Rights, preferences and restrictions attached to shares
The Company has only one class of Equity Shares having a par value of Rs. 10/- per share. Each holder of Equity Share is entitled to one vote per share. In the event of liquidation of the Company, the holders of Equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity shares held by the shareholders.
*The Loans are primarily backed by stocks, book debts, and fixed deposits, with additional collateral provided by the Company's and its associate's properties. The arrangement is further strengthened by personal guarantees from the promoter and director, as well as corporate guarantees from the Company and its associate. The interest rate for this facility varies between FD 1% and 8.6%.’’
NOTE 28- FAIR VALUE
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (i.e., an exit price), regardless of whether that price is directly observable or estimated using a valuation technique.
In order to show how fair values have been derived, financial instruments are classified based on a hierarchy of valuation techniques.
This note describes the fair value measurement of both financial and non-financial instruments.
Valuation Framework
The Group has an internal fair value assessment team which assesses the fair values for assets qualifying for fair valuation. The Group's valuation framework includes:
Benchmarking prices against observable market prices or other independent sources;
Development and validation of fair valuation models using model logic, inputs, outputs and adjustments.
These valuation models are subject to a process of due diligence and validation before they become operational and are continuously calibrated. These models are subject to approvals by various functions including risk, treasury and finance
functions. Finance function is responsible for establishing procedures, governing valuation and ensuring fair values are in compliance with accounting standards.
Valuation Framework
Fair values of financial assets, other than those which are subsequently measured at amortised cost, have been arrived at as under:
Fair values of other investments under FVOCI have been determined under level 1 using quoted market prices of the underlying instruments;
Fair value of loans held under a business model that is achieved by both collecting contractual cash flows and partially selling the loans through partial assignment to willing buyers and which contain contractual terms that give rise on specified dates to cash flows that are solely payments of principal and interest are measured at FVOCI. The fair value of these loans have been determined under level 3.
The Group has determined that the carrying values of cash and cash equivalents, bank balances, trade receivables, short term loans, floating rate loans, trade payables, short term debts, borrowings, bank overdrafts and other current liabilities are a reasonable approximation of their fair value and hence their carrying value are deemed to be fair value.
NOTE 29- FAIR VALUE HIERARCHY
The Company determines fair values of its financial instruments according to the following hierarchy:
Level 1: valuation based on quoted market price: financial instruments with quoted prices for identical instruments in active markets that the Company can access at the measurement date.
Level 2: valuation based on using observable inputs: financial instruments with quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in inactive markets and financial instruments valued using models where all significant inputs are observable.
Level 3: valuation technique with significant unobservable inputs: - financial instruments valued using valuation techniques where one or more significant inputs are unobservable.
Quantitative disclosures of fair value measurement hierarchy for assets as at 31 March 2023
*The Company has made security deposit of Rs. 25,12,500/- in favour of “The Registar City Civil & Session Court" as per pay order no. 757810 dated 20.01.2017
**In addition to the above:
a. There is a demand of Rs. 3,21,460 for AY 2016-17 pertaining to TDS Credit claimed which is not yet paid by the parties who had deducted the TDS. The Company is in the process of filing the rectification and is following up with the respective parties and is confident that the amount will be paid by them and the said demand will be reversed.
b. There is a demand of Rs.23,98,541 for AY 2018-19 for which company had filed rectification u/s 154 of the Income Tax Act, 1961 and the same is under process with the Officer.
36. There are no dues to Micro and Small Enterprises as at 31st March, 2023. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.
37. Corporate Social Responsibility : - As per Section 135 of Companies Act, 2013 a company meeting the applicability threshold, needs to spend at-least 2% of its average net profit of the immediately preceding three financial years on Corporate Social Responsibility (CSR) activities. The CSR initiatives are focused towards that programme directly or indirectly, benefit the community and society at large. The Company's CSR activity primarily focuses on programs that promote education, gender equality empowering women and development of rural areas.
40. THE DISCLOSURE ON THE FOLLOWING MATTERS REQUIRED UNDER SCHEDULE III AS AMENDED NOT BEING RELEvANT OR AppLICABLE IN CASE Of The COMpANY, Same ARE NOT COvERED SuCH AS
a. Title Deeds of Immovable Property not held in name of Company: Company is having the registered sales deeds of immovable property, however
i. With respect to one shop located at Ballaleshwar Co-op. Hsg. Soc. Ltd., Dr. Babasaheb Ambedkar Road, Lal Baug, Mumbai having carrying value of Rs.101.52 Lakhs, classified as Investment Properties in the financial statements, the Company has further applied to MHADA to transfer the property in the Company's name. Approval from MHADA is awaited.
ii. With respect to Land at Hyderabad satisfaction of having carrying value of Rs. 269.96 Lakhs, classified as Investment Properties in the financial statements, during mutation, co-owners of the said property opposed and has got stay on the transfer. The Company has filed a suit against the stay and order from the court is awaited.
b. Disclosure on Revaluation of Assets: The Company has not revalued its property, plant and equipment or intangible assets or both during the current or previous year.
c. 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.
d. Borrowings against current assets: The returns or statements submitted by the company to lenders are in agreement with books of accounts which includes Sales amounts inclusive of GST value. There are no material discrepancies observed in returns or statements submitted by the company to lenders.
e. Willful defaulter: The Company have not been declared willful defaulter by any bank or financial institution or government or any government authority.
f. Relationship with struck off companies : The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act,1956.
g. Registration of charges or satisfaction with Registrar of Companies: There are no charges or satisfactions which are yet to be registered with the Registrar of Companies beyond the statutory period.
h. Compliance with number of layers of companies: The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.
i. Utilisation of borrowed funds and share premium: The Company has not received securities premium through issue of equity and preference shares during the year ended March 31, 2023, and year ended March 31, 2022. There is no understanding with investors, in writing or otherwise, to lend or invest in other person or entities, directly or indirectly or provide any guarantee, security or the like to or on behalf of the said investors. The management has absolute discretion on use of such funds. Hence, the additional regulatory disclosure with respect to the utilisation of borrowed funds and share premium are not included in these financial statements.
j. Compliance with approved scheme of arrangements: The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.
k. 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.
l. 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.
Explanation for variances exceeding 25%:
a. Debt Equity Ratio - Debt Equity ratio has been increased due higher utilization of Cash Credit Facility commensurate with the increase in business.
b. Debt Service Coverage Ratio - Ratio has been increased due higher utilization of Cash Credit Facility commensurate with the increase in business.
c. Inventory turnover Ratio - Inventory turnover Ratio has been increased due lower stock of liquor segment at year end as license quota was already consumed.
d. Net Capital turnover Ratio - Net Capital turnover Ratio has been increased due increase in Trading business activity.
42. The Previous year's figures have been regrouped / rearranged / reclassified wherever necessary. Amounts and other
disclosures for the preceding financial year are included as an integral part of current year's financial statements.
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