, along with development rights
(excluding area for Tenant and MHADA handover pertaining to this plot), both present and future;
8. Exclusive 1st charge by way of hypothecation of all project assets including movable assets of Project "FP 280"
TPS IV, Mahim Division, SK Bhole Road, Dadar (West) known as 'Gudekar House’ (including from sold & unsold
stock), both present & future, including escrow of the same;
9. Exclusive 1st charge by way of registered mortgage on Project Land and all Buildings/Structures of "FP 471",
TPS III, Mahim Division, 12 Pitamber Lane, Mahim (West) known as 'Mestry House’ along with development
rights (excluding area for Tenant and MHADA handover pertaining to this plot), both present and future;
10. Exclusive 1st charge by way of hypothecation of all project assets including movable assets of Project "FP 471"
TPS III, Mahim Division, 2 Pitamber Lane, Mahim(West) known as 'Mestry House’ (including from sold & unsold
stock), both present & future, including escrow of the same.
(i) IndusInd Bank Limited
Facility Amount- ' 850.00 Mn, Amount disbursed till 31st March, 2025 is '42.50 Mn
1. Exclusive first charge by way of registered mortgage on the land and development rights of the Project "Vitalis"
having minimum carpet area of 81,916 sqft (Borrower’s share) along with all rights incidental thereto, both
present & future and on the title, interest, claims, benefits, demands under the project documents, both present
& future, as applicable concerning the Project "Vitalis".
2. Exclusive & first charge by way of hypothecation of all project assets including movable assets of Project
"Vitalis" (Borrower’s Share) (from sold & unsold stock), both present & future, including escrow.
(Excluding units to be allotted to Landowner, MHADA and area allotted to tenants as per MHADA requirements)
Other Comforts:
1. Personal Guarantee (PG) of Mr. Rajan Meenathakonil Thomas and Mr. Rahul Rajan Jesu Thomas
2. Undated cheque (UDC) for the total facility principal amount.
3. Cross Collateralization with Project "Palette" funded by Indusind Bank Limited.
(j) Saraswat Co-operative Bank Limited
Facility Amount- ' 300.00 Mn, Amount disbursed till 31st March, 2025 is ' 300.00 Mn
C.S. No. 2034, F.P. No. 638, TPS III, Mahim Division, Lady Jamshedji Road, Mahim West, Mumbai 400 016. (Excl rights
of tenants and occupants) owned by Partnership Firm M/s Mulani and Bhagat associates)
Charge of '150.00 Mn to be created.
FP no 782, TPS No. IV of Mahim Division excluding rights of tenants and occupants of building Panchasheel, Suyog
and Lumiere owned by Partnership Firm (M/s New Siddharth Enterprise).
(k) Saraswat Co-operative Bank Limited
Facility Amount- ' 100.00 Mn, Amount disbursed till 31st March, 2025 is ' 62.00 Mn
Additional mortgage charge of '100.00 Mn to be created on FP No. 782, TPS No IV of Mahim Division excluding
rights of tenants and occupants of building Panchasheel, Suyog and Lumiere (Owned by Partnership Firm M/s New
Siddharth Enterprise)
20.3 Details of security and terms of repayment on term loan from financial institutions
(a) Axis Finance Limited
(i) Total facility of upto ' 465.00 Million, of which ' 453.40 Million was disbursed till 31st March, 2025. This loan is
secured against :
(i) Security by way of legal mortgage of property Ambavat Bhavan, Opp, Marathon Futurex. having C.S. No. FP
177 Parel;
(ii) Land Bearing C.T.S No(s) bearing 924 of Bandra-B Village situated in H/W Ward near Mount Mary Church,
Bandra (West) Mumbai
(iii) Personal Guarantee of promoter (Mr. Rajan Meenathakonil Thomas, Mr. Rahul Rajan Jesu Thomas, Mrs.
Sujatha Rajan Thomas);
(iv) Guarantee of Accord Estates Private Limited.
