Provisions, contingent liabilities and contingent assets
The Company recognizes a provision when:
• There is a present obligation to transfer economic benefits as a result of past events;
• it is probable (more likely than not) that such a transfer will be required to settle the obligation;
• and a reliable estimate of the amount of the obligation can be made.
The amount recognized as a provision is the best estimate of the expenditure required to settle the obligation at the balance sheet date, measured at the expected cash flows discounted for the time value of money. Provisions are not recognized for future operating losses.
An obligation and any anticipated recovery are presented separately as a liability and an asset respectively; however, an asset is recognized only if it is virtually certain that settlement of the obligation will result in a reimbursement, and the amount recognized for the reimbursement does not exceed the amount of the provision. The amount of any expected reimbursement is disclosed. Net presentation is done only in the income statement.
Management performs an exercise at each balance sheet date to identify the best estimate of the expenditure required to settle the present obligation at the balance sheet date, discounted at an appropriate rate. The increase in provision due to the passage of time (that is a consequence of the discount rate) is recognized as borrowing cost.
Contingent liabilities are possible obligations whose existence will be confirmed only on the occurrence or nonoccurrence of uncertain future events outside the entity's control, or present obligations that are not recognized because of the following:
(a) It is not probable that an outflow of economic benefits will be required to settle the obligation; or
(b) the amount cannot be measured reliably.
As per Ind AS 37 (Provisions, contingent liabilities and contingent assets), Contingent liabilities, if any, are not recognized but are disclosed and described in the notes to the financial statements, including an estimate of their potential financial effect and uncertainties relating to the amount or timing of any outflow, unless the possibility of settlement is remote.
Contingent assets are possible assets whose existence will be confirmed only on the occurrence or non-occurrence of uncertain future events outside the entity's control. As per IndAS 37, Contingent assets, if any, are not recognized but are disclosed and described in the notes to the financial statements, including an estimate of their potential financial effect if the inflow of economic benefits is probable.
Cash and Cash Equivalents
Cash and cash equivalents for the purpose of the cash flow statement comprise cash at bank and in hand and shortterm investments with an original maturity of three months or less.
Share based payments
All types of share-based payments and transactions are measured at fair value and recognized over the vesting period in accordance with IndAS 102. However this is not applicable for equity instruments that vested before date of transition to Ind AS.
Events after the reporting period
Dividends proposed or declared for the reporting period but before the financial statements are approved for issue, are not recognized as a liability at the end of the reporting period because no obligation exists at that time. This provision for dividends will be recognized only in the period when the dividend is declared and approved.
Related Party Disclosures
All disclosures as specified under IndAS 24 (Related party disclosures) are made in these Financial Statements in respect of the company's transactions with related parties.
Leases
The Company as a Lessor
As per IND AS 116, Leases of Property Plant and Equipment where the Company retains substantially all risks and rewards incidental to ownership are classified as Operating Lease. Income from Operating Lease is recognized in the Profit and Loss over the Lease tenure.
Financial Instruments
Financial assets and financial liabilities are recognized on the Company Balance Sheet when the Company becomes a party to the contractual provisions of the instrument.
• Financial Assets - Trade receivables
Trade receivables are non-interest-bearing and are recognized initially at fair value, and subsequently at amortized cost using the effective interest rate method, less provision for impairment loss allowance, if any.
• Financial Assets - Investments
Investments consist of investments in equity shares (quoted) and are recognized at fair value through other comprehensive income. Gains and losses arising from changes in fair value are recognized directly in other comprehensive income, until the security is disposed off or is determined to be impaired, at which time the cumulative gain or loss previously recognized in other comprehensive income is included in the income Statement for the period. Dividends, if any, on equity instrument are recognized in the Income Statement when the company's right to receive payment is established.
• Loans and Advances
Loans and advances are initially recognized at fair value plus directly related transaction costs. Subsequent to initial recognition, these assets are carried at amortized cost using the effective interest method less any impairment losses. Income from these financial assets is calculated on an effective yield basis and is recognized in the Income Statement.
