h. Provisions, contingent assets and liabilities:
Provisions:
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result
of a past event, it is probable that an outflow of resources embodying economic benefits will be required
to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions
are measured at the best estimate of the expenditure required to settle the present obligation at the
Balance Sheet date. The expense relating to a provision is presented in the statement of profit and loss
net of any reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase
in the provision due to the passage of time is recognized as a finance cost.
Contingent liabilities:
A contingent liability is a possible obligation that arises from past events whose existence will be
confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the
control of the Company or a present obligation that is not recognized because it is not probable that an
outflow of resources will be required to settle the obligation. A contingent liability also arises in
extremely rare cases where there is a liability that cannot be recognized because it cannot be measured
reliably. The Company does not recognize a contingent liability but discloses its existence in the
financial statements.
Contingent assets:
Contingent assets are neither recognized nor disclosed in the Financial Statements.
Provisions and contingent liability are reviewed at each balance sheet.
i. Retirement and other employee benefits
As there are less number of employees on the roll of the Company, the Company has not devised any
recognized contribution plan.
j. Impairment of Financial Assets:
In Accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for
measurement and recognition of Impairment loss on the following financial assets and credit risk
exposure.
a. Financial Assets that are debt instruments are measured at amortized cost. Ex: Loans, debt
securities, deposits and bank balances.
b. Trade Receivables - The application of simplified approach does not require the Company to
track changes in Credit Risk, rather it recognizes impairment loss allowance based on life time
ECL’s at each reporting date right from its initial recognition. Trade receivables are tested for
impairment on a specific basis after considering the sanctioned credit limits, security like letter of
credit, security deposit collected, etc. and expectations about future cash flows.
k. Impairment of Non-Financial Assets:
The Company assesses, at each reporting date, whether there is an indication that an asset may be
impaired. If any indication exists, or when annual impairment testing for an asset is required, the
Company estimates the asset’s recoverable amount. Recoverable amount is the higher of an asset’s or
cash generating unit’s Net Selling Price and the Value in use. Asset/cash generating unit whose carrying
value exceeds their recoverable amount are written down to the recoverable amount by recognizing the
impairment. Indefinite life intangibles are subject to review for impairment annually or more frequently,
if events or circumstances indicate that it is necessary. For the purpose of assessing impairment, the
smallest identifiable group of assets that generates cash inflows from continuing use that are largely
independent of the cash inflows from other assets or group of assets is considered as a cash generating
unit.
Impairment losses, are recognized in the statement of profit and loss. The impairment loss recognized in
prior year accounting period is reversed if there has been a change in the estimate of recoverable amount.
l. Earnings per share:
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to
equity shareholders by the weighted average number of equity shares outstanding during the period.
Diluted earnings per share is calculated and presented when there are potential equity shares.
When the weighted average number of equity shares changed in the current period as a result of bonus
issue or share split or reverse share split, the calculation of basic and diluted earnings per share is
presented for all the periods presented.
m. Cash and Cash Equivalents:
Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term
deposits which are subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term
deposits, as defined above.
n. Significant Accounting Judgments, Estimates and Assumptions:
The preparation of the financial statements in conformity with the accounting standards generally
accepted in India requires Judgments, Estimates and assumptions to be made that affect the reported
amounts of assets and liabilities on the date of the financial statements, reported amount of revenue and
expenses during the reporting period and the accompanying disclosures. Difference between the actual
results and estimates are recognized in the period in which the results are known or materialize.
2. Disclosures on Financial instruments:
This section gives an overview of the significance of financial instruments for the Group and
provides additional information on balance sheet items that contain financial instruments.
The details of significant accounting policies, including the criteria for recognition, the basis of
measurement and the basis on which income and expenses are recognized in respect of each class of
financial asset and financial liability are disclosed in the notes to the Financial Statements.
Financial assets and liabilities
The following tables present the carrying value and fair value of each category of financial assets
and liabilities as at March 31, 2024 and March 31, 2023 as under:
The management has not disclosed the fair values for financial instruments because their carrying
values approximate their fair value largely due to the short-term maturities of these instruments.
3. Financial Risk Management:
The Company's activities expose it to a variety of financial risks: market risk, credit risk and
liquidity risk. The Company's focus is to foresee the unpredictability of financial markets and seek to
minimize potential adverse effects on its financial performance.
Market Risk:
Market risk is the risk of any loss in future earnings, in realizable fair values or in future cash flows
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 interest rates, foreign currency exchange rates,
equity price fluctuations, liquidity and other market changes.
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 Company does not have any long term loan. No interest rate risk is perceived.
Foreign Currency Risk:
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate
because of changes in foreign exchange rates.
The Company does not have borrowings and overseas transactions. Therefore, no foreign currency
risk is perceived.
Credit Risk:
Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its
contractual obligations, and arises principally from the Company’s receivables from customers. The
maximum exposure to credit risk is equal to the carrying value of the financial assets. 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 assesses the credit quality of the customers, taking into account their financial
position, past experience and other factors. Credit risk with respect to trade receivables is limited.
The Other current asset consists of dues from related parties.
Liquidity Risk:
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective
of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for
use as per requirements.
The Company's principal source of liquidity is cash and cash equivalents and the cash flow that is
generated from operations. Management monitors rolling forecasts of the Company’s liquidity
position and cash and cash equivalents on the basis of expected cash flows. Accordingly, no liquidity
risk is perceived.
Note: Cauvery Power Generation Chennai Private Limited and Kaveri Gas Power Private Limited
are under Corporate Insolvency Resolution Process.
