Note 2.1:
The Company has entered into a Deed of Assignment dated 26th April 2019 for the assignment of its rights in the property held as stock in trade at Kandivali (East) for an agreed consideration The assignee has committed various defaults from time to time The Company has served a notice to the assignee to comply with the contractual obligations oy paying all the dues immediately Since, significant uncertainties and disputes relating to the completion of the transaction are continued during the year, the Company will recognise revenue under Ind AS 115 on fulfilment of specific performance obligation and resolution of significant uncertainties
Fair values hierarchy
Financial assets and financial liabilities measured at fair value in the statement of fmanciat position are grouped into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant Inputs to the measurement, as follows:
Level 1: quoted pnces (unadjusted) in active markets for identical assets or liabilities:
Level 2: The fair value of financial instruments that ere not traded m an active market is determined ustng valualton techniques wh*h maxinnse the use of observable market data and rely as little as possible on entity specific estimates
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
No assets or Liabilities are valued at fair value in current year and in previous year
The carrying value of cash and cash equivalents and other financial assets recorded at amortised cost, is considered to be a reasonable approximation of fair value.
The carrying value of short term borrowings, trade payables and other financial liabilities recorded at amortised cost Is considered to be a reasonable approximation of fair value
ii) Risk management:
The Company's activities expose it to market risk, liquidity risk and credit risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements:
The Company's risk management is carried out by a central treasury department of the Company under policies approved by the 8oard of Directors. The Board of Directors provide written principles for overall risk management, as well as policies covenng specific areas, such as foreign exchange risk, interest rate risk, market risk and credit risk
A) Credit Risk
Credit nsk is the risk that a customer or counterparty to a financial instrument will fail to perform or pay amounts due to the Company causing financial loss. It arises from cash and cash equivalents, deposits with banks and financial institutions, secunty deposits, loans given and pnncipally from credit exposures to customers relating to outstanding receivables. The Company's maximum exposure to credit risk is limited to the carrying amount of financial assets recognised at reporting date
The Company continuously monitors defaults of customers and other counterparties, identified either individually or by the Company, and Incorporates this information into its credit risk controls. Where available at reasonable cost, external credit ratings and/or reports on customers and other counterparties are obtained and used. The Company's policy is to deal only witn creditworthy counterparties
In respect of trade and other receivables, the Company is not exposed to any significant credit risk exposure to any single counterparty or any company of counterparties having similar charactenstics. The Company has very limited history of customer default, and considers tho credit quality of trade receivables that are not past due or impaired to be good.
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Company provides for expected credrt losses on finandal assets by assessing individual financial instruments for expectation of any credit losses Since the assets have ow credit nsk. and are for varied natures and purpose, there is no trend that (he company can draws to appty consistently to entire population For such financial ,h ^ P°I,Cy'? prov’d(fs t0T 12 month expected credlt losses uP°n initial recognition and provides for lifetime expected credii tosses upon significant increase in credit
^ ~ their km credit rtsir naturo.
B) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of fundinn th™,^ a« ^
facitiiies ,0 meet oMIgaLlorn when due. Due ,o me nature o, the bua,neS, me Company r^ntams be*,* In fund.ng by ^^avar^^cpt^Ss8™*
of raed “5b Ý’*The company takcs ,n,°
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Contractual maturities of financial liabilities
The Company" s capital management objectives are
- to ensure the Company's ability to continue as a going concern
- to provide an adequate return to shareholders
The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of balance sheet.
C?7a"*'s capi,al ^'IL.iremems in Orta to maintain an effic.nl overall finances structure wh.le avoid,ng excessive leverage This takes Into th^^^iTr^?at?0n teV£S 0friC°~ Va"0US dasses 0f deb‘ 1716 Company mana9es the capital structure and makes adfustmems to it m the l.ght of changes in the economic conditions ana the nsk charactenstics of the underlying assets In order to maintain or adjust the capital structure, the Company may adjust the amount of 9 dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt
Note 19 SEGMENT REPORTING
The Company determines Operating Segments as components of an entity for which discrete finance information is available that is evaluated regularly by Chief Operatmq
" ***** htT!° a,k>Ca,e reSOurCCS and assessin9 performance, a, The Company operates mainly In project hvoMn^SI^ lB Building. All ether activities are incidental thereto and integrated, which have similar risk and return.
Considering the nature of Compan/s business, as well as based on reviews by COOM to make decisions about resource allocation and performance measurement
""° £eparal!ir!POft!ble SeQme"‘as far as Segment is concerned In accordance with the requirements of Ind AS -108 - "Operating Segments"' presenbed under the Companies (Indian Accounting Standards) Rules. 2015. ^ 00*,m*'ru& •
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Note 21 DISCLOSURES SPECIFIED BY THE MSMED ACT
As per the informal™ available win me company there are no Micro, Small and Meawm Enterprises as defined u-iUer the Micro. Small and Medium Enterprises Development Act, 2006“ and hence not reoortoo
Note 22 Other Statutory Information
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(ii) The Company does not have any transaction with companies struck off
(in) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during me financial year
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2S§:i3SSSr P*re0°8 0'<’"t'*s in ^ manf1ef whatsoever by or on a***
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Benefioaries
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(b) provide any guarantee, searity or the like on benatf of the Ultimate Beneficanes.
(vm) The Company does not have any transaction whch is not recorded In the books of accounts that has been surrendered or disoosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as search or survey or any olher relevant provisions of the income Tax Act, 1961 { ' search 0f
<ix) The company has complied with the number ot layers preserved under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017 M Mln the
(X) The company has not Altered into any scheme of arrangement mi terms of sections 230 to 237 of the Companies Act
S ** ‘**" sanCtK>nea ^^9 “P-1^ the form of term loans and overdraft facilities
(XM) There is no immovable property in me books of the company whose title deed is not held in the name of the company
Note 23 There are no matenal events after the reporting dale that require disclosure in these financial statements
NOt° 24 Ej an*f°Un,in9 6oRware ,or ^.ntainmg its books of account which has a feature of recording audit
U-a.1 tedit log) facdity ano tne same has operated throughout the year for all relevant transactions recorded in th? ac^unbng software, except tnat audit trail feature is no: enabled for certain d.rect changes to tiTafe£££with the
^"9h*<° the preparaton software. Further no instant of au<»t trail feature £hg
tampered witn was noted in respect of the accounting software 9
r'as^en aclJvated at application and the privileged access to database continues to be restricted to kmited set of users who necessanly roqulre tn.s access for maintenance and administration of the database
Note 28 No dividend paid during the current year and previous year
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