17. Equity share capital (Contd..)
17.6 Pre-IPO Placement
During the year ended Macrh 31, 2025, the company has allotted a Pre-IPO placement of 16,26,016 equity shares of
face value of H10 each by way of a private placement at an issue price of H123 per equity share (including share premium
of H 113 per equity share) for an aggregate consideration of H 2000.00 lakhs vide resolution passed in the meeting of
shareholders held on July 13, 2024.
17.7 Initial Public offering and listing of shares
During the year ended March 31, 2025, the company has completed an Initial Public Offer ("the IPO") of fresh issue
of 3,20,37,601 equity shares with a face value of INR 10 each at an issue price of INR 128 per share (includes 1,62,601
equity shares issued to eligible employees with a face value of INR 10 each at an issue price of INR 123 per share)
aggregating to H 4100.00 million.The equity shares of the Company were listed on National Stock Exchange ("NSE")
and on Bombay Stock Exchange Limited ("BSE") on September 24, 2024.
17.8 Aggregate number of bonus share issued and share issued for consideration other than cash during
the period of 5 years immediately preceding the reporting date:
During the year ended 31st March, 2024, the Company has allotted bonus share to its shareholder (15,00,00,000 equity
shares of face value of H 10/- each, as a bonus Shares in the ratio of 1 : 75 to the existing equity shareholders, vide
resolution passed in the meeting of shareholders held on July 06, 2023 by way of capitalization of securities premium
and retained earnings).
35.1* The figures for the financial year ended March 31, 2025 and March 31, 2024 includes the amount of contingent
liabilities for the respective year, where show cause notice or claims have been received after the close of respective
reporting period and till the date of approval of this fianncial statements by the Board of Directors. Further, the amount
of contingent liabilities disclosed above, does not include the amount of interest or penalty, wherever the same are not
ascertain or included in demand notices.
35.2 The Company is subject to legal proceedings and claims, which have arisen in the ordinary course of business, the impact
of which presently is not quantifiable. These cases are pending with various courts / authorities. After considering the
circumstances and advice from the legal advisors, management believes that these cases will not adversely affect its
financial statements. The above Contingent Liabilities exclude undeterminable outcome of these pending litigations.
35.3 Future cash flow in respect of the above, if any, is determinable only on receipt of judgements/decisions pending with
the relevant authorities. Interest, penalty or compensation liability arising on outcome of the disputes has not been
considered, since not determinable at present.
35.4 The Company did not have any long-term contracts including derivative contracts for which any provision was required
for foreseeable losses.
36. 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
36. Segment information (Contd..)
36.2 Information about major customers
No single customer contributed 10% or more to the Company's revenue for the year ended March 31, 2025,
March 31,2024.
36.3 The reporting segment includes a number of sales operations in various cities within India each of which is considered as
a separate operating segment by the CODM. For financial statements presentation purposes, these individual operating
segments have been aggregated into a single reportable operating segment taking into account the following factors:
• these operating segments have similar long-term gross profit margins;
• the nature of the products and production processes are similar; and
• the methods used to distribute the products to the customers are the same.
37. Employee benefit plans
37.1 Defined contribution plans:
The Company participates in Provident fund as defined contribution plans on behalf of relevant personnel. Any expense
recognised in relation to provident fund represents the value of contributions payable during the period by The
Company at rates specified by the rules of provident fund. The only amounts included in the balance sheet are those
relating to the prior months contributions that were not paid until after the end of the reporting period.
(a) Provident fund and pension
In accordance with the Employee's Provident Fund and Miscellaneous Provisions Act, 1952, eligible employees
of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in
which both employees and the Company make monthly contributions at a specified percentage of the covered
employees' salary. The contributions, as specified under the law, are made to the provident fund administered and
managed by Government of India (GOI). The Company has no further obligations under the fund managed by the
GOI beyond its monthly contributions which are charged to the statement of Profit and Loss in the period they are
incurred. The benefits are paid to employees on their retirement or resignation from the Company.
(b) Defined benefit plans:
Gratuity (Unfunded)
The Company has an obligation towards gratuity, a unfunded defined benefit retirement plan covering all
employees. The plan provides for lump sum payment to vested employees at retirement or at death while in
employment or on termination of the employment of an amount equivalent to 15 days salary, as applicable,
payable for each completed year of service. Vesting occurs upon completion of five years of service. The Company
accounts for the liability for gratuity benefits payable in the future based on an actuarial valuation.
