Notes to Accounts of EPSOM Properties Ltd.

Mar 31, 2024

Corporate information

M/s. EPSOM PROPERTIES LIMITED was originally incorporated in the name of Tamilnadu Drugs & Pharmaceuticals Export Private Limited on 04/03/1987 as a Private Limited Company under the Indian Companies Act, 1956. The Company was subsequently registered with the Chennai Registrar of Companies as a Public Limited Company on 26^th December, 1994 vide Registration no. L24231TN1987PLC014084

The registered office of the company is located at Old No. 249, New No. 339, Safi House, 2^nd Floor, Anna Salai, Teynampet Chennai 600006 Tamil Nadu, India.

Note 15Significant accounting policies

15.1 Basis of accounting and preparation of financial statements

In accordance with the notification issued by the Ministry of Corporate Affairs, the Company is required to prepare its Financial Statements as per the Indian Accounting Standards (‘Ind AS’) prescribed under section 133 of Companies Act, 2013 read with rule 3 of the Companies (Indian Accounting Standards) Rules,2015 as amended by the Companies (Accounting Standards) Amendment Rules, 2016 with effect from 1^st April, 2017. Accordingly, the Company has prepared these Financial Statements which comprise the Balance Sheet as at 31^st March, 2024, the Statement of Profit and Loss, the Statement of Cash Flows and the Statement of Changes in Equity for the year ended 31^st March, 2024, and a summary of the significant accounting policies and other explanatory information together hereinafter referred to as “Financial Statements”. The figures for the previous year ended 31^st March, 2023 and opening balance sheet as on 1^st April 2023 have also been reinstated by the management as per the requirements of Ind AS.(b) The company is not carrying on any commercial operations and incurred loss continuously and 100% of the share capital is eroded and the financial statements continue to be are prepared on a going concern basis on the assumption that the company will commence its operations in near future. The appropriateness of assumption of going concern is dependent upon the company’s ability to generate enough cash flow in future to meet its obligations.

15.2 Use of estimates

The preparation of the financial statements in conformity with Indian Accounting Standards requires the Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Although such estimates are made on a reasonable and prudent basis taking into account all available information, actual results could differ from those estimates.

15.3 Cash and cash equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

15.4 Property Plant & Equipment

Fixed assets are stated at cost net of depreciation. The cost of an asset comprises its purchase price and any cost directly attributable for bringing the asset to its working condition and location for its intended use.

15.5 Depreciation and amortisation

(i) Depreciation is recognised so as to write off the cost of the asset less their residual values over the useful life using the Schedule II of the Companies Act, 2013.

(ii) Depreciation on additions is charged proportionately from the date of acquisition/ installation.

(iii) Depreciation is provided on the pro-rata basis from the date the asset is being put to us.

15.6 Revenue recognition

Sale of Service Income is recognized based on the IND AS. Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable. Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized, Revenue from contracts priced on a time and material basis are recognised when services are rendered and related costs are incurred. Revenue from overseas sale of service is recognised whereas the undisputed statutory due (GST) is not remitted to statutory authority. Hence, the exporter of service (EPSOM properties Limited) can claim refund of IGST only after remittance to GST Authority by filing GSTR1 (Table 6A) and GSTR 3B.

15.7 Investments

Investments will be classified into current investments and non-Current investments. Current investments are carried at lower of cost or Market price on the relevant date. Non-Current investments are carried individually at cost less provision for diminution, other than temporary, in the value of such investments. Cost of investments include acquisition charges such as brokerage, fees and duties.

15.8 Employee benefits

Short term employee benefits including salaries, social security contributions, short term compensated absences (such as paid annual leave) where the absences are expected to occur within twelve months after the end of the period in which the employees render the related service, profit sharing and bonuses payable within twelve months after the end of the period in which the employees render the related services and non-monetary benefits for current employees are estimated and measured on an undiscounted basis.

15.9 Borrowing costs

Borrowing costs include interest, amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings, if applicable, to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of

funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan.

