1. COMPANY INFORMATION:
Modern India Limited (‘the Company’) is a public limited Company domiciled in India and is incorporated under the provisions of the Companies Act, applicable in India. The Registered of of the Company and its principal place of business is located at 1, Mittal Chambers, 228, Nariman Point, Mumbai - 400 021. The Company is listed on Bombay Stock Exchange (BSE). The Company is operating in Real Estate, Trading and Renewable Energy.
The financial statements of the Company for the year ended 31st March, 2018 were approved for issue in accordance with a resolution of the Board of Directors on 24th May, 2018.
2. SIGNIFICANT ACCOUNTING POLICIES:
This note provides a list of the significant accounting policies adopted in the preparation of these financial statements (“financial statements”). These policies have been consistently applied to all the years presented, unless otherwise stated.
2.1 (a) Statement of Compliance
In accordance with the notification issued by the Ministry of Corporate Affairs, the Company has adopted Indian Accounting Standards (referred to as “Ind AS”) notified under the Companies (Indian Accounting Standards) Rules, 2015 with effect from April 1, 2016. Previous year numbers in the financial statements have been restated to Ind AS. These financial statements are the first financial statements of the company which have been prepared in accordance with Ind AS. In accordance with Ind AS 101 First-time Adoption of Indian Accounting Standard, the Company has presented a reconciliation from the presentation of financial statements under Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (“Previous GAAP”) to Ind AS in respect of Shareholders’ equity as at March 31, 2016 and April 1, 2015 and of the comprehensive income for the year ended March 31, 2016 and of the cash flows for the year ended March 31, 2016 (Refer note 34).
(b) Basis of Preparation
These financial statements have been prepared in accordance with the historical cost basis, except as disclosed in the accounting policies below, and are drawn up in accordance with the provisions of the Companies Act, 2013 and Indian Accounting Standards (“Ind AS”) notified under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015], Companies ( Indian Accounting Standards) Amendment Rules, 2016 and other relevant provisions of the Companies Act 2013 (the Act).
The financial statements up to year ended 31 March 2016 were prepared in accordance with Companies (Accounting Standard) Rules, 2006 (as amended) and other relevant provisions of the Act.
The financial statements have been prepared and presented under the historical cost convention, on accrual basis of accounting and going concern basis except for certain financial assets and financial liabilities that are measured at fair values at the end of each reporting period, as stated in the accounting policies set out below. All assets and liabilities have been classified as current or non current as per the Company’s normal operating cycle and other criteria as set out in the Division II of Schedule III to the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non current classification of assets and liabilities.
The financial statements are presented in INR and all values are rounded to the nearest Lakhs (INR 00,000), except when otherwise indicated.
2.2 Current versus non-current classification
The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is treated as current when it is:
Expected to be realised or intended to be sold or consumed in normal operating cycle Held primarily for the purpose of trading
Expected to be realised within twelve months after the reporting period, or
Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
All other assets are classified as non-current.
A liability is current when:
It is expected to be settled in normal operating cycle It is held primarily for the purpose of trading
It is due to be settled within twelve months after the reporting period, or The Company classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities. The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents.
2.3 Key Accounting Estimates and Judgements:
The preparation of financial statements requires management to make judgements, estimates and assumptions in the application of accounting policies that effect the reported amounts of assets, liabilites, income and expenses. Actual results may differ from these estimates. Continuous evaluation is done on the estimation and jusgements based on historical experience and other factors, including expectations of future events that are believed to be reasonable. Revisions to accounting estimates are recognised prospectively.
Information about critical judgements in applying accounting policies, as well as estimates and assumptions that have the most significant effect to the carrying amounts of assets and liabilities within the next financial year, are included in the following notes:
(a) Measurement of defined benefit obligations - Note 29
(b) Measurement and likelihood of occurance of provisions and contingencies - Note 27
(c) Recognition of deferred Tax Assets / Liabilities - Note 25
(d) Key assumptions used in discounted cash flow projections - Note 34 D&E
(e) Impairment of Assets
(f) Impairment of Intangibles
(g) Key assumptions used in repayment of deposits - Note 15(a)
(b) Terms / Rights attached to Equity Shares:
The Company has only one class of Equity Shares having a par value of Rs.2/- per Share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees and every equity share is entitled to the same rate of dividend. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts in proportion to their shareholding.
