A provision is recognized if, as a result of past events, the Company has a present Legal or constructiveobligation that can be estimated reliably, and it is probable that an outflow of economic benefits willbe required to settle the obligation. Provisions are determined by discounting the expected future cash flows(representing the best estimate of the expenditure required to settle the present obligation at the balancesheet date) at a pre-tax that reflects current market assessments of the time value of money and the risksspecific to the liability.
The unwinding of the discount is recognized as finance cost. Expected future operating losses are not providedfor.
Contingent liabilities are disclosed in the Notes to the Standalone Financial Statements. Contingent liabilitiesare disclosed for:
i. possible obligations which will be confirmed only by future events not wholly within the control of theCompany, or
ii. Present obligations arising from past events where it is not probable that an outflow of resources will berequired to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.
Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangementof borrowings to the extent they are regarded as an adjustment to the interest cost.
Borrowing costs, if any, directly attributable to the acquisition, construction or production of an asset thatnecessarily takes a substantial period of time to get ready for its intended use or sale are capitalized, if any.All other borrowing costs are expensed in the period in which they occur.
The Company has elected to recognise its investments in subsidiary and associate and joint venture companiesat cost in accordance with the option available in Ind AS 27, Separate Financial Statements.
The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contractconveys the right to control the use of an identified asset for a period of time in exchange for consideration.
The Company applies a single recognition and measurement approach for all leases, except for short¬term leases and leases of low-value assets. The Company recognizes lease liabilities to make leasepayments and right-of-use assets representing the right to use the underlying assets.
The Company recognizes right-of-use assets at the commencement date of the Lease (i.e. the date theunderlying asset is available for use). Right-of-use assets are measured at cost, less any accumulateddepreciation and impairment losses and adjusted for any remeasurement of lease liabilities. The costof right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurredand lease payments made at or before the commencement date less any lease incentives received.Right-of-use assets are depreciated on a straight-line basis over the lease term.
If ownership of the Leased asset transfers to the Company at the end of the Lease term or the cost reflectsthe exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.
The right-of-use assets are also subject to impairment. Refer to the accounting policies in note 3(f) onimpairment of non-financial assets.
At the commencement date of the lease, the Company recognizes lease liabilities measured at the presentvalue of lease payments to be made over the lease term. The lease payments include fixed payments(including in-substance fixed payments) less any lease incentives receivable, variable lease paymentsthat depend on an index or a rate and amounts expected to be paid under residual value guarantees. Thelease payments also include the exercise price of a purchase option reasonably certain to be exercisedby the Company and payments of penalties for terminating the lease, if the lease term reflects theCompany exercising the option to terminate. Variable lease payments that do not depend on an index ora rate are recognized as expenses in the period in which the event or condition that triggers the paymentoccurs.
In calculating the present value of lease payments, the Company uses its incremental borrowing rate atthe lease commencement date because the interest rate implicit in the lease is not readily determinable.After the commencement date, the amount of lease liabilities is increased to reflect the accretionof interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities isremeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g.changes to future payments resulting from a change in an index or rate used to determine such leasepayments) or a change in the assessment of an option to purchase the underlying asset.
The Company applies the short-term lease recognition exemption to its short-term leases (i.e. thoseleases that have a lease term of 12 months or less from the commencement date and do not contain apurchase option). It also applies the lease of low-value assets recognition exemption to leases of assetsthat are considered to be low value. Lease payments on short term leases and leases of low value assetsare recognized as expense on a straight-line basis over the lease term.
Leases in which the Company does not transfer substantially all the risks and rewards incidental toownership of the asset are classified as operating leases. Assets subject to operating leases are includedunder Investment property.
Lease income from operating lease is recognized on a straight-line basis over the term of the relevantlease including lease income on fair value of refundable security deposits, unless the lease agreementexplicitly states that increase is on account of inflation. Costs, including depreciation, are recognized as anexpense in the statement of profit and loss. Initial direct costs incurred in negotiating and arranging anoperating lease are added to the carrying amount of the leased asset and recognized over the lease termon the same basis as rental income.
Advances paid by the Company to the seLLer/intermediary towards outright purchase of Land is recognizedas land advance under other assets during the course of obtaining clear and marketable title, free fromall encumbrances and transfer of legal title to the Company, whereupon it is transferred to land stock underinventories. Management is of the view that these advances are given under normal trade practices and areneither in the nature of loans nor advance in the nature of loans.
Operating segments are reported in a manner consistent with the internal reporting provided to the ChiefOperating Decision Maker (CODM) of the Company. The CODM is responsible for allocating resources andassessing performance of the operating segments of the Company.