(ii) Total facility of upto ' 430.00 Million, of which ' 285.30 Million was disbursed till 31st March, 2025. This loan is
secured against:
(i) Legal mortgage of property ambavat Bhavan, Opp. Marathon Futurex having CS No. FP 177 adm 666 sq.
mtrs of plot area located at NM Joshi Marg, Parel;
(ii) Land Bearing C.T.S. No(s) 924B of Bandra - B Village situated in H/W Ward, near Mount Mary Church,
Bandra (West), Mumbai;
(iii) Land bearing CTS NO 920 B, Mount Mary Church, Bandra (West), Mumbai
(iv) Personal Guarantee Promoters (Mr. Rajan Meenathakonil Thomas, Mr. Rahul Rajan Jesu Thomas, Mrs.
Sujatha Rajan Thomas);
(v) Guarantee of Accord Estates Private Limited.
(b) Aditya Birla Finance Limited
Total facility of upto ' 500.00 Million, disbursed fully till 31st March, 2025. This loan is secured by:
(i) First and Exclusive charge by way of Registered Mortgage of Development Rights on the project 'Ocean Star’
located at F P No. 1198 and 1199, TPS IV Mahim Div, Mumbai, along with present and future construction
thereon with 10 unsold units and 16 SRST units of project;
(ii) Exclusive charge by way of hypothecation and escrow of all the present and future receivables arising out of
units of the security as mentioned in the security clause.
(c) Tata Capital Housing Finance Limited
Term Loan I- Total facility of upto ' 950.00 Million, of which ' 950 Million was disbursed till 31st March, 2025
Term Loan II- Total facility of upto ' 450.00 Million, of which ' 233.00 Million was disbursed till 31st March, 2025
Facility is secured by,
1. Exclusive charge by way of registered mortgage on the land and development rights of the Project ""Suraj
Vitalis"" (only Borrower’s share) situated at CS no. 7/647 of Mahim division, bearing final plot no. 107 of TPS
No II of Mahim, admeasuring land area of 2,750.85 sq. mtr. Situated at Lady Jamshedji Road, Mahim, West,
Mumbai - 400 016, along with any structure (present or future) standing/proposed to be constructed on the
Project Land;
2. Exclusive charge by way of hypothecation of all receivables including sold , unsold , insurance receipt as well
as development and other charges from units and other cash flow belonging to Borrower’s share in the Project
"Vitalis"
(d) Capri Global Private Limited
Total facility of upto ' 950.00 Million, of which ' 162.24.40 Million was disbursed till 31st March, 2024. This loan is
secured against :
(A) First and exclusive charge by way of registered mortgage over the developement rights on the project land FP
557 Mari Nagar along with all rights, title and interest of borrower in the project with all the present and future
structures there upon including any further potential along with area arising in the form of TDR,FSI or otherwise
on the project land accruing to the borrower and borrower’s share of unsold units in the project land
(B) First and exclusive charge by way of Hypothecation over all the present and future cashflows from the project
to the extent of borrower’s share
(C) Personal guarantees of Mr. Rajan Meenathakonil Thomas and Mr. Rahul Jesu Thomas.
(c) ICICI Venture Funds Management Company Limited
Total Facility amount of ' 700.00 Million out of which ' 600.00 Million has been disbursed till 31st March, 2025.
Securities Provided
(i) Charge on the tenancy rights of Mr. Thomas Rajan and/or tenancy rights acquired by the Company from Mr.
Thomas Rajan (Promoter/Co-Borrower) pertaining to the Suraj Eterna Project, as security for the repayment by
the Company of the amounts Due in respect of the Debentures;
(ii) Charge on the Accounts Park View 2 and the Accounts Suraj Eterna, as security for the repayment by the
Company of the amounts due in respect of the Debentures;
(iii) Security Interest on the Mahim 702 Land. Mahim 702 Land Project, Park View 1 Project, Accounts and Project
Receivables of the Mahim 702 Land Project and Park View 1 Project;
(iv) First and exclusive charge on the Park View Land, Suraj Eterna Project, Park View 2 Project, Eterna Mahim Land,
Project Receivables from the Park View 2 Project, Project Receivables from the Suraj Eterna Project, Accounts
Park View 2. Accounts-Suraj Eterna and the tenancy rights of Mr. Thomas Rajan and/or tenancy rights acquired
by the Company from Mr. Thomas Rajan (Promoter/Co-Borrower) pertaining to the Suraj Eterna Project.
