t) Provision, contingent liabilities and contingent assets
A provision is recognised if, as a result of a past event, the Company lias a present legal or constructive obligation that can be estimated reliably,
and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the
expected future cash flows (representing the best estimate of the expenditure required to settle the present obligation at the balance sheet date)
at a pre-tax rate that re 11 eels current market assessments of the time value of money and the risks specific to the liability. The unwinding of the
discount is recognised as finance costs. Expected future operating losses are not provided for.
Contingencies
Provision in respect of loss contingencies relating to claims, litigations, assessments, fines and penalties are recognised when it is probable that
a liability has been incurred and the amount can be estimated reliably.
Contingent liabilities anil contingent assets
A contingent liability exists when there is a pussible but not probable obligation, or a present obligation that may, but probably will nut, require
an outflow of resources, or a present obligation whose amount cannot be estimated reliably. Contingent liabilities do not warrant provisions,
but are disclosed unless the possibility of outflow of resources is remote. Contingent assets has to be recugnised in the financial statements in
the period in which if it is virtually certain that an inflow of economic benefits will arise. Contingent assets are assessed continually and no
such benefits were found for the current financial year.
Contingent Liabilities are shown by way of notes to the Accounts in respect of obligations where, based on the evidence available, their
existence at (he Balance Sheet date is considered not probable
A Contingent Asset is not recognized in the Accounts.
u) Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents include cash on hand, cash at bank and other deposits
with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible
to known amounts of cash and which are subject to an insignificant risk uf changes in value.
(a) The Shareholders of ibe Company had approved the sub-division of one equity share of face value ol'Rs.10 each (fully paid-up and
partly paid-up) into 10 equity share of face value of Re. I/- each by way of a postal ballot on March 10, 2024. The record date for the
said sub-division was set at March 29, 2024.
Note: As per the Resolution Plan approved by the Hon’ble National Company Law Tribunal, Kolkata bench, vide its Order dated January
11, 2022 for the Corporate Insolvency of the Company, the Face value of existing Equity shares was reduced 1'romRs. 10 per share to
Re. 0.50 per share, and after such reduction, the Face value of shares was consolidated to Rs. 10/- per share resulting in reduction in the
number of shares held by the existing shareholders by l/20th of the existing holding i.e. the shares of existing shareholders holding
1,09,09,000 equity shares were reduced to 5,45,450 equity shares.
II Rights, preferences and restrictions attaching to Equity Shares
The Company has only one class of equity shares having a par value of Re. 1/- per share (Previous Year - Rs. 10/- per share). Each
holder of equity shares is entitled to one vote per share and the equity shares will rank pari-passu with each other in all respects.
In the event of liquidation of the Company, the holders of equity shares will be entided to receive remaining assets of the Company
after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares held by the
shareholders.
33 Financial risk management
The Company has exposure to the following risks arising from financial instruments:
(i) Credit risk
(ii) Liquidity risk
(iii) Market risk
Risk management framework
The Company's principal financial liabilities comprise of borrowings, trade and other payables. The main purpose of these financial
liabilities is to finance the Company's operations. The Company’s principal financial assets include trade and other receivables,
investments, cash and cash equivalents, other bank balances and other financial assets that derive directly from its operations.
The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company’s
primary risk management focus is to minimise potential adverse effects of market risk on its financial performance. The Company's
exposure to credit risk is influenced mainly by the individual characteristic of each customer and the concentration of risk from the
top few customers. The Company 's risk management assessment and policies and processes ate established to identify and analyse
the risks faced by the Company, to set appropriate risk limitsand controls, and to monitor such risksand compliance with the same.
Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the
C ompany’ s activities.
This note presents information about the Company’s exposure to each of the above risks, the Company’s objectives, policies and
processes for measuring and managing risk, and the Company’s management of capital
The Company has standard operating procedures and investment policy for deployment of surplus liquidity, which allows
investment in debt securities and mutual fund schemes of debt categories only and restricts the exposure in equity markets.
(i) Credit risk
Credit risk is the risk of financial loss of the Company if a customer or counterparty to a financial instrument fails to meet its contractual
obligations, and arises principally from the Company receivables from customers and loans. Credit risk arises when a customer or
counterparty dues nut meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Cumpany
is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing/investing activities, including
deposits with bank and mutual fund inv estments. The Cumpany has no significant concentration of credit risk with any counterparty.
The carrying amount of financial assets represent the maximum credit risk exposure.
Trade receivables
The Cumpany has established a credit policy under which each new customer is analysed individually for creditworthiness before the
payment and delivery terms and conditions are offered. The Company’s review includes external ratings, if they are available, financial
statements, credit agency information, industry information and business intelligence. Sale limits are established fur each customer
and reviewed annually. Any sales exceeding those limits require approval from the appropriate authority as per policy.
Other credit risk is managed through credit approvals, establishing credit limits and by continuously monitoring the creditworthiness of
customers to which the Company grants credit terms in the normal course of business. As per simplified approach, the Company makes
provision of expected credit losses on trade receivables using a provision matrix to mitigate the risk of default payments and makes
appropriate provisions at each reporting date whenever it is for longer period and involves higher risk. On account of adoption of Ind
AS 109. the Company uses expected credit loss model to assess the impairment loss or gain.
