The Company has only one class of equity shares having a par value of Rs.1/- per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company. After distribution of all preferential amounts if any, the distribution will be proportion to the number of equity shares held by the shareholders.
The identification of micro, small and medium enterprise suppliers as defined under the provisions of "Micro, small and medium enterprises Act, 2006" is based on Management's knowledge of their status.
Information as required to be furnished as per section 22 of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 for the year ended 31st March 2024 is given below. This information has been determined to the extent such parties have been identified on the basis of information available with the company
19. Contingent Liabilities & Provisions:
Estimated amount of contracts remaining to be executed on capital account and not provided for: NIL (Previous year: NIL) Claims against the company not acknowledged as debt: NIL - (Previous year: NIL)
23. Deferred Taxes are recognized to the extent that it is probable that taxable profits will be available against, which the deductible temporary differences and the carry forward of unabsorbed depreciation can be utilized. Considering the accumulated unabsorbed depreciation losses carried forward, the Deferred Tax Assets aggregating to Rs.121.25 lakhs (Previous Year Rs.126.22 Lakhs) is not recognised for. However, the same will be reassessed at the subsequent Balance Sheet Date(s) and will be recognized to the extent that it has become probable profits will allow, the Deferred Tax Asset to be recovered.
24. However, the company during the period under reporting have only one segment of lease income from the farm, and Accordingly, Company has the single segment as per the requirements of Ind AS 108 - Operating Segments. All assets are located in India and revenue of the Company is earned in India hence, there is single geographic segment. Hence no separate segment reporting is required.
25. Foreign Exchange Earnings/ Outgo - NIL
26. The company's ability to continue as a going concern.
The Company has accumulated substantial losses, however, the Company earned a net profit during the current year and previous year. Even the current assets exceed the current liabilities which may not indicate existing of material uncertainty about the company's ability to continue as a going concern. As the company has consistent lease income and extended the existing lease period of the farm by seven years from July 2020, as the lease income is a consistent to the company to meet it's commitments, and hence, the company accounts have drawn upon going concern basis.
27. As per the limits specified under Companies Act, 2013, the company's operations do not satisfy the criteria of Corporate Social Responsibility (CSR), hence the provisions of expenditure on CSR are not applicable.
28. Fair Value Measurement Hierarchy:
The Company categorizes financial assets and liabilities measured at fair value into one of three levels depending on the ability to observe inputs employed for such measurement:
Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.
Level 3: Techniques which are used inputs that have a significant effect on the recorded fair value that are not based on observable market data.
The management assessed that carrying amount of cash and cash equivalents, other bank balances, trade receivables, loans, Investment in government securities, other financial assets, unsecured borrowings, trade payables and other financial liabilities approximate their fair values largely due to the short-term maturities of these instruments. If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. There have been no transfers between Level 1 and Level 2 during the year.
Fair Value Disclosure
All the financial assets and liabilities are disclosed at amortized cost and all are incurred/earned in the normal course of business and are recognized at their transaction value and services availed value as the same do not contain significant financing component and liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
29. Nature and extent of risks arising from financial instruments and respective financial risk management objectives and policies. The Company's principal financial liabilities comprise borrowing from the Managing Director, trade and other payables. The main purpose of these financial liabilities is to finance the Company's operations, as and when required. The Company's principal financial assets include the loans, deposit, cash and short- term deposits that derive directly from operations.
In view of limited operations viz., leasing income and meeting the corporate compliances, the Company is marginally exposed to market risk, credit risk and liquidity risk. The Board discusses on financial risks and appropriate risk governance frame work for the Company. The Company's financial risk activities are governed by appropriate policies and procedures and that the risks are identified, measured and managed in accordance with the Company's policies and risk objectives. The Board review and agree policies for managing each of these risks, which are summarized below:
i. Market risk
Market risk or uncertainty arising from possible events and circumstances from business movement and their impact on future performance of business. As the company entered into seven years lease agreement during July 2020 for its farm for seven years with lease rent to meet it's commitments and the lessee is meeting the commitment in advance, hence the uncertainty is very limited.