The Board of Directors, in their meeting on May 19, 2017, proposed a dividend of ‘ 0.30 per equity share which has been approved by the shareholders at the Annual General Meeting held on August 08, 2017. The total dividend paid during the year ended March 31, 2018 amounts to Rs.112.63 lakhs excluding dividend distribution tax Rs.19.06 Lakhs.
The Board of Directors in the meeting on May 24, 2018, have proposed a final dividend of ‘ 0.30 per equity shares for the Financial Year ended March 31, 2018. The proposal is subject to approval of the shareholders at the ensuing annual general meeting to be held and if approved would result in a cash outflow of approximately Rs.112.63 lakhs excluding dividend distribution tax.
(c) The Company has not issued any equity shares as bonus or for consideration other than cash and has not bought back any shares during the period of five years immediately preceeding March 31, 2018.
Capital Reserve: Balance represents reversal of unrealized difference between Fair Market Value and cost of Land converted into Stock-in-Trade and transferred from Capital Reserve to Profit & Loss Account during the Year ended March 31, 1996 .
General reserve: General Reserve is created out of the profits earned by the Company by way of transfer from retained earnings. This reserve will be utilized in accordance with the provisions of the Companies Act, 2013.
(*) Repayment of Security Deposits of Rs.16,800.00 Lakhs(Fair valued at Rs.13,132.78 Lakhs as on March 31, 2018) is dependent on development of some of the properties in Mumbai. The deposits do not carry any interest.
During the year, the Company has entered into an agreement for sale with K. Raheja Corp. Pvt. Ltd. (“Purchaser”) for sale of its land admeasuring 12,601.99 Sq. Mtrs. or thereabouts being sub-divided Plot D-1, bearing C.S. No. 7/1895 of Byculla Division situated at Keshavrao Khadye Marg (Clerk Road) Mahalaxmi, Mumbai. The consideration receivable by the Company us from the purchaser for the said land shall be 50% of the realisations from the sale of approx. 3.80 Lakhs Sq. Ft. area to be developed on the aforesaid land as per present Development Regulations over a period of 5 to 6 years. Revenue will be recognised as per accounting policy stated in Note 2.4(e).
(*) During the current financial year 2017-2018, a car finance loan was taken from Bank repayable in 36 monthly instalments with interest @ 07.56% per annum and the last instalment is due in March - 2020. This loan is secured by hypothecation of specific Vehicles acquired. (#) There is no amount due and outstanding as at Balance Sheet date to be credited to Investors Education and Protection Fund.
There are no Micro and Small Enterprises to whom the Company owes dues, which are outstanding for more than 30 days as at the Balance Sheet date. Further, the Company has not paid any interest to any Micro and Small Enterprise during the accounting year, nor is any interest payable to any Micro and Small Enterprise as at the Balance Sheet Date. 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 and relied upon by the Auditors.
Note No. 3 :- DISCLOSURES PURSUANT TO - “EMPLOYEE BENEFITS”
A. Defined Benefits Plans: Gratuity (Unfunded)
The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is an unfunded plan.
As per Actuarial Valuation as on 31st March, 2018, 31st March, 2017 and 1st April, 2016 and recognised in the financial statements in respect of Employee Benefit Schemes:
Note No. 4 :- Information on Operating Business Segment:
1) Business segments are the basis for management control and hence form the basis for reporting. The business of each segment comprises of:
a) Trading activity: Trading - Consists of Trading in all Products and Commodities
b) Real Estate - comprising of Property Development and carrying on business or activities in real estate business of all types and
c) Generation of Renewable Energy.
2) Segment Revenue in the above segments includes sales of products / services net of taxes.
3) Segment Revenue in the geographical segments considered for disclosure are as follows:
a) Revenue within India includes sales to customers located within India.
b) Revenue outside India includes sales to customers located outside India.
4) Segment Revenue, Results, Assets and Liabilities include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.
5) Based on the “management approach” defined in Ind AS 108 - Operating Segments, the Chief Operating Decision Maker evaluates the Company’s performance and allocate resources based on an analysis of various performance indicators by business segments. Accordingly information has been presented along these segments.
(a) Segment Revenue
(h) All the Assets of the Company are located in India.