Basic earnings per share is computed by dividing the net profit for the year attributable to the equityshareholders of the Company by the weighted average number of equity shares outstanding during the year.The weighted average number of equity shares outstanding during the year and for all the years presented isadjusted for events such as bonus shares, other than conversion of potential equity shares that have changedthe number of equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equityshareholders and the weighted average number of shares outstanding during the period is adjusted for theeffects of all dilutive potential equity shares.
In a capitalization or bonus issue or share split, ordinary shares are issued to equity shareholders for noadditionaL consideration. The number of ordinary shares outstanding before the event is adjusted for theproportionate change in the number of ordinary shares outstanding as if the event had occurred at thebeginning of the earLiest period presented.
Cash and Cash equivalents for the purpose of Cash Flow Statement comprise cash and cheques in hand, bankbalances, demand deposits with banks where the original maturity is three months or less and other shortterm highly liquid. which are subject to insignificant risk of changes in value
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards underCompanies (Indian Accounting Standards) Rules from time to time.
For the year ended March 31, 2025, MCA has notified Ind AS-117 Insurance Contracts and amendments toexisting Ind AS 116-Leases, relating to sale and leaseback transactions, w.e.f. April 1, 2024The Company has determined, based on its evaluation, that it does not have any Material impact in itsfinancial statements
The Indian Parliament has approved the Code on Social Security, 2020 which would impact thecontributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employmenthad released draft rules for the Code on Social Security, 2020 on 13 November 2020, and invited suggestionsfrom stakeholders which are under consideration by the Ministry. The Company will assess the impactand its evaluation once the subject rules are notified. The Company will give appropriate impact in itsfinancial statements in the period in which, the Code becomes effective and the related rules to determinethe financial impact are published.
(i) The company has only one single class of equity shares referred to as equity share having a par value of? 1 per share. Each shareholder is eligible for one vote per share held.
(ii) The Company declares and pay dividend in Indian Rupees. The dividend proposed by the Board of Directoris subject to the approval of the Shareholder in the Annual General Meeting except in case of interimdividend.
(iii) In the event of liquidation of the company, the equity shareholders are eligible to receive the remainingassets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
The sensitivity analyses presented above may not be representative of the actual change in the defined benefitobligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of theassumptions may be co-related. Further more, interpreting the above sensitivity analysis,the present value of thedefined benefit obligation has been calculated using the projected unit credit method at the end of the reportingperiod, which is the same as that applied in calculating the defined benefit obligation liability recognized in thebalance sheet. There was no change in the methods and assumptions used in preparing the sensitivity analysisfrom prior years.
The obligations are measured at the present value of estimated future cashflow by using a discount rate thatis determined with reference to the market yields at the Balance Sheet date on Government Bonds which isconsistent with the estimated terms of the obligation. The estimate of future salary increase, considered in theactuarial valuation, takes account of inflation, security, promotion and other relevant factors such as supply anddemand in the employment market.
The accrual for unutilised Leave is determined for the entire available Leave balance standing to the credit of theemployee at the year end. The value of such leave balances that are eligible for carry forward is determined byactuarial valuation as at the end of the year and acturiaL gains and Loss are charged to the statement of profitand Loss amount of ? 4.14 Lakhs (31 March 2024 : ? 4.39 Lakhs) towards Leave benefits is recognized as an expenseand induded in the Statement of Profit and Loss.
The Company is primarily engaged in the development of real estate comprising of residential and commercialprojects. Company’s performance of operation as defined in Ind AS 108 are evaluated as a whole by chief operatingdecision maker (’CODM’) of the company based on which development of real estate activities are consideredas a single operating segment. The Company reports geographical segment which is based on the areas in whichmajor operating divisions of the company operate and the entire operations are based only in India. None ofthe customers for the year ended 31 March 2025 constituted 10% or more of the Total revenue of the company.
There are no commitments as at 31 March 2025 as well as 31 March 2024
A. The company has received opinion from the office of the superintendent under Gujarat Stamp Act,
1958 wherein it has assessed Stamp Duty amounting to ? 651.88 Lakhs with reference to demerger
transaction undertaken by the company vide National Company Law Tribunal, Order No. CP(CAA) No. 56/NCLT/AHM/2018 and CA(CAA) No. 14/NCLT/AHM/2018. Based on Legal Opinion, the company has filed writpetition in Hon. Gujarat High Court vide Special Civil Application No. 1042/2023 against the said assessedduty. Moreover, based on the legal opinion, the company has made provision of stamp duty amountingto ? 39.38 Lakhs in the books of accounts. The said liability will be discharged once final assessmentorder is issued by the stamp duty authority.
