3.8 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
A provision is recognised when:
i) The Company has a present obligation (legal or constructive) as a result of a past event;
ii) It is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation; and
iii) A reliable estimate can be made of the amount of the obligation.
A disclosure for a contingent liability is made when there is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain
future events beyond the control of the Company or a present obligation that may, but probably may
not, require an outflow of resources. A contingent liability also arises in extreme cases where there is a
probable liability that cannot be recognized because it cannot be measured reliably.
Where there is a possible obligation or a present obligation such that the likelihood of outflow of resources
is remote, no provision or disclosure is made.
Contingent assets are disclosed in case a possible asset arises from past events and whose existence
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.
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.
Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet
date and adjusted to reflect the current best estimates.
3.9 EMPLOYEE BENEFITS
A) Short term employee benefits
All employee benefits payable wholly within twelve months of rendering the service are classified as
short-term employee benefits. Benefits such as salaries, wages etc. and the expected cost of ex-gratia
are recognised in the period in which the employee renders the related service. A liability is recognised
for the amount expected to be paid when there is a present legal or constructive obligation to pay this
amount as a result of past service provided by the employee and the obligation can be estimated reliably.
B) Defined contribution plans
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions
into a separate entity and will have no legal or constructive obligation to pay further amounts. The Company
makes specified monthly contributions towards Government administered provident fund & employee
state insurance scheme. Obligations for contributions to defined contribution plans are recognised as an
employee benefit expense in profit or loss in the periods during which the related services are rendered by
employees.
C) Defined benefit plans
For defined benefit retirement plans (i.e. gratuity) the cost of providing benefits is determined using
the projected unit credit method, with independent actuarial valuations being carried out at the end of
each annual reporting period. Re-measurement, comprising actuarial gains and losses, the effect of the
changes to the asset ceiling and the return on plan assets (excluding interest), is reflected immediately in
the statement of financial position with a charge or credit recognised in other comprehensive income in
the period in which they occur. Defined benefit costs are categorised as follows:
- Service cost (including current service cost, past service cost, as well as gains and losses on
curtailments and settlements)
- Net interest expense or income; and
- Re-measurement
D) Other employee benefits
Leave encashment is recognised as an expense in the statement of profit and loss account as and when
they accrue. The Company determines the liability using the projected unit credit method, with actuarial
valuations carried out as at balance sheet date. Actuarial gains and losses are recognized in the statement
of other comprehensive income.
3.10 LEASES
The Company as a lessee
The Company assess whether a contract contains a lease at the inception of contract. A contract is, or
contains, a lease if the contract conveys the right to control the use of an identified asset for a period of
time in exchange for consideration. To assess whether a contract conveys the right to control the use of
an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset;
(ii) the Company has substantially all of the economic benefits from use of the asset through the period of
the lease, and (iii) the Company has the right to direct the use of the asset. The Company uses significant
judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate.
The Company determines the lease term as the non-cancellable period of a lease, together with both
periods covered by an option to extend the lease if the Company is reasonably certain to exercise that
option; and periods covered by an option to terminate the lease if the Company is reasonably certain not
to exercise that option. In assessing whether the Company is reasonably certain to exercise an option
to extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts and
circumstances that create an economic incentive for the Company to exercise the option to extend the
lease, or not to exercise the option to terminate the lease. The Company revises the lease term if there is
a change in the non-cancellable period of a lease.
The discount rate is generally based on the incremental borrowing rate specific to the lease being
evaluated or for a portfolio of leases with similar characteristics.
Lease payments associated with Low value & Short-term Leases are continued to be recognized as an
expense on a straight-line basis over the lease term or another systematic basis if that basis is more
representative of the pattern of the lessee's benefit (refer note no 26).
3.11 EARNING PER SHARE
Basic earnings per share is calculated by dividing the net profit / (loss) for the year attributable to equity
shareholders (after deducting preference dividends and attributable taxes) by weighted average number
of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net profit / (loss) for the year attributable
to equity shareholders and the weighted average numbers of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
The weighted average number of equity shares outstanding during the year is adjusted for events of
bonus issue and buy back.
3.12 BORROWING COST
Borrowing costs that are directly attributable to the acquisition / construction of qualifying assets are
capitalized as part of their costs. Borrowing costs are considered as part of the asset cost when the
activities that are necessary to prepare the assets for their intended use or sale are in progress.
Borrowing costs consist of interest and other costs that the Company incurs in connection with the
borrowing of funds. Other borrowing costs are recognized as an expense, in the period in which they are
incurred.
