అకౌంట్స్ గమనికలుShraddha Prime Projects Ltd.

Mar 31, 2025

1.2.7PROVISIONS AND CONTINGENCIES

The Company recognizes provisions when a present obligation (legal or constructive) as a result of a past event
exists and it is probable that an outflow of resources embodying economic benefits will be required to settle such
obligation and the amount of such obligation can be reliably estimated.

If the effect of 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.

A disclosure of contingent liability is also made when there is a possible obligation or a present obligation that may,
but probably will not, require an outflow of resources. Where there is possible obligation or a present obligation in
respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

1.2.8BORROWING COSTS

Borrowing costs that are directly attributable to real estate project development activities are inventorised /
capitalized as part of project cost. Borrowing costs are inventorised / capitalised as part of project cost when the
activities that are necessary to prepare the inventory / asset for its intended use or sale are in progress.

All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and
other costs that the Company incurs in connection with the borrowing of funds.

1.2.9LEASE

The Company evaluates each contract or arrangement, whether it qualifies as lease as defined under Ind AS 116.
Where the company is a lessee

The Company assesses, whether the contract is, or contains, a lease at the inception of the contract or upon the
modification of a 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.

The Company at the commencement of the lease contract recognizes a Right-of-Use (RoU) asset at cost and
corresponding lease liability, except for leases with a term of twelve months or less (short-term leases) and leases
for which the underlying asset is of low value (low-value leases). For these short-term and low-value leases, the
Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the
lease.

The cost of the right-of-use assets comprises the amount of the initial measurement of the lease liability, adjusted
for any lease payments made at or prior to the commencement date of the lease, any initial direct costs incurred
by the Company, any lease incentives received and expected costs for obligations to dismantle and remove right-
of-use assets when they are no longer used.

Subsequently, the right-of-use assets is measured at cost less any accumulated depreciation and accumulated
impairment losses, if any. The right-of-use assets are depreciated on a straight-line basis from the commencement
date of the lease over the shorter of the end of the lease term or useful life of the right-of-use asset.

Right-of-use assets are assessed for impairment whenever there is an indication that the balance sheet carrying
amount may not be recoverable using cash flow projections for the useful life.

For lease liabilities at commencement date, the Company measures the lease liability at the present value of the
future lease payments as from the commencement date of the lease to end of the lease term. The lease payments
are discounted using the interest rate implicit in the lease or, if not readily determinable, the Company’s incremental
borrowing rate for the asset subject to the lease in the respective markets. Subsequently, the Company measures
the lease liability by adjusting carrying amount to reflect interest on the lease liability and lease payments made.

The Company remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use
asset) whenever there is a change to the lease terms or expected payments under the lease, or a modification that
is not accounted for as a separate lease.

Where the company is a lessor

In arrangements where the Company is the lessor, it determines at lease inception whether the lease is a finance
lease or an operating lease. Leases that transfer substantially all of the risk and rewards incidental to ownership
of the underlying asset to the counterparty (the lessee) are accounted for as finance leases. Leases that do not
transfer substantially all of the risks and rewards of ownership are accounted for as operating leases. Lease
payments received under operating leases are recognized as income in the statement of profit and loss on a
straightline basis over the lease term or another systematic basis.

1.2.10 IMPAIRMENT OF NON-FINANCIAL ASSETS (excluding Inventories and Deferred Tax Assets)

Non-financial assets are subject to impairment tests whenever events or changes in circumstances indicate that
their carrying amount may not be recoverable. Where the carrying value of an asset exceeds its recoverable
amount (i.e. the higher of value in use and fair value less costs to sell), the asset is written down accordingly.

Where it is not possible to estimate the recoverable amount of an individual asset, the impairment test is carried out
on the smallest group of assets to which it belongs for which there are separately identifiable cash flows; its cash
generating units (‘CGUs’).

1.2.11 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

Initial recognition and measurement

The Company classifies its financial assets in the following measurement categories.

• those to be measured subsequently at fair value (either through Other Comprehensive Income, or
through, profit or loss)

• those measured at amortised cost

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair
value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

i) Debt instruments at amortised cost

ii) Debt instruments at fair value through other comprehensive income (FVTOCI)

iii) Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL)

iv) Equity instruments measured at fair value through other comprehensive income (FVTOCI)

Debt instruments at amortised cost

A ‘debt instrument’ is measured at the amortised cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual
cash flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the
effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included
in finance income in the statement of profit or loss. The losses arising from impairment if any, are recognised
in the statement of profit or loss.

Debt instruments at FVTOCI

A ‘debt instrument’ is classified as at the FVTOCI if both of the following criteria are met:

a) The objective of the business model is achieved both by collecting contractual cash flows and selling the
financial assets, and

b) The asset’s contractual cash flows represent solely payments of principal and interest.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date
at fair value. Fair value movements are recognized in the other comprehensive income (OCI). However, the
Company does not have any debt instruments which meets the criteria for measuring the debt instrument at
FVTOCI.

Debt instrument at FVTPL

Any debt instrument, which does not meet the criteria for categorization as at amortized cost or as FVTOCI,
is classified as at FVTPL.

In addition, the Company may elect to designate a debt instrument, which otherwise meets amortized cost
or FVTOCI criteria, at FVTPL. However, such election is allowed only if doing so reduces or eliminates a
measurement or recognition inconsistency (referred to as ‘Accounting Mismatch’). The Company has not
designated any debt instrument at FVTPL.

Debt instruments included within the FVTPL category are measured at fair value with all changes recognized
in the Statement of Profit and Loss.

Equity investments

All equity investments, except investments in subsidiaries, associates and joint ventures are measured
at FVTPL. The Company may make an irrevocable election on initial recognition to present in Other
Comprehensive Income any subsequent changes in the fair value. The Company makes such election on an
instrument-by-instrument basis.

All equity investments in subsidiaries, associates and joint ventures are measured at cost.

Derecognition of Financial Assets

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial
assets) is primarily derecognised (i.e. removed from the Company’s Balance Sheet) when:

• The rights to receive cash flows from the asset have expired, or

• The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation
to pay the received cash flows in full without material delay to a third party under a ‘pass-through’
arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the
asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of
the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a
passthrough arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership.
When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor
transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the
Company’s continuing involvement. In that case, the Company also recognises an associated liability. The
transferred asset and the associated liability are measured on a basis that reflects the rights and obligations
that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower
of the original carrying amount of the asset and the maximum amount of consideration that the Company
could be required to repay.

The Company assess on a forward-looking basis the expected credit losses associated with its financial assets
carried at amortised cost and FVTOCI debts instruments. The impairment methodology applied depends on
whether there has been significant increase in credit risk. For trade receivables, the Company is not exposed
to any credit risk as the legal of residential and commercial units is handed over to the buyer only after all the
instalments are recovered.