The most recent actuarial valuation of the present value of the defined benefit obligation was carried out for the
year ended March 31, 2025 by an independent actuary. The present value of the defined benefit obligation, and
the related current service cost and past service cost, were measured using the projected unit credit method.
37. Employee benefit plans (Contd..)
(A) Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of
which are detailed below:
(1) Actuarial Risk:
It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:
i) Adverse Salary Growth Experience
ii) Variability in mortality rates
iii) Variability in withdrawal rates
(2) Investment Risk
For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer
may not be the fair value of instruments backing the liability. In such cases, the present value of the assets
is independent of the future discount rate. This can result in wide fluctuations in the net liability or the
funded status if there are significant changes in the discount rate during the inter- valuation period.
(3) Liquidity Risk:
Employees with high salaries and long durations or those higher in hierarchy, accumulate significant
level of benefits. If some of such employees resign/retire from the company there can be strain
on the cashflows.
(4) Market Risk:
Market risk is a collective term for risks that are related to the changes and fluctuations of the financial
markets. One actuarial assumption that has a material effect is the discount rate. The discount rate
reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit
Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate/
government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the
valuation date.
(5) Legislative Risk
Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change
in the legislation/regulation. The government may amend the Payment of Gratuity Act thus requiring
the companies to pay higher benefits to the employees. This will directly affect the present value of the
Defined Benefit Obligation and the same will have to be recognized immediately in the year when any such
amendment is effective.
37. Employee benefit plans (Contd..)
(K) Other disclosures
The weighted average duration of the obligations as at March 2025 is 6.79 years (March 31, 2024: 6.76 years)
(c) Leave Encashment plan
(A) Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of
which are detailed below:
(1) Actuarial Risk:
It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:
i) Adverse Salary Growth Experience
ii) Variability in mortality rates
iii) Variability in withdrawal rates
iv) Variability in availment rates
(2) Investment Risk
For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer
may not be the fair value of instruments backing the liability. In such cases, the present value of the assets
is independent of the future discount rate. This can result in wide fluctuations in the net liability or the
funded status if there are significant changes in the discount rate during the inter- valuation period.
(3) Liquidity Risk:
Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level
of benefits. If some of such employees resign/retire from the Entity there can be strain on the cash flows.
(4) Market Risk:
Market risk is a collective term for risks that are related to the changes and fluctuations of the financial
markets. One actuarial assumption that has a material effect is the discount rate. The discount rate
reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit
Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate/
government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the
valuation date.Since the benefits under the plan is not payable for life time and payable till retirement
age only, plan does not have any longevity risk.
(5) Legislative Risk
Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in
the legislation/regulation. The government may amend the Shop and Establishment Act, thus requiring
the companies to pay higher benefits to the employees. This will directly affect the present value of the
Defined Benefit Obligation and the same will have to be recognized immediately in the year when any
such amendment is effective.
(J) Sensitivity analysis
The Sensitivity analysis below has been determined based on reasonably possible change of the respective
assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
These sensitivities show the hypothetical impact of a change in each of the lied assumptions in isolation.
While each of these sensitivities holds all other assumptions constant, in practice such assumptions rarely
change in isolation and the asset value changes may offset the impact to some extent. For presenting the
sensitivities, the present value of the Defined Benefit Obligation has been calculated using the projected
unit credit method at the end of the reporting period, which is the same as that applied in calculating the
Defined Benefit Obligation presented above. There was no change in the methods and assumptions used in
the preparation of the Sensitivity Analysis from previous year.
39.3 Financial risk management objectives
The Company's principal financial liabilities comprise loans and borrowings and 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 is exposed to market risk, credit risk and liquidity risk. The Company periodically reviews the risk
management policy so that the management manages the risk through properly defined mechanism. The focus is
to foresee the unpredictability and minimise potential adverse effects on the Company's financial performance. The
Company's overall risk management procedures to minimise the potential adverse effects of financial market on the
Company's performance are as follows:
(i). Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price
risk, such as equity price risk and commodity risk.
(a) Interest rate risk:
The Company is exposed to cash flow interest rate risk from long-term borrowings at variable rate. Currently the
Company has external borrowings and borowwings from promoter & promoter groups which are fixed and floating
rate borrowings. The Company achieves the optimum interest rate profile by refinancing when the interest rates go
down. However this does not protect Company entirely from the risk of paying rates in excess of current market
rates nor eliminates fully cash flow risk associated with variability in interest payments, it considers that it achieves an
appropriate balance of exposure to these risks.
