Notes to Accounts of Suratwwala Business Group Ltd.

Mar 31, 2025

s. Provisions, Contingent Liabilities and Contingent
Assets

A provision is recognized only when the Company has
a present obligation as a result of past events and it is
probable that an outflow of resources will be required
to settle the obligation, in respect of which there liable
estimate can be made. When a provision is measured
using the cash flows estimated to settle the present
obligation, it carrying amount is the present value of
those cash flows (when the effect of the time value of
money is material) and are determined based on best
estimate required to settle the obligation at the balance
sheet date. These are reviewed at each balance sheet
date adjusted to reflect the current best estimates.

Contingent liabilities and Contingent assets are not
recognized in the Standalone Financial Statements.

t. Financial Instruments

Financial assets and liabilities are recognized when the
Company becomes a party to the contractual provisions
of the instruments.

Financial assets and liabilities are initially measured at
fair value. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and
financial liabilities (other than financial assets and
financial liabilities at fair value through profit or loss) are
added to or deducted from the fair value measured on
initial recognition of financial asset or financial liability.

Transaction costs directly attributable to the acquisition
of financial assets or financial liabilities at fair value
through profit or loss are recognized in profit or loss.

• Effective Interest method

The effective interest method is a method of
calculating the amortised cost of a debt instrument

and of allocating interest income over the relevant
period. The effective interest rate is the rate that
exactly discounts estimated future cash receipts
(including all fees and points paid or received that
form an integral part of the effective interest rate,
transaction costs and other premiums or discounts)
through the expected life of the debt instrument,
or, where appropriate, a shorter period, to the net
carrying amount on initial recognition.

• Financial assets at amortised cost

Financial assets are subsequently measured at
amortised cost if these financial assets are held
within a business whose objective is to hold these
assets in order to collect contractual cash flows
and the contractual term so the financial asset give
rise on specified dates to cash flows that are solely
payments of principal and interest on the principal
amount outstanding.

• Financial assets at fair value through other
Comprehensive income

Financial assets at fair value through profit or
loss are measured at fair value at the end of
each reporting period, with any gains or losses
arising on re-measurement recognized in other
comprehensive income.

• Financial assets at fair value through profit or
loss

Financial assets at fair value through profit or
loss are measured at fair value at the end of each
reporting period, with any gains or losses arising on
re-measurement recognized in profit or loss.

• Financial liabilities and equity instruments

Financial liabilities and equity instruments issued
by the Company are classified according to the
substance of the contractual arrangements entered
in to and the definitions of a financial liability
and an equity instrument. Financial liabilities are
measured at amortised cost using the effective
interest method. Financial liabilities at FVTPL are
stated at fair value, with gains and losses arising
on remeasurement recognized in profit and loss
account.

u. Segment Reporting

In line with the provisions of Ind AS 108 - operating
segments and basis the review of operations being
done by the Board and the management, the operations
of the Company fall under real estate business, which
is considered to be the only reportable segment. The
Company derives its major revenues from construction
and development of real estate projects and its
customers are widespread. The Company is operating
in India which is considered as a single geographical
segment.

Significant management judgement in applying
accounting policies and estimation uncertainty

The preparation of the Company''s Standalone Financial
Statements requires management to make judgements,
estimates and assumptions that affect the reported
amounts of revenues, expenses, assets and liabilities
and the related disclosures.

Significant management judgements

The following are significant management judgements
in applying the accounting policies of the Company
that have the most significant effect on the Standalone
Financial Statements.

(i) Revenue from contracts with customers

The Company has applied judgements that
significantly affect the determination of the
amount and timing of revenue from contracts with
customers.

(ii) Recognition of deferred tax assets

The extent to which deferred tax assets can be
recognized is based on an assessment of the
probability of the future taxable income against
which the deferred tax assets can be utilized.

(iii) Evaluation of indicators for impairment of
assets

The evaluation of applicability of indicators of
impairment of assets requires assessment of several
external and internal factors which could result in
deterioration of recoverable amount of the assets.

(iv) Provisions and Contingent liabilities

At each balance sheet date basis of the
management judgment, changes in facts and legal
aspects, the Company assesses the requirement
of provisions against the outstanding contingent
liabilities. However, the actual future outcome may
be different from this judgement.

Recent Pronouncement

Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. For the year ended March
31, 2025, MCA has not notified any new standards or
amendments to the existing standards applicable to the
Company.

ii) Terms/Rights attached to Equity Shares

The Company has only one class of equity shares having a par value of ''1 per share. Each holder of equity shares is entitled to one
vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is
subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of Interim Dividend.