For financial assets carried at amortised cost, the carrying amount is reduced and the amount of the loss is
recognised in the statement of profit and loss. Interest income on such financial assets continues to be accrued
on the reduced carrying amount and is accrued using the rate of interest used to discount the future cash
flows for the purpose of measuring the impairment loss. The interest income is recorded as part of finance
income. Financial asset together with the associated allowance are written off when there is no realistic
prospect of future recovery and all collateral has been realised or has been transferred to the Company. If, in
a subsequent year, the amount of the estimated impairment loss increases or decreases because of an event
occurring after the impairment was recognised, the previously recognised impairment loss is increased or
decreased. If a write-off is later recovered, the recovery is credited to finance costs.

> Financial Liabilities

Initial recognition and measurement financial liabilities are classified, at initial recognition, as financial liabilities
at FVTPL, loans and borrowings, or payables, as appropriate.

All financial liabilities are recognised initially at fair value and in the case of financial liability not recorded at
fair value through Profit and Loss net of directly attributable transaction costs.

The Company’s financial liabilities include trade and other payables, loans and borrowings including financial
guarantee contracts.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities measured at FVTPL include financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such
at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as
FVTPL, fair value gains/losses attributable to changes in own credit risk are recognized in OCI. These gains/
losses are not subsequently transferred to Statement of Profit and loss. However, the Company may transfer
the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the
statement of profit or loss.

Loans and borrowings

After initial recognition, all the material interest-bearing loans and borrowings are subsequently measured at
amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are
derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs
that are an integral part of the EIR.

Financial guarantee contracts

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made
to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due
in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially
as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the
guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined
as per impairment requirements of Ind AS 109 and the amount recognised less cumulative amortisation.

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different
terms, or the terms of an existing liability are substantially modified, such an exchange or modification is
treated as the derecognition of the original liability and the recognition of a new liability. The difference in the
respective carrying amounts is recognised in the Statement of Profit and Loss.

> Reclassification of Financial Assets and Financial Liabilities

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 Company’s management determines change in the business model as a result of external or internal
changes which are significant to the Company’s operations.

Such changes are evident to external parties. 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.

> Offsetting of Financial Instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Ind AS 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.

> Fair Value Measurement

Fair value is the price 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 fair value measurement is based on
the presumption that the transaction to sell the asset or transfer the liability takes place either:

i) In the principal market for the asset or liability, or

ii) In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use
when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant
that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximising the use of relevant observable inputs and minimising the
use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement
is directly or indirectly observable.

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation
(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each
reporting period.

1.2.12 CASH AND CASH EQUIVALENTS

Cash and cash equivalent in the Balance Sheet comprise cash at banks and on hand and short-term deposits with
an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

1.2.13 INCOME TAXES
Current Income Tax

Current income tax for the current and prior periods are measured at the amount expected to be recovered from
or paid to the taxation authorities based on the taxable profit for the period. The tax rates and tax laws used to
compute the amount are those that are enacted by the reporting date and applicable for the period.

Deferred Tax

Deferred tax is recognized using the balance sheet approach. Deferred tax assets and liabilities are recognized for
all deductible and taxable temporary differences arising between the tax bases of assets and liabilities and their
carrying amount in financial statements, except when the deferred tax arises from the initial recognition of goodwill
or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable
profits or loss at the time of transaction.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when
the asset is realized or the liability is settled, based on tax rates that have been enacted or substantively enacted
at the reporting date. Deferred tax asset in respect of carry forward of unused tax credits and unused tax losses
are recognized to the extent that it is probable that taxable profit will be available against which the deductible
temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to
be utilized. The Company recognizes deferred tax liabilities for all taxable temporary differences except those
associated with the investments in subsidiaries where the timing of the reversal of the temporary difference can be
controlled and it is probable that the temporary difference will not reverse in the foreseeable future.

Minimum Alternate Tax (MAT) credit is recognised as an asset only when and to the extent there is convincing
evidence that the Company will pay normal tax during the specified period. Such asset is reviewed at each Balance
Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer
convincing evidence to the effect that the Company will pay normal tax during the specified period.

Presentation of Current and Deferred Tax

Current and deferred tax are recognized as income or an expense in the Statement of Profit and Loss, except
when they relate to items that are recognized in OCI, in which case, the current and deferred tax income/ expense
are recognized in OCI. The Company offsets current tax assets and current tax liabilities, where it has a legally
enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize
the asset and settle the liability simultaneously. In case of deferred tax assets and deferred tax liabilities, the same
are offset if the Company has a legally enforceable right to set off corresponding current tax assets against current
tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax
authority on the Company.

1.2.14 RETIREMENT AND OTHER EMPLOYEE BENEFITS

Retirement and other Employee benefits are accounted in accordance with Ind AS 19 - Employee Benefits.

Gratuity (Defined Benefit Scheme)

The Company provides for its gratuity liability based on actuarial valuation as at the balance sheet date which
is carried out by an independent actuary using the Projected Unit Credit Method. Actuarial gains and losses are
recognised in full in the Other Comprehensive Income for the period in which they occur.

1.2.15 EARNINGS PER SHARE

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders
by the weighted average number of equity shares outstanding during the year.

The weighted average number of equity shares outstanding during the year is adjusted for events of bonus and/or
rights issue, if any and consolidation of equity shares.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year and the weighted
average number of equity shares outstanding during the year are adjusted for the effects of all dilutive potential
equity shares. For the purpose of calculating diluted earnings per share, the net profit or loss for the year (after
deducting preference dividends and attributable taxes) attributable equity shareholders and the weighted average
number of equity shares outstanding during the year are adjusted for the effects of all dilutive potential equity
shares.

However since there are no dilutive potential equity shares issued by the company so far, the basic and diluted
earnings per share are the same for the year.

1.2.16 DIRECT COST OF PROJECTS

All the project specific direct costs and overheads attributable and identifiable to ongoing projects including
borrowing costs form part of the cost of projects. Costs not attributable or chargeable to ongoing projects being in
nature of not being project specific including selling and administration expenses does not form part of the cost of
projects and are presented in respective expense head of the statement of profit and loss.

1.1.17 USE OF JUDGEMENTS AND ESTIMATES

The preparation of standalone financial statements in conformity with Ind AS requires management to make
judgements, 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 a 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 are recognised prospectively i.e. recognised in the period in which the estimate is revised and
future periods affected.

SIGNIFICANT MANAGEMENT JUDGEMENTS

The following are significant management judgements in applying the accounting policies of the Company that
have a significant effect on the financial statements:

Revenue recognition from sale of premises

Revenue is recognised only when the Company can measure its progress towards complete satisfaction of the
performance obligation. The measurement of progress is estimated by reference to the stage of the projects
determined based on the proportion of costs incurred to date (excluding land and finance cost) and the total
estimated costs to complete.