The Company is exposed to market risk through its financial instruments and specially to interest rate and risk, price risks, which results from both its operating and investing risks. During the current year, the company do not have any investments others than the Electricity Deposit with state government and cash and bank balances which are highly liquid investments that are readily convertible to known amounts of cash and which are subject to an in significant risk of changes in value. Hence, the company do not perceive any risk on this count.
ii. Interest rate risk
As there are no investments and borrowings in the market, the company do not get exposed to any interest rate risk, other than investing the surplus funds in short term bank deposits.
iii. Credit risk
Credit risk is the risk that the counter party will not meet its obligations under a financial instrument or customer contract, leading to financial loss. The company is exposed to only other operating activity viz., lease income. With respect to the lease income and generally the advance payment is received during the second quarter for the entire ensuing year, hence the credit risk is very limited.
iv. Liquidity risk
The Company's objective is to meet the day to day operational commitments in time, as there are only limited operations other than the compliance and leasing activity, the Company manages its activity with the lease income and in case of any exigency, the Company resorts to the borrowings from the Managing Director for a short term, which will generally be repaid once, the lease income is received. Hence, with limited operations, the company do not foresee any liquidity risk.
v. Business concentration risk:
The company is solely depending upon the lease income from one customer, which is highly concentrated risk. However, from the past nine years of track record of the lessee, it is clear that the lease payments for the whole year is received in advance, and the company has only lease operations and was incurring the asset maintenance costs in addition to the compliance costs. Hence, the Board had considered the concentration risk while taking the decision of extending the lease from July 2020.
Capital Management
Company's capital comprises of equity share capital, retained earnings and other equity attributable to equity holders. The primary objective of company capital management is to maximize the shareholder value. The Company manages its capital and makes adjustments to it in the light of economic and market conditions. The Capital as on 31st March, 2024 is Rs.447.35 lakhs (Pervious year Rs. 428.63 lakhs).
30. Micro, small and medium enterprises
The identification of micro, small and medium enterprise suppliers as defined under the provisions of "Micro, small and medium enterprises Act, 2006" is based on Management's knowledge of their status. Kindly refer note no. 11(b) for details of trade payables to micro and small enterprises.
31. Other Statutory Information:
a. here are no proceedings initiated or pending against the Company for holding any benami property under Prohibition of Benami Property Transaction Act., 1988 and Rules made thereunder.
b. The Company is not carried out any revaluation of its property, plant and equipment during the year.
c. The Company has borrowed only from Managing Director hence quarterly returns and statement of current assets filing with banks and financial institutions, declarations of the Company as willful defaulter and utilization of funds for specific purpose is not applicable.
d. As there are no secured and unsecured loans raised from Banks or Financial Institution's by the Company during the year and pending as on 31st March 2023 & 31st March 2024, hence, the application for the purposes for which the borrowings have been raised and the filing of registration /satisfaction of charges are not applicable.
e. The title deeds of immovable properties (other than immovable property where the company is lessee, are duly executed in favor of lessee) disclosed in the standalone financial statements are held in the name of the Company.
a. No scheme of arrangement has been approved by the competent authority in terms of Sec. 230 to 237 of The Companies Act, 2013 during the year and earlier, hence the disclosure of effect of such arrangement accounted for in the books of accounts of the Company do not arise.
b. Company has not traded or invested in crypto currency or virtual currency during the year.
c. The Company does not have any transaction not recorded in the books of accounts that has been reported or disclosed as income during year in tax assessment under Income Tax Act, 1961.
d. Disclosure of Struck off Companies : The company do not have any transactions including purchases, sales investments and balances with any struck off companies under Sec 248 of the Companies Act, 2013 during the year and as on 31st March, 2024. Hence, the provision of the details as required is not applicable for the year.
e. Company has not extended any loans or advances in the nature of loans repayable on demand or without specifying any terms or period of repayment to promoters, key manager personal and related parties during the year and there are no dues as at the end of 31st March 2023 and as at 31st March 2024.
f. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person or entities including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall directly or indirectly lend or invest in other per sons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
g. The Company has not received any funds from any person(s) or entity (ies) including foreign entities (funded party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) directly or indirectly lend or invest in other person or entities identified in any moment whatsoever by or on behalf of the funding party (Ultimate Beneficiaries) or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
h. Compliance with number of layers of companies - The company has not invested any other company or companies, hence the question of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017, does not apply to the company.
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