20.7 Loan from related party is interest bearing long term loan against which the Company has provided security following
security to the ultimate lender i.e. Aditya Birla Capital Limited [Sanctioned limit of ' 420 Mn]:
(i) First & exclusive charge by way of registered mortgage on 3 unsold units ( landowner buyback) in the project 'Ocean
Star I’ located at FP no. 1198 and 1199, TPS IV Mahim Div, Mumbai, along with present and future construction
thereon.
(ii) Extension of charge by way of Registered mortgage of development right in the project 'Ocean Star I’ located at FP
no. 1198 and 1199, TPS IV Mahim Div, Mumbai, along with present and future construction thereon with 10 unsold
units of project.
(iii) Hypothecation and escrow of all the present and future receivable arising out of units of above mentioned securities.
(iv) First & exclusive charge by way if registered mortgage of commercial space on the 4th floor in the building known as
Aman Chamber situated on SVS Marg ( Cadell road) , Opp Bengal chemical, Prabhadevi, Mumbai- 400025
(v) Hypothecation and escrow of all the present and future receivable arising out of units of above mentioned securities.
20.8 Loan covenants
Term loans contain certain debt covenants relating to security cover, net debt to tangible net worth ratio, debt-equity ratio,
minimum tangible net worth and asset coverage ratio. The Company has satisfied all debt covenants prescribed in the
terms of term loan. The Company has not defaulted on any loan payments.
140 | CAPITAL COMMITMENTS, OTHER COMMITMENTS AND CONTINGENT LIABILITIES
40.1 Capital and other commitments
(a) Estimated amount of capital commitments to be executed on capital accounts and not provided for is ' Nil as at 31st
March, 2025 (As at 31st March, 2024 is ' Nil) (Net of advances).
(b) Other commitments
(i) In the previous year, the Company has amicably settled legal dispute with OLV & OLPS society. It has also filed
consent terms enabling the development of property bearing F.P.557 of TPS III, Mahim Division admeasuring
7,625.73 square meters of thereabouts. The Company has agreed to pay total consideration of ' 410.00 Mn out
of which part consideration of ' 120.00 Mn has been paid as per Memorandum of Understanding and balance
consideration is payable subject to approval of charity commissioner.
Notes:
(a) I n respect of (i) above, future cash outflows (including interest/ penalty, if any) are determinable on receipt of
judgement from tax authorities / settlement of claims or non-fulfilment of contractual obligations. Further, the
Company does not expect any reimbursement in respect of above. In respect of (ii) and (iii) above, Company does not
expect any cash outflow till such time contractual obligations are fulfilled by the companies for which guarantees are
issued.
(b) With respect to Income tax search, survey and seizure operation carried out in earlier years, during the year, the
Income Tax Department has raised demand for additional income tax/ interest/ and the penalty for the Assessment
Year 2012-2013, 2018-2019, 2020-2021,2021-2022, 2022-2023 and 2023-2024 amounting to ' 613.27 Mn. Based
on advice of legal counsel and the Company’s assessment of the merits of the case the Company believes that the
demand is unsustainable and is contesting the same before relevant authority.
Further, in view of the management, the Income tax department has not given credit for regular assessment tax
paid aggregating to ' 177.37 Mn for which the rectification application has been filed with the department along
with relevant supporting documents. Amount of contingent liability disclosed above is net of assessment tax not
considered by the Income Tax Department.
(c) The Code on Social Security, 2020 ('Code’) relating to employee benefits during employment and post-employment
benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India.
However, the date on which the Code will come in to effect has not been notified. The Company will assess the
impact of the Code when it comes into effect and will record any related impact in the period when the Code becomes
effective.
(d) The Company does not have outstanding derivative contracts as at the end of respective years.
(e) The Company has provided corporate guarantees and securities on behalf of subsidiaries [determined based on
underlying project / activities and other factors] and other entities for loan facilities availed by such entities.
Notes:
(a) Transactions with related parties and outstanding balances at the year end are disclosed at transaction value.