Classification of property

The Company determines whether a property is classified as investment property or as inventory:

(a) 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 rented to tenants and are not intended to be sold in the ordinary
course of business.

(b) 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 before or on completion of construction.

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 utilised. In addition, significant
judgement is required in assessing the impact of any legal or economic limits or uncertainties in tax jurisdictions.

1.2.18 ESTIMATES AND ASSUMPTIONS

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.

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.

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.

Inventories

Inventory is stated at the lower of cost or net realisable value (NRV).

NRV for completed inventory property is assessed including but not limited to market conditions and prices existing
at the reporting date and is determined by the Company based on net amount that it expects to realise from the
sale of inventory in the ordinary course of business.

NRV in respect of inventories under construction is assessed with reference to market prices (reference to the
recent selling prices) at the reporting date less estimated costs to complete the construction, and estimated cost
necessary to make the sale. The costs to complete the construction are estimated by management.

Actuarial Valuation - Defined benefit obligation (DBO)

The cost of defined benefit gratuity plan and the present value of the gratuity obligation 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.

Fair value measurements

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) . The above inventory amount includes work in progress amounting to Rs. 3147.02 Lakhs pertaining to one of the

ongoing projects of the company which has been provided as security/mortgage towards a loan facility taken by the
Company for the said project i.e Shraddha Pavillion during the year as construction and working capital finance
from a financial institution.

(ii) . The above inventory amount includes work in progress amounting to Rs. 5243.98 Lakhs pertaining to one of the

ongoing projects of the company which has been provided as security/mortgage towards a loan facility taken by the
Company for the said project i.e Shraddha Paradise during the year as construction and working capital finance
from a financial institution.

(iii) . The above inventory amount includes work in progress amounting to Rs. 2659.47 Lakhs pertaining to one of the

ongoing projects of the company which has been provided as security/mortgage towards a loan facility taken by the
Company for the said project i.e Shraddha Panaroma in previous year as construction and working capital finance
from a financial institution.

(iv) . The above inventory amount includes work in progress amounting to Rs. 1572.04 Lakhs pertaining to one of the

ongoing projects of the company which has been provided as security/mortgage towards a loan facility taken by the
Company for the said project i.e Shraddha Palacious during the year as construction and working capital finance
from a financial institution.

(v) . The above inventory amount includes work in progress amounting to Rs. 7105.03 Lakhs pertaining to ongoing

projects of the company which has been under documentation process/initial construction phase.

15.2 : Note on Increase of Authorised Share Capital

The Company has increased authorised share capital of the company from Rs 30,00,00,000 divided into 3,00,00,000
equity shares of Rs 10/- each to Rs 45,00,00,000 by creation of additional 1,50,00,000 equity shares of Rs 10/- each.

15.3 :Note on Bonus Issue made during the Year

The Company has made Bonus Issue of Equity Shares during the year of Rs 20,20,05,000 whereby 2,02,00,500 fully
paid bonus equity shares of face value of Rs. 10/- each were issued at ratio of 1 Bonus Equity share for every 1 Fully
paid up equity share(s) held by the existing shareholders on the 27th January 2025. Consequently, the issued and paid-
up share capital of the Company stands increased to Rs. 40,40,10,000 divided into 4,04,01,000 equity shares of Rs
10/- each.

15.4 :Terms / rights attached to equity 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, if any. The distribution will be in proportion to the number of
equity shares held by the shareholders.

> Note: The Company has made an application with the BSE Limited for reclassification of following Erstwhile Promoters
as mentioned below:

1. Sushilaben Rameshchandra Bansal (Shares held as on 31st March 2025 : 83,200 equity shares; % of holding as
on 31st March 2025: 0.21%)

2. Rameshchandra Jutharam Bansal (Shares held as on 31st March 2025 : 6,000 equity shares; % of holding as on
31st March 2025 : 0.01%)

3. Vikas Goyal (Shares held as on 31st March 2025 : 1,000 equity shares; % of holding as on 31st March 2025 :
0.00% [rounding off])

Above shareholders are therefore classified as ‘Promoters’ for the above disclosure on promters holding.

Further, there is increase in shares held by the promoter during the current year due to shares issued under Bonus
issue.

(i) . The company has availed construction and working capital loan from the said financial institution during the year

where in 1 of the ongoing project of the company(Shraddha Pavillion) is provided as a security along with the said
project’s receivables. The total sanctioned limit of the said loan was Rs. 3500.00 lakhs (Previous Year - Nil) out of
which Rs. 1922.29 Lakhs has been availed upto 31st March 2025 (Previous Year - Nil). It has principal standstill
period for 60 months from the date of disbursal and floating rate interest rate marked to the lenders internal
benchmark rate which was 13.75% per annum on the santioned date . The managing director of the Company is
co-borrower in the said facility availed.

(ii) . The company has availed construction and working capital loan from the said financial institution during the year

where in 1 of the ongoing project of the company(Shraddha Paradise) is provided as a security along with the said
project’s receivables. The total sanctioned limit of the said loan was Rs. 8000.00 lakhs (Previous Year - Nil) out of
which Rs. 3670.60 Lakhs has been availed upto 31st March 2025 (Previous Year - Nil). It has principal standstill
period for 60 months from the date of disbursal and floating rate interest rate marked to the lenders internal
benchmark rate which was 14.00 % per annum on the santioned date . The managing director of the Company is
co-borrower in the said facility availed.

(iii) . The company has availed construction and working capital loan from the said financial institution in previous year

where in 1 of the ongoing project of the company(Shraddha Panaroma) was provided as a security along with the
said project’s receivables. The total sanctioned limit of the said loan was Rs. 4500.00 lakhs out of which Rs. 1722.36
Lakhs has been availed upto 31st March 2025 (Previous Year - 1,400 lakhs). It has principal standstill period for
72 months from the date of disbursal and floating rate interest rate marked to the lenders internal benchmark rate
which was 13.50 % per annum on the santioned date . The managing director of the Company is co-borrower in
the said facility availed.

(iv) . The company has availed construction and working capital loan from the said financial institution during the year

where in 1 of the ongoing project of the company(Shraddha Palacious) is provided as a security along with the said
project’s receivables. The total sanctioned limit of the said loan was Rs. 3500.00 lakhs (Previous Year - Nil) out of
which Rs. 1672.89 Lakhs has been availed upto 31st March 2025 (Previous Year - Nil). It has 72 months from date
of disbursement in which only interest amount is to be paid and no Scheduled principal will be paid and floating
rate interest rate marked to the lenders internal benchmark rate which was 15.00 % per annum on the santioned
date . The managing director of the Company is co-borrower in the said facility availed.