• Impairment of Loans and Advances
At each balance sheet date, the Company reviews the carrying amounts of its loans and advances to determine whether there is any indication that those assets have suffered an impairment loss.
If there is objective evidence that an impairment loss on a financial asset or group of financial assets classified as loans and advances has been incurred, the Company measures the amount of the loss as the difference between the carrying amount of the asset or group of assets and the present value of estimated future cash flows from the asset or group of assets discounted at the effective interest rate of the instrument at initial recognition.
Impairment losses, if any, are recognized in the Income Statement and the carrying amount of the financial asset or Company of financial assets is reduced by establishing an allowance for impairment losses.
If in a subsequent period the amount of the impairment loss reduces and the reduction can be ascribed to an event after the impairment was recognized, the previously recognized loss is reversed by adjusting the allowance. Once an impairment loss has been recognized on a financial asset or group of financial assets, interest income is recognized on the carrying amount using the rate of interest at which estimated future cash flows were discounted in measuring impairment.
Loan impairment provisions are established taking into account the level of arrears, security, past loss experience, credit scores and defaults based on portfolio trends. The most significant factors in establishing these provisions are the expected loss rates.
• Interest-bearing borrowings
Interest-bearing bank loans and overdrafts are initially recorded at fair value, net of attributable transaction costs. Subsequent to initial recognition, interest bearing borrowings are stated at amortized cost with any difference between proceeds and redemption value being recognized in the Income Statement over the period of the borrowings on an effective interest rate basis.
• Trade payables
Trade payables are non-interest-bearing and are recognized initially at fair value and subsequently measured at amortized cost using the effective interest rate method.
• Offsetting financial instruments
Financial assets and liabilities are offset and the net amount reported in the balance sheet only when there is a current legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.
3(b) Non- Current Assets Held for Sale
The downturn in the Oil & Gas industry and the consequential reduced day rates that the offshore rigs are commanding in the current market conditions has put the Company in severe cashflow crisis leading to difficulty in timely servicing of outstanding debt. The Board of Directors in its meeting held on 5th March 2021 took on record the discussions between the Company and consortium of lenders for sale of the idle rigs owned by the Company. The net proceeds that would be realized from the sale of such rigs shall be utilized to repay the outstanding debt of the Company to the consortium of lenders. In the Extra ordinary meeting of the Company held on 29th March 2021, the Shareholders have accorded their approval to the Company to sell, transfer, deliver or otherwise dispose off certain following assets owned by the Company and also authorized the Board of Directors to finalize and execute the documents in relation to the sale of the aforementioned rigs.
During the Financial Year 2023-24 the Company entered into a Sale and Purchase Agreement for the sale of one of the offshore units (viz., Floating Production Unit - Tahara. The sale was concluded on 6th May 2024.
Freehold Land valuing Rs.123.45 Million has been classified as Non-Current Asset Held for Sale as the lender has taken possession of the Land and has issued an Auction Notice.
(i) Credit risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company.
Due to the nature of the Company's operations, revenue and receivable are typically concentrated amongst a relatively small customer base of oil and gas companies. The Company ensures that drilling contracts are with customers of adequate financial standing and appropriate credit history Additionally, the customers' payment profile and credit exposure are continuously monitored. The maximum exposure to credit risk for each class of financial assets is the carrying amount of that class of financial assets on the balance sheet.
The Company uses a provision matrix to measure the lifetime expected credit loss allowance for trade receivables.
In measuring the expected credit losses, trade receivables are grouped based on shared credit risk characteristics and days past due.
In calculating the expected credit loss rates, the Company purely considers historical loss rates which management is of the view that the historical conditions are representative of the conditions prevailing at the balance sheet date.
Trade receivables are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the Company.
