Note 29: Financial Instruments

Financial Assets and Liabilities:

The Company’s principal financial assets include investments, trade receivables, cash and cash equivalents, other bank balances, loans, derivative assets and other financial assets. The Company’s principal financial liabilities comprise of borrowings, trade payables, derivative liabilities and other financial liabilities. The main purpose of these financial liabilities is to finance the Company’s operations and projects.

The following methods and assumptions were used to estimate the fair values:

1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

Fair Value Hierarchy:

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of the following three levels:

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: Inputs which are not based on observable market data

The following tables summarize carrying amounts of financial instruments by their categories and their levels in fair value hierarchy for each year end presented.

Note 30: Financial Risk Management

Objective and policies:

The company’s principal financial liabilities comprise of loans and borrowings, trade and other payables. The main purpose of theses financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include mutual funds, trade and other receivable and cash and cash equivalents that derive directly from its operations. The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The senior management ensures that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purpose.

The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below:

(i) Market Risk - Interest Rate Risk:

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 main interest rate risk arises from the long term borrowings with fixed rates. The Company’s fixed rates borrowings are carried at amortized cost. The Company invests the surplus fund generated from operations in mutual funds. Considering these mutual funds are short term in nature, there is no significant interest rate risk. The Company has laid policies and guidelines including tenure of investment made to minimize impact of interest rate risk.

(ii) Market Risk - Foreign Currency Risk:

The Company does not have material foreign currency exposure as at balance sheet date. Hence, it does not have any significant foreign currency risk.

(iii) Credit Risk:

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the company periodically assess financial reliability of customer, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.

The company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk the company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:

(i) Actual or expected significant adverse changes in business,

(ii) Actual or expected significant changes in the operating results of the counterparty,

(iii) Financial or economic conditions that are expected to cause a significant change to the counterparty’s ability to meet its obligations,

(iv) Significant increase in credit risk on other financial instruments of the same counterparty,

(v) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees or credit enhancements.

(iv) Liquidity Risk:

Liquidity risk is defined as the risk that the company will not be able to settle or meet its financial obligations on time, or at a reasonable price. The company’s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related such risk are overseen by senior management. Management monitors the company’s net liquidity position through rolling forecasts on the basis of expected cash flows.

(v) Capital Risk Management:

The primary objective of the Company’s capital management is to maximize the shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants.

No commission (Previous Year ' NIL) has been paid to the Managing Director / Dy. Managing Director for the year under review in view of resolution passed by the Board of director and as agreed by the Managing Director.

(v) Notes:

No amounts in respect of related parties have been written off / written back / provided for during the year. Related party relationships have been identified by the management and relied upon by the auditors.

Note 32: Employee Benefit Obligations:

Gratuity:

In accordance with the applicable laws, the Company provides for gratuity, a defined benefit retirement plan (“The Gratuity Plan”) covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of continuous employment), death, incapacitation or termination of employment that are based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the reporting date and the Company makes annual contribution to the gratuity fund administered by Reliance Nippon life Insurance Company & Future General Life Insurance Co. limited

C. Assumptions

With the objective of presenting the plan assets and plan liabilities of the defined benefits plans at their fair value on the balance sheet, assumptions under Ind AS 19 are set by reference to market conditions at the valuation date.

Note 33:

i) I n the Opinion of the Management, any of the assets other than fixed assets and non-current investments have value on realization in the ordinary course of business at least equal to the amount as stated. The accounts of certain Trade Receivables, Trade Payables, Loans and Advances are however, subject to formal confirmations / reconciliations and consequent adjustments, if any. The management does not expect any material difference affecting the current year’s financial statements on such reconciliation/adjustments.

ii) No provision for interest has been made for loans and advances given to some of the parties as counter parties not able to make repayment of due amount and company will make provision for such interest in the year of realization as prudent practice by the company in respect of such parties.

iii) During the year the company has received refund of ' 163.11 Lacs towards excise duty which was paid under protest. The balance of ' 29.87 Lacs is written off during the year.

iv) The Company has initiated legal proceeding against Mundara Estate Developers Limited (“Corporate Debtor”) for recovery of dues at National Company Law Tribunal (NCLT), Mumbai Bench. The Hon’ble National Company Law Tribunal (NCLT) was pleased to allow the petition and initiate corporate Insolvency Resolution process against the Mundara Estate Developers Limited (MEDL) by order dated January 12, 2023. The said order was challenged by its suspended Director before National Company Law Appellate Tribunal (NCLAT) at New Delhi, by way of Company Appeal (AT) (Insolvency 71 of 2023). The final hearing in Hon’ble National Company Law Appellate Tribunal (NCLAT) in this matter for pronouncement of final order was held on July 14, 2023. Through the said order, the Hon’ble National Company Law Appellate Tribunal (‘NCLAT’), dismissed the appeal filed by Mr. Kalpesh Ramniklal Shah, the suspended Director of Mundara Estate Developers Limited (“Corporate Debtor”) and upheld the judgement/order dated January 12, 2023, given by Mumbai bench of the Hon’ble National Company Law Tribunal (‘NCLT’), which admitted the debt and ordered for initiation of Corporate Insolvency Resolution Process (CIRP) against Mundara Estate Developers Limited (“Corporate Debtor”).