The Shareholders of the Company through postal ballot approved the sub-division of each equity share of the Company of
face value of ''10/- each fully paid up into 10 (Ten) equity shares of face value of ''1/- each fully paid up on March 21,2024. The
record date for the said sub-division was fixed as April 18, 2024. Pursuant to split of shares the equity shares of the Company
is increased from 1,73,41,644 equity shares to 17,34,16,440 equity shares of face value ''1/-. The basic & diluted EPS for the
current & prior periods of standalone financial statements haven been restated considering the face value of ''1/- each in
accordance with Ind AS 33 "Earning per Share".

The Shareholders of the Company through postal ballot approved the sub-division of each equity share of the Company of
face value of ''10/- each fully paid up into 10 (Ten) equity shares of face value of ''1/- each fully paid up on March 21,2024. The
record date for the said sub-division was fixed as April 18, 2024. Pursuant to split of shares the equity shares of the Company
is increased from 1,73,41,644 equity shares to 17,34,16,440 equity shares of face value ''1/-. The basic & diluted EPS for the
current & prior periods of standalone financial statements haven been restated considering the face value of ''1/- each in
accordance with Ind AS 33 "Earning per Share".

While preparing the financial statements for the year ended March 31,2024 the company discovered that net deferred tax asset
was recognized short to the extent of ''873.66 lakhs in earlier periods till March 31,2023 as well as the company had erroneously
reversed excess revenue of ''1,041.61 lakhs by crediting to an account under "Other Current Liabilities" while complying with
requirements of IndAS-115 while migrating from IGAAP to IndAS in prior periods. It is impracticable to adjust comparative
information for prior periods to achieve comparability with the current period as requisite data is not collected in prior periods in a
way that allows retrospective restatement to correct a prior period error & it is impracticable to recreate the information. In view of
these facts in accordance with IndAS-8, the company has restated opening balances of deferred tax asset, other current liability &
equity for the current period i.e. 01st April, 2023 by increasing deferred tax assets by ''873.66 lakhs, reducing other current liability
on account of excess reversal of revenue by ''1,041.61 lakhs & correspondingly increasing equity by ''1,915.27 lakhs.

b) Adiya Birla Finance Ltd.

Sanctioned Amount: ''900 Lakh
Balance as at 31st March 2025 - '' Nil
Balance as at 31st March 2024 - ''467.29 Lakh

Primary Secutrity: Development rights/Land at Hinjewadi, hypothecation of trade receivables, Shop at Purva
Plaza Sadashiv Peth (Individual Asset of the Director), Personal Guarantee of Directors.

Collateral Security:

Rate of Interest: 15%

Terms of Repayment: Repayable on Demand

c) Prachay Capial Private Ltd.

Sanctioned Amount: ''1000 Lakh
Balance as at March 31,2025 - '' Nil
Balance as at March 31,2024 - ''502.72 Lakh

Primary Secutrity:

1. Registered mortgage of all that piece and parcel of land admeasuring 14,325 Square Meters out of Sr No. 27/1,27/5(P),
28/1(P), 28/B/1, 28/B/2, 28/B/3, 28/B/4, situated at village Hinjewadi, Taluka Mulshi and District Pune, However,
excluding i) area admeasuring 741.76 Square Meters beating Survey No. 28/B/4 against PMRDA road widening, (fi)
area admeasuring 1256.84 Square Meters for Amenity space - 2 and area admeasuring 425.09 Square Meters for
Amenity Space - 1. Hence Net area to be mortgaged area is 11,901.31Square Meters and Excluding Building A & B
already constructed thereon.

2. Hypothecation and escrow of Borrower''s and Co-Borrower''s share in all present and future receivables from the
proposed project to be developed on Sr No. 27/1,27/5(P), 28/1(P), 28/B/1,28/B/2, 28/B/3, 28/B/4, situated at village
Hinjewadi, Taluka Mulshi and District Pune. However excluding receivables from Building A and B already constructed
thereon.

3. Negative Lien on unsold units in the proposed project to be developed on Sr No. 27/1, 27/5(P), 28/10P), 28/B/1.
28/B/2, 28/B/3, 28/B/4, situated at village Hinjewadi, Taluka Mulshi and Disteict Pune. However excluding units in
Building A. and B already constructed thereon.

Terms of Repayment: Loan will be repayable in 8-10 equal quarterly installments starting from the end of principal
moratorium.

Rate of Interest: 18% p.a.

This rate shall increase to 30% p.a. post 30/09/2025.

d) Adiya Birla Finance Ltd.