(b) Foreign currency risk:
Foreign Currency Risk is the risk that the fair value or future cash flows of an exposure will fluctuate because
of changes in foreign currency rates. Exposures can arise on account of the various assets and liabilities which
are denominated in currencies other than Indian Rupee.
(ii). 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, foreign exchange transactions 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
39. Financial instruments and risk management (Contd..)
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's treasury 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.
(iii). Liquidity risk management
Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated
with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result
from an inability to sell a financial asset quickly at close to its fair value. The Company has an established liquidity
risk management framework for managing its short term, medium term and long term funding and liquidity
management requirements. The Company's exposure to liquidity risk arises primarily from mismatches of the
maturities of financial assets and liabilities. The Company manages the liquidity risk by maintaining adequate funds
in cash and cash equivalents.
40 Fair value measurements
This note provides information about how the Company determines fair values of various financial assets and financial liabilities.
40.1 Fair value of the Company's financial assets and financial liabilities that are measured at fair value on a recurring basis
The Company has not measure any financial assets and financial liabilities that are measured at fair value on a recurring basis.
40.2 Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures are required)
The directors of the Company consider that the carrying amounts of financial assets and financial liabilities recognised in
these financial statements approximate their fair values.
41 Disclosure as per Section 186 of the Companies Act, 2013
The details of loans, guarantees and investments under Section 186 of the Companies Act, 2013 read with the Companies
(Meetings of Board and its Powers) Rules, 2014 are as follows:
(i) Details of Investments made by the Company are given in Note 6.1 in the financial statement.
(ii) The Company has not granted any loans to any parties during the period except loans and advances to employees in
the ordinary course of business.
42 Other Notes
42.1 The Company does not own benami properties. Further, there are no proceedings which have been initiated or are
pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45
of 1988) and rules made thereunder.
42.2 The Company has not traded or invested in Crypto currency or Virtual Currency during each reporting period. During
each reporting period, the Company has not traded or invested in Crypto currency or Virtual Currency.
42.3 There were no Scheme of Arrangements entered by the Company during each reporting period, which required
approval from the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.
42.4 Relationship with struck-off companies
The Company did not have any transactions with Companies struck off.
42.5 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.
42.6 The Company has not made any delay in Registration of Charges under the Companies Act, 2013.
42.7 Code of Social Security, 2020
45 Significant events occurred during the year ended March, 31, 2025
45.1 Increase in authorized share capital
During the year ended 31st March, 2025, the Company has increased its authorized share capital from H 18500 lakhs (divided
into 18,50,00,000 equity shares of H 10 each fully paid up) to H 18750 lakhs (divided into 18,75,00,000 equity shares of H 10
each fully paid, vide resolution passed in the meeting of shareholders held on July 15, 2024.
45.2 Pre-IPO Placement
During the year ended Macrh 31, 2025, the company has allotted a Pre-IPO placement of 16,26,016 equity shares of face
value of H10 each by way of a private placement at an issue price of H123 per equity share (including share premium of H 113
per equity share) for an aggregate consideration of H 2000.00 lakhs vide resolution passed in the meeting of shareholders
held on July 13, 2024.
45.3 Initial Public offering and listing of shares
During the year ended March 31, 2025, the company has completed an Initial Public Offer ("the IPO") of fresh issue of
3,20,37,601 equity shares with a face value of INR 10 each at an issue price of INR 128 per share (includes 1,62,601 equity
shares issued to eligible employees with a face value of INR 10 each at an issue price of INR 123 per share) aggregating to
H 4100.00 million.The equity shares of the Company were listed on National Stock Exchange ("NSE") and on Bombay Stock
Exchange Limited ("BSE") on September 24, 2024.
As per our report of even date For and on behalf of Board of Directors of
For Mittal & Associates Arkade Developers Limited
Chartered Accountants
Firm Reg. No.: 106456W
Hemant R Bohra Amit Jain Arpit Jain
Partner Chairman & Managing Director Whole-time Director
M No. 165667 DIN : 00139764 DIN : 06899631
UDIN: 25165667BMMLAA3187
Place: Mumbai
Date : 13 May 2025 Samshet Shetye Sheetal Solani
Chief Financial Officer Company Secretary
M No. : A45964
Place: Mumbai
Date : 13 May 2025
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