The Companies credit risk exposure in relation to trade receivables under Ind AS 109 as at 31st March 2024 and 2023 are
Terms/ rights attached to equity shares
The Company has only one class of equity shares having a face value of Rs.2 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend 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.
During the period of 5 years immediately preceding the balance sheet date:
- The Company issued no shares without payment being realized in cash.
- Allotted no Bonus Shares
- No Shares have been bought back
Shares reserved for issue under Options
Maximum number of options that may be granted under the scheme is 1.843 million equity shares of Rs.2 each. Options granted during the year-Nil (up to 31st March 2024: 1.843 Million equity shares of Rs.2 each)-Options lapsed during the year 0.10 Million (up to 31st March 2023: 0.331 million equity shares of Rs.2 each)-Options exercised during the year- NIL (up to 31st March 2024: 0.160 million equity shares of Rs.2 each)-Options outstanding at the end of year 0.543 Million equity shares of Rs.2 each (up to 31st March 2024: 1.352 million equity shares of Rs.2 each)
1. Loans under (a) above are secured by first mortgage on lands owned by the Company. The Loan is under default for a period of 7 years.
2. Loans under (b) is Unsecured and is under default for a period of 7 years.
3. As per IND AS, the Preference Share capital is grouped under borrowings and is under default for a period of 7 to 9 years.
4. Since all term loans have been recalled by the lenders, the entire term loans are presented as current liabilities as at 31.03.2024
i. All the secured lenders of term loans (banks) have issued recall notices in the earlier years. Also one of the secured lenders has issued notice dated 7th May 2018 under section 13(2) of Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act , 2002 (SARFAESI Act) through the security trustee calling upon the company to pay the outstanding amount with interest in 60 days from the date of notice, failing which the bank would exercise the powers under section 13(4) of SARFAESI Act. The lender has since taken possession of the Land and is in the process of being auctioned.
ii. The Company has not redeemed its Non-Convertible Cumulative Redeemable Preference Shares on due dates. Two of the preference shareholders of the Company has filed a commercial suit before the Honourable High Court of Judicature at Bombay and these cases are pending before the Honourable High Court. One of the preference shareholder had filed petitions under section 55 of the Companies Act, 2013 / under section 80 of the Companies Act, 1956 before the Honourable National Company Law Appellate Tribunal (“NCLAT”), Delhi for non-redemption of NonConvertible Cumulative Redeemable Preference Shares. NCLAT remitted the case back to National Company Law Tribunal (“NCLT”) , Chennai for fresh consideration. The outcome is awaited.
iii. One of the Preference shareholders has filed a class action suit against the Company for Non-redemption of preference shares before National Company Law Tribunal New Delhi and the same is pending for hearing as at the year end.
19. Financial risk factors
The Company's activities expose it to market risk (including currency risk, interest rate risk and price risk), credit risk and liquidity risk. The Company's overall risk management strategy seeks to minimize adverse effect from the unpredictability of financial markets on the Company's financial performance.
The Board of Directors is responsible for setting the objectives and underlying principles of financial risk management for the Company. They review and agree on the policies for managing each of these risks and are summarized as follows:
Foreign exchange risk
The Company is exposed to foreign exchange risk principally via:
• Transactional exposure that arises from the sales / receivables denominated in a currency other than the functional currency of the Company.
Credit risk
a) Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The major classes of financial assets of the Company are bank deposits, trade receivables, amount due from associated company and amounts due from subsidiary corporations. For bank deposits, the Company maintains its cash deposits if any primarily with lenders of the Company or financial institutions with high credit quality to minimize their exposure to the banks.
b) Due to the nature of the Company's operations, revenue and receivable are typically concentrated amongst a relatively small customer base of oil and gas companies. Customers are government linked based oil and gas corporations. The Company has policies in place to ensure that drilling contracts are with customers of adequate financial standing and appropriate credit history, and where necessary, certain guarantees in form of bank. The maximum exposure to credit risk for each class of financial assets is the carrying amount of that class of financial assets on the balance sheet.
