Notes to Accounts of Popular Estate Management Ltd.

Mar 31, 2024

xv| Provisions:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event. It Is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision Is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding 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)

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xvt) Earnings per equity share:

Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares outstanding during the period. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the company after adjusting for diluted earning, by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually Issued at fair value (l.e. the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date Dilutive potential equity shares are determined independently for each period presented.

The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any share splits and bonus shares issues Including for changes effected prior to the approval of the financial statements by the Board of Directors.

xvii) Dividend:

Final dividends on shares are recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the company''s Board of Directors.

xviil) Cenvat, Service Tax, Vat & GST:

GST credit on materials purchased / service availed for construction & development of the building are taken into account at the time of purchase and GST credit on purchase of capital items wherever applicable are taken into account as and when the assets are acquired.

GST credits so taken are utilized for payment of GST on units sold. The unutilized GST credit Is carried forward in the books.

(xix) Segment reporting

The Chief Operational Decision Maker (CODM) monitors the operating results of Its business Segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance Is evaluated based on profit or loss and is measured consistently with profit or loss In the financial statements Operating segments are reported in a manner consistent with the Internal reporting to the CODM.

Accordingly, the Board of Directors of the Company is CODM for the purpose of segment reporting. Refer note 29 for segment information presented

(xx) Statement of Cash flows

Cash flows are reported using the indirect method, whereby profit / (loss) 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

(xxl) Operating cycle:

The Operating cycle is the time between the acquisition of assets for processing and their realization In cash and cash equivalents. The Company has identified twelve months as its operating cycle. Accordingly, all assets and liabilities have been classified as current or non-current as per the Company''s operating cycle and other criteria set out in Ind AS 1- ''Presentation of Financial Statements'' and Schedule III to the Companies Act, 2013.

(c ) Rights, Preferences and Restrictions attached to equity shares

The Company has one class of equity shares having a par value of Rs 10 per share. Each shareholder is eligible for one vote per share held The dividend, if any proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, If any, In proportion to their shareholding.

,The Company has not reserved any share for Issue under options and contracts or commitments for the sale of shares or (d)

disinvestment.

There are no shares Issued pursuant to contract(s) without payment being received In cash or by way of bonus shares or ^e equity shares bought back for the period of 5 years Immediately preceding the balance sheet dale.

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The Company''s operations pre-dominantly relates to construction & development of buildings and infrastructure. The Company has considered the same as only one reporting segment in accordance with the requirement of ind AS 108 -Operating Segments

The Board of Directors ("BOD") evaluates the Company''s performance and allocates resources based on an analysis of various performance indicators of this single operating segment. The BOD reviews revenue and gross profit as the performance indicator for this single operating segment Accordingly, it constitutes as a single reportable operating segment

Entity Wide Disclosures:

1 There assets belonging to the Company located outside India. All assets of the company are located within India only.

2. Since there is no operation during both the years covered by these financial statements, following entity wide disclosures as required by Ind AS 109 Operating Segments" are not applicable to the company:

(I) Bifurecation of revenue from external customers by each group of products.

(ii) Bifurecation of net sales to external customers by geographic area on the basis of location of customers,

(Hi) Details of customer contributing 10% or more of total revenue of the company

32 Financial risk management

The Company''s activities expose it to a variety of financial risks, including credit risk, market risk and liquidity risk. The Company''s primary risk management focus Is to minimize potential adverse effects of market risk on its financial performance. The Company''s risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same.

The Company''s risk management is governed by policies approved by the board of directors. The Company Identifies, evaluates and hedges financial risks in close co operation with the Company''s operating units. The Company has policies for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of non-denvatlve financial instruments.

The board of directors oversees how management monitors compliance with the company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The board of directors Is assisted in its oversight role by internal audit (mainly handled inhouse by the team of fincance department). Internal audit undertakes both regular and ad-hoc reviews of risk management controls and procedures, the results of which are reported to the board of directors.