Information about major customers
For the Year ended March 31, 2018, in Trading segment One single customer contributed 10% or more to Company’s revenue amounting to Rs. 6,000.42 Lakhs.
For the previous year ended March 31, 2017, in Trading segment two customer contributed 10% or more to Company’s revenue amounting to Rs.4,811.18 Lakhs. One customer contributed Rs.3,846.74 and other customer contributed Rs.964.44 Lakhs. Adjustments and eliminations
Finance income and costs, and fair value gains and losses on financial assets are not allocated to individual segments as the underlying instruments are managed on a group basis.
Current taxes, deferred taxes and certain financial assets and liabilities are not allocated to those segments as they are also managed on a company basis.
Capital expenditure consists of additions of property, plant and equipment, intangible assets and investment properties.
Key Managerial Personnel and Relatives of Promoters who are under the employment of the Company are entitled to post employment benefits and other long term employee benefits recognised as per Ind AS 19 - ‘Employee Benefits’ in the financial statements. As these employee benefits are lump sum amounts provided on the basis of actuarial valuation, the same is not included above.
The remuneration of directors and key executives is determined by the remuneration committee having regard to the performance of individuals.
Note No. 5 :- Financial Instruments and Risk Review Financial Risk Management Objectives and Policies
The Company’s principal financial liabilities, other than derivatives, comprise loans and borrowings, 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 loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.
The Company’s business activities expose it to a variety of financial risks, namely liquidity risk, market risks and credit risk. The Company’s senior management has the overall responsibility for the establishment and oversight of the Company’s risk management framework.
(A) (i) Market Risk- Interest rate risk
Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimize the Company’s position with regards to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.
According to the Company interest rate risk exposure is only for floating rate borrowings. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.
(ii) Market Risk- Price Risk Exposure
The Company’s exposure to equity securities price risk arises from investments held by the Company and classified in the balance sheet at fair value through profit and loss. To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.
Sensitivity
The table below summarizes the impact of increases/decreases of the BSE index on the Company’s investment in quoted equity shares and units of mutual funds and Gain/Loss for the period. The analysis is based on the assumption that the index has increased by 5 % or decreased by 5 % with all other variables held constant, and that all the Company’s equity instruments and units of mutual funds moved in line with the index.
Above referred sensitivity pertains to quoted equity investment and units of mutual funds. Profit for the year would increase/ (decrease) as a result of gains/ losses on equity investments and units of mutual funds as at fair value through profit or loss.
B) CREDIT RISK
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.
Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of profit and loss.
Trade receivables are in respect of Trading activity. Ongoing credit evaluation is performed on the financial condition of accounts receivable. [also refer note 8 (i)]
The credit risk on liquid funds is limited because the counterparties are mutual funds with high credit-ratings assigned by credit-agencies.
In addition, the Company is exposed to credit risk in relation to guarantee given to Indian Overseas Bank on behalf of Wholly Owned Subsidiary Company. The Company’s maximum exposure in this respect is the maximum amount the Company could have to pay if the guarantee is called on. As at 31 march 2018, an amount of Rs.3,642.47 Lakhs (31 March 2017: Rs.3,630.96 Lakhs and 31 March 2016: Rs.3,714.64 Lakhs ) has been disclosed as contingent liabilities. The Company does not expect any outflow of resources in respect of the above.
Financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed by the management in accordance with the Company’s policy. Counterparty credit limits are reviewed by the management on an annual basis, and may be updated throughout the year. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty’s potential failure to make payments.
(C) LIQUIDITY RISK
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.
(D) CAPITAL RISK MANAGEMENT
The Company’s objective to manage its capital is to ensure continuity of business while at the same time provide reasonable returns to its various stakeholders but keep associated costs under control. Management monitors the return on capital as well as the level of dividends to ordinary shareholders.
In order to achieve this, requirement of capital is reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic investments. Apart from internal accrual, sourcing of capital is done through borrowing, both short term and long term. The Board of Directors seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowings and the advantages and security afforded by a sound capital position.
Debt Equity Ratio
The Company monitors capital using a ratio of ‘adjusted net debt’ to ‘total equity’. For this purpose, adjusted net debt is defined as total liabilities, comprising interest-bearing loans and borrowings, less cash and cash equivalents, other bank balances and current investments.