(i) Financial assets that are neither past due nor impaired
Bank deposits that are neither past due nor impaired are mainly deposits with banks with high credit-ratings assigned by international credit-rating agencies. Trade receivables that are neither past due nor impaired are substantially receivables from companies with a good collection track record with the Company. Amounts due from subsidiary corporations are neither past due nor impaired.
(ii) Financial assets that are past due and/or impaired
There is no other class of financial assets that is past due and/or impaired except for trade receivables. The age analysis of trade receivables that are past due but not impaired is as follows:
Allowance for impairment of trade receivables arise from customers that are either in financial difficulties and/or have history at default or significant delay in payments which management is of the opinion that payments are not forthcoming as at the end of financial year.
In the event that payment is doubtful, the receivables will be recommended for write off.
Liquidity risk
The drilling operations of the Company require substantial investment and are dependent on its ability to finance its rig construction and acquisitions and service its bank borrowings as well as other capital and operating requirements and commitments. The Company ensures that arrangements have been made to obtain adequate funds to meet all its operating and capital obligations in the form of continuing committed credit facilities with financial institutions to enable to meet its debts and liabilities as and when they fall due for at least 12 months from the balance sheet date.
The table below analyses the maturity profile of the Company's and the Company's financial liabilities based on contractual undiscounted cash flows at the balance sheet date.
Capital Management
The Company's objectives when managing capital are to ensure the Company's ability to continue as a going concern and to maintain an optimal capital structure by issuing or redeeming additional equity, borrowings and other instruments when necessary.
As the Company is mainly funded through external borrowings, the objectives of the Board of Directors when managing capital is to ensure that the Company continues to enjoy the use of funds from borrowings by ensuring that the Company continue to service its debt obligations in the form of interests and principal repayments on due dates in accordance with the borrowing agreements, and to ensure that they remain in compliance with the financial and non-financial covenants in relation to their borrowings.
Fair value measurements
The carrying amounts less impairment provision of trade receivables if any and payables are assumed to approximate their fair values. The carrying amounts of current borrowings approximate their fair values.
21. Gratuity and other defined benefit plans
The company operates a gratuity benefit plan which is funded with an insurance company in the form of a qualifying insurance policy.
The following table summarizes the components of net benefit expense recognized in the statement of profit and loss, the funded status and the amounts recognized in the balance sheet for such plans.
(i) Post-employment obligations-Gratuity
The amount recognized in the balance sheet and the movement in the defined benefit obligation over the year is as follows:
22. Employee stock option scheme
The Company has instituted Employee Stock Option Scheme-2005 (ESOS) duly approved by the shareholders in the extra-ordinary general meeting of the company held on 23rd April 2005. As per the scheme, the compensation committee of the board evaluates the performance and other criteria of employees and approves the grant of option. These options vest with employees over a specified period subject to fulfillment of certain conditions. Upon vesting, employees are eligible to apply and secure allotment of company's equity share at the prevailing market price on the date of the grant of option.
The Securities Exchange Board of India (SEBI) issued the Employee Stock Option Scheme and Employees Stock Purchase Scheme guidelines in 1999, applicable to stock option schemes on or after 19th June 1999. Under these guidelines, the excess of the market price of the underlying equity shares as of the date of the grant over the exercise price of the option is to be recognized and amortized on a straight line basis over the vesting period.
The Company has not recognized any deferred compensation expenses, as the exercise price was equal to the market value (as defined by SEBI) of the underlying equity shares on the grant date.
The details of option granted are given below:
Maximum number of options that may be granted under the scheme is 1.843 million equity shares of Rs.2 each. Options granted during the year-Nil (up to 31st March 2024: 1.843 Million equity shares of Rs.2 each)-Options lapsed during the year NIL (up to 31st March 2024: 1.114 million equity shares of Rs.2 each)-Options exercised during the year- NIL (up to 31st March 2023: 0.160 million equity shares of Rs.2 each)-Options outstanding at the end of year 0.569 Million equity shares of Rs.2 each vested (up to 31st March 2023: 0.569 million equity shares of Rs.2 each).