(b) In addition to above transactions:
(i) Directors of the Company (Mr. Rajan Meenathakonil Thomas, Mr. Rahul Rajan Jesu Thomas, Mrs. Sujatha Rajan
Thomas) have given personal guarantee's for various loan facilities availed by the Company (Refer note 20.1,
20.3 and 20.5)
(ii) In addition to above transactions, subsidiaries [Uditi Premises Private Limited, Accord Estate Private Limited,
SR Enterprises, New Siddharth Enterprises and Mulani & Bhagat Associates] have given security of its asset for
various loan facilities availed by the Company (Refer note 20.1,20.3 and 20.5)
(iii) In addition to above transactions, the Company has given security of its assets for loan facility availed by M/s
Gratique Realty Private Limited. The amount of loan facility availed by this entity has been given to the Company
as loan. Also refer note 20.7
(d) Transaction with related parties are disclosed from the date when relationship came into existence and upto the date
when relationship existed.
42.4 Terms and conditions of transactions with related parties
Transactions were done in ordinary course of business and on normal terms and conditions. Outstanding balances are
unsecured and repayable in cash. Loan to related parties are interest bearing which carried interest rate of 12%. Other
receivable/ payable to and from related parties are in the nature of current account transactions and as per reciprocal
arrangement. The purpose for which loans are given (furtherance of business) are not considered prejudicial to the
Company’s interest.
42.5 Breakup of compensation to key managerial personnel
Key management personnel are those persons having authority and responsibility for planning, directing and controlling
the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity.
(ii) Disclosures for defined benefit plans
(a) Defined benefit obligations - Gratuity (Unfunded)
The Company has a defined benefit gratuity plan for its employees. The gratuity plan is governed by the
Payment of Gratuity Act, 1972. Under the Act, every employee who has completed five years of service is entitled
to specific benefit. The level of benefits provided depends on the employee's length of service and salary at
retirement age. Every employee who has completed five years or more of service gets a gratuity on departure at
15 days salary (last drawn) for each completed year of service as per the provisions of the Payment of Gratuity
Act, 1972. The scheme is unfunded.
(b) Compensated absences (non-funded)
As per the policy of the Company, obligations on account of benefit of accumulated leave of an employee is
settled only on termination / retirement of the employee. Such liability is recognised on the basis of actuarial
valuation following Project Unit Credit Method.
Out of total provision of ' 2.18 Mn (31st March, 2024 : ' 0.98 Mn), obligation of leave benefit is presented
as non-current aggregating to ' 1.93 Mn (31st March, 2024: ' 0.85 Mn), though the Company does have an
unconditional right to defer settlement for any of these obligations. Classification into current/ non-current is
based on actuarial valuation and also past experience of the Company that it does not expect all employees to
take the full amount of accrued leave or require payment within the next 12 months.
45 |LEASES
(a) Asset given under operating lease
The Company has given some premises and machinery on rental in the course of business on temporary basis,
under operating lease under cancellable operating leases. Details of rental income recognised during the year in
respect of these lease arrangements are as given below:
| 50 | COMPLETION OF INITIAL PUBLIC OFFER
In the previous year ended 31st March, 2024, the Company has completed Initial Public Offering (IPO) of ' 4,000.00 Million
(Fresh Issue) comprising of 11,111,111 equity shares of ' 5 each at an issue price of ' 360 per share. The equity shares
of the Company have been listed on National Stock Exchange Limited and BSE Limited (hereinafter referred as "Stock
Exchanges") w. e. f. 26th December 2023.
In respect of the aforesaid IPO, the Company has incurred ' 311.73 Million as share issue expenses (net of tax ' 217.75
Million) had been adjusted to securities premium in the previous year. Also refer note 19.
52 All loans, guarantees and securities as disclosed in respective notes are provided for business purposes.
53 In the opinion of the Board of Directors, current assets, loans and advances have a value on realization in the ordinary
course of business at least equal to the amount at which they are stated in the balance sheet and provisions for all
known/ expected liabilities have been made.