4. USE OF JUDGMENTS AND ESTIMATES
The preparation of standalone financial statements in conformity with Ind AS requires management
to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities,
income, expenses and disclosures of contingent assets and liabilities at the reporting date. However,
uncertainty about these assumptions and estimates could result in outcomes that require material
adjustment to the carrying amount of the asset or liability affected in future periods.
Estimates and underlying assumptions are reviewed at each reporting date. Any revision to accounting
estimates and assumptions is recognized prospectively i.e. recognised in the period in which the estimate
is revised and future periods affected.
The following are significant management judgements, estimates and assumptions in applying the
accounting policies of the Company that have a significant effect on the financial statements.
A) Revenue Recognition
Ind AS 115 requires entities to exercise judgement, taking into consideration all of the relevant facts
and circumstances when applying each step of the model to contracts with their customers. The
Company has evaluated and generally concluded that the recognition of revenue over the period of
time criteria are not met owing to non-enforceable right to payment for performance completed to
date and, therefore, recognises revenue at a point in time. The Company has further evaluated and
concluded that based on the analysis of the rights and obligations under the terms of the contracts
relating to the sale of property, the revenue is to be recognised at a point in time when control
transfers which coincides with receipt of Occupation Certificate.
B) Classification of property
The Company determines whether a property is classified as investment property or as inventory:
i) Investment property comprises land and buildings that are not occupied for use by, or in
the operations of, the Company, nor for sale in the ordinary course of business, but are held
primarily to earn rental income and capital appreciation. These buildings are held for capital
appreciation and are not intended to be sold in the ordinary course of business.
ii) Inventory comprises property that is held for sale in the ordinary course of business. Principally
these are properties that the Company develops and intends to sell.
C) Classification of assets and liabilities into current and non-current
The management classifies the assets and liabilities into current and non-current categories based
on the operating cycle of the respective business / projects.
D) Recognition of deferred tax assets
The extent to which deferred tax assets can be recognised is based on an assessment of the
probability of the Company's future taxable income against which the deferred tax assets can be
utilized.
E) Impairment of assets
In assessing impairment, management estimates the recoverable amounts of each asset or CGU
(in case of non-financial assets) based on expected future cash flows and uses an estimated
interest rate to discount them. Estimation relates to assumptions about future cash flows and the
determination of a suitable discount rate.
F) Useful lives of depreciable / amortisable assets (Property, plant and equipment, intangible assets
and investment property)
Management reviews its estimate of the useful lives of depreciable / amortisable assets at each
reporting date, based on the expected usage of the assets. Uncertainties in these estimates relate
to technical and economic obsolescence that may change the usage of certain assets.
G) Defined benefit obligation
The cost of defined benefit gratuity plan and the present value of the gratuity obligation along with
leave salary are determined using actuarial valuations. An actuarial valuation involves making
various assumptions such as standard rates of inflation, mortality, discount rate, attrition rates and
anticipation of future salary increases. 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.
H) Fair value measurements
The management applies valuation techniques to determine the fair value of financial instruments
(where active market quotes are not available) and non-financial assets. This involves developing
estimates and assumptions consistent with how market participants would price the instrument
/assets. Management bases its assumptions on observable data as far as possible but this may
not always be available. In that case management uses the best relevant information available.
Estimated fair values may vary from the actual prices that would be achieved in an arm's length
transaction at the reporting date.
I) Provisions
The timing of recognition and quantification of liability (including litigations) requires the application
of judgement to existing facts and circumstances, which can be subject to change. The carrying
amounts of provisions and liabilities are reviewed regularly and revised to take account of changing
facts and circumstances.
Notes:
1) Trade receivables are valued considering provision for allowance using expected credit loss method. This
assessment is considering the nature of industries, impact immediately seen in the demand outlook of
these industries and the financial strength of the customers in respect of whom amounts are receivable.
2) No trade or other receivable are due from directors or other officers of the company either severally or
jointly with any other person. Nor any trade or other receivable are due from firms or private companies
respectively in which any director is a partner, a director or a member.
3) Please refer Note 43 for Ageing of Trade Receivables.
NOTE 31: SEGMENT INFORMATION
Operating segments are defined as components of an enterprise for which discrete financial information is
available that is evaluated regularly by the chief operating decision maker, in deciding how to allocate resources
and assessing performance.
The Company has identified business segments as reportable segments. The business segments comprise of
Real Estate, Financial Services & Others.
Revenue and expenses directly attributable to segments are reported under each reportable segment. Expenses
which are not directly identifiable to the reporting segment have been allocated on the basis of the associated
revenue of the segment. All other expenses which are not attributable or allocable to segments have been
disclosed as unallocable expenses.
Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable
segment. All other assets and liabilities are disclosed as unallocable.