Sanctioned Amount: ''5000 Lakh

Balance as at 31st March 2025 - ''3508.91 Lakh
Balance as at 31st March 2024 - NIL

Primary Secutrity: Exclusive Charge by way of Registered mortgage on land parcel and unsold units from Prject "
Suratwala Mark Plazzo - C,D, E" Survey No. 27/1,27/5P, 28/1P, 28/B/1,28/B/2, 28/B/3, 28/B/4, Hinjewadi, (CT), Mulshi, Pune
- 411057

Collateral Security: Mortgage on Unsold Units from Project "Suratwala Mark Plazzo C,D,E" Survey No. 27/1,27/5P, 28/1p,
28/B/1,28/B/2, 28/B/3 & 28/B/4, Hinjewadi, Pune - 411057
Rate of Interest: 13.60%

Terms of Repayment: Repayable on Demand

Other Disclosures:

Since Company is not declared as wilful defaulter by any bank or financial institution or any other lender, the required
disclosure as per Schedule III in this regards has not been given.

The Shareholders of the Company through postal ballot approved the sub-division of each equity share of the Company of face
value of ''10/- each fully paid up into 10 (Ten) equity shares of face value of ''1/- each fully paid up on March 21,2024. The record
date for the said sub-division was fixed as April 18, 2024. Pursuant to split of shares the equity shares of the Company is increased
from 1,73,41,644 equity shares to 17,34,16,440 equity shares of face value ''1/-. The basic & diluted EPS for the current & prior
periods of standalone financial statements have been restated considering the face value of ''1/- each in accordance with Ind AS
33 "Earning per Share".

As at 31st March 2025 :

(a) The complainant has filed complaint in earlier years before MahaRERA and sought compensation Rs. 252.69 (In Lakhs) from
the Company alleging that there was delay in handing over possession of the commercial Units in B building to him on the
date as mentioned in Development Agreement. The Company filed its say in the matter contending that the Company is not
liable to pay any compensation as mentioned in the complaint. Because the Company completed construction of B building
within the time limit extended by MahaRERA. Extension to the project was granted by MahaRERA considering adverse impact
of Covid Pandemic on construction activities of the project. The reasons for extension of timeline for completion of B building
were beyond the control of the the Company, since there is no fault on the part of the the Company. During the year ended on
March 31,2024, an additional claim of Rs. 219.56 (In Lakhs) was raised by the complainant for additional delay in possession
of the commercial units agreed with him. However during the year the Company has handed over units to the complainant.
Further, during the year ended on March 31,2025 the complainant has withdrew all the cases filed against the Company upon
handing over possession of respective agreed units by the Company. As on year ended on March 31, 2025 there were no
contingent liability which was required to be identified & reported.

(b) During the year there are disputes pending with the authorities of GST. The Company is contesting the demand raised by
authorities and are pending at various appellate authorities.

Based on the grounds of the appeals and advice of the independent legal counsels, the management believes that there is a
reasonably strong likelihood of succeeding. Pending the final decision on the above matters, no adjustment has been made
in these standalone financial statements.

39 Financial risk management

In the course of its business, the Company is exposed primarily to fluctuations in interest rates, equity prices, liquidity and credit
risk, which may adversely impact the fair value of its financials instruments.

The company assesses the unpredictability of the financials environment and seeks to mitigate potential adverse effects on the
financial performance of the Company.

The Company has exposure to the following risks arising from financial instruments:

- credit risk - see note (a) below

- liquidity risk - see note (b) below

- market risk - see note (c) below

39 (a) Credit risk:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Company''s receivables from customers.

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However,
management also considers the factors that may influence the credit risk of its customer base, including the default risk associated
with the industry and country in which customers operate.

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. On account of adoption of Ind AS 109, the
Company uses expected credit loss model to assess impairment loss or gain. The Company uses a matrix to compute the expected
credit loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors
and Company''s historical experience for customers.

(i) The Company has not made any provision on expected credit loss on trade receivables and other financials assets, based on
the management estimates as none of the financial instruments of the Company result in material concentration of credit risk.

(ii) Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks and financial
institutions with high credit ratings assigned by domestic credit rating agencies.

39 (b) Liquidity risk:

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities
that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, that it
will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Company''s reputation.

The Company''s treasury department is responsible for liquidity and funding. In addition, policies and procedures relating to such
risks are overseen by the management.

The company''s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from the operations.

Intangible assets which comprise of the development expenditure incurred on new product and expenditure incurred on
acquisition of user licenses for computer software are recorded at their acquisition price.

39 (c) Market risk:

Market risk is the risk that the fair value or future cash flows of the financials instruments will flucturate because of the changes
in the market prices. Market risk comprises two types of risk: interest rate risk and other price risk, such as equity price risk and
commodity/real estate risk.

