3B.1 As at 31 March 2024, an amount of H 14,855.01 lakhs is carried in the balance sheet towards the development of an amusement park at Chennai (Chennai project), comprising of H 8,243.63 lakhs under freehold land and H 6,611.38 lakhs under capital work-in-progress, property, plant and equipment and capital advances.
In October 2019, the Company received approval from the Government of Tamil Nadu for the exemption from payment of local body tax / entertainment tax on entry fees to the amusement park for a period of 5 years from 1 November 2019 till 31 October 2024. However, since the project had not progressed, in February 2020, the Company had obtained an extension of this exemption from the Government of Tamil Nadu to cover a period of 5 years from the date of commencement of commercial operations or 30 September 2021, whichever is earlier. During the financial years 2020-21 and 2021-22, the construction work could not be started due to the Covid-19 pandemic and hence the Company had sought further extension of the exemption from the Government of Tamil Nadu for a period of 10 years from the date of commencement of operations.
On 2 June 2023, the Company received the waiver of Local Body Tax vide The Government of Tamil Nadu Order (Ms) No.71. The Company has successfully obtained all the necessary approvals, clearances and No Objection Certificates for the project and the construction of the park is in progress.
The Company has sufficient funds to finance this project through internal accruals and borrowings as necessary. The Board of Directors is continuously monitoring the progress of the project. Based on the above factors, review of status, and valuation, the Board believes that the carrying value of the Chennai project is fairly stated.
3B.2 As at 31 March 2024, the Company has incurred an amount of H 13,153 Lakhs (which is included in CWIP) towards the development of amusement park at Bhubaneshwar, Odisha (Odisha Project). The land for the Odisha Project has been leased by the company from 29 June 2022 for a period of 90 years for an annual lease rent amounting to H 6.25 Lakhs. The Construction of the park is in progress and it is expected to commence operations in the first quarter of financial year 2024-25.
5.1 Bank deposits of H 2.00 lakhs as at 31 March 2024 (as at 31 March 2023- H 2.00 lakhs) is held as lien towards HDFC Bank Overdraft and H 4.00 lakhs as at 31 March 2024 (as at 31 March 2023 - H 4.00 Lakhs) is held as lien towards guarantee for Mamallapuram Local Planning Authority (MLPA), Chennai, Tamil Nadu.
Bank deposits of H 18.07 lakhs is held as lien towards guarantee for Industrial Development Corporation (IDCO), Odisha.
The Company generally operates on a cash and carry model, and hence the expected credit loss allowance for trade receivables is insignificant. The concentration of credit risk is also limited due to the fact that the customer base is large and unrelated. Also refer note 32.3.a
The Company has a single class of equity shares. Accordingly, all the equity shares rank equally with regard to dividends and share in the Company's residual assets. The equity shareholders are entitled to receive dividend as declared from time to time. The voting rights of an equity shareholder are in proportion to its share of the paid-up equity capital of the Company. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid.
Failure to pay any amount called up on shares may lead to forfeiture of the shares.
In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive the remaining assets of the Company, after distribution of all dues to preferential creditors, in proportion to the number of equity shares held by them.
The Board of Directors had recommended and the shareholders had approved a final dividend of 25% of the face value of equity share (H 2.5 per equity share of face value of H 10) for the financial year ended 31 March 2023. The final dividend was paid to the shareholders on August 2023.
The Board of Directors has recommended and the shareholders had approved a final dividend of 25% of the face value of equity share (H 2.5 per equity share of face value of H10) for the financial year ended 31 March 2024, subject to approval by shareholders at the ensuing Annual General Meeting.
The Company does not have a Holding Company, Subsidiaries or Associates.
16.5 Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date:
(a) No shares have been issued as bonus shares.
(b) No shares have been bought back.
(c) No shares have been issued for consideration other than cash.
The members in the annual general meeting held on 01 August 2016, approved Employee Stock Option Scheme, 2016 (ESOS 2016).
