2.19 Provisions and Contingencies
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past
event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made
of the amount of the obligation.
The amount recognized as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation. When a provision is measured using cash flows estimated to settle the present obligation, its carrying
amount is the present value of those cash flows (when the effect of the time value of money is material).
Contingent assets are disclosed in the Financial Statements by way of notes to account when an inflow of economic
benefits is probable.
Contingent liability is disclosed in the case of:
• A present obligation arising from past events, when it is not probable that an outflow of resources
will be require to settle the obligation;
• A present obligation arising from past events, when no reliable estimate is possible; and
• A present obligation arising from past events, unless the probability of outflow of resources is remote.
Commitments include the amount of purchase order (net of advances) issued to parties for completion/purchase of
assets.
Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.
Warranty provisions
Provisions for warranty-related costs are recognized when the product is sold or service provided to the customer.
Initial recognition is based on historical experience. The initial estimate of warranty-related cost is revised annually.
Litigation claims:
Provision for litigation related obligation represents liabilities that are expected to materialise in respect of matters
in appeal.
2.20 Non-Current assets held for sale
Non-current assets or disposal company's classified as held for sale are measured at lower of carrying amount and
fair value less costs to sell.
Non-current assets or disposal company are classified as held for sale if their carrying amounts will be recovered
principally through a sale transaction rather than through continuing use. This condition is regarded as met only when
the sale is highly probable and the asset or Disposal Company is available for immediate sale in its present condition
subject only to terms that are usual and customary for sale of such assets. Management must be committed to sale,
which should be expected to qualify for recognition as a completed sale within one year from the date of classification
as held for sale, and actions required to complete the plan of sale should indicate that is unlikely that significant
changes to the plan will be made or that the plan will be withdrawn.
Property, Plant and Equipment and intangible assets are not depreciated or amortised once classified as held for sale.
2.21 Segment Reporting
Segment Reporting reflect the Company's management structure and the way the financial information is regularly
reviewed by the Company's Chief Operating Decision Maker (CODM). The CODM considers the business from both
business and product perspective based on the dominant source, nature of risks and returns and the internal
organisation and management structure. The operating segments for which separate financial information is available
and for which operating profit/ (loss) amounts are evaluated regularly by executive Management in deciding how to
allocate resources and in assessing performance.
The accounting policies adopted for segment reporting are in line with the accounting policies of the Company.
Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the
basis of their relationship to the operating activities of the segment.
Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments
on reasonable basis have been included under unallocated revenue/expenses/assets/liabilities.
Segment accounting
The Chief Operational Decision Maker monitors the operating results of its business segments separately for the
purpose of making decisions about resources allocation and performance assessment. Segment performance is
evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements.
The Operating segments have been identified on the basis of the nature of products / services.
Segments revenue includes sales and other income directly identifiable with/allocable to the segment including inter¬
segments revenue.
Expenses that are directly identifiable with/allocable to segments are considered for determining the segment result.
Expenses which relate to the company as a whole and not allocable to segments are included under Unallocable
expenditure.
Income which relates to the company as a whole and not allocable to segments is included in Unallocable income.
Segment result includes margins on inter-segments sales which are reduced in arriving at the profit before tax of the
company.
Segments assets and liabilities include those directly identifiable with the respective segments. Unallocable assets
and liabilities represent the assets and liabilities that relate to the company as whole and not allocable to any
segment.
Inter-Segments transfer pricing:
Segments revenue resulting from transactions with other business segments is accounted on the basis of transfer
price agreed between the segments. Such transfer prices are either determined to yield a desired margin or agreed
on a negotiated basis.
2.22 Operating Cycle
All the assets and liabilities have been classified as current or non-current as per the Company's normal operating
cycle and other criteria set out in Notes. Based on the nature of products and services and the time between the
acquisition of assets for processing and their realisation in cash and cash equivalent, the Company has ascertained its
operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.
2.23 Exceptional Items:
On certain occasions, the size, type or incidence of an item of income or expense, pertaining to ordinary activities of
the Company is such that its disclosure improves the understanding of the performance of the Company, such income
or expense is classified as an exceptional item and accordingly, disclosed in the notes accompanying to the financial
statements.