24. Segment information
The Company is engaged only in the business of offshore drilling services. Accordingly there is no requirement of segment reporting.
25. (a). Related Party Disclosures
Names of related parties and related party relationship Related parties where control exists
A. Subsidiary companies
Aban Energies Limited, India (wholly owned subsidiary)
Aban Holdings Pte Limited, Singapore (wholly owned foreign subsidiary)
26. Contingent Liabilities
Claims against the company not acknowledged as debt:
As at 31st March 2024:
(i) In respect of civil suits against the Company - Rs. 94.50 Million (Previous Year Rs. 94.50 Million)
(ii) In respect of Income Tax Matters:
Income Tax dues relating to the period 2002 - 2006 amounting to Rs. 628.25 million (Previous Year - Rs.628.25 million) pending before the Honorable High Court of Madras;
Income Tax dues relating to the period 2006 - 2008 amounting to Rs. 719.68 million (Previous Year - Rs.719.68 million) pending before the Honorable High Court of Madras.
Income Tax dues relating to the period 2008 - 2009 amounting to Rs.447.72 million (Previous Year - Rs.447.72 million) pending before the Honorable High Court of Madras.
Income Tax dues relating to the period 2009 - 2010 amounting to Rs. 688.70 million (Previous Year - Rs.688.70 million) pending before the Honorable High Court of Madras.
Income Tax dues relating to the period 2009 - 2010 amounting to Rs. 702.40 million (Previous Year - Rs.702.40 Million) pending before the Honorable Income tax Appellate Tribunal, Chennai.
Income tax dues relating to the period 2010-2011 amounting to Rs. 1,907.94 Million (Previous Year - Rs.1,907.94 Million) pending before the Honorable High Court of Madras.
Income tax dues relating to the period 2010-2011 amounting to Rs. 298.88 Million (Previous Year - Rs.298.88 Million) pending before the Income Tax Appellate Tribunal, Chennai.
Income tax dues relating to the period 2011-2012 amounting to Rs. 854.33 Million (Previous Year - Rs.854.33 Million) pending before the Honorable High Court of Madras.
Income tax dues relating to the period 2012-2013 amounting to Rs. 1490.36 Million (Previous Year - Rs. 1490.36 Million) remitted back to the file of DCIT by the Income Tax Appellate Tribunal, Chennai for verification.
Income tax dues relating to the period 2013-2014 amounting to Rs. 1081.23 Million (Previous Year - Rs. 1081.23 Million) pending before the Income Tax Appellate Tribunal, Chennai.
Income tax dues relating to the period 2013-2014 amounting to Rs. 29.64 Million (Previous Year - Rs. 29.64 Million) pending before the Income Tax Appellate Tribunal, Chennai.
Income tax dues relating to the period 2014-15 amounting to Rs. 335.50 Million (Previous Year - Nil) pending before the Honorable High Court of Madras.
Income tax dues relating to the period 2014-2015 amounting to Rs. 309.57 Million (Previous Year - Rs. 309.57 Million) pending before the Income Tax Appellate Tribunal, Chennai.
Income tax dues relating to the period 2014-2015 amounting to Rs. 2.59 Million (Previous Year - Rs. 2.59) pending before the Commissioner of Income Tax (Appeals), Chennai.
Income tax dues relating to the period 2015-16 amounting to Rs.541.92 Million (Previous Year - Rs. 541.92 Million). Remitted back to the Deputy Commissioner by the Income tax Appellate Tribunal, Chennai for verification.
Income tax dues relating to the period 2016-2017 amounting to Rs. 42.10 Million (Previous Year - Rs. 42.10) pending before the Income Tax Appellate Tribunal, Chennai.