15.10 Segment reporting

The Company does not have any other segments of business. Hence Segmental reporting is not applicable to the company.

15.11 Current- Non-Current Classification

All assets and liabilities are classified into current and non-current Assets

An asset is classified as current when it satisfies any of the following criteria:

(a) it is expected to be realized in, or is intended for sale or consumption in, the Company’s normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is expected to be realized within 12 months after the reporting date; or

(d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current portion of non-current financial assets All other assets are classified as non-current

Liabilities

A liability is classified as current when it satisfies any of the following criteria:

(a) it is expected to be settled in the Company’s normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is due to be settled within 12 months after the reporting date or

(d) the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counter party, result in its settlement by the issue of equity instruments do not affect its classification.

Current liabilities include current portion of non-current financial liabilities.

All other liabilities are classified as non-current.

15.12 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate.

15.13 Taxes on income

Current tax is the amount of tax payable on the taxable income for the year after taking into consideration the benefits /disallowances admissible under the provisions of the Income Tax Act, 1961. Accordingly Minimum Alternate Tax which is in excess of Current Year Tax Liability is being carried forward is being carried forward as a Current Asset in the Balance Sheet.

Minimum Alternate Tax paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences.

15.14 Impairment of assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, except in case of revalued assets.

15.15 Provisions, Contingent Liabilities and Contingent Assets

Under Indian GAAP, the Group has accounted for provisions, including long-term provision, at the undiscounted amount. In contrast, Ind AS 37 requires that where the effect of time value of money is material, the amount of provision should be the present value of the expenditures expected to be required to settle the obligation. The discount rate(s) should reflect risks for which future cash flow estimates have been adjusted. Ind AS 37 also provides that where discounting is used, the carrying amount of a provision increases in each period to reflect the passage of time. This increase is recognized as borrowing cost. Contingent liabilities are not recognised but are disclosed in the financial statements. Contingent assets are neither recognised nor disclosed in the financial statements.

15.16 Operating Cycle

Based on the nature of activities of the company and normal time between acquisition of assets and their realisation of cash and cash equivalent, the company has determined operating cycle as 12 months for the purpose of classification of its assets and liabilities as non-current and current.

15.17 Other comprehensive income

Under Indian GAAP, the Group has not presented other comprehensive income (OCI) separately. Hence, it has reconciled Indian GAAP profit or loss to profit or loss according to Ind AS. Furthermore, Ind AS profit or loss is reconciled to total comprehensive income as per Ind AS.

15.18 Cash Flow Statement

Cash flows are reported using the indirect method, whereby net 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 regular revenue generating, investing and financing activities of the Company are segregated.

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Mar 31, 2019

a) Terms/rights attached to equity shares

The Company has only one class of shares referred to as equity shares having a par value of Rs. 10/- per share. Each holder of Equity Shares is entitlted to one vote per share.

As per the Companies act 2013, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in the event of liquidation of the Company. However no such preferential amount exist currently.

The distribution will be in proportion to the number of equity shares held by the shareholders.

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Mar 31, 2015

1. Terms/riohts attached to equity shares

The Company has only one class of shares referred to as equity shares having a par value of Rs. 10/-pershare. Each holder of Equity Shares is entitlted to one vote per share.

As per the Cpmpanies act 2013, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in the event of liquidation of the Company. However no such preferential amount exist currently.

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Mar 31, 2014

Terms/rights attached to equity shares

The Company has only one class of shares referred to as equity shares having a par value of Rs. 10/- per share. Each holder of Equity Shares is entitlted to one vote per share.

As per the Companies act 1956, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in the event of liquidation of the Company. However no such preferential amount exist currently.

The distribution will be in proportion to the number of equity shares held by the shareholders

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Mar 31, 2012

A. Gross Turnover 10.27 Laksh (Previous Year Rs. 6.14 lakhs)

B. Operating Lease

The Company's significant leasing arrangement is in respect of operating lease for office premises. Future Rentals payable Over the next 12 months: Rs.60,000 The aggregate lease rentals for the year amounting to Rs. 60,000/- have been charged to the Profit & Loss Account.