2.24 Current and Non-current classification:
The Company presents assets and liabilities in the balance sheet based on current/non-current classification.
An asset is current when it is:
• Expected to be realized or intended to be sold or consumed in normal operating cycle,
• Held primarily for the purpose of trading,
• Expected to be realized within twelve months after the reporting period, Or
• Cash or Cash Equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period.
All other assets are classified as non-current.
A liability is current when:
• It is expected to be settled in normal operating cycle,
• It is held primarily for the purpose of trading,
• It is due to be settled within twelve months after the reporting period, Or
• There is no unconditional right to defer the settlement of liability for at least twelve months after the
reporting period.
Deferred tax assets/liabilities are classified as non-current.
All other assets are classified as non-current.
2.25 Recent Accounting Pronouncements:
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024,
MCA has not notified any new standards or amendments to the existing standards applicable to the Company.
3. Significant Accounting Judgements, Estimates and Critical Accounting Assumptions:
The preparation of financial statements in conformity with Ind AS requires management to make judgements,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and
liabilities, disclosures of contingent liabilities at the date of financial statements and the reported amounts of revenue
and expenses for the years presented. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognized in the period in which the estimates are revised and in any future periods affected.
In particular, information about significant areas of estimation, uncertainty and critical judgements in applying
accounting policies that have the most significant effect on the amount recognized in the financial statements pertain
to:
3.1 Useful lives of property, plant and equipment and intangible assets:
The Company has estimated useful life of each class of assets based on the nature of assets, the estimated usage of
asset, the operating condition of the asset, past history of replacement, anticipated technological changes, etc. The
Company reviews the carrying amount of property, plant and equipment and intangible assets at the end of each
reporting period. This reassessment may result in change in depreciation expense in future periods.
Depreciation on Property, Plant and Equipment is provided pro-rata for the periods of use on straight line method
(SLM) on the basis of useful life of the property, plant and equipment mandated by Part C of Schedule II of the
Companies Act, 2013 or the useful life determined by the company based on technical evaluation, whichever is lower,
taking into account the nature of asset, the estimated usage of asset, the operating conditions of the asset, past
history of replacement, maintenance support, as per details given below:
3.2 Impairment of Tangible and Intangible Assets other than Goodwill
Property, Plant and Equipment and Intangible assets are tested for impairment when events occur or changes in
circumstances indicate that the recoverable amount of cash generating unit is less than its carrying value. The
recoverable amount of cash generating units is higher of value-in-use and fair value less cost to sell. The calculation
involves use of significant estimates and assumptions which includes turnover and earnings multiples, growth rates
and net margins used to calculate projected future cash flows, risk-adjusted discount rate, future economic and
market conditions.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to asset for
which the estimates for future cash flows have not been adjusted.
At each Balance Sheet date, consideration is given to determine whether there is any indication of impairment of the
carrying amount of the Company's assets. If any indication of impairment of carrying amount of the Company's assets.
If any indication exists, estimation is made for the asset's recoverable amount, which is greater of the net selling price
and the value in use. An impairment loss, if any, is recognized whenever the carrying amount of an asset exceeds the
recoverable amount.
Impairment losses of continuing operations, including impairment on inventories, if any, are recognized in profit or
loss section of the statement of profit or loss.
3.3 Provision against Investments/Loans and Advances
The management talking into account the present operations of the Company proposed restructuring, future business
prospects etc. to make provision towards impairment on carrying value of investments and loans and advance given.
3.4 Employee Benefits - Defined Benefit Obligation (DBO)
Management's estimate of the DBO is based on a number of critical underlying assumptions such as standard rates
of inflation, medical cost trends, mortality, discounts rate and anticipation of future salary increases. Variation in
these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.
However, the company has protested the contention in case filed by the Bank in Debt Recovery Tribunal Kolkata.
The matter is under hearing.
Meanwhile the Company also filed a case against the bank against non-performance of Specific performance of
contract at single bench of Hon'ble Calcutta High Court.