(1) Foreign currency risk :

The Company has its revenues and other transactions in INR which is the functional currency.Accordingly, the Company is not
exposed to any currency risk and hence, this risk is not applicable.

(2) 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''s exposure to the risk of changes in market interest rates relates primarily to the Company''s
debt obligations with floating interest rates. The management is responsible for the monitoring of the Group''s interest rate

40 Capital management

The Company''s capital comprises equity share capital, surplus in the statement of profit and loss and other equity attributable to
equity holders.

The Company''s objectives when managing capital are to :

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and
benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital.

41 (b)

As per Ind AS 107 "Financial Instrument: Disclosure", fair value disclosures are not required when the carrying amounts reasonably
approximate the fair value.

As illustrated above, all financial instruments of the Group which are carried at amortised cost approximates the fair value.
Accordingly fair value disclosures have not been made for these financial instruments.

42 Employee Benefits

The details of employee benefits as required under Ind AS 19 ''Employee Benefits'' is given below:

A. Defined Benefit Plans
Gratuity

Gratuity is payable to all eligible employees on retirement, death while in employment or termination of employment in terms
of the provisions of the Payment of Gratuity Act or as per the Company''s policy whichever is beneficial to the employees.
Vesting occurs on completion of five years of service.

Liability Risks

1. Asset-Liability mismatch risk- Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities.
By matching duration with the defined benefit liabilities, the company is successfully able to neutralize valuation swings
caused by interest rate movements. Hence companies are encouraged to adopt asset-liability management.

2. Discount rate risk- Variations in the discount rate used to compute the present value of the liabilities may seem small, but
in practise can have a significant impact on the defined benefit liabilities.

3. Future salary escalation and inflation risk - Since price inflation and salary growth are linked economically, they are
combined for disclosure purposes. Rising salaries will often result in higher future defined benefit payments resulting in
a higher present value of liabilities especially unexpected salary increases provided at management''s discretion may lead
to uncertainties in estimating this increasing risk.

The performance obligation of the Company in case of sale of commercial/residential units is satisfied once a project is
completed and control is transferred to the customers in respect of contract with customer entered into on or before January
01, 2025 and over the period of time in respect of contract with customer entered into on or after January 01,2025. The
customer makes the payment for contracted price as per the installment stipulated in the respective Buyer''s Agreement.

45 Leases

The Company recorded the lease liability at the present value of the lease payments discounted at the incremental borrowings
rate and the ROU asset at its carrying amount as if the standard had been applied since the commencement date of the lease, but
discounted at the Company''s incremental borrowings rate at the date of initial application.

The weighted-average rate applied is 9.00%.

C. Impacts on financial statements

On transition to Ind AS 116 - Leases, the Company has not recognised any right-of-use asset and lease liabilities, as all the
leases are in the nature of short-term leases.

47 Additional Regulatory Information
Details of Benami Property held

The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for
holding any Benami property.

Details of Loans and advances

The Company has not granted any loans and advances to promoters, directors, key managerial personnel (KMPs) and the related
parties which are repayable on demand or without specifying any terms or period of repayment.

Wilful Defaulter

The Company has not been declared as a wilful Defaulter by any Financial Institution or bank as at the date of Balance Sheet.
Relationship with Struck off Companies

The Company do not have any transactions with companies struck off.

Registration of charges or satisfaction with Registrar of Companies (ROC)

The Company has no pending charges or satisfaction which are yet to be registered with the ROC beyond the Statutory period.
Compliance with number of layers of companies

The Company has complied with the provision of 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.

Discrepancy in utilization of borrowings

The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the
balance sheet date. There are no discrepancy in utilisation of borrowings.

Utilisation of Borrowed funds and share premium:

(A) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources
or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries).

(B) the Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party).

The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(intermediaries) with the 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, security or the like to or on behalf of the Ultimate Beneficiaries;

48 Additional Information
Undisclosed income

The Company has no transaction that is not recorded in the books of accounts that has been surrendered or disclosed as income
during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions
of the Income Tax Act, 1961).

Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual Currency.

49 Operating Segments

Description of segments and principal activities

The Company is primarily engaged in the business of construction and sale of Building.

50 Additional Information

Previous year''s figures have been regrouped/reclassified wherever necessary to confirm current year''s presentation.

# Includes as on 31-March-25 Rs.660.93 Lakh (31-March-24 Rs.6606.27) recognised out of opening contract liabilities.

As per our report of even date

For Parag Patwa & Associates For and on behalf of Board of Directors of

CHARTERED ACCOUNTANTS Suratwwala Business Group Ltd.

