2.21 Provisions, Contingent Liabilities and Contingent Assets:
i. Provisions
Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events; it is probable that an outflow
of resources will be required to settle the obligation; and the amount has been reliably estimated.
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end
of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time
value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognized as interest expense.
ii. Contingent Liabilities
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. A present obligation that
arises from past events where it is either not probable that an outflow of resources will be required to settle or reliable estimate of the amount
cannot be made, is termed as contingent liability.
iii. Contingent Assets
A contingent asset is disclosed, where an inflow of economic benefits is probable.
2.22 Revenue recognition:
Revenue is measured at the fair value of the consideration received or receivable, and represents amount receivable for goods supplied, stated net
of discounts, returns, value added taxes and Goods and service tax (GST).
i. Revenue from Toll operations
Income from toll contracts on Build Operate and Transfer (BOT) basis are recognized on actual collection of toll revenue as per the Concession
agreement.
Additional claim including escalations, which in the opinion of the management, are recoverable on the contract are recognized at the time of
evaluating the job.
Revenue from toll collection is recognized on the receipt of toll from users of the concession facility.
ii. Revenue from construction contracts
Ind AS 115 establishes a five-step model to account for revenue arising from contracts with customers. Under Ind AS 115, revenue is recognized
at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer.
This standard requires revenue to be recognized when promised goods or services are transferred to customers in amounts that reflect the
consideration to which the company expects to be entitled in exchange for those goods or services.
When the outcome of a construction contract can be estimated reliably and it is probable that the contract will be profitable, contract revenue is
recognized over the period of the contract by reference to the stage of completion. Contract revenue is measured at the fair value of the
consideration received or receivable.
For the purpose of recognizing revenue, contract revenue comprises the initial amount of revenue agreed in the contract, the variations in contract
work, claims and incentive payments to the extent that its receipt is considered probable and the amounts are capable of being reliably measured.
Contract cost are recognized as expenses by reference to the stage of completion of the contract activity at the end of the reporting period. When it
is probable that total contract costs will exceed the total contract revenue, the expected loss is recognized as an expense immediately.
When the outcome of a construction contract cannot be estimated reliably, contract revenue is recognized only to the extent of contract costs
incurred that are likely to be recoverable.
Claims and amount in respect thereof are recognized only when the negotiations have advanced to a stage where it is probable that the customers
will accept them and amount can be reliably measured. In the case of Arbitration awards and disputed claims pertaining to construction contracts
revenue is recognized when the claims are granted in favor of the Company and where it is reasonable to expect the ultimate collection of such
arbitration awards / disputed claims pertaining to construction contracts.
The Company evaluates whether it is acting as a principal or agent by considering a number of factors which includes inventory risk, customer’s
credit risk for the amount receivable from the customer, primary responsibility for providing goods and services to the consumer. Where the
Company is acting as an principal in the transaction, revenue and related costs are recorded at their gross values. Where the Company is
effectively acting as an agent in the transaction, revenue and related costs are recorded at their net values.
iii. Revenue recognition on account of arbitration/litigation claims
The Company has exercised judgment over recognition of revenue arising on account of claims made by the Company to the customer on account
of several breaches committed by the customer during the period of contract, dispute over quantity and rates of materials used in execution of the
project leading to dispute which has been settled vide arbitration process and the outcome of these awards including the timing and the amount of
revenue recognition requires a reasonable degree of estimation.
iv. Revenue/Income from Property development
Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that
reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Revenue is measured based
on the transaction price, which is the consideration, adjusted for discounts and other credits, if any, as specified in the contract with the customer.
The Company presents revenue from contracts with customers net of indirect taxes in its statement of Profit and Loss. The Company assesses its
revenue arrangements against specific criteria to determine if it is acting as principal or agent. The Company has concluded that it is acting as a
principal in all of its revenue arrangement."
The Company considers whether there are other promises in the contract that are separate performance obligations to which a portion of the
transaction price needs to be allocated. In determining the transaction price, the Company considers the effects of variable consideration, the
existence of significant financing components, noncash consideration, and consideration payable to the customer (if any).