(i): Secured borrowings of (Previous Year) consists of Rs. 2,355.82 Lakhs payable to a company under common
management Shraddha Landmark Private Limited (‘SLPL’) identified as related party in Note 36. Two ongoing
projects of the company are offered as security towards debentures issued by SLPL and the funds from debentures
are used for Company’s ongoing construction cost and working capital requirement proportiantely as per the
Debenture deed. The Company has provided Interest @ 14.5% p.a. on the said borrowing.

36.4 : Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions.
Outstanding balances at the year-end are unsecured and settlement occurs in cash. The above loans and advances
have been given for general business purposes.

37 : SEGMENT INFORMATION

For management purposes, the Company is into one reportable segment i.e. Real Estate development.

The Managing Director is the Chief Operating Decision Maker of the Company who monitors the operating results
of the Company for the purpose of making decisions about resource allocation and performance assessment.
The Company’s performance as single segment is evaluated and measured consistently with profit or loss in the
standalone financial statements. Also, the Company’s financing (including finance costs and finance income) and
income taxes are managed on a Company basis.

35 : FINANCIAL INSTRUMENTS MEASUREMENT

The carrying amount of financial assets and financial liabilities measured at amortised cost in the standalone
financial statements are a reasonable approximation of their fair values since the Company does not anticipate that
the carrying amounts would be significantly different from the values that would eventually be received or settled.

Fair Value Maeasurement

The following table provides the carrying amounts and fair value measurement hierarchy of the Company’s financial
assets and financial liabilities, including their levels in the fair value hierarchy.

39 : FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company’s principal financial liabilities comprise mainly of borrowings, lease liability, trade and other payables.
The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal
financial assets include investments, cash and cash equivalents and Other Financial Assets.

The Company is exposed through its operations to certain risks primarily identified by the management as following
risks:

- Credit Risk

- Liquidity Risk

- Market Risk

- Interest Rate Risk

In order to manage the aforementioned risks, the Company operates a risk management policy and a program that
performs close monitoring of and responding to each risk factor.

(i) Credit Risk Management

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade
receivables) and from its financing activities, including deposits with banks and financial institutions and other
financial instruments.

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The
demographics of the Company’s customer base, including the default risk of the industry and country, in which
customers operate, has less influence on the credit risk.

The Company has entered into contracts for the sale of residential and commercial units on an installment basis.
The installments are specified in the contracts. The Company is exposed to credit risk in respect of installments
due. However, the possession of residential and commercial units is handed over to the buyer only after all the
installments are recovered. In addition, installment 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.

Credit risk from balances with banks and financial institutions is managed by Company in accordance with the
Company’s policy. The company limits its exposure to credit risk by only placing balances with local banks of
good repute. Given the profile of its bankers, management does not expect any counterparty to fail in meeting its
obligations.

(ii) Liquidity Risk Management

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 condition, without incurring unacceptable losses or risking damage to the
Company’s reputation.

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of
surplus funds, bank overdrafts, bank loans, and inter-corporate loans. The Company assessed the concentration of
risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety
of sources of funding.

The table below summarises the maturity profile of the Company’s financial liabilities based on contractual
undiscounted payments.

(iii) Market Risk Management

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risk: currency risk and other price risk such as
equity price risk. The objective of market risk management is to manage and control market risk exposures within
acceptable parameters, while optimising the return. All such transactions are carried out within the guidelines set
by the Board of Directors.

(iv) Interest Rate Risk Management

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 the risk of changes in market interest rates relates
primarily to the Company’s debt obligations with floating interest rates. The Company tries to manage its interest
rate risk by having a balanced portfolio of fixed and floating rate loans and borrowings.

40 : CORPORATE SOCIAL RESPONSIBILITY

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at
least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility
(CSR) activities. The Company has met the prescribed conditions under Section 135 of the Companies Act, 2013,
and have complied with Corporate Social Responsibility (CSR) initiative.

Note 41 (i):

The Company in previous year entered into a ‘Debenture Trust Deed’ whereby it was a Mortgagor/guarantor for the
debentures amounting to Rs. 165.00 crores out of which Rs. 135.00 crores was issued by Shraddha Landmark Private
Limited (the “issuer”), the private company under common management which is a Related Party of the Company.

Two of the ongoing projects of the Company along with two projects of the issuer company were provided as a security
for the said debentures. The Company received loan from the issuer company for construction finance of its mortgaged
projects and working capital requirements. Outstanding Debentures payable by the issuer company on the said liability
as on 31st March 2025 was Rs. Nil.

Note 41 (ii):

(ii) Two of the subsidiary firms have availed Construction Finance facility during the year from a bank/NBFC in which the
company along with the Managing Director is a co-applicant/co-borrower. The total amount sanctioned by the bank is
Rs. 8,500.00 Lakhs while during the year and the closing balance outstanding as on March 31,2025 was Rs. 6,520.39
Lakhs.

Note 41 (iii):

The Income Tax Department (“the Department”) conducted a search activity (“the search”) under section 132 of The
Income Tax Act, 1961 at various premises of the Company and certain entities under the common management of
the promoter including certain key managerial person after the balance sheet date i.e. during the month of May 2024.
Further the Company has provided all the necessary support and cooperation to the Income-tax officials during the
search and provided all the necessary information including documents and data sought by the Department including
repiles towards the summons received under section 131(1A) of The Income Tax Act, 1961. The Company has not
received any further written communication from the department regarding the outcome of the search, therefore, the
consequent impact on the financial results for the financial year ended 30 March 2025 or any prior period is, if any, is
not ascertainable.

While the uncertainly exist regarding the outcomes of the proceedings by the Department, the Company after considering
all available records and facts known to it, has not identified any adjustments to the current or prior period standalone
financial results at this stage. No contingent liability is ascertainable in this regard as on date.

Note 41 (iv) :

The Contingent Liabilities exclude undeterminable outcome of pending litigations.

42 : LEASES (Company as a Lessee)

(i)The following is carrying value of right of use assets (Building) :

Note: Basis for deriving numerator and denominator for Ratios calculation of previous year have been revised wherever

deemed fit by taking same base as current year to make them fairly comparable.

Explanation on Variances

(a) Increase in Current Ratio primarily on account of higher current assets particulary due to major increase in
Inventories and increase in current Loans & Advances.

(b) The slight increase in the debt-equity ratio is due to a increase in borrowings during the year, with increase in equity
due to issue of Bonus Share.

(c) Decrease in Debt Service Coverage ratio is due to increase in debt obligation (Loan) taken by compnay during
current year

(d) Increase in Return on Equity due to higher operating revenue and recognition of sales as compared to previous
year.

(e) Increase in Inventory Turnover Ratio to major increase in Inventories because more number of projects have
commenced in current year as compared with previous year.

(f) Trade Receivable Turnover Ratio is zero in both the years since there is net advance balance from customers and
not receivable.

(g) Reduction in trade payable turnover ratio due to increase in operations thereby leading to increase in average trade
payables amount as compared to previous year.