ICAI Firm''s Registration No. 107387W CIN: L45200PN2008PLC131361

CA. Tarak J. Trivedi Jatin Suratwala Manoj Suratwala

Partner Managing Director Whole Time Director

M. No.143690 DIN:01980329 DIN:01980434

Place: Pune Pooja Thorave Manish Kasliwal

Date: May 27, 2025 Company Secretary Chief Financial officer

UDIN: 25143690BMJHVL5934 M. No. A74439

---

Mar 31, 2024

s. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized only when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which there liable estimate can be made. When a provision is measured using the cash flows estimated to settle the present obligation, it carrying amount is the present value of those cash flows (when the effect of the time value of money is material) and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date adjusted to reflect the current best estimates.

Contingent liabilities and Contingent assets are not recognized in the Standalone Financial Statements.

t. Financial Instruments

Financial assets and liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value measured on initial recognition of financial asset or financial liability.

Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized in profit or loss.

• Effective Interest method

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

• Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual term so the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

• Financial assets at fair value through other Comprehensive income

Financial assets at fair value through profit or loss are measured at fair value at the end of each reporting period, with any gains or losses arising on re-measurement recognized in other comprehensive income.

• Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss are measured at fair value at the end of each reporting period, with any gains or losses arising on re-measurement recognized in profit or loss.

• Financial liabilities and equity instruments

Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered in to and the definitions of a financial liability and an equity instrument. Financial liabilities are measured at amortised cost using the effective interest method. Financial liabilities at FVTPL are

stated at fair value, with gains and losses arising on remeasurement recognized in profit and loss account.

u. Segment Reporting

In line with the provisions of Ind AS 108 - operating segments and basis the review of operations being done by the Board and the management, the operations of the Company fall under real estate business, which is considered to be the only reportable segment. The Company derives its major revenues from construction and development of real estate projects and its customers are widespread. The Company is operating in India which is considered as a single geographical segment.

Significant management judgement in applying accounting policies and estimation uncertainty

The preparation of the Company''s Standalone Financial Statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the related disclosures.

Significant management judgements

The following are significant management judgements in applying the accounting policies of the Company that have the most significant effect on the Standalone Financial Statements.

(i) Revenue from contracts with customers

The Company has applied judgements that significantly affect the determination of the

amount and timing of revenue from contracts with customers.

(ii) Recognition of deferred tax assets

The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the future taxable income against which the deferred tax assets can be utilized.

(iii) Evaluation of indicators for impairment of assets

The evaluation of applicability of indicators of impairment of assets requires assessment of several external and internal factors which could result in deterioration of recoverable amount of the assets.

(iv) Provisions and Contingent liabilities

At each balance sheet date basis of the management judgment, changes in facts and legal aspects, the Company assesses the requirement of provisions against the outstanding contingent liabilities. However, the actual future outcome may be different from this judgement.

Recent Pronouncement

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

Details or terms or Repayment ana securities proviaea in respect or securea term loans are as unaer:

i) Term Loan from Banks

a) Anand Rathi Global Finance Ltd.

Sanctioned Amount: ''2,500.00 (In Lakhs).

Primary Secutrity: Development rights/Land at Hinjewadi, hypothecation of trade receivables, Shop at Purva Plaza

Sadashiv Peth (Individual Asset of the Director), Personal Guarantee of Directors.

Rate of Interest: 15%

Terms of Repayment: Repayable on Demand

b) Prachay Capital Private Ltd.

Sanctioned Amount: ''1,000.00 (In Lakhs).

Primary Security:

1. Registered mortgage of all that piece and parcel of land admeasuring 14,325 Square Meters out of Sr No. 27/1,27/5(P), 28/1(P), 28/B/1, 28/B/2, 28/B/3, 28/B/4, situated at village Hinjewadi, Taluka Mulshi and District Pune, However, excluding i) area admeasuring 741.76 Square Meters beating Survey No. 28/B/4 against PMRDA road widening, (fi) area admeasuring 1256.84 Square Meters for Amenity space - 2 and area admeasuring 425.09 Square Meters for Amenity Space - 1. Hence Net area to be mortgaged area is 11,901.31Square Meters and Excluding Building A & B already constructed thereon.

2. Hypothecation and escrow of Borrower''s and Co-Borrower''s share in all present and future receivables from the proposed project to be developed on Sr No. 27/1,27/5(P), 28/1(P), 28/B/1,28/B/2, 28/B/3, 28/B/4, situated at village Hinjewadi, Taluka Mulshi and District Pune. However excluding receivables from Building A and B already constructed thereon.