The Company satisfies a performance obligation and recognise the revenue over the time if the Company's performance does not create an asset
with an alternative use to the Company and the entity has an enforceable right to payment for performance completed to date basis the agreement
entered with customers, otherwise revenue is recognized point in time. The revenue from real estate development of unit is recognised at the point
in time, when the control of the asset is transferred to the customer and the performance obligation is satisfied i.e on transfer of legal title of the
unit, receipt of occupation certificate and final demand letter issued to the customers which generally occurs on completion of project.
The Company becomes entitled to invoice customers for construction of residential and commercial properties based on achieving a series of
construction-linked milestones. When the Company satisfies a performance obligation by delivering the promised goods or services it creates a
contract asset based on the amount of consideration earned by the performance. Any amount previously recognised as a contract asset is
reclassified to trade receivables at the point when the Company has the right to consideration that is unconditional. If a customer pays
consideration before the Company transfers goods or services to the customer, a contract liability is recognised when the payment is made or the
payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs under the contract.
The Company recognizes incremental costs for obtaining a contract as an asset and such costs are charged to the Statement of Profit and Loss
when revenue is recognised for the said contract.
2.23 Income and recognition:
i. Interest income
Interest income from debt instruments is recognized using the effective interest rate method. The effective interest rate is the rate that exactly
discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial asset. When
calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial
instrument (for example prepayment, extension, call and similar options) but does not consider the expected credit losses.
ii. Rental income
Rental income arising from operating lease on investment properties is accounted for on a straight line basis over lease terms unless the receipts
are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases and is included in the
Statement of profit or loss due to its operating nature.
iii. Dividend
Dividends are recognized in profit or loss only when the right to receive payment is established, it is probable that the economic benefits
associated with the dividend will flow to the Company, and the amount of the dividend can be measured reliably.
2.24 Retirement and other employee benefits:
i. Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the
period in which the employees render the related service are recognized in respect of employees’ services up to the end of the reporting period and
are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit
obligations in the balance sheet.
ii. Other long-term employee benefit obligations
The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after the end of the period in which the
employees render the related service. They are therefore measured as the present value of expected future payments to be made in respect of
services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the
market yields at the end of the reporting period that have terms approximating to the terms of the related obligation. Re-measurements as a result
of experience adjustments and changes in actuarial assumptions are recognized in Statement of Profit or Loss.
The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at
least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.
iii. Post-employment obligations
a. Gratuity obligations
The liability or asset recognized in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit
obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries
using the projected unit credit method.
The present value of the defined benefit obligation denominated in Rupees is determined by discounting the estimated future cash outflows by
reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related
obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets.
This cost is included in employee benefit expense in the Statement of Profit and Loss.
Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in
which they occur, directly in Other Comprehensive Income. They are included in Retained Earnings in the Statement of Changes in Equity and in
the Balance Sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately in
profit or loss as past service cost.
b. Defined contribution plans
Provident fund
The Company pays provident fund contributions to publicly administered provident funds as per local regulations. The Company has no further
payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the
contributions are recognized as employee benefit expense when they are due. Prepaid contributions are recognized as an asset to the extent that a
cash refund or a reduction in the future payments is available.
2.25 Income tax:
The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate
for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to
interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, on temporary differences arising between the tax base of assets and liabilities and their carrying amounts
in the financial statements. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction
other than a business combination that at the time of the transaction affects neither accounting profit nor taxable profit (tax loss). Deferred income
tax is determined using tax rates (and laws)that have been enacted or substantially enacted by the end of the reporting period and are expected to
apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.
Deferred tax assets are recognized for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts
will be available to utilize those temporary differences and losses. Deferred tax assets and liabilities are offset when there is a legally enforceable
right to offset current tax assets and liabilities. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to
offset and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.
Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in Other Comprehensive Income or
directly in equity. In this case, the tax is also recognized in Other Comprehensive Income or directly in equity, respectively.
2.26 Earnings per share:
Basic earnings per share
Basic earnings per share is calculated by dividing:
- the profit attributable to equity shareholder of the Company
- by the weighted average number of equity shares outstanding during the financial year.
Diluted earnings per share
Diluted earnings per share adjust the figures used in the determination of basic earnings per share to take into account:
- the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and
- the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential
equity shares.
2.27 Cash flow statement:
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of non-cash nature and any
deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company
are segregated based on the available information.
2.28 Segment reporting:
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision-Maker. The chief
operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified
as the Managing Director and the Chief Financial Officer that makes strategic decisions.