C. Deferred Tax

The Company following conservatism does not intend to create deferred tax assets for the year under review dub to reasonable uncertainty as to the utilization of such deferred tax assets in the foreseeable future.

D. Segment Reporting

As the Company's business activity fails within a single primary business segment viz. Real Estate. Construction and Leasehold and Freehold rights on properties, the disclosure requirements of AS-17 issued by ICAI are not applicable.

F. There are no permanent employees eligible for retirement benefits and hence no provision has been made in the accounts for Gratuity, Leave encashment and other retirement benefits.

G. Since the investment in the equity shares of quoted investments are infrequently traded the shares are valued at Re. 1/-per share.

H. In the opinion of the Management, Current Assets, Loans & Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

I. There are no dues to MSMEs which are required to be disclosed as per Schedule VI of the Companies Act, 1956.

J. Earnings in Foreign Exchange NIL (RY NIL)

K. Expenditure in Foreign Currency NIL (RY. NIL)

L. Previous year's figures have been regrouped wherever necessary so as to make them comparable with those of the current year.

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Mar 31, 2011

1. Segment Reporting

As the Companys business activity falls within a single primary busines segment viz. Real Estate, Construction and Leasehold and Freehold rights on properties, the disclosure requirements of AS-17 issued by ICAI are not applicable.

2. Considering the nature and value of Fixed Assets, no depreciation has been charged for the year.

3. There are no permanent employees eligible for reitrement benefits and hence no provision has been made in the accounts for Gratuity, Leave encashment and other retirement benefits.

4. Investments in shares and securities, both quoted and unquoted have no marketable value and hence are valued at Re.1/- per share.

5. In the opinion of the Management, Current Assets, Loans & Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

6. There are no dues to MSMEs which are required to be disclosed as per Schedule VI of the Companies Act, 1956.

7. Earnings in Foreign Exchange NIL (P.Y Rs. 14.78 Lakhs)

8. Expenditure in Foreign Currency NIL (P.Y. NIL)

9. Previous years figures have been regrouped wherever necessary so as to make them comparable with those of the current year.

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Mar 31, 2010

1. Gross Turnover Rs. 14.78 Lakhs (Previous Year Rs. 28.00 lakhs)

2. Transactions with Related Parties Key Management Personnel

Dr C Sivakumar Reddy Managing Director

Dr Mohan Swami Director

Mrs Gomathi A Vaidyanathan Director

Mr K Bhakthavatsala Reddy Director

Mr T S Raju Director

3. Operating Lease

The Companys significant leasing arrangement is in respect of operating lease for office premises. Future Rentals payable over the next 12 months : Rs.60,000

The aggregate lease rentals for the year amounting to Rs. 60,000/- have been charged to the Profit & Loss Account.

5. Deferred Tax

The Company following conservatism does not intend to create deferred tax assets for the year under review due to reasonable uncertainty as to the utilization of such deferred tax assets in the foreseeable future.

7. Segment Reporting

As the Companys business activity falls within a single primary business segment viz. Real Estate, Construction and Leasehold and Freehold rights on properties, the disclosure requirements of AS-17 issued by ICAI are not applicable.

8. Considering the nature and value of Fixed Assets, no depreciation has been charged for the year.

9. There are no permanent employees eligible for reitrement benefits and hence no provision has been made in the accounts for Gratuity, Leave encashment and other retirement benefits.

10. Investments in shares and securities, both quoted and unquoted have no marketable value and hence are valued at Re.1/- per share.

11. In the opinion of the Management, Current Assets, Loans & Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

12. The balances shown in creditors and advances have not been confirmed by the respective parties.

13. There are no dues to MSMEs which are required to be disclosed as per Schedule VI of the Companies Act, 1956.

14. Earnings in Foreign Exchange Rs. 14.78 lakhs (P.Y Rs. 28.00 Lakhs)

15. Expenditure in Foreign Currency NIL (P.Y. NIL)

16. Previous years figures have been regrouped wherever necessary so as to make them comparable with those of the current year.