Note No. 6 :- FAIR VALUE MEASUREMENT A - Financial Instrument by category and hierarchy
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values:
1. Fair value of cash and cash equivalents, short-term deposits, trade and other short term receivables, trade payables, other financial assets and other financial liabilities approximate their carrying amounts largely due to short term maturities of these instruments.
2. For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.
The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.
Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data. in lakhs)
Note 7 :- Disclosures as required by Indian Accounting standard (Ind AS) 101 First time adoption of Indian accounting standard
The Company has adopted Ind AS with effect from 1 April 2017 with comparatives being restated. Accordingly the impact of transition has been provided in the Opening Reserves as at 1 April 2016 and all the periods presented have been restated accordingly.
(i) Exemptions availed on first time adoption of Ind AS 101:
On first time adoption of Ind AS, Ind AS 101 allows certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has availed the following exemptions:
(a) Since, there is no change in the functional currency of the Company, it has opted to continue with the carrying values measured under the previous GAAP and use that carrying value as the cost less depreciation for property, plant and equipment and intangible assets on the date of transition
(b) The Company has opted to continue with the carrying values measured under the previous GAAP and use that carrying value as the deemed cost for investment in subsidiaries on the date of transition to Ind AS.
(ii) Exceptions
The following mandatory exceptions have been applied in accordance with Ind AS 101 in preparing the financial statements:
(a) Estimates
The estimates at 1 April 2016 and at March 31, 2017 are consistent with those made for the same dates in accordance with previous GAAP (after adjustments to reflect any differences in accounting policies) apart from the following items where application of previous GAAP did not require estimation:
(i) Impairment of financial assets based on the expected credit loss model; and
(ii) Investments in equity instruments carried as FVPL.
The estimates used by the Company to present the amounts in accordance with the Ind AS 109 on the basis of facts and circumstances that existed at the date on transaction to Ind AS.
(b) Classification and measurement of financial assets
The Company has classified the financial assets and liabilities in accordance with Ind AS 109 on the basis of facts and circumstances that existed at the date on transition to Ind AS.
(iii) Transition to Ind AS - Reconciliations
The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind AS as required under Ind AS 101:
I. Reconciliation of Balance sheet as at April 1, 2016 (Transition Date)
II. A - Reconciliation of Balance sheet as at March 31, 2017
B - Reconciliation of Total Comprehensive Income for the year ended March 31, 2017
III. Reconciliation of Equity as at April 1, 2016 and as at March 31, 2017
IV. Adjustments to the statement of cash flows for the year ended March 31, 2017.
The presentation requirements under Previous GAAP differs from Ind AS, and hence, Previous GAAP information has been regrouped for ease of reconciliation with Ind AS. The Regrouped Previous GAAP information is derived from the Financial Statements of the Company prepared in accordance with Previous GAAP.
* The Ind AS adjustments are either non cash adjustments or are regrouping among the cash flows from operating, investing and financing activities. However, for the purpose of the Statement of Cash Flows, cash and cash equivalent comprise of cash at bank and on hand, short term deposits with an original maturity of three months or less and is net of outstanding bank overdraft as the same is considered an integral part of Company’s cash management.
Notes for the above reconciliations:
A Proposed dividend
Under the previous GAAP, dividends proposed including dividend distribution tax by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events and accordingly, provision for proposed dividend was recognised as a liability. Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend of Rs.135.56 Lakhs as at 1st April, 2016 included under provisions has been reversed with corresponding adjustment to retained earnings. Consequently, the total equity has been increased by an equivalent amount.
B Fair Valuation of Investments - Other Than Investments in Subsidiaries
Under the previous GAAP, investments in equity instruments and mutual funds were classified as long-term investments or current investments based on the intended holding period and realisability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, the Company has designated such investments as FVTPL. The resulting fair value changes of these investments have been recognised in retained earnings Rs.149.57 Lakhs as at 31st March, 2017 (? 3.38 Lakhs As at 1 April, 2016).
C Investment Property:
Under the previous GAAP, investment properties were presented as part of PPE. Under Ind AS, investment properties are required to be separately presented on the face of the Balance sheet. Accordingly, investment property of Rs.226.23 Lakhs as at April 1, 2016 has been reclassified from PPE to Investment Property. There is no impact on the total equity or profits as a result of this adjustment.