B. The Hon’ble Supreme Court of India (“SC”) by their order dated 28 February 2019, in the case of Surya
Roshani Limited & others v/s EPFO, set out the principles based on which allowances paid to the
employees should be identified for inclusion in basic wages for the purposes of computation ofProvident Fund contribution. The Company has provided the impact of the said supreme courtjudgement with effect from 1 January 2020. In view of the management, any additional liability for theperiod from date of the SC order (28 February 2019) to 31 December 2019 is not material and
hence have not been provided in the books of account. In addition, management is of the view that thereis a considerable uncertainty around the timing and extent in which the judgement will be interpreted andapplied by the regulatory authorities and accordingly, the impact for periods prior to the date SC order (28February 2019), if any, is not ascertainable and consequently no financial effect has been provided for in thestandalone financial statements. Accordingly,this has been disclosed as a contingent liability in the standalonefinancial statements.
C. In the above cases, settlement of liability may result in outflow of additional cash than the amount disclosedin the note as contingent liabilities owing to interest component on such liability outstanding. Whereverinterest rate is determinable for any specific liability, the amount so disclosed is after consideringinterest on such liability up to the reporting date.
Note 1: Investments in associate, joint ventures and subsidiary have been accounted at historical cost. Sincethese are scoped out of Ind AS 109 for the purposes of measurement, the same have not been disclosed in thetables above.
The fair value of financial instruments as referred above have been classified into three categories dependingon the inputs used in valuation technique. The hierarchy gives the highest priority to quoted prices in activemarkets for identical assets or liabilities (Level I measurements) and lowest priority to unobservable inputs (LevelIII measurements).
The categories used are as follows:-
Input Level I (Directly Observable) : which includes quoted prices in active markets for identical assets such asquoted price for an equity security on Security Exchanges.
Input Level II (Indirectly Observable) : which includes prices in active markets for similar assets such as quotedprice for similar assets in active markets, valuation multiple derived from prices in observed transactions involvingsimilar businesses, etc.
Input Level III (Unobservable): which includes management’s own assumptions for arriving at a fair value such asprojected cash flow used to value a business, etc.
The fair value of the investment in quoted investment in equity shares is based on the current bid priceof investment at balance sheet date
There has been no transfer in between Level I and Level II
Inputs based on unobservable market data.
The Company has a well-defined risk management framework. The Board of Directors of the Companyhas adopted a Risk Management Policy. The Company has exposure to the following risks arising fromfinancial instruments:
Ý Credit risk ;
Ý Liquidity risk ; and
Ý Market risk
The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’srisk management framework. The board of directors evaluate and exercise independent control over the entireprocess of risk management. The board also recommends risk management objectives and policies.
The Company’s risk management policies are established to identify and analyse the risks faced by the Company,to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policiesand systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. TheCompany, through its training and management standards and procedures, aims to maintain a disciplined andconstructive control environment in which all employees understand their roles and obligations.
The audit committee oversees how management monitors compliance with the company’s risk managementpolicies and procedures, and reviews the adequacy of the risk management framework in relation to the risksfaced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal auditundertakes both regular and adhoc reviews of risk management controls and procedures, the results of which arereported to the audit committee.
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customercontract, leading to a financial loss. The Company is exposed to credit risk primarily trade receivables and otherfinancial assets including deposits with banks. The Company’s exposure and credit ratings of its counterpartiesare continuously monitored and the aggregate value of transactions is reasonably spread amongst the counterparties.
This comprises mainly of deposits with banks and retention money receivables. Credit risk arising fromdeposits with banks is limited as the counterparties are banks . Banks have high credit ratings assigned by thecredit rating agencies. Credit risk arising from retention money is included in trade receivables.
Customer credit risk is managed by each business unit subject to the Company’s established policy andprocedures. Credit limits are established for all customers based on flat booking terms. Outstanding customerreceivables are regularly monitored and any shipments to major customers are generally covered by letters ofcredit. The Company has no concentration of credit risk as the customer base is widely distributed economically.
An impairment analysis is performed at each reporting date based on the facts and circumstances existingon that date to identify expected losses on account of time value of money and credit risk. For the purposesof this analysis, the receivables are categorised into groups based on types of receivables. Each group isthen assessed for impairment using the Expected Credit Loss (ECL) model as per the provisions of IndAS 109 -Financial instruments. The calculation is based on provision matrix which considers actual historicaldata adjusted appropriately for the future expectations and probabilities. Receivables from group companiesand secured receivables are excluded for the purposes of this analysis since no credit risk is perceived onthem. Proportion of expected credit loss provided for across the ageing buckets is summarised below:
Credit risk arising from trade receivables is managed in accordance with the Company's establishedpolicy, procedures and control relating to customer credit risk management. An impairment analysisis performed at each reporting date based on the facts and circumstances existing on that date toidentify expected losses on account of time value of money and credit risk. The calculation is basedon defined percentage based on past experiences in the business ascertained by the management.