19.1 i) The Company had obtained working capital loan limits of H 2,500 lakhs (H 1,000 lakhs of fund-based limit and H 1,500 lakhs of non-fund-based limit) from HDFC Bank Limited, with an interest rate of 9.20% p.a (year ended 31 March 2023 - 9.15%). The working capital loan is secured by way of first pari passu charge on the current assets of the Company and collateral pari passu charge on 25.47 acres of Land and Building situated at Kunnathunadu village, Kochi (Amusement park at Kochi) and development thereon together with all the building and structure thereon, fixtures, fittings, and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth, both present and future.
During the current financial year, the Company availed additional fixed deposit backed limits of H 2,500 lakhs from HDFC Bank.
ii) The Company had also obtained working capital loan limits of H 500 lakhs from ICICI Bank Limited, with an interest rate of 9% p.a, which is secured by way of first pari passu charge on the current assets of the Company.
During the current financial year, the Company availed non-fund-based limits of H5,000 lakhs from ICICI Bank Limited, for issue of Letter of Credits (LC) for capital expenditure. The facility is secured by way of first pari passu charge on 25.47 acres of Land and Building situated at Kunnathunadu village, Kochi (Amusement Park at Kochi) and development thereon together with all the building and structure thereon, fixtures, fittings, and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth, both present and future, and an exclusive charge on plant & machinery procured through the Bank.
iii) The Company has not defaulted in the repayment of loans to banks and has not been declared as a wilful defaulter by any bank or financial institution or other lender in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.
iv) The Company has used the working capital facilities from banks and financial institutions for the specific purpose for which it was taken.
v) Returns or statements of current assets filed by the Company with banks, as required, are in agreement with books of account.
19.2 The Company had availed a Vehicle Loan of H32 lakhs on 28th October 2022, with an interest rate of 1.4395% p.a from Daimler Financial Services Private Limited for a tenure of 36 months.
Financial assets and liabilities include cash and cash equivalents, other balances with banks, trade receivables, loans, other financial assets, borrowings, trade payables, lease liabilities and other financial liabilities whose fair values approximate their carrying amounts largely due to the short term nature of such assets and liabilities.
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
The following table presents fair value hierarchy of assets and liabilities measured at fair value as on 31 March, 2024 :
The Company's financial risk management is an integral part of how to plan and execute business strategies. The Board of Directors has the overall responsibility for establishment and oversight of the Company's risk management framework. The Board of Directors has established the Risk Management Committee, which is responsible for developing and monitoring the Company’s risk management policies.
The Company’s activities expose it to a variety of financial risks, market risk (including interest risk), credit risk and liquidity risk. The Company’s overall risk management programme focuses to minimize potential adverse effects on the financial performance of the Company.
Credit risk arises from cash and cash equivalents and deposits with banks, as well as credit exposures to customers and other receivables. The Company applies prudent credit acceptance policies, performs ongoing credit portfolio monitoring as well as manages the collection of receivables in order to minimise the credit risk exposure.
The maximum exposure to credit risk for each class of financial instruments is the carrying amount of that class of financial instruments presented in the notes to the financial statements. The Company's major classes of financial assets are cash and cash equivalents, investment in mutual funds, term deposits, trade receivables and security deposits.
Deposits with banks are considered to have negligible risk, as they are maintained with high rated banks/ financial institutions as approved by the Board of Directors and the period of such deposits is 365 days or less to ensure liquidity.
Investments primarily include investment in liquid mutual fund units that are marketable securities of eligible financial institutions for a specified time period with high credit rating given by domestic credit rating agencies.
The management has established accounts receivable policy under which customer accounts are regularly monitored. The Company has a dedicated sales team which is responsible for collecting dues from the customer within stipulated period. The management reviews status of critical accounts on a regular basis.
There are no major customers / top customers customers accounted for more than 10% of the revenue for the year ended March 31, 2024 and March 31, 2023.