(ii) Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. Prudent
liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate
amount of credit facilities to meet obligations when due. The Company's finance team is responsible for liquidity, funding as well as seldemenl
management. In addition, Processes and policies related to such risks arc overseen by senior management. Management monitors the
Company's liquidity position through rolling forecasts on the basis of expected cash flows.
The Company’s approach to managing liquidity is to ensure, as far as possible, 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 reputation.
(iiii Market risk
Market risk is the risk of loss of future earnings, fair value or future cash Hows that may result from a change in the price of a financial
instrument . The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rales,
commodity prices, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market
risk sensitive financial instruments including investments and deposits, payables and borrowings.
(al 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 exposure to the risk of changes in market interest rates related primarily to the Company's short term borrowings with
floating interest rates. The Company constantly monitors the credit markets and rebalances its financing strategies to achieve an optimal
maturity profile and financing cost.
(b) Equity price risks
The Company is not exposed to equity risksarising front equity investments. Equity investments are held for strategic rather than trading
purposes. The Company does not actively trade these investments.
(cl Currency risk
The Company does not have currency risks since it is not exposed to any foreign currency transaction.
34 Capital management (Ind AS 1)
The Company's management objective are:
The Company monitors capital on the basis of carrying amount of equity including retained earnings as presented on the face of Balance Sheet.
The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk
characteristics of the underlying assets. There is no change in the overall capital risk management strategy as compared to the last year.
The Company's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future
development of the business. The management monitors the return on capital, as well as the level of dividends to equity shareholders.
The Company’s objective when managing capital are to: (a) to maximise shareholders value and provide benefits to other stakeholders and (b)
maintain an optimal capital structure to reduce the cost of capital. I
For the purpose of the Company's capital management, capital includes issued equity share capital and other equity reserves attributable to the
equity holders.
38 Balances under Trade Receivables & Other advances / receivables are subject to confirmations and adjustments, if any. The Company
considers the said amounts as good for recovery and hence are carried in the accounts at their book values, after provision for expected credit
loss.
39 Financial Instruments and related disclosures
39.] Fair value measurement
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current
transaction between willing parties, other than in forced or liquidation sale.
The Company has established the following lair value hierarchy that categorises the value into 3 levels. The inputs to valuation techniques
used to measure fair value of financial instruments are as stated in Note 2: Basis of Preparation
The company uses the discounted cash flow techniques (in relation to interest-bearing borrowings and loans) which involves determination of
present value of expected receipt/payment discounted using discount rate that reflects the issuer’s borrowing rate as at the end of the reporting
period. The fair value so determined is classified as Level 2.
40 Additional Regulatory Information required hv Schedule III
(i) The Tide Deeds in resepet of the immovable properties owned by the Company are in the name of the Company.
(ii> Wilful defaulter
The Company has not been declared w ilful defaulter by any bank or financial institution or government or any government authority.
(iii) Relationship with struck off companies
The Company has not entered into any transactions with the companies struck off under the Companies Act, 2013 or the Companies Act, 1956.
(Iv) Compliance with number of layers of companies
There is no non-compliance with regard to the number of layers of companies prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017
<v) Compliance with approved scheme(s) of arrangements
The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.
<vi) Utilisation of borrowed funds a nd share premium
The Company has not advanced or loaned or invested funds to any other person or entity, including foreign entitiy (Intermediary) with the
understanding that the Intermediary shall:
a) directly or indirectly lend or invest in other person or entitiy identified in any manner whatsoever by or on behalf of the company (Ultimate
Beneficiaries) or
The Cumpany has not received any fund from any persun(s) or entity(ies), including foreign entities (Funding 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 entitiy identified in any manner whatsoever by or on behalf of the Funding Party
(Ultimate Beneficiaries) or
b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries
(vii) Undisclosed income
The company has not surrendered or disclosed any income during the current or previous year in the tax assessments under the Income Tax
Act, 1961. that has not been recorded in the books of account.
(viii) Details of crypto currency or virtual currency
The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
(lx) Valuation of PP&F,, Intangible Asset and Investment Property
The Cumpany has not revalued its property, plant and equipment, intangible asset and investment pruperty during the current year and previous
year.
(x) Bcnumi Property
No proceedings have been initiated on or are pending against the company for holding benanii property under the Bcnumi Transactions
(Prohibition) Act. 1988 (45 of 1988) and Rules made thereunder.
(xi) Satisfaction of Charge with Registrar of Companies (ROC)
The Company does not have any charges or satisfaction which is yet to be registered with Registrarof Companies beyond the statutory period.
41 Previous year’s figures have been reworked, regrouped, rearranged and reclassified wherever considered necessary to conform to this year’s
classification. Accordingly, amounts and other disclosures fur the preceding year are included as an integral part of the current year financial
statements and are to be read in relation to amounts and other disclosures relating to the current year.
As per our report of even date attached
As per our report of ever date attached For and on behalf of Dhatre Udyog Limited
For P D RUNGTA & CO.,
Chartered Accountants
Firm Registration Number 001150C SO/- SD/-
Sumit Kumar Agarwal Asit Baran Bhattacharjee
SD/- Managing Director Director
R1TESH KUMAR SHAW DIN:02184000 DIN:02559634
Partner
Membership No. 305929
3lace of Signature: Kolkata
Dated: The 30th day of May, 2024
SO/- SD/-
Ankita Dutta Anklt Gupta
Company Secretary Chief Financial Officer
M.No.: ACS61913
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