(h) Decrease in Net Capital Turnover is due to Increase in Net Working Capital.

(i) Increase in Net Profit Ratio due to increase in Revenue from Operation/Turnover during current year.

(j) Increase in Return on Capital employed due to higher operating profits during the year, while the capital employed
remained stable, enhancing overall efficiency.

(k) Increase in Return on Investments due to increase interest income from Investments and higher share of profit from
the subsidiary partnership firms.

46 : OTHER INFORMATION

46.1 The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.

46.2 The Company does not have any transactions with companies struck off.

46.3 The Company has not traded or invested in Crypto currency or Virtual Currency during the year.

46.4 The Company has entered in a up during the year through which it has acquired 90% share in Shraddha Mangalsmruti
LLP (w.e.f. 11th July 2024)

46.5 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.

46.6 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.

46.7 The Company does not have any transaction which is not recorded in the books of account that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such
as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

46.8 The figures for the corresponding previous year have been regrouped/ reclassified, wherever considered necessary,
to make them comparable with current year classification.

For Monika Jain & Co

Chartered Accountants For and on behalf of the Board of Directors of

ICAI Firm Registration No.: 130708W Shraddha Prime Projects Limited

Sudhir Mehta Ramchandra Ralkar

(Managing Director) (Director)

DIN: 02215452 DIN: 02817292

Ronak Gandhi Neha Chhatbar Dhruv Mehta

Partner (Company Secretary) (Chief Financial Officer)

Membership No.: 169755

Place: Mumbai Place: Mumbai

Date: 27th May, 2025 Date: 27^th May, 2025

UDIN: 25169755BMHVHU3822

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Mar 31, 2024

Note 6 (i): The above inventory amount includes work in progress amounting to Rs. 1,306.94 Lakhs pertaining to one of the ongoing projects of the company which has been provided as security/mortgage towards a loan facility taken by the Company for the said project during the year as construction and working capital finance from a financial institution.

Note 6(ii): The inventory amount includes work in progress amounting to Rs. 6,303.22 Lakhs pertaining to two of the ongoing projects of the company which has been provided as security/mortgage as a mortgagor towards debentures issued by a group company identified as related party for construction finance of the respective projects.

12.2 : Note on Rights Issue made during the Year

The Company has made Rights Issue of Equity Shares during the year and raised Rs. 4,693.00 Lakhs whereby 1,56,45,700 fully paid-up rights equity shares of face value of Rs. 10/- each were issued at price of Rs. 30/- per rights equity share (including premium of Rs. 20/- per rights equity share) to the successful rights issue applicants in the ratio of 365 Rights Equity Shares for every 100 Fully Paid-Up Equity Share(s) held by the then existing equity shareholders on the record date i.e. July 03, 2023. Consequently, the issued and paid-up share capital of the Company stands increased to Rs. 2,020.05 Lakhs divided into 2,02,00,500 equity shares of Rs 10/- each.

12.3 : Terms / rights attached to equity 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, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.

1. Sushilaben Rameshchandra Bansal (Shares held as on 31st March 2024 : 41,600 equity shares; % of holding as on 31st March 2024: 0.21%)

2. Rameshchandra Jutharam Bansal (Shares held as on 31st March 2024 : 3,000 equity shares; % of holding as on 31st March 2024 : 0.01%)

3. Vikas Goyal (Shares held as on 31st March 2024 : 500 equity shares; % of holding as on 31st March 2024 : 0.00% [rounding off])

Above shareholders are therefore not classified as ‘Promoters’ for the above disclosure on promters holding. Further, there is increase in shares held by the promoter during the current year due to shares issued under rights issue.

a) Retained earnings - The cumulative gain or loss arising from the operations which is retained by the Company is recognised and accumulated under the heading of retained earnings.

b) Capital reserve - Upon redemption of shares, the excess of face value over redemption value is generally charged in Capital reserve

c) General reserve - The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes.

d) Securities premium - Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Act.

Note14 (i): The company has availed construction and working capital loan from a financial institution during the year where in 1 of the ongoing project of the company is provided as a security along with the said project’s receivables. The total sanctioned limit of the said loan was Rs. 4,500.00 lakhs (Previous Year - Nil) out of which Rs. 1,400.00 Lakhs has been availed upto 31st March 2024 (Previous Year - Nil). It has principal standstill period for 36 months from the date of disbursal and floating rate interest rate marked to the lenders internal benchmark rate which was 13.50% per annum on the santioned date . The managing director of the Company is co-borrower in the said facility availed.

Note 17(i): Secured borrowings consists of Rs. 2,355.82 Lakhs payable to a company under common management Shraddha Landmark Private Limited (‘SLPL’) identified as related party in Note 33. Two ongoing projects of the company are offered as security towards debentures issued by SLPL and the funds from debentures are used for Company’s ongoing construction cost and working capital requirement proportiantely as per the Debenture deed. The Company has provided Interest @ 14.5% p.a. on the said borrowing.

Trade payables are non-interest bearing and are settled in accordance with the contract terms with the vendors.

19.1 Disclosure of outstanding dues of Micro and Small Enterprise under Trade Payables is based on the information available with the Company regarding the status of the suppliers as defined under the Micro, Small and Medium Enterprises Development Act, 2006 and relied upon by the auditor.

Note 24.1: The company is a partner in 3 partnership firms and 1 limited liability partnership firm as on 31st March 2024. Its share in profit/(loss) after tax of the respective firms being a partner during the year as per the profit sharing ratio of the firms is considered under “Other Income” from the current year for better presentation. In the previous year, the said amount was directly added in the ‘Retained Earnings’ under ‘Other Equity’ and not routed through Other Income.

33.4 : Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured and settlement occurs in cash. The above loans and advances have been given for general business purposes.

34 : SEGMENT INFORMATION

For management purposes, the Company is into one reportable segment i.e. Real Estate development.

The Managing Director is the Chief Operating Decision Maker of the Company who monitors the operating results of the Company for the purpose of making decisions about resource allocation and performance assessment. The Company’s performance as single segment is evaluated and measured consistently with profit or loss in the standalone financial statements. Also, the Company’s financing (including finance costs and finance income) and income taxes are managed on a Company basis.

35 : FINANCIAL INSTRUMENTS MEASUREMENT

The carrying amount of financial assets and financial liabilities measured at amortised cost in the standalone financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

Fair Value Maeasurement

The following table provides the carrying amounts and fair value measurement hierarchy of the Company’s financial assets and financial liabilities, including their levels in the fair value hierarchy.

36 : FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company’s principal financial liabilities comprise mainly of borrowings, lease liability, trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include investments, cash and cash equivalents and Other Financial Assets.

The Company is exposed through its operations to certain risks primarily identified by the management as following risks:

- Credit Risk

- Liquidity Risk

- Market Risk

- Interest Rate Risk

In order to manage the aforementioned risks, the Company operates a risk management policy and a program that performs close monitoring of and responding to each risk factor.