Trade receivables were not impaired during the current financial year. No customer accounted for more than 10% of the receivables as at March 31, 2024 and March 31, 2023.
Prudent liquidity risk management requires sufficient cash and marketable securities and availability of funds through adequate committed credit facilities to meet obligations when due and to close out market positions.
The Company has a view of maintaining liquidity with minimal risks while making investments. The Company invests its surplus funds in short term liquid assets in bank deposits and liquid mutual funds. The Company monitors its cash and bank balances periodically in view of its short term obligations associated with its financial liabilities.
The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Company monitors the return on capital. The Company’s objective when managing capital is to maintain an optimal structure so as to maximize shareholder value. There are no outstanding borrowings as at March 31, 2024 and March 31, 2023, where the Company sources its funds through its equity proceeds and internal accruals.
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.
i. Foreign currency risk
The Company does not have foreign currency exposure at the end of current and previous reporting date.
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 has minimal borrowings and there is no outstanding amount at the year-end. Accordingly, fluctuations in interest rate do not affect the profitability of the Company.
33 Disclosure as per the requirement of Section 22 of the Micro, Small and Medium Enterprise Development Act, 2006:
The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated 26 August 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allotted after filing of the Memorandum. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 31 March 2024 has been made in the financial statements based on information received and available with the Company. Further in the view of the Management, the impact of interest, if any, that may be payable in accordance with the provisions of the said Act is not expected to be material. The Company has not received any claim for interest from any supplier under the said Act.
34 Employee benefits
Amount recognised as an expense in the Statement of Profit and Loss in respect of defined contribution plan towards
a) Provident fund - H 201.59 lakhs (Year ended 31 March 2023 H 171.35 lakhs)
b) Employee state insurance - H 3.87 lakhs (Year ended 31 March 2023 H 6.08 lakhs).
c) Labour welfare fund and others - H 4.16 lakhs (Year ended 31 March 2023 H 3.21 lakhs).
The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Gratuity is a benefit to an employee in India based on 15 days' last drawn salary for each completed year of service with a vesting period of five years. These defined benefit plans expose the Company to actuarial risks, such as longevity risk and interest rate risk.
a. The discount rate is based on the term of the future liability. Term of the future liability is equal to term used in the bond rate table, for determining the discount rate.
b. Salary Escalation Rate: The estimates of future salary increases takes into account the inflation, seniority, promotion and other relevant factors.
c. Funds are managed by Life Insurance Corporation of India and composition of the fund as at the balance sheet date was not provided by the insurer.
Asset Liability Matching Strategies
The Company has purchased insurance policy, which is basically a year-on-year cash accumulation plan in which the interest rate is declared on yearly basis and is guaranteed for a period of one year. The insurance Company, as part of the policy rules, makes payment of all gratuity liability occurring during the year (subject to sufficiency of funds under the policy). The policy, thus, mitigates the liquidity risk. However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus, the Company is exposed to movement in interest rate (in particular, the significant fall in interest rates, which should result in a increase in liability without corresponding increase in the asset).
Description of risk exposures
Valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework which may vary over time. Thus, the Company is exposed to various risks in providing the above gratuity benefit which are as follows:
a) Interest Rate Risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability (as shown in financial statements).
b) Investment Risk: The probability or likelihood of occurrence of losses relative to the expected return on any particular investment.
c) Salary Escalation Risk: The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan’s liabilty.
d) Demographic Risk: The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.
e) Liquidity Risk: This is the risk that the Company is not able to meet the short-term gratuity payouts. This may arise due to non-availabilty of enough cash/cashequivalent to meet the liabilities or holding of illiquid assets not being sold in time.