I Credit Risk

Credit risk Is the risk of financial loss to the Company if a customer or counterparty to a financial Instrument falls to meet its contractual obligations, and arises principally from the Company''s receivables from customers. Credit risk is managed through credit approvals, establishing credit limits, and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The history of trade receivables shows a negligible provision for bad and doubtful debts. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of expected losses in respect of trade and other receivables. The company Is required to assess credit risk on following assets:

I) Trade Receivables:

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country In which the customer operates, also has an influence on credit risk assessment. The Company with various activities as mentioned above manages credit risk.

There is no operation during the periods covered by these financial statements and hence the company Is not exposed to the credit risk during the periods covered by these financial statements Accordingly there is no outstanding trade receivables as at each balance sheet date and no need to provide for allowance in respect of doubtful debts.

II) Financial assets that are neither past due nor impaired

Credit risk from balances with banks and financial institutions Is managed by the Company''s treasury department in accordance with the Company''s assessment of credit risk about particular financial institution None of the Company’s cash equivalents, including other current financial assets, were past due or impaired as at each balance sheet date.

34 Capital Management:

The Company''s capital management is intended to maximise the return to shareholders and benefits for other stakeholders for meeting the long-term and short-term goals of the Company; and reduce the cost of capital through the optimization of the capital structure i.e. the debt and equity balance

The Company monitors the capital structure on the basis of Net debt to Equity ratio and maturity profile of the overall debt portfolio of the Company

142. Other Statutory Information

(I) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company tor holding any Bcnami property.

(ii) The Company do not have any transactions with companies struck off

(Hi) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period (hi) The Company has not been declared wilful defaulter by any bank or financial institution or other lender.

(v1 The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(vi) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies). including foreign entities (Intermediaries) with any oral or written understanding that the Intermediary shall:

(a) 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 (b) provide any guarantee, secunty or the like to or on behalf of the Ultimate Beneficiaries

(v»i) The Company have not received any fund from any person! i) or entityfiei), including foreign entities (Funding Party) with any nrai nr written understanding (whether recorded in wot my n* nllietwke) that the Company shaH.

(a) directly or indirectly tend or invest m other perxrrv. or entitle'', identified In any manner whatsoever by or on behalf of the Tunding Party (Ultimate Ucnchoancs) or (b) provide any guarantee, secunty or the like on behalf of the Ultimate Beneficiaries,

(v111) The Company have nut any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed Ji income during thu yvar in the U< assessments under the Inmme Tav Act. 1061

In terms of our report of even date For & on behalf of the board of

For, H. S. Janl & Associates. Popular Estate Management Limited .

Chartered Accountants a 1 lA,

(Firm Regd No 127S1SW) I I

r iet O. Paie) Urvi Meet Shah

VV r !/y Uiiectof \ Company Secretary

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~''^g124104H Yw" Mem No 73067

Hersh S. Janl Vlkram a Patel

proprietor Oirector.Chlef Financial Officer & Manager

(M. No. 1241041 (OIN: 00166707)

Place: Ahmedabad Place • Ahmedabad

Date : 28/09/2U24_Date 28/05/2024__

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Mar 31, 2015

Terms/Rights attached to Equity Shares

The Company is having only one class of Equity shares haves par vale of Rs 10/- each

Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

As per the records of the Company including its register of Shareholders/Members and other declarations received from the shareholders regarding beneficial interest, the above Shareholding represents both legal and beneficial ownership of shores

1. Corporate In Formation:

Popular Estate Management Limited is a public company domiciled in India, It is listed an Bambay Stock Exchange. The Company -s engaged In construction and engineering activities etc,

2. Basts of Preparation:

The financial statements of the company have been prepared In accondance with generally accepted accounting principles in India (Indian GAAP) The company has prepared these financial statements to company in all material respects with the accounting standards notified under the Companies Act, 2013 The financial Statements have been prepared on an accrual basis are under the historical cost convention method.