6. Segment Reporting:
The Company is mainly engaged in the Operation and Maintenance services activity only during this
year and there were no other business activities carried out. Hence, the Company has only one
segment.
7. Disclosure under Micro, Small and Medium Enterprises Development Act, 2006:
There are no micro and small scale business enterprises, to whom the company owes dues, which are
outstanding for more than 45 days as at 31st March, 2024. This information to be disclosed under
Micro, Small and Medium Enterprises Development Act, 2006, has been determined to the extent
such parties have been identified on the basis of the information available with the company
8. Corporate Social Responsibility:
As the criteria for Complying with the Provisions of Corporate Social Responsibility under the
company’s act 2013 has not arisen, accordingly complying with CSR activities does not arise.
9. In the opinion of the Board of directors and to the best of their knowledge and belief, the value on
realization of current assets, loans and advances in the ordinary course of business will not be less
than the amount at which they are stated in balance sheet.
10. Payment of Managerial remuneration and other benefits inclusive of perquisites were not made to
the Managing Director and other Directors against their option.
11. Going Concern Basis:
The financial statements of the company have been prepared on a going concern basis, which
contemplates the realization of assets and discharge of liabilities in the normal course of business for
the foreseeable future.
During the earlier year business operations from the activity of rendering service relating to
operation and maintenance for power generating plants with group company was recognized. During
the current year the activity of rendering service relating to operation and maintenance were not
undertaken.
The company has installed a 5KW rooftop solar panel in the office premises of the company to test
the efficiency of power generation of the solar panel and feasibility of rooftop solar installation. The
results have been analyzed and it was found satisfactory. The company has started marketing rooftop
solar installation for domestic and commercial customers.
12. As per the SEBI regulations on the listing obligations, the company shall ensure 100% of share
holdings of promoters and promoter groups is in dematerialized form.All the promoters
shareholdings has been held in dematerialized form. The company has held 16,80,750/- shares of
public in the form of physical mode as on 31.03.2024
13. The Company does not own any immovable property. So possession of Title deeds of immovable
properties in the name of Company does not arise.
14. There are no investment in properties.
15. The Company has not revalued its Property, Plant and Equipment during the year
16. The Company does not own any intangible assets during the year. Hence revaluation if its intangible
assets does not arise.
17. The Company has not granted Loans or Advances in the nature of loan to any promoters, Directors,
KMPs and the related parties (As per Companies Act, 2013) , which are repayable on demand or
without specifying any terms or period of repayments
18. No proceedings have been initiated or pending against Company for holding any Benami Property
under Prohibitions of Benami Transactions Act,1988 (Earlier titled as Benami transactions
(Prohibitions) Act,1988 and rules made thereunder.
19. There are no transactions which has been surrendered or disclosed as income during the year in the
tax assessments under the Income Tax Act, 1961 and there is no previously unrecorded income and
related assets recorded in the books of accounts during the year.
20. The company has not filed any quarterly returns/statement of current assets with Banks since there
are no borrowings.
21. The Company is not declared as willful defaulter by any bank or financial institution (as defined
under Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines
on willful defaulters issued by the Reserve Bank of India.
22. The Company has no transaction with Companies which are stuck off under section 248 of the
Companies Act,2013 or under section 530 of Companies Act,1956.
23. Satisfaction of charge is pending for registration with the Registrar of Companies beyond the
Statutory period for charge made on Term Deposit of Rs.30,00,000/- with Karur Vysya Bank.
24. The Company has complied with the number of layers prescribed under clause (87) of Section 2 of
the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.
25. The Company has not traded or invested in Crypto currency or virtual currency during the financial
year.
26. No scheme of arrangement has been approved by the competent authority in terms of Section 230 to
237 of the Companies Act, 2013
27. The Company has not advanced or loaned or invested funds (either from 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) with the understanding, whether recorded in writing or otherwise,
that the Intermediary shall: (a) directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever (ultimate beneficiaries)by or on behalf of the company or (b)
provide any guarantee, security or the like to or on behalf of the ultimate beneficiary.
28. The Company has no funds received from any person(s) or entity(ies), including foreign entities
(Funding Parties) with the understanding, whether recorded in writing or otherwise, that the
Company shall: (a) directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever (ultimate beneficiaries)by or on behalf of the Funding Party or (b) provide any
guarantee, security or the like from or on behalf of the ultimate beneficiary.
29. Various ratios applicable to the company are as follows :
30. The full impact of COVID 19 still remains uncertain and could be different from our estimates when
we prepared these financial results. The company has made a detailed assessment of the
recoverability and carrying value of its assets comprising receivables, other current assets and other
assets as at the Balance Sheet date and on the basis of evaluation concluded that no material
adjustments are required in the financial statements. The Company will continue to closely monitor
any material changes to the future economic conditions.
31. Previous period figures have been regrouped/reclassified wherever necessary to conform to Current
period classification in order to comply with the requirements of the amended Schedule III of the
Companies Act, 2013.
As per our report of even date attached for and on behalf of the Board of Directors of
For P PATTABIRAMEN & CO., ELANGO INDUSTRIES LIMITED
ICAI Firm Registration No. 002609S
Chartered Accountants,
S.Elangovan S.A. Premkumar
. , Chairman & Managing
P Vijay Anand u u Director
Director
Partner DIN:01725838 DIN:00342952
Membership No.: 211954
Chennai
Date: 27th May 2024. M. Nagarajan Manali Miteshbhai Doshi
Chief Financial Officer Company Secretary
Chennai
Date: 27th May 2024
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