35 Segment information
Based on the management approach as defined in Ind AS 108 - Operating Segment, the Chief Operating Decision Maker (CODM) evaluates the Company's performance and allocates the Company's resources based on an analysis of various performance indicators by business segments and the segment information is accordingly presented as Amusement Parks & Resort and Others. Resort is an integral part of Bangalore Park segment and disclosed accordingly. The Amusement Parks and Resort segment includes admission fees, running a hotel accommodation and other related services. Others segment includes sale of merchandise, cooked food, packed foods etc. The accounting principles used in the preparation of these financial statements are consistently applied to record revenue and expenditure in individual segments. The risks and rewards associated with these two categories of business are significantly different. Therefore, the primary segment consists of providing amusement facilities and resort and others. The Company caters to the domestic market and accordingly, there is no reportable geographical segments. Refer note 24.
Allocation of common costs : Common allocable costs are allocated to each segment according to the related contribution of each segment to the total common costs.
Unallocated : Unallocated items includes general corporate expenses and income which are not allocated to any segment.
Segment accounting policies : The Company prepares its segment information in line with the accounting policies adopted for preparing and presenting the financial statements.
39 Details of provisions and movements in each class of provisions as required by the Indian Accounting Standard (Ind AS) 37 - Provisions, Contingent liabilities and Contingent assets
Provision for Service tax, other taxes and levies represents pending utilisation of transitional credit available under erstwhile Finance Act, 1994. The Company was unable to utilise the credit due to some clerical error occurred while filing the TRAN-1 return. The Company filed due representations before respective authorities in the state of Kerala and Karnataka and a writ petition was filed in the Honorable High Court of Telangana for necessary rectification. Though the Company was expecting a favorable order, as an abundant caution, provision to the extent of unused credit H 937.50 lakhs was maintained in the books of account.
The Hon’ble Supreme Court directed the Goods and Service Tax Network to open the GST portal for all the assessees for filing or revising Form TRAN-1/TRAN-2. The Company filed Form TRAN 1 within the stipulated timelines and the GST Department allowed transitional credits, which was credited to the Electronic Credit Ledger in February 2023. The balance provision in the books of account represented the transitional credit under appeal with the respective authorities in the State of Karnataka.
During the year ended 31 March 2024, the GST authorities in the State of Karnataka quashed the appeal filed for transitional credit. Accordingly, the Company reversed input credit by utilizing the balance provision in the books of account.
During the financial year 2018-19, the Company received an order from the Office of the Joint Commissioner of Labour, Rangareddy, Hyderabad under Building and Other Construction Workers Act, 1966 demanding building cess of H157.10 lakhs on the total estimated cost of construction. The cess is levied at the rate of 1% on the total estimated cost of construction. The Company had paid H41.57 lakhs under self assessment so the net demand was H115.53 lakhs. Aggrieved by the said order, the Company filed an appeal before the appellate authority. Though the Company is confident of obtaining a favourable order, as a matter of abundant caution, based on management estimation, a provision of H44.57 lakhs was created in the books.
During the financial year 2018-19, the Company received a notice from The Tahsildar, Kunnnathunadu Panchayath, Ernakulam, Kerala under Kerala Building Tax Ordinance, 1974 towards building tax on construction and improvements in Kochi park till December 2018. The amount demanded as per the notice is H 14.97 lakhs after adjusting the tax of H12.74 lakhs already paid by the Company. The Company filed an appeal on 31 January 2019 before the Revenue Divisional Officer, Muvattupuzha, Ernakulam for review of the same after paying the first installment of H 3.74 lakhs. During the year ended 31 March 2022, the Company received final order from the Tahsildar, Kunnathunadu during and the final demand as the per the order was H11.10 lakhs payable in 4 equal installments. The Company paid all the installments in the year ended 31 March 2023 and reversed the balance provision in the books of account.