D Financial Asset - Security deposits
Under the previous GAAP, interest free security deposits are recorded at their transaction value. Under Ind AS, all non current financial assets are required to be recognised at fair value. Accordingly, the Company has fair valued the security deposits under Ind AS. Difference between fair value of security deposits and the carrying value (transaction value) as per Previous GAAP has been recognised as deferred lease rent. Consequently, the amount of security deposits has been decreased by Rs.8.38 Lakhs as at 31st March, 2017 (? 11.29 Lakhs as at 1st April, 2016). The deferred lease rent increased by Rs.4.36 Lakhs as at 31st March,2017 (? 7.42 Lakhs as at 1st April, 2016). Total equity decreased by ‘ 0.95 Lakhs as at March 31, 2017 ( ‘ 0.80 Lakhs as at 1st April, 2016). The profit for the year and total equity as at 31st March, 2017 decreased by ‘ 0.15 Lakhs (net) due to amortisation of the deferred lease rent of Rs.3.06 Lakhs is partially off-set by the notional interest income of Rs.2.91 Lakhs recognised on these security deposits. E Financial Liability - Security deposits
Under the previous GAAP, interest free security deposits are recorded at their undiscounted transaction value. Under Ind AS, all non current financial liabilities are required to be recognised at fair value. Accordingly, the Company has fair valued the security deposits under Ind AS taking assumption of repayment period. Difference between fair value of security deposits and the carrying value (transaction value) as per Previous GAAP has been recognised as deferred revenue on security deposit. Consequently, the amount of security deposits has been decreased by Rs.2,067.08 Lakhs as at 31st March, 2017 (? 2,304.75 Lakhs as at 1st April, 2016). The real estate income received in advance increased by Rs.1,790.38 Lakhs as at 31st March,2017 (? 2,046.89 Lakhs as at 1st April, 2016). Total equity increased by Rs.276.71 Lakhs as at March 31, 2017 (? 257.86 Lakhs as at 1st April, 2016). Further, the Company has recognized revenue of Rs.557.50 Lakhs as Real Estate Income and Rs.538.66 Lakhs as finance cost on fair valuation of security deposits. Since this security deposit is against real estate business activity, the corresponding net impact of Rs.18.84 Lakhs for ( Rs.557.50 Lakhs minus Rs.538.66 Lakhs) the year ended March 31, 2017 ( Rs.257.86 Lakhs as at April 1, 2016) has been debited to Inventory of Real estate business.
F Remeasurement of post employment benefit obligation
Under Ind AS, Remeasurement i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit and loss. Actuarial loss of Rs.4.77 Lakhs is reclassified from Employee Benefits Expenses to other comprehensive income, resulting in decrease in Employee Benefits Expenses for the year March 2017.
G Retained earnings
Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind AS transition adjustments (refer IIIA above). H Other comprehensive income
Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the statement of profit and loss as ‘other comprehensive income’ includes Remeasurement of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP.
I Deferred Tax
a) Deferred Tax on aforesaid Ind AS adjustments.
b) Under IGAAP, MAT credit entitlement is presented under other non current assets. However, under Ind AS, MAT credit entitlement is considered as deferred tax assets and accordingly MAT credit of Rs.80.25 Lakhs as at April 1, 2016 has been reclassified. There is no impact on the total equity or profits as a result of this adjustment.
J Current Tax
Tax component on Actuarial Gains and losses which is transferred to Other Comprehensive Income under Ind AS.
Note No. 8 :-
In the opinion of the Board, current assets, loans and advances are approximately of the value stated, if realised in the ordinary course of business.
Note No. 9 :-
In accordance with the relevant provisions of the Companies Act, 2013, the Company did not have any long term contracts including derivatives contracts for which there were any material foreseeable losses.
Note No. 10 :-
The Company has a long term investment of Rs.1500.00 Lakhs in Equity Shares of Modern India Property Developers Limited (MIPDL), a Wholly Owned Subsidiary of the Company. As per Audited Account of MIPDL, there is Accumulated loss of Rs.669.87 Lakhs as at March 31, 2018 (Previous Year Rs.536.39 Lakhs). In view of the Long Term and strategic nature of investment, plans for new business initiatives and other ensuing business activity, the management is of the opinion that diminution in value of investment is temporary in nature and hence no provision is considered necessary in respect of the same in standalone results.
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