3. Negative Lien on unsold units in the proposed project to be developed on Sr No. 27/1, 27/5(P), 28/10P), 28/B/1. 28/B/2, 28/B/3, 28/B/4, situated at village Hinjewadi, Taluka Mulshi and District Pune. However excluding units in Building A. and B already constructed thereon.

Terms of Repayment: Loan will be repayable in 8-10 equal quarterly installments starting from the end of principal

moratorium.

Rate of Interest: 18% p.a. This rate shall increase to 30% p.a. post September 30, 2025.

ii) Vehicle Loans

Security: All the vehicles are secured by the respective vehicles only.

Rate of Interest: The rate of Loans are between 10% to 15%.

Other Disclosures:

Since Company is not declared as wilful defaulter by any bank or financial institution or any other lender, the required

disclosure as per Schedule III in this regards has not been given.

35 Contingent liabilities, contingent assets and commitments

Contingent liabilities and commitments (to the extent not provided for),

Contingent liabilities (a) Claims against the company not acknowledged as debt; a) Claims not acknowledged as debts represent cases filed in Civil Court and High Court.

March 31,2024 - ''472.25 (In Lakhs) [Previous year March 31,2023 - ''252.69 (In Lakhs)]

As at March 31, 2024 :

The complainant has filed complaint in previous year before MahaRERA and sought compensation ''252.69 (In Lakhs) from the Company alleging that there was delay in handing over possession of the commercial Units in B building to him on the date as mentioned in Development Agreement. The Company filed its say in the matter contending that the Company is not liable to pay any compensation as mentioned in the complaint. Because the Company completed construction of B building within the time limit extended by MahaRERA. Extension to the project was granted by MahaRERA considering adverse impact of Covid Pandemic on construction activities of the project. The reasons for extension of timeline for completion of B building were beyond the control of the the Company, since there is no fault on the part of the the Company. During the year, an additional claim of ''219.56 (In Lakhs) was raised by the complainant for additional delay in possession of the commercial units agreed with him in Tower CDE in place of Tower B agreed earlier.

Hence, in the opinion of management SBGL has shown its readiness and willingness to handover units to the complainant. Hence, the above claim is not sustainable.

39 Financial risk management

In the course of its business, the Company is exposed primarily to fluctuations in interest rates, equity prices, liquidity and credit risk, which may adversely impact the fair value of its financials instruments.

The company assesses the unpredictability of the financials environment and seeks to mitigate potential adverse effects on the financial performance of the Company.

The Company has exposure to the following risks arising from financial instruments:

- credit risk - see note (a) below

- liquidity risk - see note (b) below

- market risk - see note (c) below

(a) Credit risk:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers.

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk associated with the industry and country in which customers operate.

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. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess impairment loss or gain. The Company uses a matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors and Company''s historical experience for customers.

(i) The Company has not made any provision on expected credit loss on trade receivables and other financials assets, based on the management estimates as none of the financial instruments of the Company result in material concentration of credit risk.

(ii) Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks and financial institutions with high credit ratings assigned by domestic credit rating agencies.

(b) Liquidity risk:

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company''s treasury department is responsible for liquidity and funding. In addition, policies and procedures relating to such risks are overseen by the management.

The company''s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from the operations.

Intangible assets which comprise of the development expenditure incurred on new product and expenditure incurred on acquisition of user licenses for computer software are recorded at their acquisition price.

(c) Market risk:

Market risk is the risk that the fair value or future cash flows of the financials instruments will flucturate because of the changes in the market prices. Market risk comprises two types of risk: interest rate risk and other price risk, such as equity price risk and commodity/real estate risk.

(1) Foreign currency risk :

The Company has its revenues and other transactions in ''which is the functional currency.Accordingly, the Company is not exposed to any currency risk and hence, this risk is not applicable.

(2) 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''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates. The management is responsible for the monitoring of the Group''s interest rate position. Various variables are considered by the Group''s management in structuring the Group''s borrowings to achieve a reasonable, competitive, cost of funding.

40 Capital management

The Company''s capital comprises equity share capital, surplus in the statement of profit and loss and other equity attributable to equity holders.

The Company''s objectives when managing capital are to :

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital.

42 Employee Benefits

The details of employee benefits as required under Ind AS 19 ''Employee Benefits'' is given below:

A. Defined Benefit Plans Gratuity

Gratuity is payable to all eligible employees on retirement, death while in employment or termination of employment in terms of the provisions of the Payment of Gratuity Act or as per the Company''s policy whichever is beneficial to the employees. Vesting occurs on completion of five years of service.

The following tables summarise the components of net benefit expense recognised in the statement of profit and loss, the funded status and amounts recognised in balance sheet for the plan.