The Company is also exposed to credit risks arising on cash and cash equivalents and term deposits withbanks. The Company believes that its credit risk in respect to cash and cash equivalents and term deposits isinsignificant as funds are invested in term deposits at pre-determined interest rates for specified period oftime. For cash and cash equivalents and other bank balances, only high rated banks are accepted.
Other financial assets includes loan to employees and related parties, security deposits, etc. Credit risk arisingfrom these financial assets is limited and there is no collateral held against these because the counterpartiesare group companies, banks. Banks have high credit ratings assigned by the international credit rating agencies.
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated withits financial liabilities that are proposed to be settled by delivering cash or other financial asset. The Company’sfinancial planning has ensured, as far as possible, that there is sufficient liquidity to meet the liabilities wheneverdue, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to theCompany’s reputation. In addition to the Company’s own liquidity, it enjoys credit facilities with the reputed bankand financial institutions.
Management monitors the Company’s liquidity position and cash and cash equivalents on the basis of expectedcash flow. The Company’s liquidity management policy involves periodic reviews of cash flow projections andconsidering the level of liquid assets necessary, monitoring balance sheet, liquidity ratios against internal andexternal regulatory requirements.
Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates -will affect the Company’s income. Market risk is attributable to all market risk sensitive financial instrumentsincluding foreign currency receivables and payables and debt. The company does not have any foreign currencyexposure as at balance sheet date. Accordingly, company does not have currency risk.
Interest rate risk is the risk that the fair value or future cash flow of a financial instrument will fluctuatebecause of changes in market interest rates. The Company's liquidity and borrowing are managed by professionalat senior management level. The interest rate exposure of the Company is reduced by matching the duration ofinvestments and borrowings. The interest rate profile of the Company’s interest - bearing financial instrumentas reported to management is as follows:
Profit or loss is sensitive to higher/lower interest expense from borrowings as a result of change in interest rates.The following table demonstrates the sensitivity of floating rate financial instruments to a reasonably possiblechange in interest rates. The risk estimates provided assume a parallel shift of 100 basis points interest rateacross all yield curves. This calculation also assumes that the change occurs at the balance sheet date and hasbeen calculated based on risk exposures outstanding as at that date. The period end balances are not necessarilyrepresentative of the average debt outstanding during the period.
The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and marketconfidence and to sustain future development of the business. The board of directors seeks to maintain abalance between the higher returns that might be possible with higher levels of borrowings and the advantagesand security afforded by a sound capital position. The Company monitors capital using a ratio of ‘Debt’ to ‘Equity’.For this purpose, ‘Debt’ is meant to include long-term borrowings, short-term borrowings and current maturitiesof long-term borrowings. ‘Equity’ comprises all components of equity. The Company’s debt to equity ratio as atthe end of the reporting periods are as follows:
The Company’s significant leasing arrangements are in respect of operating leases for commercial premises.Lease income from operating leases is recognised on a straight-line basis over the period of lease. Theaggregate lease rental income including maintenance of ? 359.34 Lakhs (31 March 2024:^ 70.26 Lakhs) isaccounted in the statement of profit and loss.
There are no contingent rents which are recognised in statement of profit and loss. The future minimum leasereceivables of non-cancellable operating leases are as under:
The company has taken office premises on Lease. The terms of Lease incLudes terms of renewaLs, increasein rent in future periods, terms of canceLLation, etc. The agreement is executed for a period of 3 years with arenewabLe clause and also provide for termination at will by either party giving a prior notice of 1 months atany time during the lease term and hence considered the same to be of short term lease in nature under IndAS 116. Accordingly, no further disclosures are applicable.
The Company is engaged primarily in the business of real estate construction, development and other relatedactivities.
All the Contracts entered with the customers consists of a single performance obligation thereby the considerationallocated to the performance obligation is based on standalone selling prices.