(i) Credit Risk Management

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and other financial instruments.

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the Company’s customer base, including the default risk of the industry and country, in which customers operate, has less influence on the credit risk.

The Company has entered into contracts for the sale of residential and commercial units on an installment basis. The installments are specified in the contracts. The Company is exposed to credit risk in respect of installments due. However, the possession of residential and commercial units is handed over to the buyer only after all the installments are recovered. In addition, installment 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.

Credit risk from balances with banks and financial institutions is managed by Company in accordance with the Company’s policy. The company limits its exposure to credit risk by only placing balances with local banks of good repute. Given the profile of its bankers, management does not expect any counterparty to fail in meeting its obligations.

(ii) Liquidity Risk Management

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 condition, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of surplus funds, bank overdrafts, bank loans, and inter-corporate loans. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding.

The table below summarises the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments.

(iii) Market Risk Management

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk and other price risk such as equity price risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. All such transactions are carried out within the guidelines set by the Board of Directors.

Future specific market movements cannot be normally predicted with reasonable accuracy.

(iv) Interest Rate Risk Management

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 the risk of changes in market interest rates relates primarily to the Company’s debt obligations with floating interest rates. The Company tries to manage its interest rate risk by having a balanced portfolio of fixed and floating rate loans and borrowings.

37 : CORPORATE SOCIAL RESPONSIBILITY

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. However in case of the Company, the provisions of section 135 of Companies Act,2013 are not applicable during the year since the applicable threshold limits of required net worth, turnover and net profit have not been met in the previous year.

38 : CONTINGENT LIABILITES AND CAPITAL COMMITMENTS Summary details of Contingent Liabilities (to the extent not provided for)			(Rs. In Lakhs)
	Particulars	As at March 31, 2024	As at March 31, 2023
(a)	Guarantee given for debentures issued by a Company under same management identified as Related Party (refer note 38(i) below)	16,500.00	16,500.00
(b)	Guarantee given for secured borrowings by Two subsidiary firms from bank (refer note 38(ii) below)	4,780.00	-
(c)	Capital Commitments and Capital Contracts	-	-

Note 38 (i):

The Company in previous year entered into a ''Debenture Trust Deed'' whereby it was a Mortgagor/guarantor for the debentures amounting to Rs. 165.00 crores out of which Rs. 135.00 crores was issued by Shraddha Landmark Private Limited (the "issuer"), the private company under common management which is a Related Party of the Company.

Two of the ongoing projects of the Company along with two projects of the issuer company were provided as a security for the said debentures. The Company received loan from the issuer company for construction finance of its mortgaged projects and working capital requirements. Outstanding Debentures payable by the issuer company on the said liability as on 31st March 2024 was Rs. 8,701.25 Lakhs.

Note 38 (ii):

Two of the subsidiary firms have availed dropline overdraft facility during the year from a bank in which the company along with the Managing Director is a co-applicant/co-borrower. The total amount sanctioned by the bank is Rs. 4,780.00 Lakhs while the maximum balance as borrowed by the firms was Rs. 1,938.14 Lakhs during the year and the closing balance outstanding as on March 31,2024 was Rs. 1,855.51 Lakhs.

Note 38 (iii):

The Income Tax Department ("the Department") conducted a search activity ("the search") under section 132 of The Income Tax Act, 1961 at various premises of the Company and certain entities under the common management of the promoter including certain key managerial person after the balance sheet date i.e. during the month of May 2024. Further the Company has provided all the necessary support and cooperation to the Income-tax officials during the search and provided all the necessary information including documents and data sought by the Department including repiles towards the summons received under section 131(1A) of The Income Tax Act, 1961. The Company has not received any further written communication from the department regarding the outcome of the search, therefore, the consequent impact on the financial results for the financial year ended 30 March 2024 or any prior period is, if any, is not ascertainable.

While the uncertainly exist regarding the outcomes of the proceedings by the Department, the Company after considering all available records and facts known to it, has not identified any adjustments to the current or prior period standalone financial results at this stage. No contingent liability is ascertainable in this regard as on date.

Note 38 (iv) :

The Contingent Liabilities exclude undeterminable outcome of pending litigations.

39 : LEASES (Company as a Lessee)41 : GRATUITY OBLIGATION

Gratuity is payable to all eligible employees of the Group on death or on resignation, or on retirement after completion of 5 years of service

The following tables summarise the components of gratuity expense recognised in the statement of profit or loss and amounts recognised in the balance sheet:

(Amounts in this Note are in absolute figures and not in lakhs so as to avoid rounding off issue in presentation of smaller figures)

(m) Sensitivity Analysis:

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate and expected salary increase rate. Effect of change in mortality rate is negligible. Please note that the sensitivity analysis presented below may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated. The results of sensitivity analysis are given below:

Note: Basis for deriving numerator and denominator for Ratios calculation of previous year have been revised wherever

deemed fit by taking same base as current year to make them fairly comparable.

Explanation on Variances

(a) Increase in Current Ratio due to major increase in Inventories funded by rights issue and long term borrowings.

(b) Reduction in Debt - Equity Ratio due to issue of fresh equity shares at premium through rights issue during current year.

(c) DSCR is not available for previous year since there was no borrowing except rom related parties repayable on demand. In current year, secured borrowing from a financial institution taken against security of one of the ongoing project.

(d) Increase in Return on Equity due to higher operating revenue and recognition of sales as compared to previous year.

(e) Inventory Turnover Ratio is not available for previous year due to Zero Cost of Goods Sold in absence of any sales recognition in previous year.

(f) Trade Receivable Turnover Ratio is zero in both the years since there is net advance balance from customers and not receivable.

(g) Reduction in trade payable turnover ratio due to increase in operations thereby leading to increase in average trade payables amount as compared to previous year.

(h) Net Capital Turnover Ratio is not available for previous year since there was no Revenue form Operation in the previous year.

(i) Net Profit Ratio is not available for previous year since there was no Revenue from Operations in the previous year.

(j) Increase in Return on Capital employed due to positive PBIT in current year.

(k) Increase in Return on Investments due to increased share in profit from the subsidiary partnership firms.

43 : OTHER INFORMATION

43.1 The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

43.2 The Company does not have any transactions with companies struck off.

43.3 The Company has not traded or invested in Crypto currency or Virtual Currency during the year.

43.4 The Company has entered in a partnership deed during the year through which it has acquired 50% share in Roopventures LLP w.e.f. 4th December 2023.

43.5 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.

43.6 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.

43.7 The Company does not have any transaction which is not recorded in the books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

43.8 The figures for the corresponding previous year have been regrouped/ reclassified, wherever considered necessary, to make them comparable with current year classification.

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Mar 31, 2023

The Company has issued one class of ordinary shares at par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in the case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential accounts, in proportion to their shareholding.

