1. The above financial results which are published in accordance with Regulation 33 of the SEBI (Listing Obligation & Disclosure Requirements) Regulations, 2015 have been reviewed by the audit committee and approved by the Board of Directors at their respective meetings held on February 13, 2024. The financial results are in accordance with the Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act 2013, read with rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) (Amendment Rules), 2016.
2. The company/holding company had received a letter dated 28/01/2021 on “Revocation of settlement of outstanding dues approved vide letter dated 17/11/2017” from IFCI Limited (“Lender”). Due to the revocation of restructuring, interest liability has been enhanced due to default interest.
During the previous year, the company/holding company received notice dated 08.04.2022 under Sec 13(2) of the Securitisation and Reconstructions of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 from IFCI Ltd. (“Lender”) demanding full repayment.
Further, the company/holding company had received notice u/s 13(4) of the SARFASAI Act, 2002 where IFCI Limited had taken over the symbolic possession on 5th August 2022 & 10th August, 2022 of mortgaged properties situated at Amritsar and Yamuna Nagar respectively. The company/holding company has also received summon under sub-section (4) of section 19 of the Recovery of Debts and Bankruptcy Act, 1993, read with sub-rule (2A) of rule 5 of the Debt Recovery Tribunal (Procedure) rules, 1993 from Debts Recovery Tribunal Delhi (DRT-1) dated 01/04/2022. The company/holding company submitted the written statement cum Counter claim dated 17th May, 2022 before the Debts Recovery Tribunal Delhi (DRT-1) and the matter is pending before DRT -1. The company/holding company is in appeal before the Hon’ble Debts Recovery Appellate Tribunal, Delhi against the Interim Order of DRT-1.
Further, IFCI moved an insolvency application against the company/holding company under Corporate Insolvency Resolution Process (‘CIRP’) on 8th February 2023 vide case number C.P (IB)- 86/2023 in NCLT-Delhi and same has been dismissed for want of prosecution vide order dated September 6, 2023.
Subsequently, the company/holding company has received notice under Rule8(6) r/w Rule 6(1) & 6(2) of Securities Interest (Enforcement) Rules, 2002 bearing IFCI/M&R/AHL/2023 dated 24.04.2023, stating that owing to consistent default to clear outstanding dues on part of the company/holding company, IFCI shall be putting the secured assets under possession to auction as per Rule 9 of the Securities Interest (Enforcement) Rules, 2002 after the expiry of 30 days from receipt of said notice by any method as mentioned in Rule 8, in case the company/holding company failed to clear the outstanding dues amounting to Rs.15,204.53 Lakhs (as on 15.04.2023).
The company/holding company filed stay application for stay order against the aforesaid notice issued by IFCI in Hon’ble DRT and the same been listed & as per the order of the Hon’ble DRT dated June 2, 2023, the lender has submitted that they are not going to take action pursuant to the sale notice dated April 24, 2023.
The said portfolio was assigned to Suraksha ARC vide assignment agreement dated September 6, 2023, executed between the lender and Suraksha ARC.
The outstanding liability as per books of accounts as on December 31, 2023, is Rs 14,611.98 lakh (including interest) and default interest is shown under contingent liability amounting to Rs 2,360.75 Lakhs which is pending confirmation from Suraksha ARC. Now, the company/holding company post assignment of the portfolio is in discussion with Suraksha ARC to resolve the matter in the best possible manner.
3. The company has done an investment of Rs. 491.67 lakh in Housing Construction & Lanka Private Limited (a wholly-owned subsidiary company in Sri Lanka) by way of equity shares. The BOI has terminated the agreements for the development of an integrated township in Sri Lanka between the subsidiary and the BOI. The subsidiary company had filed an arbitration claim against the Board of Investment of Sri Lanka (BOI). During the F.Y.2017-18, the management of the subsidiary company has written off all assets. Now the subsidiary company does not have enough assets to redeem the said investment but the management is of the opinion that they will be able to redeem the said investment.
4. The company/holding company is in collaboration with Samyak Projects Private Limited (“Samyak”) for developing a project at Ansal Hub 83–II (Ansal Boulevard), Gurugram. Samyak took an Inter Corporate Deposit of Rs 2,500 Lakh from the company/holding company to make the payment related to the project under a collaboration and failed to discharge its obligations for the repayment. The company/holding company has approached the NCLT for initiation of the Corporate Insolvency Resolution Process (CIRP) which has been dismissed by the Hon’ble NCLT vide order dated February 28, 2023. Against the said order the company/holding company has filed an appeal in Hon’ble National Company Law Appellate Tribunal (NCLAT) and the management is of the view that the full amount of Rs. 5,795.20 Lakhs (including accrued interest till 31.03.2020) is recoverable from the party and hence no provision for the same has been made in the books of accounts. Further company/holding company has not recognized the interest income amounting to Rs. 1,021.98 Lakh, Rs. 955.64 Lakh, Rs. 783.06 Lakh for the quarter ended December 31, 2023, September 30, 2023, December 31, 2022 and Rs. 2,861.94 Lakhs and Rs 2,192.88 Lakhs for the nine months ended December 31, 2023 and December 31, 2022 and Rs. 3,011.68 Lakh for the year ended March 31 2023 due to the uncertainty of the realization of income as per Ind AS 115, “Revenue from Contract with Customer”.