v) The Company had received an order from SEBI. The Company has been restrained from accessing the securities market and buying, selling or dealing in securities, either directly or indirectly, in any manner for the period of 2 (two) years from the date of order. The Company has filed appeal with the Securities Appellate Tribunal (SAT) challenging the order. The Securities Appellate Tribunal (SAT) has granted Stay order vide its order dated October 28, 2021.

Note 35: Dues to Micro and Small Enterprises

The company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the Micro, Small & Medium Enterprises Development Act, 2006 (MSMED Act, 2006) (As amended). The above mentioned information has been complied to the extent of responses received by the company from its suppliers with regard to their registration under Micro, Small & Medium Enterprises Development Act, 2006 (MSMED Act, 2006) (As amended).

Note 37: Contingent liabilities not provided for in respect of:

An Appeal challenging the Final Order No. A/86346/2019 dated August 5, 2019 in Appeal No. C/178/2012 passed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has been filed before the Hon’ble High Court of Bombay by the Company. The said final order by the CESTAT had confirmed the demand of differential duty on the ground of non-fulfillment of export obligation as per the condition of the Notification No.160/92-Cus by erstwhile Global Boards Limited. However, the CESTAT also went on to hold that Global Boards Limited is liable to pay interest @ 24% per annum of the differential duty amount which is ' 5,76,75,989/-. However, the said order has set aside the confiscation and penalty imposed on the Company. The demand of interest in this case is not sustainable therefore an appeal has been filed before the High Court which is admitted before the Hon’ble High Court. Based on the facts of the case, in our lawyer’s opinion, there is a good chance of succeeding before the Hon’ble High Court in light of the decision of the Supreme Court in the case of Jaswal Neco Ltd. v. CC, 2015 (322) ELT 561 (SC). In either case, this will not have any adverse impact on the Company as a going concern.”

Note 38: 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 preceeding three financial years on corporate social responsibility (CSR) activities. A CSR committee has been formed by the Company as per the Act. The funds were primarily utilized through the year on the activities which are specified in Schedule VII of the Companies Act, 2013.

Note 40: Relationship With Struck Off Companies

The Company has not entered into any transactions with companies struck off under section 248 of The Companies Act, 2013 or section 560 of the Companies Act, 1956.

Note 41: Registration of charges or satisfaction with Registrar of Companies (ROC)

As at the reporting dates, none of the charges or satisfaction of charges are yet to registered with Roc beyond the statutory time limit.

Note 42: Compliance with number of layers of Companies

The provisions relating to number of layers prescribed u/s 2 (87) of The Companies Act, 2013 read with Companies (Restriction on number of layers) Rules, 2017 are not applicable to the company.

Note 43: Compliance with approved scheme(s) of arrangements

The company does not have any scheme of arrangements approved by the competent authority in terms of sections 230 to 237 of The Companies Act, 2013

Note 44: Disclosure in relation to undisclosed income

There are no transactions that has not been recorded in the books of accounts and has been surrendered or disclosed as income during the year in the tax assessments under The Income Tax Act, 1961.

Note 45: Details of crypto currency or virtual currency

The company has not traded or invested in crypto currency or virtual currency during the financial year and comparative period.

Note 46: Details of Benami properties

The company does not hold any benami properties. No proceedings have been initiated or are pending against the company for holding any benami property under The Benami Transactions (Prohibitions) Act, 1988 and the rules made thereunder.

Note 47: Event occurring after Balance Sheet date

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to approval of the financial statements to determine the necessity for recognition and/or reporting of any of these events and transactions in the financial statements.

The company’s pending litigation comprises mainly claims against the Company, proceedings pending with tax & other Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever required and disclosed the contingent liabilities, wherever applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a material impact on its financial statements. Future cash outflow in respect of the above are determinable only on receipts of judgments/decisions pending with various forums/authorities.

Note 48: The Code on Social Security, 2020 (Code) relating to employee benefits during employment and post employment benefits received Presidential Assent in September, 2020. The code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretations have not been issued. The company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective. Based on a preliminary assessment, the entity believes the impact of the change will not be significant.

Note 50 :

Previous year’s figures have been regrouped/reclassified wherever necessary to correspond with the current year’s classification/disclosure.

The notes are an integral part of these standalone financial statements.

The accompanying notes are an integral part of the financial statements