The accounting policies adopted in the preparatrion of financial statements are consistent with those of previous year, except for the change in accounting policy explained below

3. RELATED PARTY DISCLOSURES:

As per Accounting Standard 18, the disclosures of transactions with the related parties, disclosing relationship, nature transaction and quantum or transaction are as under:

4. The company operates only in one segment i.e. construction and engineering and hence there iS no other primary reportable segment as required by AS 17 on Segment Reporting as Issued by ICAI

5.Extra Ordinary Items

(A) (I) Shree Someshwara co.op. Housing Society Ltd., had appointed the company as a developer for development of the land of the society situated at Thaltej, Taluka Dascrol, in the registration district and sub-district Ahmedabad, bearing survey no. 310 admeasuring about 24411 sq. metrs. by development agreement dated 29/3/2007. As per clause no. 6.11 of development agreement, if the development of the project because of the circumstances beyond the control of the developer i.e. company or otherwise could not be commenced and/or executed or completed for any reason whatsoever, the developer i.e. company is entitled to receive compensation / damages or defamation charges for damages of goodwill of developer in the event of termination of development agreement and as per clause no.6.12 of the said development agreement the developer i.e. company is entitled for preemptive right to purchase the said land of the society.

(II) During the year under consider ation the society has decided to set out the said land without development and hence the developer i.e. the company Is untitled for the compensation for damages per development agreement entered into With the society, Hence, the termination agreement is entered into between the company and the society vide Lemination agreement dated 20/3/2015 and as per the termination agreement the company is entitled to receive Rs. 17,41,89,300/- as compersation/ damages for the re inguishment of right to sue for preemptive purchase right as a "developer and organizer" of the scheme In terms of development agreement dated 29/3/2007 directly from the purchaser of the said land.

(B) (1) Saral Samudayik Kheti Sahkari Mandii Ltd., had appointed the company as a Project Consultant & Organisers for the development of the land bearing survey no.182 admeasuring about 4452 sq.mtr. Survey no.185 admeasuring about 2529 sq.mtr Survey no. 186 admeasuring about 2428 sq. mtr., survey no.187 admeasuring about 1148 sq.mtr, and survey no,179 admeasuring about 4957 sq.mtr. Totaling to18514 sq.mtr, situated at village Amball, Taluka Dascroi, District and Sub-district Ahmedabad as per agreement dated 31/3/2007. The Sahkan Mandali had appointed the company as a project consultant and organizer for development of the land of the BahkanMendak for the project of cultivation and agricultural activities. As per clause no.16 of agreement, if the project of Framing because of the circumstances beyond the control of the "Project Consultant and Organiser" i.e. company or otherwise could not be commenced and/or executed or completed for any reason whatsoever, the Project Consultant and Organiser i.e. compary is entitled to receive compensation / damages or defamation charges for damages of goodwill of "Project Consultant and Organiser" In the event of termination of agreement and as per Clause no.17 of the said agreement the "Project Consultant and Organiser" i.e. company is entitled for preemptive right to purchase the said land of the SahkanMendai .

(II) The disputes and differences arose between Sahkari mandall and the company in respect of the rights and obligation of the parties arising out of the agreement entered Into Between me parlies dated 31/3/2007 and Sahkari Mandali has Sell out the land (except blockiio:179) without development and terminated the development agreement of 2011. During the year under consideration Sahkari Mandali has decided to sen out allowed the land at block no.179 without development and hence the developer l.e. the company is entitled for the comparisation for damages as per agreement entered Into with Sahkarl Mandai Hence, the termination agreement Is entered into between the company and the Sahkari Mandall vide term Malian agreement dated 20/3/2015 and as per the termination agreement the company Is entitled to receive Rs. 2,57,8 2,100/- as compensation/damages for the reliquishment of right to sue for preemptive purchase right as a "Project Consultant and Organiser" of the scheme In terms of agreement dated 31/3/2007 directly from the purchaser of the said land.

(C) The Advocate / legal counsel of the company have advised that as per the provisions of section 6(e) of the Transfer of Property Act, right to sue is not a property. Now the definition of capital asset u/s.2 (14) of the I.T. Act, 1961 that capital asset means a "property of every and" therfore, in order to Constitute a capital asset, there must he a property and if such property forms part of capital asset is transferred than the profits and gains arising therefrom would be chargeable to tax U/S.45 of the l.T Act, 1961. since right to sue is not a property, it is not a capital asset as per provisions of Income-tax Act, 1961, such a compensation/damages amounting to Rs. 17,41,89,300/- and Rs.2,57,62,100/- respectively is a capital receipt not subject to Income-tax. The facts of the company's case in respect of compensation received for relinquishment of their right to sue is squarely covered by facts and principles and ratio laid dawn by the Hon'ble jurisdictional Gujarat High Court In the case of Baroda Cement & chemicals Ltd. vs. CIT 158 itr 636 (Guj) and also by the decision or HOn'ble Delhi High Court in the case or CIT vs, J. Dalmia, 146 ITR 215 (Del.) as well as the decision of Hon'ble Calcutta High Court in the case of CIT vs. Ashoka Marketing Ltd. 164 ITR 664 (Cal.).