2.29 Business combinations:
Business combinations involving entities that are controlled by the Company are accounted for using the pooling of interests method as follows:
i. The assets and liabilities of the combining entities are reflected at their carrying amounts.
ii. No adjustments are made to reflect fair values, or recognize any new assets or liabilities.
iii. Adjustments are only made to harmonies accounting policies.
iv. The financial information in the financial statements in respect of prior periods is restated as if the business combination had occurred from the
beginning of the preceding period in the financial statements, irrespective of the actual date of the combination. However, where the business
combination had occurred after that date, the prior period information is restated only from that date.
v. The balance of the retained earnings appearing in the financial statements of the transferor is aggregated with the corresponding balance
appearing in the financial statements of the transferee or is adjusted against General Reserve.
The identities of the reserves are preserved and the reserves of the transferor become the reserves of the transferee.
vi. The difference, if any, between the amounts recorded as share capital issued plus any additional consideration in the form of cash or other assets
and the amount of share capital of the transferor is transferred to capital reserve and is presented separately from other capital reserves.
2.30 Critical accounting estimates and judgments
The preparation of the financial statements under Ind AS requires management to take decisions and make estimates and assumptions that may
impact the value of revenues, costs, assets and liabilities and the related disclosures concerning the items involved as well as contingent assets and
liabilities at the balance sheet date. Estimates and judgments are continually evaluated and are based on historical experience and other factors,
including expectations of future events that are believed to be reasonable under the circumstances.
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the
related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year.
2.31 Classifications of Joint Arrangement as Jointly Controlled Operations
The Company based on rights and obligations that arises from the contractual arrangement entered into between the parties has classified certain
Joint Arrangements entered into by the Company with parties to execute the construction contracts as Jointly Controlled Operations where the
contractual agreement provides rights to assets and obligations for liabilities for those parties sharing joint control and the legal form does not
confer separation between the investors and the special purpose vehicle i.e. partnership firms formed under the Indian Partnership Act, 1932 to
execute the project.
2.32 Expected Credit Loss
Company has a policy of regularly reviewing the recover ability of trade receivables. Substantial amount of trade receivables of the Company
represents amount recoverable from the customers arising on account of arbitration claims pending against the Company. The expected credit
loss allowance for trade receivables is made as per provision policy of the Company which takes into account the historical credit loss experience
and adjusted for forward looking information.
3.4 (a) The Concession Agreement with Bihar State Road Development Corporation (Authority) was terminated by the MORA Tollways Limited (MTL) a Stepdown
Subsidiary Company on 20.02.2015 for Authority Defaults and MTL had claimed termination payment amounting to Rs.61,052.73 Lakhs together with interest.
MTL filed Writ Petition No.7259 of 2015 for termination payment and the Honourable High Court of Patna by Order dated 22.09.2015 has held termination by
MTL as valid and legal. MTL & BSRDC filed LPAs against the writ court order. The appeals are finally disposed by the Supreme Court of India directing
adjudication of termination payment by the Arbitral Tribunal. The Arbitral Tribunal vide Award dated 21.05.2019 rejected the MTL’s claim for termination
payment and awarded NIL amount against the said claim. The said Award is challenged by MTL under Section 34 of the Arbitration and Conciliation Act, 1996
before the Hon'ble District Court Patna. The Company petition was dismissed by Hon'ble District Court, Patna. The Company not satisfied by the decision of
Hon'ble District Court, has challenged the same under Section 37 before the Hon'ble High Court of Patna. Thus the matter is subjudice. The Company has made
provision for diminution value of investment in the financial year 2021-22. Since there is no progress in the matter, during the year under review, based on the
management's assessment and in the absence of any reasonable likelihood of recovery the said investment has been written-off. The written-off has been adjusted
against the provision created in the earlier year.
3.4 (b) The Concession Agreement notified by Punjab Infrastructure Development Board (PIDB) is permitting collection of Toll up to 14th October,2029. During the
year, the Authority has terminated the Concession Agreement vide letter no.PWD-BR-3012/21/2021-3BR3/178/1 dated.05-08-2021. By virtue of termination of
Concession agreement, the BOT (Intangible Asset) and toll collection right have been taken over by PIDB. In view of this, the Company lost the BOT (Intangible
Asset) usable right, hence the BOT assets has been written off in the books of Atlanta Ropar Tollways Pvt.Ltd (Stepdown Subsidiary).
