(i) Terms/Rights attached to Equity Shares:
The Company has only one class of equity shares having a par value of INR 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of Interim Dividend.
In the event of liquidation of the Company, the holder of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
(ii) Details of shareholders holding more than 5% of the aggregate shares in the company
(ii) Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding March 31, 2023 - Nil
i) The Company has prepared its first Indian Accounting Standards (Ind AS) compliant Financial Statements for the periods commencing 1 April 2022 with restated comparative figures for the year ended 31 March 2022 in compliance with Ind AS. Thecompany has prepared these financial statements in accordance with Indian Accounting Standards (Ind AS) notified under section 133 of the Companies Act 2013. Accordingly, the Balance Sheet, in line with Ind AS transitional provisions, has been prepared as at 1 April 2021 the date of company's transition to Ind AS. In accordance with Ind AS 101 First-time Adoption of Ind AS, the Company has presented below a reconciliation of net profit as presented in accordance with Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 ("Previous GAAP") to total comprehensive income for the year ended 31 March 2022, reconciliation of shareholders' funds as per the previous GAAP to equity under Ind AS as at 31 March 2022 and 1 April 2021:
There were no significant reconciliation items between cash flows prepared under Previous GAAP and those prepared under Ind AS.
First-time adoption - mandatory exceptions, optional exemptions
The Company has prepared the opening balance sheet as per Ind AS as of 1 April 2021 (the transition date) by recognising all assets and liabilities whose recognition is required by Ind AS, not recognising items of assets or liabilities which are not permitted by Ind AS, by reclassifying items from previous GAAP to Ind AS as required under Ind AS, and applying Ind AS in measurement of recognised assets and liabilities. However, this principle is subject to the certain exception and certain optional exemptions availed by the Company as detailed below.
1. Estimates
The estimates at 1 April 2021 and 31 March 2021 are consistent with those made for the same dates in accordance with previous GAAP after adjustments to reflect any differences in accounting policies.
2. De-recognition of financial assets and financial liabilities
The Company has applied the de-recognition principles of financial assets and financials liabilities prospectively for transactions occurring on or after 1 April 2021.
3. Assessment of embedded derivatives
The company has assessed whether an embedded derivative is required to be separated from the host contract and accounted for as a derivative on the basis of the conditions that existed at the later of the date it first became a party to the contract and the date when there has been a change in the terms of the contract that significantly modifies the cash flows that otherwise would be required under the contract.
4. Share based Payments
Recognition criteria of employees stock option plan as per Ind AS 102 "Share based payment" is not applied to employee stock options that vested before date of transition to IND AS.
5. Deemed cost for property, plant and equipment, investment property, and intangible assets
The Company has elected to continue with the carrying value of all its property, plant and Equipment and Intangible assets recognised as of 1 April 2021 (transition date) measured as per previous GAAP and use that carrying value as its deemed cost as of the transition date.
6. Determining whether an arrangement contains a lease
The Company has applied principles laid in Ind AS 116 in determining whether an arrangement contains a Lease to determine whether an arrangement existing at the transition date contains a lease on the basis of facts and circumstances existing at that date.
7. Investments in subsidiaries, joint ventures
In accordance with exemption given in Ind AS 101, the company has recorded investments in subsidiaries and joint ventures at deemed cost i.e. previous GAAP carrying amount as on date of transition.
8. Impairment of financial assets
The Company has applied the impairment requirements of Ind AS - 109 'Financial Instruments' retrospectively; however, as permitted by Ind AS 101, the Company has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date of financial instruments were initially recognised in order to compare it with the credit risk at the transition date.
ii) New Accounting Standards, Amendments to Existing Standards, Annual Improvements and Interpretations Effective Subsequent to March 31, 2023:
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2023, as below:
1. Ind AS 1-Presentation of Financial Statements-
This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies. The effective date for adoption of this amendment is annual periods beginning on or after April 1,2023. The Company has evaluated the amendment and the impact of the amendment is insignificant in the standalone financial statements.
2. Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors-
This amendment has introduced a definition of 'accounting estimates' and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates. The effective date for adoption of this amendment is annual periods beginning on or after April 1,2023. The Company has evaluated the amendment and there is no impact on its standalone financial statements.
3. Ind AS 12 -Income Taxes-
This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. The effective date for adoption of this amendment is annual periods beginning on or after Aprill, 2023. The Company has evaluated the amendment and there is no impact on its standalone financial statement.
Note 23 (contd.): Reconciliation of Standalone Statement of Profit and Loss and Other Comprehensive Income
Contingent liabilities and commitments (to the extent not provided for)
Contingent liabilities (a) Claims against the company not acknowledged as debt;
a) Claims not acknowledged as debts represent cases filed in Civil Court and High Court
01-04-2021 - Nil 31-03-2022 - Nil 31-03-2023 - Rs. 2,52,69,120/-
As At 31st March, 2023
The complainant has filed complaint before MahaRERA and sought compensation Rs.2,52,69,120/- from SBGL alleging that there was delay in handing over possession of the commercial Units in B building to him on the date as mentioned in Development Agreement. SBGL filed its say in the matter contending that SBGL is not liable to pay any compensation as mentioned in the Complaint. Because SBGL completed construction of B building within the time limit extended by MahaRERA. Extension to the project was granted by MahaRERA considering adverse impact of Covid Pandemic on construction activities of the project. The reasons for extension of timeline for completion of B building were beyond the control of the SBGL, since there is no fault on the part of the SBGL. Hence, in the opinion of management SBGL has shown its readiness and willingness to handover units to the complainant. Hence, the above claim is not sustainable.
I) Financial risk management objectives
In the course of its business, the Company is exposed primarily to fluctuations in interest rates, equity prices, liquidity and credit risk, which may adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of the financials environment and seeks to mitigate potential adverse effects on the financial performance of the Company.
II) Market Risk
Market risk is the risk that the fair value or future cash flows of the financials instruments will fluctuate because of the changes in the market prices.
Dues to micro and small enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management. This has been relied upon by the auditor.
Note - 27 Disclosure as per regulation 34(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015
Loans and advances in the nature of loans given to subsidiaries in which directors are interested
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