Income tax dues relating to the period 2018-19 amounting to Rs 1.20 Million (Previous Year - Rs 1.20) pending before the Deputy Commissioner of Income-tax, Chennai
Service Tax dues relating to the year 2006-2011 amounting to Rs. 78.73 Million (Previous Year Rs. 78.73 Million) CESTAT Chennai passed the order against the company. The Company has filed an appeal with Honorable Supreme Court of India.
Service Tax dues relating to the period 2011 - 2012 amounting to Rs. 18.94 Million (Previous Year -Rs.18.94 Million) pending before the CESTAT, Chennai.
Service Tax Dues relating to the period FY 2006-07 amounting to Rs.46.76 Million (Previous Year -Rs. 46.76 Million) Pending before the Honorable Supreme Court, New Delhi.
Service Tax dues relating to the period 2012 - 2014 amounting to Rs. 36.78 Million (Previous Year - Rs. 36.78 Million) pending before the CESTAT, Chennai.
Service Tax dues relating to the period 2014 - 2015 amounting to Rs. 79.80 Million (Previous Year - Rs. 79.80 Million) pending before the CESTAT, Chennai.
Service Tax dues relating to the period 2005 - 2011 amounting to Rs. 37.31 Million (Previous Year - Rs. 37.31 Million) pending before the CESTAT, Chennai.
Service Tax dues relating to the period 2012 - 2014 amounting to Rs. 236.49 Million (Previous Year - Rs. 236.49 Million) pending before the CESTAT, Chennai.
Service Tax dues relating to the period 2015 - 2016 amounting to Rs. 0.60 Million (Previous Year - Rs. 0.60 Million) pending before the CESTAT, Chennai
Service Tax dues relating to the period 2015 - 2017 amounting to Rs. 223.02 Million (Previous Year - Rs. 223.02 Million) pending before the CESTAT, Chennai
Service Tax dues relating to the period 2008 - 2010 amounting to Rs.605.75 Million (Previous Year - Rs. 605.75 Million). The CESTAT Mumbai disposed the matter in favour of the Company. However, the Department has filed an appeal to the Supreme Court and is pending to be heard.
Service Tax dues relating to the period 2009 - 2012 amounting to Rs. 166.89 Million (Previous Year - Rs. 166.89 Million) pending before the CESTAT,Mumbai.
Service Tax dues relating to the period 2013-2015 amounting to Rs. 6.31 Million (Previous Year Rs. 6.31 Million) pending before the CESTAT, Mumbai
Service Tax dues relating to the period 2009-2016 amounting to Rs.NIL (Previous Year - Rs. 495.92 Million) The Honorable High Court of Bombay ruled in favour of the Company.
Service Tax dues relating to the period 2017-2018 amounting to Rs. 49.96 Million (Previous Year - Rs. 49.96 Million) pending before the CESTAT, Chennai
Goods and services tax dues relating to the period 2017-2018 amounting to Rs.13.92 Million (Previous Year -Rs. 13.92 Million) pending before the Appellate Authority.
Goods and services tax dues relating to the period 2017-2018 to 2021-22 amounting to Rs.18.20 Million (Previous Year - Rs. Nil) pending before the Appellate Authority
Goods and services tax dues relating to the period 2017-2018 amounting to Rs.5.5 Million (Previous Year - Rs. Nil) pending before the Appellate Authority
Sales Tax dues for the period 2010-11 amounting to Rs. 984.91 Million (Previous Year - Rs. 984.91 Million) pending before Tribunal
Sales Tax dues for the period 2012-13 amounting to Rs. 459.75 Million (Previous Year - Rs. 459.75 Million) pending before Tribunal.
Sales Tax dues for the period 2013-14 amounting to Rs. 587.29 Million (Previous Year Rs.587.29 Million) pending before the Appellate Authority.
Sales Tax dues for the period 2014-15 amounting to Rs. 667.03 Million (Previous Year - Rs. 667.03 Million). Writ Petition has been filed before the Honorable High Court of Bombay and is pending to be heard..