In view of negative net worth in the Stepdown Subsidiary Company, namely Atlanta Ropar Tollways Pvt. Ltd, Company has made provision for a diminution in the
value of its investment in equity shares in the said Stepdown Subsidiary Company. The disputes have been raised but the issue of dispute resolution mechanism is
pending before Arbitral Tribunal constituted by Honorable High Court of Punjab and Haryana and outcome of several disputes referred for adjudication is
pending before the Arbitral Tribunal.
3.4 (c) Fair value of Shares of The DNS Bank Limited are recognized based on valuation report dated.11th September,2017.
b. The figures for the financial year ended March 31,2025 and March 31,2024 includes the amount of contingent liabilities, where show cause notices or
claims have been received after the close of respective reporting period and till the date of approval of these financial statements by the Board of
Directors. Further, the amount of contingent liabilities disclosed above, does not include the amount of interest or penalties, wherever the same are not
ascertain or included in demand notices.
c. 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 effect its financial statement. The above contingent liabilities exclude undeterminable
outcome of these pending litigations.
d. Future cash flow in respect of 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.
e. The Company did not have any long-term contract including derivative contracts for which any provision was required for foreseeable losses.
5 Project status of Subsidiaries
i. Atlanta Infra Assets Limited
Improvement, Operation and Maintenance including strengthening and widening of existing 2 lane road to 4 lane dual carriageway from Km.9.200 to
Km.50.000 of NH-6 (Nagpur-Kondhali Section) in the State of Maharashtra on Build, Operate and Transfer (BOT) Basis”
The said project was completed on 22-09-2011 and received Commercial Operation Certificate from the Competent Authority and collection of toll
from the users of the facility is in progress.
ii. MORA Tollways Limited
M/s MORA Tollways Limited is a Special Purpose Vehicle (SPV) subsidiary Company constituted for the work of “Four Lanning of Mohania-Ara
Section of NH-30 (Km.0.000 to Km. 116.760).
The Concession Agreement with Bihar State Road Development Corporation (Authority) was terminated by MORA Tollways Limited (Company)
on 20.02.2015 for Authority Defaults and the Company had claimed termination payment amounting to '61,052.73 Lakhs. MORA Tollways Ltd has
filed Writ Petition No.7259 of 2015 for payment and the Honorable High Court of Patna by Order dated 22.09.2015 has held termination by MORA
Tollways Ltd as valid and legal. MTL & BSRDC filed LPAs against the writ court order. The appeals are finally disposed by the Supreme Court of
India directing adjudication of termination payment by the Arbitral Tribunal. The Arbitral Tribunal vide Award dated 21.05.2019 rejected the SPV’s
claim for termination payment amounting to '61,052.73 Lakhs and awarded NIL amount against the said claim. The said Award is challenged by
MORA Tollways Limited under Section 34 of the Arbitration and Conciliation Act, 1996 before the Hon'ble High Court, Patna and the out come of
the same is pending.
iii. Atlanta Ropar Tollways Private Limited
Project undertaken by SPV:
Development and Operation and Maintenance of Ropar-Chamkur-Sahib -Neelon-Doraha (up to NH 1) Road on Design, Build, Finance, Operate and
Transfer (DBFOT) basis in the State of Punjab, vide concession agreement entered on October 05,2011.
The said SPV has completed the said project and received Commercial Operation Certificate from the competent Authority on 08-11-2016 and
having right to collect the toll from the users of the facility during the concession period.
On 05-08-2021 the Authority (PIDB) has terminated the Concession Agreement vide letter no. PWD-BR-3012/21/2021-3BR3/178/1 dated.05-08-
2021. By virtue of termination of Concession Agreement, the BOT (Intangible Asset) and toll collection right have been takeover by PIDB.