54 The Company transitioned to a new financial accounting software w.e.f. 1st April, 2024 to enhance reporting capabilities
and process automations. The transition involved migrating the Company’s general ledger accounts and opening
balances as on 1st April, 2024. The management is in process of streamlining the new accounting system/ process and
is providing adequate training to the team for making the transition to new accounting system smooth and robust.
55 | ADDITIONAL REGULATORY INFORMATION
i) Details of Benami property Held
No proceedings have been initiated on or are pending against the Company for holding benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
ii) Borrowings secured against current assets
The Company has borrowings from banks and financial institutions on the basis of security of current assets, also
refer note 20. However, there are no requirements of filing quarterly returns or statements with banks as per the
terms of relevant agreements.
iii) Wilful Defaulter
The Company has not been declared as wilful defaulter by any bank or financial institution or government or any
government authority.
iv) Relationship with struck off companies
The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act,
1956.
v) Compliance with number of layers of companies
The Company has complied with the number of layers prescribed under the Companies Act, 2013
vi) Compliance with approved scheme(s) of arrangements
The Company has not entered into any scheme of arrangement which has an accounting impact on current or
previous financial year.
vii) 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.
viii) 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 in the books of account.
ix) 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.
x) Valuation of PP&E, intangible asset and investment property
The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets
or both during the current or previous year.
xi) Registration of charges or satisfaction with Registrar of Companies
There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the
statutory period.
xii) Utilisation of borrowings availed from banks and financial institutions
The borrowings obtained by the Company from banks and financial institutions have been applied for the purposes
for which such loans were was taken.
xiii) Title deed of immovable properties
The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease
agreements are duly executed in favour of the lessee), as disclosed in note 3, note 4 and note 5 to the Standalone Ind
AS Financial Statements, are held in the name of the Company.
57 With respect to the dispute between one of the wholly subsidiary company (Accord Estate Private Limited) and its Joint
Development Agreement (JDA) partner, the suit had been filed against the said subsidiary in the Hon’ble High Court of
Bombay by the counter party to the Joint Development Agreement ["JDA"] for certain claims as per terms mentioned in
the JDA. The said suit has been withdrawn and amicable settlement terms has been agreed to settle the matter and the
subsidiary has agreed to make payment of compensation on account of defaults in compliance with JDA terms.
Considering understanding between the Company and the said wholly owned subsidiary related to non-compliance of
terms related to JDA and the Holding Company’s overall responsibility thereof, the part amount of compensation payable
has been agreed to be borne by the Company and accordingly compensation amount paid has been reimbursed by the
Company to the said subsidiary.
58 In respect of real estate projects (Construction work in progress) stage of completion, projections of cost and revenues
expected from project and realization of the construction work in progress / advances have been determined based
on management estimates which is being relied upon by the auditors. In respect of real estate project (Construction
work in progress) which are at initial preparatory stage [i.e. acquisition of land / development rights and other incidental
expenses], realization of the construction work in progress and advances for project have been determined based on
management estimates of commercial feasibility and management expectation of future economic benefits from the
project. These estimates are reviewed periodically by management and revised whenever required. The consequential
effect of such revision is considered in the year of revision and in the balance future period of the project. These estimates
are dynamic in nature and are dependent upon various factors like eligibility of the tenants, changes in the area, approval
and other factors. Changes in these estimates can have significant impact on the financial results of the Company and
its comparability with the previous year however quantification of the impact due to change in said estimates cannot be
quantified.
(b) Fair valuation techniques
The Company maintains policies and procedures to value financial assets or financial liabilities using the best and
most relevant data available. The fair values of the financial assets and liabilities are included at the amount that
would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date.
The management assessed that fair value of Trade receivables (net), Cash and cash equivalents, Other bank balances,
Loans, Other current financial asset, Current borrowings (Excluding interest accrued thereon), Trade payables and
Other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these
instruments. Further, the management has assessed that fair value will be approximate to their carrying amounts as
they are priced to market interest rates on or near the end of reporting period.
(c) Fair value hierarchy
Financial assets and financial liabilities are measured at fair value in the Standalone Ind AS Financial Statement
and are grouped into three levels of a fair value hierarchy. The three Levels are defined based on the observability of
significant inputs to the measurement, as follows:
Level 1 : quoted prices (unadjusted) in active markets for financial instrument.