Sales Tax dues for the period 2015-16 amounting to Rs. 949.23 Million (Previous Year - Rs. 949.23 Million).Writ Petition has been filed before the Honorable High Court of Bombay and is pending to be heard.
Sales Tax dues for the period 2016-17 amounting to Rs. 846.00 Million (Previous Year - Rs. 846.00 Million) Writ Petition has been filed before the Honorable High Court of Bombay and is pending to be heard..
Sales Tax dues for the period 2017-18 amounting to Rs. 155.68 Million (Previous Year - Rs.155.68) pending before the Honorable High Court of Bombay.
30. Exceptional Items:
Exceptional Items during the previous year represents waiver of accrued and unpaid interest under a One-time Settlement Agreement (OTS) with a secured lender in respect of a term loan availed from it. The amount to be paid as agreed with the lender under the OTS has been discharged by the Company.
31. Due to micro and small enterprises
Total outstanding dues of Micro and Small Enterprises included in Creditors
Principal amount due remaining unpaid to Micro and Small Enterprises NIL
Interest remaining upaid to Micro and Small Enterprises NIL
Interest due and payable to Micro and Small Enterprises NIL
The information regarding Micro and Small Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company
32. Details of loan given, Investments made and guarantees given covered u/s 186(4) of the Companies Act, 2013
(i) Loans given to related parties and investments made in them are disclosed under the respective heads in the financial statements.
33. Going Concern:
In preparing the financial statements, the Board of Directors have considered the operations of the Company as going concern notwithstanding that the Company incurred a net loss of Rs.2,829.79 Million (Previous Year: Rs.1,149.92 Million) for the financial year ended 31st March 2024, and as at that date, the Company is in net current liabilities position of Rs. 14,005.80 Million (Previous Year: Rs.11,497.47 Million). The Company is also in net liabilities position of Rs.11,636.35 Million (Previous Year: Rs.8,806.17 Million) as at 31st March 2024..
An impairment loss on the rigs amounting to Rs. NIL Million (Previous Year: Rs.209.09 Million) was made during the financial year ended 31st March 2024. In addition, as disclosed in Note 8(a) to the financial statements, the Company has defaulted on payment of their borrowings which have fallen due and have breached the covenants of their borrowings which give the lenders the right to demand the related borrowings be due and payable immediately. The lenders have issued recall notices to the Company and all such borrowings with original repayment terms beyond 12 months from the balance sheet date have been reclassified as current liabilities. As of the date of this report, the Company is in discussions with its lenders to obtain approval for and implementation of an appropriate debt resolution plan. However, the Company will continue to be in operation in the foreseeable future.
The Management believes that the use of the going concern assumption on the preparation of the financial statements of the Company for the financial year ended 31st March 2024 is still appropriate after taking into consideration of the above actions and measures.
34. Discontinued Business:
The Company discontinued its wind power operations during the previous year, consequent upon its land being possessed by a secured lender for an auction sale. The land is in possession of the lender as at the year end. The land has been classified as Non-current 'Asset held for sale'.
36. New or Revised Accounting Standards:
Ministry of Corporate Affairs ('MCA') notifies new Standards of amendments to the existing Standards under Companies (Indian Accounting Standards) Rules as issued from time to time.
During the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards which are applicable for the accounting period beginning on or after 1st April 2024.
The accompanying notes 1 to 36 are an integral part of the financial statements
As per our report of even date
For Ford Rhodes Parks & Co. LLP Chartered Accountants
ICAI-Registration No. 102860W/W100089 For and on behalf of the Board
Ramaswamy Subramanian Reji Abraham C.P.Gopalkrishnan
Partner Managing Director Dy.Managing Director &
Membership No:016059 Chief Financial Officer
Place: Chennai S.N. Balaji
Date: May 27, 2024 Dy. General Manager (Legal) & Secretary
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