^A Director loan was taken during the financial year 2022-23 and is borrowed at zero rate of interest. The loan from director is repayable on demand and is used for daily operations of the company.

# Inter-corporate loan was taken during the financial year 2022-23 and carries interest @ 14.5% p.a. The Intercorporate Loan is repayable on demand and is used for the daily operations of the business.

Note: Steps have been taken to identify the suppliers who qualify under the definition of micro and small enterprises, as defined under the Micro, Small and Medium Enterprises Development Act 2006. Since no intimation has been received from the suppliers regarding their status under the said Act as at 31st March 2023, disclosures relating to amounts unpaid as at the year end, if any, have not been furnished. In the opinion of the management, the impact of interest, if any,that may be payable in accordance with the provisions of the Act, is not expected to be material.

The financial instruments are categorized into three levels based on the inputs used to arrive at fair value measurements as described below:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and

Level 3: Inputs based on unobservable market data.

Valuation Methodology :

All financial instruments are initially recognized and subsequently re-measured at fair value as described below:

a) Fair valuation of Financial Assets and Liabilities with short-term maturities is considered as approximate to respective carrying amount due to the Short Term maturities of these Instrument.

b) The fair value is determined by using the valuation model/technique with observable inputs and assumptions.

c) The fair value of Forward Foreign Exchange contracts is determined using observable forward exchange rates and yield curves at the balance sheet date.

d) All foreign currency denominated assets and liabilities are translated using exchange rate at reporting date.

e) The fair value of the remaining financial instruments is determined using discounted cash flow analysis.

Financial Risk Management

The company’s activities expose it to a variety of financial risks:interest rate risk, credit risk and liquidity risk. The company’s overall risk management strategy seeks to minimise adverse effects from the unpredictability of financial markets on the company’s financial performance.

Interest rate risk

Interest rate risk primarily arises from floating rate borrowings. The Company do not have any borrowings, hence the management of the company considers interest rate risk as immaterial.

Credit risk

Credit Risk is the risk that a customer or counterparty to a Financial Instrument fails to perform or pay the amounts due causing financial loss to the Company. Credit Risk arises from Company’s outstanding receivables from Customers.

The Company’s exposure to Credit Risk is influenced mainly by the individual characteristics of each Customer. Credit Risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of the Customers, to whom the Company grants credit in accordance with the terms and conditions and in ordinary course of its business.

The Company monitors each Loan and advance given and makes any specific provision, as and when required.

The Company establishes an allowance for impairment that represents its estimate of expected losses in respect of Trade Receivables and Loans and Advances.

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due. The Company’s finance department is responsible for fundmanagement. In addition, processes and policies related to such risks are overseen by senior management

Foreign Currency Risk

There are no foreign currency transactions, and hence there is no foreign currency risk.

Note 26

Since the tax expenses for the year ended 31.03.2023 is NIL (PY is NIL) and the deferred tax assets / liability, has been calculated as per the company’s policy.

Note 27 : Segment Reporting

Segment Information is presented in respect of the Company’s key operating segments. The operating segments are based on the Company’s Management and Internal Reporting Structure.

The Company’s Managing Director has been identified as the Chief Operating Decision Maker (‘CODM’), since he is responsible for all major decisions with respect to the preparation and execution of Business Plan, preparation of Budget, Planning, alliance, Joint Venture, Merger and Acquisition, and expansion of any new facility.

Board of Directors review the operating results of its new Line of Segment i.e. “Construction of Residential Complex/ Dwellings” business at Company level to assess its performance. Accordingly, there is only one reportable segment for the Company which is “Construction of Residential Complex/Dwellings” after the change of management.

Note 28 : Corporate Social Responsibility Expenditure (CSR)

The provisions of section 135 of Companies Act,2013 relating to expenditure on Corporate Social Responsibility are not applicable to the company, as networth/Turonver/ net Profit criteria are not achieved.

Note 29 : Contingent Liabilities & Capital Commitments

Particulars	March 31, 2023	March 31, 2022
Contingent Liabilities & Capital Commitments not provided	1,650,000	-
Estimated amount of Committed Contracts (Net of Advances)	-	-

Note 30 : Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

Note 31 :

The Company does not have any layers of companies and therefore this clause is not applicable.

Note 32 :

There are no proceedings initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

Note 33 :

There are no transactions with the companies struck off under 248 of Companies Act, 2013 or Sec 560 of Companies Act, 1956.

Note 34 :

The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies) except as reported in financial statement, 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) except as disclosed in financial statement 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.

Since the company has not granted advances in the nature of loan to Holdings, subsidiary and joint venture, disclosure under clause 34(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is not applicable.

Note 37: Gratuity

The following tables summarise the components of net benefit expense recognised in the statement of profit or loss and the funded status and amounts recognised in the balance sheet for the respective plans:

It is to be noted that the company have entered into partnership agreement in accordance with Indian Partnership Act, 1932 in Shree Krishna Rahul Developers, Padhmagriha Heights and Shree Mangesh Constructions w.e.f. April 26, 2022, June 30, 2022 and July 21,2022 respectively.

Note : 40

It is to be noted that the company has made an application to raise funds through rights issue of equity shares. The Draft Letter of offer was filed and BSE approval was received for the same dated 12th May, 2023.

Note : 41

Previous year/ period have been re-grouped, reclassified to conform to current year figures.

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Mar 31, 2014

1) Segment Information

The Company has identified manufacturing and trading of Survey Instruments as its sole Primary segment. Thus the disclosure requirements as set out in Accounting Standard 17 (AS-17) "Segment Reporting" are not applicable. ''

2) Related Party Disclosures

i) Key Management Personnel

Name Relationship

O.J. Bansal Managing Director

S.J. Bansal Director

3) Capital and other commitments

Estimated amounts of contracts remaining to be executed on capital account & not provided for net of advance Rs. 1.39 lacs (Previous year Rs. 1.39 lacs)

4) The Company has made Public Issue of Equity Shares in the year 1995-96 and the total expenditure of Rs. 35.76 Lacs incurred on the said Issue has been treated as Deferred Revenue Expenditure and shown under the head of "Miscellaneous Expenditure".

5) Details of dues to micro and small enterprises as defined under the MSMED Act, 2006 Based on the information available with the Company and relied upon by the auditors, the disclosure requirement as prescribed under the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 is as under :

6) The tax effect of the carried forward loss as tax assets in accordance with the AS-22 " Accounting for Taxes on Income" has not been reckoned in the books of accounts for the year under review in view of the perception of the management that such asset may not be realized within the applicable / reasonable time limit.

7) In the opinion of the management, there are no indications, internal or external which could have the effect of impairment of the assets of the Company to any material extent as at the Balance Sheet date, which requires recognition in terms of Accounting Standard 28 (AS-28) on "Impairment of Assets".