II. Capital Commitments
i. The Company holds 2,30,976 (Previous Year 2,30,976) partly paid up equity shares of Bharti Airtel
Limited as investment as on 31st March 2025. The uncalled liability of these partly paid up equity
shares is ? 926.79 Lakhs at ? 401.25 per share (Previous Year ? 926.79 Lakhs). This investment is
measured at Fair Valued through Other Comprehensive Income (FVTOCI) in accordance with Indian
Accounting Standards (IndAS).
ii. The Company has committed a total investment of ? 500.00 Lakhs (Previous Year ? 500.00 Lakhs)
to Welspun One Logistics Park Fund 1. Against this commitment, the Fund has raised capital calls
amounting to ? 475.00 Lakhs as on reporting date (Previous Year ? 450.00 Lakhs), which has been
duly paid by the Company. As on the balance sheet date, the uncalled capital stands at ? 25.00 Lakhs
(Previous Year ? 50.00 Lakhs). This investment is measured at Fair Valued through Profit & Loss
(FVTPL) in accordance with Indian Accounting Standards (IndAS).
iii. The Company has committed a total investment of ? 5,000.00 Lakhs (Previous Year ? 5,000.00
Lakhs) to Anchorage Capital Scheme-I (Category II AIF). Against this commitment, the Fund has
raised capital calls amounting to ? 2,303.10 Lakhs as on reporting date (Previous Year ? 1,674.67
Lakhs), which has been duly paid by the Company. Balance uncalled capital as on balance sheet date
is ? 2,696.90 Lakhs (Previous Year ? 3,325.33 Lakhs). This investment is measured at Fair Valued
through Profit & Loss (FVTPL) in accordance with Indian Accounting Standards (IndAS).
B. Fair valuation techniques
The fair value of cash and cash equivalents, other bank balances, trade receivable, other financial assets,
trade payables and other financial liabilities approximate their carrying amount.
The fair value of investments in mutual fund units is based on the Net Asset Value ('NAV') as stated by the
issuers of these mutual fund units in the published statements at reporting date.
The fair value of quoted investment in equity shares is based on the closing price on recognized stock
exchange of respective investment as at the reporting date.
The fair value of the remaining financial instruments is determined using discounted cash flow analysis.
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 committee reports regularly to the Board of Directors on its
activities.
The Company's risk management policies are established to identify and analyze 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.
I) Credit risk
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The
maximum exposure to the credit risk at the reporting date is primarily from receivables from customers,
investment in various instruments and loans.
Trade and other receivables
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer
pertaining to real estate business & receivables of power generation business. However, credit risk with
regards to trade receivable is almost negligible in case of its residential sale as the same is due to the fact
that Group does not handover possession till the entire outstanding is received & also of trade receivable of
power sale as the same is backed by the state government.
Investment in various instruments
Credit risk on investment in various instruments is limited as we generally invest in financial institutions
with high credit ratings assigned by international and domestic credit rating agencies. Investments primarily
include investment in liquid mutual fund units & overnight mutual funds units, quoted equity securities, quoted
& unquoted bonds, alternate investment funds, debentures & commercial papers issued by organizations
with high credit ratings.
Loans
Credit risk on loans has always been managed by the Company through credit approvals, establishing credit
limits and continuously monitoring the creditworthiness of customers to which the Company grants credit
terms in the normal course of business.
The Company uses the expected credit loss model to assess the impairment loss or gain. The Company
uses a provision matrix to compute the expected credit loss allowance for loans. The provision matrix
takes into account available external and internal credit risk factors such as credit ratings from credit rating
agencies and the Company's historical experience for customers.
II) 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 principal sources of liquidity are cash and cash equivalents and the cash flow that is
generated from operations. The Company has no outstanding borrowings. The Company believes that the
working capital is sufficient to meet its current requirements.
As at March 31, 2025, the Company had a cash and cash equivalents of ? 26,625.30 lakhs, other bank
balances of ? 1,019.15 lakhs and current investments of ? 7,233.55 lakhs. As at March 31, 2024, the
Company had a cash and cash equivalents of ? 7,595.46 lakhs, other bank balances of ? 34.64 lakhs and
current investments of ? 2,435.81 lakhs.
III) Market risk
Market risk is the risk that changes in market prices - such as interest rates and commodity prices will
affect the Company's income or the value of its holdings of financial instruments. Market risk is attributable
to all market risk sensitive financial instruments including payables and debt. We are exposed to market
risk primarily related interest rate risk and the market value of certain commodities. Thus, our exposure to
market risk is a function of investing activities and revenue generating and operating activities. The objective
of market risk management is to avoid excessive exposure to these risks in our revenues and costs.
A) Interest rate 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 does not have any external borrowing as on March 31,2025.