6 Employee benefit obligations
The Company has classified various employee benefits as under:
a. Defined contribution plans
i. Provident fund
ii. Employees’ Pension Scheme, 1995
c. Other related parties with whom transactions have taken place during the year:
i. Enterprises over which individual described in B above have control/significant influence
Shree Vaibhavlakshmi Finance Pvt.Ltd
Vaikuntam Realty Pvt.Ltd
Shreenath Builders
Atul Raj Builders Pvt.Ltd
Prakash Atlanta Joint Venture
ii. Key Managerial Personnel:
Dipesh Gogri
Prathmesh Gaonkar
iii. Relatives of Key Managerial Personnel:
Bhavana R.Bbarot
Ridhima M.Doshi
Pooja R Bbarot
d) Valuation processes
The Company obtains assistance of independent and competent third party valuation experts to perform the valuations of financial assets and
liabilities required for financial reporting purposes, including level 3 fair values. Discussions of valuation processes and results are held between
the Company and the value on periodically basis.
e) Valuation technique used to determine fair values
The main level 3 inputs used by the Company are derived and evaluated as follows:
The fair value of financial instruments is determined using discounted cash flow analysis.
The carrying amount of current financial assets and liabilities are considered to be the same as their fair values, due to their short term nature.
The fair value of the long-term Borrowings with floating-rate of interest is not impacted due to interest rate changes, and will not be significantly
different from their carrying amounts as there is no significant change in the under-lying credit risk of the Company borrowing (since the date of
inception of the loans). Further, the Company has no long-term Borrowings with fixed rate of interest.
For financial assets and liabilities that are measures at fair value, the carrying amount is equal to the fair values.
Note:
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.
Level 2: The fair value of financial instruments that are not traded in an active market (for example over-the-counter derivatives) is determined
using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all
significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for
unlisted equity securities which are included in level 3.
There are no transfers between any levels during the year.
The Company’s policy is to recognize transfer into and transfer out of fair value hierarchy levels as at the end of the reporting period.
13 Financial risk management
The Company’s business activities expose it to a variety of financial risks, namely liquidity risk, market risks and credit risk.
Risk Exposure arising from Measurement Management
Credit Risk Cash and cash equivalents, trade receivables, Ageing analysis Diversification of bank
financial assets measured at amortized cost. deposits, letters of credit
Liquidity Risk Borrowings and other Rolling cash flow Availability of committed
liabilities forecasts credit lines and borrowing
facilities
Market risk-interest rate Long-term borrowings at variable rates Sensitivity analysis Un hedged
The Company is exposed to credit risk, which is the risk that counterparty will default on its contractual obligation resulting in a financial loss to the
Company
Credit risk arises from cash and cash equivalents, financial assets carried at amortized cost and deposits with banks and financial institutions, as
well as credit exposures to trade customers including outstanding receivables.
Credit risk management
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss.
The Company’s credit risk arises from accounts receivable balances. Maj or customers of the Companies include public sector enterprises and state
owned companies having high credit quality. Accordingly, the Company’s customer credit risk is very low. With respect to intercorporate
deposits/ loans given to subsidiaries, the Company will be able to control the cash flows of those subsidiaries as the subsidiaries are wholly owned
by the Company.
For banks and financial institutions, only highly rated banks/institutions are accepted. Generally all policies surrounding credit risk have been
managed at company level.
The Company is making provision for trade receivables based on Expected Credit Loss (ECL) model. The reconciliation of ECL is as below:
b. 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 and cash and cash equivalents on the basis of expected cash flows.
This is generally carried out at local level in the operating subsidiaries of the Company in accordance with practice and limits set by the Company.
These limits vary by location to take into account the liquidity of the market in which the entity operates. In addition, the Company’s liquidity
management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these
monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.
i Maturities of financial liabilities
The amounts disclosed below are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the
c Market risk (' in Lakhs)
Market risk is the risk that the fair values of future cash flows of a financial instrument will fluctuate because of volatility of prices in the
financial markets. Market risk can be further segregated as: a) Foreign currency risk and b) Interest rate risk.
(i) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign
exchange rates. Company does not have any foreign currency loans, receivables or payables, hence the risk towards foreign currency risk is
not applicable to the Company.
For that reason, sensitivity analysis with respect to foreign currency risk has not been disclosed
(ii) 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 long-term borrowings with variable rates, which expose the Company to cash flow
interest rate risk. During March 31, 2025, and March 31, 2024 of the Company’s borrowings at variable rate were mainly denominated in
Rupees.
The Company’s fixed rate borrowings are carried at amortized cost. They are therefore not subject to interest rate risk as defined in Ind AS-
107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.