Level 2 : The fair value of financial instruments that are not traded in an active market (for example, traded bonds,
over-the-counter derivatives) 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 more of the significant inputs is not based on observable market data, the instrument is included in
level 3.
The fair values of investment in debentures and borrowings, security deposits, long term deposits with bank, trade
payable, corpus, security deposit towards rented premises with original maturity of more than 12 months are
calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in
the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.
(d) Valuation process
The finance department of the Company includes a team that performs the valuations of financial assets and
liabilities required for financial reporting purposes, including level 3 fair values.
(g) Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include:
(a) The use of net asset value for mutual funds on the basis of the statement received from investee party.
(b) In case of investment in unlisted equity instrument, same are investment in co-operative bank and in view of the
management, the fair value of this investment would approximate to their carrying amount.
60 | RISK MANAGEMENT FRAMEWORK
The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s
risk management framework. The board of directors is responsible for developing and monitoring the Company’s risk
management policies. The Company’s risk management policies are established to identify and analyse the risk 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’s Board of Directors oversees how management monitors compliance with the Company’s risk management
policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the
Company. The Board of Directors is assisted in its oversight role by internal audit team. Internal audit team undertakes
both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the
Board of Directors.
The Company has exposure to the following risks arising from financial instruments:
• Credit risk;
• Liquidity risk;
• Market risk
• Interest rate risk
• Legal, taxation and accounting risk
(a) Credit risk :
Credit risk arises from the possibility that customers or counterparty to financial instruments may not be able to
meet their obligations. To manage this, the Company periodically assesses the financial reliability of customers,
taking into account the financial condition, current economic trends, analysis of historical bad debts and ageing of
accounts receivable. Credit risks arises from cash and cash equivalents, deposits with banks, financial institutions
and others, as well as credit exposures to customers, including outstanding receivables.
The Company considers factors such as track record, size of institutions, market reputation and service standards
to select banks with which balances and deposits are maintained. the balances and fixed deposits are generally
maintained with the banks with whom the Company has regular transactions. Further, the Company does not
maintain significant cash in hand other than those required for its day to day operations. Considering the same, the
Company is not exposed to expected credit loss of cash and cash equivalent and bank balances.
The Company has entered into contracts for the sale of residential/ commercial units on an instalment basis. The
instalments are specified in the contracts. The Company is exposed to credit risk in respect of instalments due.
However, the legal ownership/ possession of residential/ commercial units are transferred to the buyer only after all
the instalments are recovered. In addition, instalment 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.
(i) Credit risk management
The Company assesses and manages credit risk of financial assets based on following categories arrived on
the basis of assumptions, inputs and factors specific to the class of financial assets.
A: Low credit risk
B: Moderate Credit Risk
B: High Credit Risk
Expected credit loss for trade receivables under simplified approach - Real estate business
The Company’s trade receivables from real estate development business does not have any expected credit
loss as legal title is transferred (through registration of property), once the Company receives entire payment.
Also refer note 12.3
(b) Liquidity risk :
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 conditions, without incurring unacceptable losses or risking damage to Company’s
reputation.
Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the
basis of expected cash flows to ensure it has sufficient cash to meet operational needs. Such forecasting takes into
consideration the Company’s debt financing plans, covenant compliance and compliance with internal statement of
financial position ratio targets.
(c) Market risk
Market risk is the risk that the changes in market prices such as foreign exchange rates, interest rates and equity
prices will affect the Company’s income or the value of its holdings of financial instruments. The objective of market
risk management is to manage and control market risk exposures within acceptable parameters, while optimizing
the return. The pre dominant currency of the Company’s revenue and operating cash flows is Indian Rupees (').
There is no foreign currency risk as there is no outstanding foreign currency exposure at the year end.
(d) 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 exposure to risk of changes in market rate is limited to borrowings
(excluding vehicle loans and non-convertible debentures) which bear floating interest rate. The Company’s fixed rate
borrowings are carried at amortised 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.
