x) Provisions and Contingent Liabilities
- Provisions are recognised when there is a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
- 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 nonoccurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.
- The Final GST Output liability, claim of Input tax credit and the amount of GST debited to Profit and Loss account, are subject to finalization of GST Audit, which is not complete as on the date of signing this Balance Sheet. Due to this reason, the impact on Financial Statements on account of GST credit mismatch cannot be stated.
xi) Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable. Sale of goods: Revenue from sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, based on the applicable incoterms. Amounts disclosed as revenue are net of returns, trade allowances, rebates, GST, value added taxes and amounts collected on behalf of third parties. The Company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the Company and the revenue recognition criteria have been complied.
xii) Cash and Cash Equivalents
In the cash flow statement, cash and cash equivalents includes cash on hand and demand deposits with banks.
xiii) Financial instruments
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.
- Fair value of financial assets and financial liabilities
All financial assets and liabilities are carried at amortised cost. The management consider that the carrying amounts of financial assets and liabilities recognized in the financial statements approximate their fair value as on March 31, 2024 and March 31, 2023.
- Impairment of financial assets
The Company applies the expected credit loss model for recognising impairment loss on financial assets measured at amortised cost and trade receivables. For trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 18, the Company always measures the loss allowance at an amount equal to lifetime expected credit losses. Further, for the purpose of measuring lifetime expected credit loss ("ECL") allowance for trade receivables, the Company has used a practical expedient as permitted under Ind AS 109. This expected credit loss allowance is computed based on a provision matrix which takes into account historical credit loss experience and adjusted for forward-looking information.
Recent pronouncements
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. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.
Financial assets, financial liabilities and equity instruments
Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial assets and liabilities are initially measured at fair value, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value measured on initial recognition of financial asset or financial liability.
The Company derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. The Company derecognises financial liabilities when, and only when, the Company's obligations are discharged, cancelled or have expired.
xiv) Earnings Per Share (EPS)
EPS is calculated by dividing the Profit / (loss) attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year. Numbers used for calculating basic and diluted earnings per equity share are as stated below:
xv) Segment Reporting
An entity shall report separately information about each operating segment that:
- has been identified as an Operating Segment or results from aggregating two or more of those segments, and
exceeds the quantitative thresholds as specified in Ind AS 108 - Operating Segments
However, the company does not fall into any of the above stated criteria and hence the company does not qualify as a reportable segment and thus no segment reporting is provided.
xvi) Investments
- Investments in the nature of equity in subsidiaries and associates:
The Company has elected to recognize its investments in equity instruments in subsidiaries at cost being long term in nature in the standalone financial statements in accordance with the provisions of applicable Ind AS. Investment in subsidiaries are measured at cost less impairment loss, if any.
xvii) Related Party Disclosures
As per Indian Accounting Standard-24 issued by the Institute of Chartered Accountants of India, the disclosure of transactions with related parties as defined in the Accounting Standard are given below:
(e) Equity shares movement during the year ended March 31,2024:
* Equity shares issued as preferential allotment on 22.04.2023
1,34,70,108 number of fully paid equity shares having nominal value of INR 10 acquired by Eco Hotels and Resorts Limited from shareholders of Eco Hotels India Private Limited pursuant to required approval from Board,
* Equity shares issued as preferential allotment on 24.11.2023
1,20,35,606 number of fully paid equity shares having nominal value of INR 10 acquired by Eco Hotels and Resorts Limited from shareholders of Eco Hotels India Private Limited pursuant to required approval from Board,
Shareholders of EHRL and by BSE for in-principal, trading and listing approval.
(f) During the year, the Company has alloted Sweat Equity shares to the employees of the company. However, transfer of shares is not completed till the year end as approval for listing from BSE is received in the subsequent financial year. Hence, the same has not formed part of the share capital issued during the year.
(e) In the previous year, the Company had done preferential allotment of shares to the shareholders of Eco Hotels India Private Limited. However, transfer of shares was not completed till the year end and hence, the same did not form part of the Share Capital issued in the previo
Note No. 22: OTHER NOTES
i) Figures in the brackets are those relating to previous year.
ii) Expenditure in foreign currency during the financial year on account of:
Foreign Traveling Expenses - (Rs. Nil)
iii) Critical accounting judgements and key sources of estimation uncertainties:
The preparation of the financial statements in conformity with Ind AS requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.
iv) Trade Payables:
Dues of small enterprises and micro enterprises
The disclosure pursuant to the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED Act) for dues to micro enterprises and small enterprises as at March 31, 2024 and 2023 is as under:
Dues remaining unpaid to any supplier:
Principal Amount - Rs. 2,21,194/-
v) Additional Regulatory Information Required by Schedule III
a. No proceeding has been initiated or pending against the company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
b. The Company has not been declared willful defaulter (in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India) by any bank or financial Institution or other lender.
c. The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
d. The Company has not traded or invested in crypto currency or virtual currency during the year.
e. The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall:
(i) 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
(ii) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
f. The Company does not have any transaction not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 and there is no previously unrecorded income and related assets that are required to be recorded in the books of account during the year.
g. There are no charges or satisfaction yet to be registered with ROC beyond the statutory year.
h. Other information with regards to other matters specified in Schedule III to the Act, is either Nil or not applicable to the Company.
For ECO HOTELS AND RESORTS LIMITED (Formally known as Sharad Fibre & Yarn Processors Limited)
Girish L Shethia Vinod Tripathi Vikram Doshi
Chartered Accountant Executive Chairman Chief Financial Officer
M. No.: 044607 DIN: 00798632 DIN: 07546623
Sameer Desai
Company Secretary
Place: Mumbai Place: Mumbai
Date: 29th May, 2024 Date: 29th May, 2024
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