Liability Risks

1. Asset-Liability mismatch risk- Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching duration with the defined benefit liabilities, the company is successfully able to neutralize valuation swings caused by interest rate movements. Hence companies are encouraged to adopt asset-liability management.

2. Discount rate risk- Variations in the discount rate used to compute the present value of the liabilities may seem small, but in practise can have a significant impact on the defined benefit liabilities.

3. Future salary escalation and inflation risk - Since price inflation and salary growth are linked economically, they are combined for disclosure purposes. Rising salaries will often result in higher future defined benefit payments resulting in a higher present value of liabilities especially unexpected salary increases provided at management''s discretion may lead to uncertainties in estimating this increasing risk.

Unfunded Plan Risk

This represents unmanaged risk and a growing liability. There is an inherent risk here that the company may default on paying

the benefits in adverse circumstances. Funding the plan removes volatility in company''s financial and also benefit risk through

return on the funds made available for the plan.

46 Additional Regulatory Information Details of Benami Property held

The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

Details of Loans and advances

The Company has not granted any loans and advances to promoters, directors, key managerial personnel (KMPs) and the related parties which are repayable on demand or without specifying any terms or period of repayment.

Wilful Defaulter

The Company has not been declared as a wilful Defaulter by any Financial Institution or bank as at the date of Balance Sheet. Relationship with Struck off Companies

The Company do not have any transactions with companies struck off.

Registration of charges or satisfaction with Registrar of Companies (ROC)

The Company has no pending charges or satisfaction which are yet to be registered with the ROC beyond the Statutory period. Compliance with number of layers of companies

The Company has complied with the provision of 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.

Discrepancy in utilization of borrowings

The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date. There are no discrepancy in utilisation of borrowings.

Utilisation of Borrowed funds and share premium:

(A) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or

kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries).

(B) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party).

The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (intermediaries) with the 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, security or the like to or on behalf of the Ultimate Beneficiaries;

47 Additional Information Undisclosed income

The Company has no transaction that is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual Currency.

48 Operating Segments

Description of segments and principal activities

The Company is primarily engaged in the business of construction and sale of Building.

49 Additional Information

Previous year''s figures have been regrouped/reclassified wherever necessary to confirm current year''s presentation.

The accompanying notes form an integral part of the standalone financial statement As per our report of even date

For Parag Patwa & Associates For and on behalf of Board of Directors of

Chartered Accountants Suratwwala Business Group Ltd.

ICAI Firm''s Registration No. 107387W CIN: L45200PN2008PLC131361

Sd/- Sd/- Sd/-

CA. T. J. Trivedi Jatin Suratwala Hemaben Sukhadia

Partner Managing Director Non-Executive Director

M. No. 143690 DIN: 0198032 DIN: 01980774

UDIN: 24143690BKBHHR4468

Place: Pune Sd/- Sd/-

Date: May 24, 2024 Prathama Gandhi Deepak Kalera

Company Secretary Chief Financial Officer

M. No. A46385

---

Mar 31, 2023

(i) Terms/Rights attached to Equity Shares:

The Company has only one class of equity shares having a par value of INR 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of Interim Dividend.

In the event of liquidation of the Company, the holder of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(ii) Details of shareholders holding more than 5% of the aggregate shares in the company

(ii) 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 March 31, 2023 - Nil

i) The Company has prepared its first Indian Accounting Standards (Ind AS) compliant Financial Statements for the periods commencing 1 April 2022 with restated comparative figures for the year ended 31 March 2022 in compliance with Ind AS. Thecompany has prepared these financial statements in accordance with Indian Accounting Standards (Ind AS) notified under section 133 of the Companies Act 2013. Accordingly, the Balance Sheet, in line with Ind AS transitional provisions, has been prepared as at 1 April 2021 the date of company''s transition to Ind AS. In accordance with Ind AS 101 First-time Adoption of Ind AS, the Company has presented below a reconciliation of net profit as presented in accordance with Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 ("Previous GAAP") to total comprehensive income for the year ended 31 March 2022, reconciliation of shareholders'' funds as per the previous GAAP to equity under Ind AS as at 31 March 2022 and 1 April 2021:

There were no significant reconciliation items between cash flows prepared under Previous GAAP and those prepared under Ind AS.

First-time adoption - mandatory exceptions, optional exemptions

The Company has prepared the opening balance sheet as per Ind AS as of 1 April 2021 (the transition date) by recognising all assets and liabilities whose recognition is required by Ind AS, not recognising items of assets or liabilities which are not permitted by Ind AS, by reclassifying items from previous GAAP to Ind AS as required under Ind AS, and applying Ind AS in measurement of recognised assets and liabilities. However, this principle is subject to the certain exception and certain optional exemptions availed by the Company as detailed below.