6. Contingent liabilities:

(Rs. in lacs)

Particulars As at 31st As at 31st March, 2015 March, 2014

Claims against the group not - - acknowledged as debts

Income Tax matters 362 90 120.92

7. The Company Is in the Process of appointing the Full time Company Secretary and Chief Financial Officer In accordance with the requirement of Companies Act 2013 Contingent liability arising on account of such non complaince Is not provided for being not quantifiable.

8. Previous Year's figures have been regrouped, rearranged and rescheduled wherever necessary to reflect its true nature.

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Mar 31, 2014

1. Corporate Information : Popular Estate Management Limited is a public company domiciled in India and incorporated under the Provisions of Companies Act, 1956. It is listed on Bombay Stock Exchange. The Company is engaged in construction and engineering activities etc.

2. Basis of Preparation : The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). To comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules 2006, (as amended) and relevant provisions of the companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention method.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

3. The company operates only in one segment i.e. Infrastructure and hence there is no other primary reportable segment as required by AS 17 on Segment Reporting as Issued by ICAI.

4. Previous Year''s figures have been regrouped, rearranged and rescheduled wherever necessary to reflect its true nature.

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Mar 31, 2013

1. Corporate Information :

Popular Estate Management Limited is a public company domiciled in India and incorporated under the Provisions of Companies Act, 1956. It is listed on Bombay Stock Exchange. The Company is engaged in construction and engineering activities etc.

2. Basis of Preparation :

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian gAaP). To comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules 2006, (as amended) and relevant provisions of the companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention method.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

3. Directors Remuneration amounting to Rs 26,50,000/- is after adjusting the Excess Remuneration of Rs 5,00,000/- paid in earlier financial year.

4. The company operates only in one segment i.e. Infrastructure and hence there is no other primary reportable segment as required by AS 17 on Segment Reporting as Issued by ICAI.

5. Previous Year''s figures have been regrouped, rearranged and rescheduled wherever necessary to reflect its true nature.

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Mar 31, 2012

1. Corporate Information :

Popular Estate Management Limited is a public company domiciled in India and incorporated under the Provisions of Companies Act, 1956. It is listed on Bombay Stock Exchange. The Company is engaged in construction and engineering activities etc.

2. Basis of Preparation :

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention method.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

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Mar 31, 2010

(i) The estimated amount of contracts remaining to be executed on capital account and not provided for Rs. Nil.

(ii) Contingent Liabilities not provided for Rs. Nil.

(iii) In opinion of the management Current Assets, Loans & Advances are approximately of the values stated if realised in ordinary course of the business.

(iv) Previous years figures have been regrouped/rearranged/recast wherever considered necessary.

(v) Balances of debtors,creditors,loans & advances, depositsand unsecured loan are as per books and subject to confirmation from respective parties.

(vi) Imports of materials , components,spare parts and Capital Goods Rs. Nil

(vii) Information under clause 4C & 4D of part II of Schedule VI of Companies Act, 1956 :

a) The company engaged in the infrastructure / development which is not ammenable for quantification. Hence the information required as per clause 4C of part II of schedule VI of Companies Act,1956 has not been furnished.

b) Information required under Clause 4D of part II of Schedule VI of the Companies Act, 1956 to the extent applicable are as per details furnished and certified by management is as follows : (i) Expenditure in foreign currency Rs. Nil.

(ii) Earning in Foreign Currency Rs. Nil. ( Previous year Nil)

(viii) Statement showing Disclosure of materially significant related party transaction entered into by the company is annexed herewith.