B) Currency risk
Currency risk is not material, as the Company's primary business activities are within India and do not have
any exposure in foreign currency.
C) Other price risk
The Company's exposure to equity securities price risk arises from investments held by the Company
and classified in the financials as fair value through Other Comprehensive Income and fair value through
Profit & Loss. If the equity prices of investments are 10% higher / lower which are fair valued through Other
Comprehensive Income, then the Other Comprehensive Income for the year ended March 31, 2025 would
increase / decrease by ? 3,739.25 lakhs (PY - ? 2,356.61 lakhs) respectively with a corresponding increase /
decrease in Total Equity of the Company. Similarly, if the equity prices of investments are 10% higher / lower
which are fair valued through profit & loss, then the Revenue from Operation for the year ended March 31,
2025 would increase / decrease by ? 47.84 lakhs (PY - ? 299.94 lakhs) respectively with a corresponding
increase / decrease in Total Equity of the Company. 10% represents management's assessment of
reasonably possible changes in equity prices.
NOTE 35: RECENT ACCOUNTING 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,
2025, MCA has not notified any new standards or amendments to the existing standards applicable to the
Company.
The Board of Directors has proposed a final dividend of ?2/- (i.e. 20%) per equity share of 10/- each on 2,09,11,729
fully paid equity shares for the year ended March 31, 2025, subject to approval of shareholders at the Annual
General Meeting, and if approved, would result in cash outflow aggregating to ? 418.23 lakhs.
NOTE 38: EVENTS AFTER THE REPORTING PERIOD
There was no significant event after the end of the reporting period which requires any adjustment or disclosure
in the Financial Statements.
1. The Company does not have any Benami Property, where any proceedings have been initiated or pending
against the company for holding any Benami Property.
2. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
3. The Company have not traded or invested in Crypto currency or Virtual currency during the financial year.
4. The Company is not declared as a wilful defaulter by any Bank or Financial Institution or any other lender.
5. There are no transactions executed by the company with companies struck off under section 248 of the
Companies Act, 2013 or section 560 of Companies Act, 1956.
6. During the year, no Scheme of Arrangement has been formulated by the company / pending with competent
authority.
7. 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:
(i) 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
(ii) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
8. 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 Group shall:
(i) 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
(ii) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
As per the provisions of section 135 of the Companies Act 2013, the Company must incur at least 2% of average
net profits of the preceding three financial years towards Corporate Social responsibility ("CSR”). Accordingly, a
CSR committee has been formed for carrying out CSR activities as per the Schedule VII of the Companies Act,
2013. Details are as under:
A. All current assets appearing in the Balance Sheet as at March 31, 2025 have a value on realisation in the
ordinary course of the Company's business at least equal to the amount at which they are stated in the
Balance Sheet.
B. Balance of trade receivables, trade payables and loans and advances are subject to confirmation from
respective parties and reconciliation, if any.
C. Transactions and balances with values below the rounding off norm adopted by the Company have been
reflected as "0” in the financial statements.
D. Since the nature of Real Estate & Financial Service Business of the Company is such that profit/ (loss) do
not necessarily accrue evenly over the years, the profit/loss of the year may not be representative of the
preceding year.
E. The Company has maintained proper books of account as prescribed under Section 128(1) of the
Companies Act, 2013 (as amended). These books of account are maintained in electronic mode in
accordance with Section 128(1) of the Companies Act, 2013, read with the Companies (Accounts) Rules,
2014 (as amended). The Company has used accounting software for maintaining its books of accounts
for the year ended 31st March, 2025. This software includes an audit trail (edit log) feature, which was
operational throughout the year for all relevant transactions recorded in the system.
There were no instances of audit trail features being tampered with in respect of these softwares.
Furthermore, the Company has preserved the audit trail for the prior year in compliance with statutory
record retention requirements, to the extent enabled by the system.
F. On 24th December 2024, Geecee Comtrade LLP had applied for their voluntary strike off under the provisions
of Limited Liability Partnership Act, 2008. The said application has been accepted on 18th March 2025 by
the Registrar of Company.
G. Previous year figures have been regrouped, re-arranged and re-classified wherever necessary to conform
to current year's classification.
In terms of our report attached.
For M R B & ASSOCIATES For and on behalf of the Board Of Directors
CHARTERED ACCOUNTANTS
Firm Registration Number: 136306W
Ghanshyam P. Gupta V. V. Sureshkumar Gaurav Shyamsukha
Partner Wholetime Director Managing Director
Membership No.: 138741 DIN: 00053859 DIN: 01646181
Vidit G. Dhandharia
Chief Financial Officer
Place : Mumbai Place : Mumbai
Date : 21st May, 2025 Date : 21st May, 2025
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