1. Estimates

The estimates at 1 April 2021 and 31 March 2021 are consistent with those made for the same dates in accordance with previous GAAP after adjustments to reflect any differences in accounting policies.

2. De-recognition of financial assets and financial liabilities

The Company has applied the de-recognition principles of financial assets and financials liabilities prospectively for transactions occurring on or after 1 April 2021.

3. Assessment of embedded derivatives

The company has assessed whether an embedded derivative is required to be separated from the host contract and accounted for as a derivative on the basis of the conditions that existed at the later of the date it first became a party to the contract and the date when there has been a change in the terms of the contract that significantly modifies the cash flows that otherwise would be required under the contract.

4. Share based Payments

Recognition criteria of employees stock option plan as per Ind AS 102 "Share based payment" is not applied to employee stock options that vested before date of transition to IND AS.

5. Deemed cost for property, plant and equipment, investment property, and intangible assets

The Company has elected to continue with the carrying value of all its property, plant and Equipment and Intangible assets recognised as of 1 April 2021 (transition date) measured as per previous GAAP and use that carrying value as its deemed cost as of the transition date.

6. Determining whether an arrangement contains a lease

The Company has applied principles laid in Ind AS 116 in determining whether an arrangement contains a Lease to determine whether an arrangement existing at the transition date contains a lease on the basis of facts and circumstances existing at that date.

7. Investments in subsidiaries, joint ventures

In accordance with exemption given in Ind AS 101, the company has recorded investments in subsidiaries and joint ventures at deemed cost i.e. previous GAAP carrying amount as on date of transition.

8. Impairment of financial assets

The Company has applied the impairment requirements of Ind AS - 109 ''Financial Instruments'' retrospectively; however, as permitted by Ind AS 101, the Company has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date of financial instruments were initially recognised in order to compare it with the credit risk at the transition date.

ii) New Accounting Standards, Amendments to Existing Standards, Annual Improvements and Interpretations Effective Subsequent to March 31, 2023:

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2023, as below:

1. Ind AS 1-Presentation of Financial Statements-

This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies. The effective date for adoption of this amendment is annual periods beginning on or after April 1,2023. The Company has evaluated the amendment and the impact of the amendment is insignificant in the standalone financial statements.

2. Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors-

This amendment has introduced a definition of ''accounting estimates'' and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates. The effective date for adoption of this amendment is annual periods beginning on or after April 1,2023. The Company has evaluated the amendment and there is no impact on its standalone financial statements.

3. Ind AS 12 -Income Taxes-

This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. The effective date for adoption of this amendment is annual periods beginning on or after Aprill, 2023. The Company has evaluated the amendment and there is no impact on its standalone financial statement.

Note 23 (contd.): Reconciliation of Standalone Statement of Profit and Loss and Other Comprehensive Income

Contingent liabilities and commitments (to the extent not provided for)

Contingent liabilities (a) Claims against the company not acknowledged as debt;

a) Claims not acknowledged as debts represent cases filed in Civil Court and High Court

01-04-2021 - Nil 31-03-2022 - Nil 31-03-2023 - Rs. 2,52,69,120/-

As At 31^st March, 2023

The complainant has filed complaint before MahaRERA and sought compensation Rs.2,52,69,120/- from SBGL alleging that there was delay in handing over possession of the commercial Units in B building to him on the date as mentioned in Development Agreement. SBGL filed its say in the matter contending that SBGL is not liable to pay any compensation as mentioned in the Complaint. Because SBGL completed construction of B building within the time limit extended by MahaRERA. Extension to the project was granted by MahaRERA considering adverse impact of Covid Pandemic on construction activities of the project. The reasons for extension of timeline for completion of B building were beyond the control of the SBGL, since there is no fault on the part of the SBGL. Hence, in the opinion of management SBGL has shown its readiness and willingness to handover units to the complainant. Hence, the above claim is not sustainable.

I) Financial risk management objectives

In the course of its business, the Company is exposed primarily to fluctuations in interest rates, equity prices, liquidity and credit risk, which may adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of the financials environment and seeks to mitigate potential adverse effects on the financial performance of the Company.

II) Market Risk

Market risk is the risk that the fair value or future cash flows of the financials instruments will fluctuate because of the changes in the market prices.

Dues to micro and small enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management. This has been relied upon by the auditor.

Note - 27 Disclosure as per regulation 34(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015

Loans and advances in the nature of loans given to subsidiaries in which directors are interested