During the financial year 2014-15, the Company started directly operating restaurants at Kochi Park. The raw materials for restaurants were sourced locally, and no interstate procurements were made. The Company opted for compounding scheme u/s 8(c) of the KVAT Act and remitted tax at the rate 0.5%. As inter-state purchases were being made for readymade garments, rides and technical spares, technically, by virtue of clause 8(c)(1)(d), the Company was ineligible to opt for compounding scheme under the Act. Hence, the Company voluntarily remitted the differential
Post completion of scrutiny assessment for AY 2018-19, the Company received assessment order for a tax demand of H 39.06 lakhs for the disallowance under Section 43B of the Income Tax Act, 1961. The Company filed an appeal before Commissioner of Income Tax (Appeals), against the order. Though the Company is expecting a favorable order, as an abundant caution, provision to the extent of H28.26 lakhs has been maintained in the books of account and the balance amount of H10.80 lakhs has been disclosed as a contingent liability.
F Contingent liabilities
Amount in H lakhs
As at
Particulars
31 March 2024
31 March 2023
Contingent liabilities
Claims against the Company not acknowledged as debts:
Special entry tax demand pending appeal (the disputed tax is fully paid)
5.35
Local body entertainment tax
335.33
Interest on water cess
1.67
Income tax
18.54
Goods and Services Tax
336.20
-
Labour Cess
70.96
Value added tax
57.08
Litigations pending before various Courts relating to labour matters
8.33
Based on the Company's assessment, the above contingent liabilities would not have a material adverse impact on the Company's financial statements and the Company expects to succeed in its appeal/defense in these matters.
G Commitments
As at 31 March 2024
As at 31 March 2023
Estimated amount of unexecuted capital contracts (net of advances)
8,415.86
7,809.52
H The Hon'ble Supreme Court on 28 February 2019 decided on M/s Vivekananda Vidya Mandir and others vs. RPFC that wages for the purpose of Provident Fund contribution will include all monetary allowances excluding House Rent Allowance paid to employees. This is at variance with the methodology for Provident Fund calculation adopted by the Company in the previous periods and accepted by the Provident Fund Authorities. As there is no clarity on the methodology for calculation and no notice of demand has been received from the Authorities, the Company is unable to reasonably estimate the likely impact of the above decision for the previous periods.
41 Corporate Social Responsibility (CSR)
As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The unspent CSR obligation has to be transferred either to a separate bank account of the company or to any fund included in Schedule VII of the Companies Act, 2013. Unspent amount pertaining to ongoing projects has to be transferred to a separate bank account of the company called 'unspent CSR account' and unspent amount pertaining to other than ongoing projects has to be transferred to any fund included in Schedule VII of the Companies Act, 2013.The areas for CSR
42 Advances includes an amount of H 98.88 lakhs due from a foreign vendor which had gone into liquidation. This has been
fully provided for, in earlier years. Pending approval of Reserve Bank of India, both advance and provision have been carried
forward and not netted off.
43 Other Disclosures
a) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
b) There are no charges or satisfaction yet to be registered with the Registrar of Companies beyond the statutory period.
c) No Schemes of Arrangements have been applied or approved by the Competent Authority in terms of Section 230 to 237 of the Companies Act, 2013.
d) The Company does not have any subsidiaries and hence it is in compliance with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.
e) There are no properties / assets which are not held or registered in the name of the Company. No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
f) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding whether recorded in writing or otherwise, 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 on behalf of the Ultimate Beneficiaries.
g) The Company has not received any fund from any person(s) or entity(ies), including foreign entities(“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
h) The Company has no such transaction which is not recorded in the books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
i) The title deeds of all immovable properties, (other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favour of the Company) disclosed in the financial statements included in property, plant and equipment and capital work-in-progress are held in the name of the Company as at the balance sheet date.
j) The Company has no transactions or balances with the companies struck off under Companies Act, 2013 or Companies Act, 1956.
44 The Company has enabled audit trail for the primary software on March 11, 2024 and for the software in which certain revenue records are maintained on March 8, 2024. Further, the Company maintains point of sales records in software which is currently not equipped with the audit log functionality. The management is in the process of evaluating the requirements of Rule 3 (1) of the Companies (Accounts) Rules, 2014 with respect to this application system.