8) Previous years figures have been regrouped and reclassified wherever necessary to be in conformity with the figures of the current year which is as per Revised schedule VI.

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Mar 31, 2013

Corporate Information

Towa Sokki Limited is a public limited company domiciled in India and incorporated under the Companies Act, 1956. Equity shares of the company are listed in Bombay Stock Exchange Ltd. in India. The Company is engaged in manufacturing and selling of Survey Instruments.

Note 1 - Basis of Accounting

i) The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles to comply with the applicable Accounting Standards as prescribed under the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

ii) The Company generally follows the mercantile system of accounting and recognises significant items of income and expenditure on accrual basis.

iii) Use of estimates : The preparation of financial statements in conformity with generally accepted accounting principles in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements.

2) Segment Information

The Company has identified manufacturing and trading of Survey Instruments as its sole Primary segment. Thus the disclosure requirements as set out in Accounting Standard 17 (AS-17) "Segment Reporting" are not applicable.

3) Capital and other commitments

Estimated amounts of contracts remaining to be executed on capital account & not provided for net of advance Rs. 1.39 lacs (Previous year Rs. 1.39 lacs)

4) The Company has made Public Issue of Equity Shares in the year 1995-96 and the total expenditure of Rs. 35.76 Lacs incurred on the said Issue has been treated as Deferred Revenue Expenditure and shown under the head of "Miscellaneous Expenditure".

5) The tax effect of the carried forward loss as tax assets in accordance with the AS-22 " Accounting for Taxes on Income" has not been reckoned in the books of accounts for the year under review in view of the perception of the management that such asset may not be realized within the applicable / reasonable time limit.

6) In the opinion of the management, there are no indications, internal or external which could have the effect of impairment of the assets of the Company to any material extent as at the Balance Sheet date, which requires recognition in terms of Accounting Standard 28 (AS- 28) on "Impairment of Assets".

7) Previous years figures have been regrouped and reclassified wherever necessary to be in conformity with the figures of the current year which is as per Revised schedule VI.

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Mar 31, 2012

Corporate Information

Towa Sokki Limited is a public limited company domiciled in India and incorporated under the Companies Act, 1956. Equity shares of the company are listed in Bombay Stock Exchange in India. The Company is engaged in manufacturing and selling of Survey Instruments.

Note 1 - Basis of Accounting

i) The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles to comply with the applicable Accounting Standards as prescribed under the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

ii) The Company generally follows the mercantile system of accounting and recognises significant items of income and expenditure on accrual basis.

iii) Use of estimates : The preparation of financial statements in conformity with generally accepted accounting principles in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements.

2) Capital and other commitments

Estimated amounts of contracts remaining to be executed on capital account & not provided for net of advance Rs. 1.39 lacs (Previous year Rs. 1.39 lacs)

3) The Company has made Public Issue of Equity Shares in the year 1995-96 and the total expenditure of Rs. 35.76 Lacs incurred on the said Issue has been treated as Deferred Revenue Expenditure and shown under the head of "Miscellaneous Expenditure".

4) The tax effect of the carried forward loss as tax assets in accordance with the AS-22 " Accounting for Taxes on Income" has not been reckoned in the books of accounts for the year under review in view of the perception of the management that such asset may not be realized within the applicable / reasonable time limit.

5) In the opinion of the management, there are no indications, internal or external which could have the effect of impairment of the assets of the Company to any material extent as at the Balance Sheet date, which requires recognition in terms of Accounting Standard 28 (AS- 28) on "Impairment of Assets".

6) Previous years figures have been regrouped and reclassified wherever necessary to be in conformity with the figures of the current year which is as per Revised schedule VI.

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Mar 31, 2011

1. Corresponding figures of the previous year have been regrouped to make them comparable with current year's figures, wherever necessary.

2. Estimated amount of contracts remaining to be executed on capital account & not provided for net of advance Rs. 1.39 lacs (Previous year Rs. 1.39 lacs).

3. The Company has made Public Issue of Equity Shares in the year 1995-96 and the total expenditure of Rs. 35.76 Lacs incurred on the said Issue has been treated as Deferred Revenue Expenditure and shown under the head of "Miscellaneous Expenditure".

4. In vieu of adjustment against carried forward losses of the Company does not expect any income tax liability for the year 2010-2011 on the profit earned during the year hence no provision for tax liability has been made on this account

5. The Company has also given advance to Shell Fincaps Pvt. Ltd. and others amounting to Rupees 18700000/- for other machineries, finance and technical know-how for the Project on Trunky basis, in respect of new project at Por-Ramangamdi, since discontinued and disposed off. The advances are unsecured and are subject to the terms of the agreement/ contract executed with them.

6. The tax effect of the carried forward loss as tax assets in accordance with the AS-22- Accounting for taxes on Income has not been reckoned in the books of accounts for the year under review in view of the perception of the management that such asset may not be realised within the applicable / reasonable time limit.

7. ADDITIONAL INFORMATION PURSUANT TO THE PROVISIONS OF PARAGRAPH 3,4C AND 4D OF PART II OF THE SCHEDULE VI TO THE COMPANIES ACT, 1956.

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Mar 31, 2010

1. Corresponding figures of the previous year have been regrouped to make them comparable with current year's figures, wherever necessary.

2. All the revenue type expenditure incurred on estwhile project at Por-Ramangamdi, Dist. Baroda, Gujarat, since discontinued & disposed off prior to commencement, has been treated & shown as "Pre-Operative Expenditure" (Pending Capitalisation) is shown under Schedule 6, Direct Capital Expenditure are shown as "Capital Work-in-Progress on New Project" under Schedule-5, net of sale / written off during the year as substantial assets already disposed off by the company during the last year.

3. Estimated amount of contracts remaining to be executed on capital account & not provided for net of advance Rs. 1.39 lacs (Previous year Rs. 1.39 lacs).

4. The Company has made Public Issue of Equity Shares in the year 1995-96 and the total expenditure of Rs. 35.76 Lacs incurred on the said Issue has been treated as Deferred Revenue Expenditure and shown under the head of "Miscellaneous Expenditure".

5. In view of adjustment against carried forward losses of the Company does not expect any income tax liability for the year 2009-2010 on the profit earned during the year hence no provison for tax liability has been made on this account

6. The Company has also given advance to Shell Fincaps Pvt. Ltd. and others ammounting to Rupees 18700000/- for other machineries, finance and techincal know-how for the Project on Trunky basis, in respect of new project at Por-Ramangamdi, since discontinued and dispossed off. The advances are unsecured and are subject to the terms of the agreement/ contract executed with them.

7. The tax effect of the carried forward loss as tax assets in accordance with the AS-22- Accounting for taxes on Income has not been reckoned in the books of accounts for the year under review in view of the perception of the management that such asset may not be realised within the applicable / reasonable time limit.