5. Due to unascertainable outcomes for pending litigation matters with Court/Appellate Authorities, the group's management expects no material adjustments on the standalone financial statements. Further, the company/holding company may be liable to pay damages/ interest for specific non-performance of certain real estate agreements, and civil cases preferred against the company/holding company for specific performance of the land agreement. The actual liability on account of these may differ from the provisions already created in the books of accounts and disclosed as contingent liability.
6. Based on the guiding principles given in Ind AS -108 “Operating Segment”, the Company/Group is mainly engaged in the business of real estate development viz. construction of residential/commercial properties. As the Company/Group’s business actually falls within a single segment, the disclosure requirement of Ind AS – 108 in this regard is not applicable.
7. The net recoverable value of advances/security deposits paid by the company/group for the acquisition of land/project development is based on the management’s estimates and internal documentation, which include, among other things, the likelihood when the land acquisition would be completed, the expected date of plan approvals for commencement of the project, expected date of completion of the project and the estimation of sale prices and construction costs. Due to the significance of the balance to the financial statements as a whole and the involvement of estimates and judgement in the assessment which is being technical in nature, the management is of the opinion that the entire amount is recoverable/adjustable against the land procurement/amount payable to collaborator under collaboration agreement and hence no provision is required at this stage.
8. In respect of overdue deposits accepted by the Company/holding company, an appeal before the NCLAT against order dated September 21, 2022 of NCLT was filed and the NCLAT Vide order dated 14.12.2022 rejected the appeal of the Company for seeking time extension for repayment of overdue deposits and remitted back the matter to the NCLT to take consequential steps in terms of section 74 (3) of the Act.
Further, during the previous year, the Company had entered into full and final settlement of the balance payment of the maturity amount and issued post-dated cheques (PDC’s) to substantial depositors and the same has been duly agreed and accepted by the respective depositors. The company is duly following this process.
In due compliance with the Act, holistically, the company has settled substantial depositors. The PDC’s as issued is being duly encashed/honoured as per the agreed terms and conditions of the settlement.
The Company has taken legal opinion to substantiate/ corroborate its acts. As per the legal opinion, the process of repayment adopted by the Company meets the requirement of the applicable provision of the Companies Act, 2013.
9. Exceptional Item
During the quarter ended September 2022, upon the request of the company/holding company (“Borrower/ Developer”), the lender settled all the outstanding dues.
The company/group has taken the impact of agreement/settlement/letter in the financial results as an exceptional item as under:
Standalone Financial Results
(Rs. In Lakh)
Particulars Nine Months Ended 31.12.2022 Year Ended 31.03.2023
Gain on Account of Borrowings written back (a) 11505.91 11,175.91
Loss on Account of Transfer of Rights in Inventory(b) (i) (16,341.77) (16,341.79)
Impairment of Investment in Subsidiary (c) (501.25) (500.25)
Total (5,337.13) (5,666.13)
Consolidated Financial Results
(Rs. In Lakh)
Particulars Nine Months Ended 31.12.2022 Year Ended 31.03.2023
Gain on Account of Borrowings written back (a) 11505.91 11,175.91
Loss on Account of transfer of Rights in Inventory(b) (ii) (16,283.63) (16,810.59)
Total (4,777.76) (5,634.68)
(a) The outstanding liability as appearing in books on the letter date amounts to Rs. 21,267.31 (including interest) for the nine months ended December 31, 2022 and Rs. 20,937.31 Lakh (including interest) for the year ended March 31, 2023. Based on the aforesaid letter, the outstanding loan is settled at Rs 9,415.00 Lakh and accordingly the remaining amount of Rs. 11,505.91 Lakh (net of interest reversal amounting to Rs. 346.40 Lakh) for the nine months ended December 31, 2022 and Rs. 11,175.91 Lakh (net of interest reversal amounting to Rs.346.40 Lakh) for the year ended March 31, 2023, had been written back in the books of the company/holding company and recognized as exceptional gain.
(b) (i) With regard to aforesaid terms, Development rights in relation to the Inventory (WIP) having a book value of Rs. 26,141.77 for the nine months ended December 31, 2022 and Rs. 26,141.79 Lakh for the year ended March 31, 2023, have been transferred for a consideration amounting Rs.9,800.00 Lakh. This transaction resulted into an exceptional loss on the transfer of rights amounting to Rs.16,341.77 for the nine months ended December 31, 2022 and Rs.16,341.79 Lakh for the year ended March 31, 2023, in the Standalone Financial Results.
(ii) With regard to aforesaid terms/agreements, Project (Inventory) having a book value of Rs.27,615.73 Lakh for the nine months ended December 31, 2022 and Rs.28,143.03 Lakh (including impairment loss on goodwill of Rs.500.67 Lakh) for the year ended March 31, 2023, has been transferred for a consideration amounting Rs. 11,332.44 Lakh. This transaction resulted into an exceptional loss on sale of inventory amounting to Rs.16,283.65 for the nine months ended December 31, 2022 and Rs.16,810.59 Lakh for the year ended March 31, 2023, in the Consolidated Financial Results.
(c) After the aforesaid events, the subsidiary company (Oriane Developer Private Limited) does not have enough assets to redeem the investment. Accordingly, impairment loss on investment has been recognized amounting to Rs. 501.25 for the nine months ended December 31, 2022 and Rs. 500.25 Lakh for the year ended March 31, 2023, in the Standalone Financial Results.
10. The Company/Group has recognised deferred tax assets on its unabsorbed depreciation and business losses carried forward to the extent that the Company/Group has reasonable certainty that there will be sufficient taxable income available to realize such assets in the near future.
11. The above results are available on the website of the Company/holding company i.e., www.ansals.com and on the websites of BSE.