The Company manages interest rate risk by having a balanced portfolio of fixed and variable rate borrowings. The
exposure of the Company's borrowing to interest rate changes at the end of the reporting period is as follows:
(B) Assets
The Company's fixed deposits, interest bearing security deposits and loans are carried at fixed rate. 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.
(e) Legal, taxation and accounting risk
The Company is presently involved into various judicial, administrative, regulatory and litigation proceedings
concerning matters arising in the ordinary course of business operations including but not limited to personal injury
claims, landlord-tenant disputes, commercials disputes, tax disputes and other contractual disputes. Many of these
proceedings seek an indeterminate amount of damages. In situations where management believes that a loss arising
from a proceeding is probable and can reasonably be estimated, Company records the amount of the probable loss.
As additional information becomes available, any potential liability related to these proceedings is assessed and the
estimates are revised, if necessary.
To mitigate these risks, the Company employs in-house counsel and uses third party tax & legal experts to assist
in structuring significant transactions and contracts. The Company also has systems and controls that ensure the
timely delivery of financial information in order to meet contractual and regulatory requirements and has implemented
disclosure controls and internal controls over financial reporting which are tested for effectiveness on an ongoing
basis.
Change to any of the above laws, rules, regulations related to Company’s business could have a material impact on
its financial results. Compliance with any proposed changes could also result in significant cost to Company. Failure
to fully comply with various laws, rules and regulations may expose Company to proceedings which may materially
affect its performance.
CAPITAL RISK MANAGEMENT
(a) Risk management
The Company manages its capital to ensure that it will be able to continue as a going concern so, that they can
continue to provide returns for shareholders and benefits for other stakeholders and maintain an optimal capital
structure to reduce cost of capital. The Company manages its capital structure and make adjustments to, in light
of changes in economic conditions, and the risk characteristics of underlying assets. In order to achieve this overall
objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants
attached to the borrowings that define the capital structure requirements.
Consistent with others in the industry, the Company monitors capital on the basis of the gearing ratio. The ratio is
calculated as net debt divided by equity. Net debt is calculated as total borrowing (including current and non-current
terms loans as shown in the balance sheet).
The Company considers the amount of capital in proportion to risk and manages the capital structure in light of
changes in economic conditions and the risk characteristics of the underlying assets.
The Company’s aim is to translate profitable growth to superior cash generation through efficient capital management.
The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to
maintain investor, creditors and market confidence and to sustain future development and growth of its business.
The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.
62 RECORDING OF AUDIT TRAIL
As per the requirements of rule 3(1) of the Companies (Accounts) Rules 2014 the Company uses accounting software
for maintaining its books of account that have a feature of recording audit trail of each and every transaction creating an
edit log of each change made in the books of account along with the date when such changes were made within such
accounting software and no audit trail features were tampered during the year and have been preserved by the Company
as per the statutory requirement for record retention.
63 | MAINTENANCE OF BOOKS OF ACCOUNTS AND BACK-UP
As per the MCA notification dated 5th August, 2022, the Central Government has notified the Companies (Accounts) Fourth
Amendment Rules, 2022. As per the amended rules, the Companies are required to maintain back-up on daily basis of
books of account and other relevant books and papers maintained in electronic mode that should be accessible in India
at all the time. Also, the Companies are required to create backup of accounts on servers physically located in India on a
daily basis.
64 All amounts in Financial statement are rounded off to ' Million and disclosed upto 2 decimals. Amount below rounding
off norms are reported as 0.00.
65 Previous year figures have been regrouped/reclassified, wherever necessary to conform to current year classification.
This is the Standalone Financial Statement referred to in our report of even date
For S K L R & Co. LLP For and on behalf of the Board of Directors of Suraj Estate Developers Limited
Chartered Accountants
Firm Registration No.: 033095C
Rakesh Jain Rajan Meenathakonil Thomas Rahul Rajan Jesu Thomas
Partner Chairman & Managing Director Whole Time Director
Membership No. : 123868 (DIN : 00634576) (DIN : 00318419)
UDIN: 25123868BMTCHV7787
Shreepal Suresh Shah Mukesh Gupta
Place: Mumbai Chief Financial Officer Company Secretary
Date: 27th May, 2025
Place: Mumbai
Date: 27th May, 2025
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