The Company recognises revenue from contracts with customers when it satisfies a performance obligation bytransferring promised goods or service to a customer. The revenue is recognised to the extent of transaction priceallocated to the performance obligation satisfied. Performance obligation is satisfied over time when the transferof control of asset (goods or service) to a customer is done over time and in other cases, performance obligationis satisfied at a point in time. For performance obligation satisfied over time, the revenue recognition is done bymeasuring the progress towards complete satisfaction of performance obligation
For contracts where the aggregate of contract cost incurred to date plus recognised profits (or minus recognisedlosses as the case may be) exceeds the progress billing, the surplus is shown as contract asset and termed as“Due from customers”. For contracts where progress billing exceeds the aggregate of contract costs incurred to-date plus recognised profits (or minus recognised losses, as the case may be), the surplus is shown as contractliability and termed as “Due to customers”. Amounts or Contract Assets received before the related work isperformed are disclosed in the Balance Sheet as contract liability and termed as “Advances from customer”. Theamounts billed on customer for work performed and are unconditionally due for payment i.e. only passage oftime is required before payment falls due, are disclosed in the BalanceSheet as trade receivables. The amountof retention money held by the customers pending completion of performance milestone is disclosed as part ofcontract asset and is reclassified as trade receivables when it becomes duefor payment.
There are no adjustments made to the contracted price with customers which need to be reconciled to revenuerecognized in the statement of profit and loss. The revenue is recognised over a period of time in accordance withthe principles outlined in Ind AS 115.
For the year ended 31 Mar 2025, ? 4.50 Lakhs (31 Mar 2024, ? 4.50 Lakhs) was recognised as provision forImpairment allowances on Trade Receivables.
ALL Loans are given for the purposes of the business and are repayabLe as per agreed scheduLe of repayment.
DetaiLs of Investments made by the company are given in Note 6.
41. No Material event have occurred between the Balance sheet date to the date of issue of this standalone
financial statement that could affect the values stated in the financials statements as at 31 March 2025
a. The Company has not availed Loans from banks on the basis of security of current assets.
b. The company has not been declared a wilful Defaulters by any bank or financial institution or consortiumthereof in accordance with the guidelines on wiLfuL defaulters issued by the RBI.
c. There are no proceedings initiated or pending against the company for hoLding any benami property underthe Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
d. The company has not traded or invested in Crypto currency or Virtual Currency during the reporting periods.
e. The company has neither advanced, Loaned or invested funds nor received any fund to/from any person orentity for lending or investing or providing guarantee to/on behalf of the ultimate beneficiary during thereporting periods.
f. There is no immovable property whose title deed is not held in the name of the company.
g. There is no charge or satisfaction of charge which is yet to be registered with ROC beyond the statutoryperiod.
h. The company has complied with the number of Layers prescribed under clause (87) of section 2 of the Actread with the Companies (Restriction on number of Layers) Rules, 2017.
i The company has not entered into any scheme of arrangement in terms of sections 230 to 237 of theCompanies Act, 2013.
j The company does not have any transaction not recorded in the books of accounts that has been surrenderedor not disclosed as Income during the year in the tax assessments under the Income Tax Act, 1961.
k The Company has not entered into any transaction with struck off companies under section 248 ofCompanies Act, 2013 or section 560 of Companies Act, 1956. Further, there is no balance outstanding withstruck off companies.
l There are no intagible assets under developement as at 31 March 2025 and 31 March 2024
43. The figures for the previous year have been regrouped/reclassified wherever necessary to confirm with thecurrent year’s classification.
As per the requirements of Rule 3(1) of the Companies (Accounts) Rules 2014, the Company uses an accountingsoftware for maintaining its books of account that have a feature of, recording audit trail of each and everytransaction, creating an edit log of each change made in the books of account along with the date when suchchanges were made and who made those changes within such accounting software. This feature of recordingaudit trail has operated throughout the year and was not tampered with during the year. In respect of aforesaidaccounting software, after thorough testing and validation, it was noted that audit trail was not available forchanges made in master data. In respect of master data changes, the Company has established and maintainedan adequate internal control framework and based on its assessment, believes that this was effective for the yearended March 31, 2025. The Company hase preserved audit trail’s edit log as per statutiory requirnments.
As per our report of even date attached
For Dhirubhai Shah & Co. LLP For and on behalf of the Board of Directors of
Chartered Accountants Nila Spaces Limited
Firm’s Registration No: 102511W/W100298 CIN No. :L45100GJ2000PLC083204
Parth S Dadawala Deep Vadodaria Anand B Patel
Partner Wholetime Director Director
Membership No: 134475 DIN : 01284293 DIN : 07272892
Prashant H Sarkhedi Gopi V Dave
Chief Financial Officer Company Secretary
Place : Ahmedabad Place : Ahmedabad Place : Ahmedabad
Date : 05 May 2025 Date : 05 May 2025 Date : 05 May 2025