14 Capital Management
i. Risk Management
The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to provide
returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order
to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to
shareholders, issue new shares or sell assets to reduce debt.
The Company monitors capital on basis of total equity and debt on a periodic basis. Equity comprises all components of equity. Debt
includes term loan, others and short term loans. The following table summarizes the capital of the Company:
15 Segment reporting
Presently, the Company is engaged in only one segment viz 'Construction activity' and as such there is no separate reportable segment as per
Ind AS 108 'Operating Segments'. Presently, the Company's operations are predominantly confined in India.
The Board of directors (BOD) is the Company’s chief operating decision-maker. Management has determined the operating segments based
on the information reviewed by the BOD for the purposes of allocating resources and assessing performance. Presently, the Company is
engaged in only one segment viz 'Real estate and allied activities' and there is no separate reportable segment as per Ind AS 108 'Operating
Segments'.
Entity wide disclosure
a. Information about product and services - The Company operates is a single category viz " Construction and allied activities";
b. Information in respect of geographical area - The Company has operations within India;
c. Information about major customer - None of the customer contribute to more than 10% of total revenue of the Company. Non-current assets
excluding financial assets, current tax assets and deferred tax assets amounting to '31,29,46,280/-(March 31, 2024: '32,71,99,546/-) are
located entirely in India.
18 Additional Regulatory Information: Ratios (as per Annexure)
19 Fair value measurements
This note provides information about how the Company determines fair values of various financial assets and financial liabilities.
a. 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.
b. 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.
c. 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 3.4 in the financial statement.
ii. Loans and advances to related parties
20 Other additional Regulatory Information
a. Details of Benami property Held
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.
b. Borrowings secured against current assets
The Company does not have any borrowings from banks and financial institutions on the basis of security of current assets, there are no
requirements of filing quarterly returns or statements with banks as per the terms of relevant agreements.
c. Wilful Defaulter
The Company has never been declared as wilful defaulter by any bank or financial institution or government or any government authority.
d. Relationship with struck-off companies
The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.
e. Compliance with number of layers of companies
The Company has complied with the number of layers prescribed under the Companies Act, 2013.
f. Compliance with approved scheme(s) of arrangements
The Company has not entered into any scheme of arrangement
g. Utilisation of borrowed funds
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:
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 provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
h. Undisclosed income
There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act,
1961, that has not been recorded in the books of account.
i. Details of crypto currency
or virtual currency 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 V irtual Currency.
j. Valuation of property, plant and equipment, intangible asset and investment property
The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during
the current or previous year.
k. Registration of charges or satisfaction with Registrar of Companies
The Company has not made any delay in Registration of Charges under the Companies Act, 2013.
i. Utilisation of borrowings availed from banks and financial institutions
The borrowings obtained by the Company have been applied for the purposes for which such loans were was taken.
m. Title deed of immovable properties
The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly
executed in favour of the lessee), as disclosed in note 3.1, 3.2 & 3.3 to the standalone financial statements, are held in the name of the
Company
21 As per the requirements of rule 3(1) of the Companies (Accounts) Rules 2014 the Company uses accounting
software for maintaining its books of account that have a feature of recording audit trail of each and every transaction creating an edit log
of each change made in the books of account along with the date when such changes were made within such accounting software. This
feature of recording audit trail has operated throughout the year except for certain transactions, changes made through specific access and
for direct database changes and no audit trail features were tampered during the year.
22 All amounts in Financial statement are rounded off to "Lakhs".
23 The company has regrouped, reclassified & rearranged the previous period figures wherever necessary to confirm the current
year's presentation.
The accompanying notes are an integral part of these financial statements.
As per our report of even date For and on behalf of Board of Directors of Atlantaa Limited.
For Suresh C.Maniar & Co. Sd/- Sd/-
Chartered Accountants Rajhoo Bbarot Rickiin Bbarot
Firm Regn.No.110663 W Chairman Managing Director
DIN: 00038219 DIN: 02270324
Sd/-
K. V. Sheth
Partner Sd/- Sd/-
(M. No. 30063) Prathmesh Gaonkar Dipesh Gogri
(M.No. 61307) Chief Financial Officer
Place: Mumbai Company Secretary
Date: 15th May, 2025 Place:Mumbai
Date: 15th May, 2025
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