The Single Bench of Hon'ble High Court passed an order against the Company. However, the Company filed an
appeal against the said order in the Double Bench of Hon'ble Calcutta High Court. The said Double Bench heard
our grounds of appeal and passed order in our favour.
The Bank filed a Special Leave Petition against the said order of the Double Bench of Hon'ble Calcutta High Court
in Hon'ble Supreme Court. Special Leave Petition order was passed against the Company by setting aside the
Double Bench of Hon'ble Calcutta High Court order. Company had filed Miscellaneous Application,
The said Miscellaneous application has been heard and Apex Court had passed an order in favour of the Company
for allowing the Civil Court to proceed the Suit on Merit in the Hon'ble Calcutta High Court.
Various Properties offered as Collateral Securities to UCO Bank and J&K Bank in respect of various credit facilities
enjoyed by Fairdeal Supplies Ltd, an associate concern and these properties have been symbolically possessed
by the UCO Bank.
Fairdeal Supplies Ltd. has made a One Time Settlement with UCO Bank and commenced repayment thereof,
however due to impact of COVID-19 on its business, the repayment has been delayed and company requested
to the bank for further extension of the repayment duration for balance settled amount. The bank considered
the request of the Fairdeal Supplies Ltd and revalidated of their proposal during the year 2021-22 and the
company has started making repayment as per revised terms and conditions of the bank.
The said Company has started making repayment of the OTS since then and the said Company has
repaid Rs. 75.00 Crores (100.00%) of OTS amount during 2023-2024 and interest on delayed payments of Rs
11.89 crores was paid in April 2024. However, the Bank is yet to issue NO Due CERTIFICATE for filing of Form CHG-
4 with MCA for the same.
Fairdeal Supplies Ltd has made OTS with J&K Bank for repayment of OTS amount and has paid full and final
settlement amount during the previous financial year. J & K Bank have withdrawn the legal case in the matter of
SA 1316/2014 in DRT consequent upon full & final settlement of credit facilities by Fairdeal Supplies Limited to
J&K Bank Limited. However, the Bank is yet to issue NO Due CERTIFICATE for filing of Form CHG 4 with MCA.
Fair Value of investment properties which includes commercial and residential premises could not be identified
as management has not carried out valuation of these properties.
The terms of repayment not yet finalised for Unsecured Loan from Body Corporate, Related Parties, Others and
Directors. Rate of Interest is charged @ 9% p.a. previous year @ 9% p.a.
Term loan (secured) from Kotak Mahindra Prime Ltd. In form of motor vehicle finance facility secured against
hypothecation of motor vehicle of the company. The Said loan carries interest rate @ 10% P.A and the loan is
repayable in monthly equated installment of Rs. 25,755/- each inclusive of interest. (Current year- Balance
Outstanding Rs. 9,66,071/- P. Y. Balance Outstanding Rs. 11,69,176/-)
Term loan (secured) from Kotak Mahindra Prime Ltd. In form of motor vehicle finance facility secured against
hypothecation of motor vehicle of the company. The Said loan carries interest rate @ 10.20% P.A and the loan is
repayable in monthly equated installment of Rs. 43,883/- each inclusive of interest. (Current year- Balance
Outstanding Rs. 11,23,600/- P. Y. Balance Outstanding Rs. NIL)
Term loan (secured) from Sundaram Finance Limited, in form of commercial vehicle finance facility secured
against hypothecation of commercial vehicles of the company. The financier is also holding personal guarantee
of managing director of the company, The said loan carries interest rate @ 9.63% p.a. and the loan is repayable
in monthly equated installment of Rs. 10,25,800/- each inclusive of interest. (Current year- Balance Outstanding
Rs. 3,78,90,531/- P. Y. Balance Outstanding Rs. NIL).
Term loan (secured) from Tata Motors Finance Limited, in form of commercial vehicle finance facility secured
against hypothecation of commercial vehicles of the company. The financier is also holding personal guarantee
of managing director of the company, The Said loan carries interest rate @ 9.54% p.a. and the loan is repayable
in monthly equated installment of Rs. 10,05,000/- each inclusive of interest. (Current year- Balance Outstanding
Rs. 3,96,38,297/- P. Y. Balance Outstanding Rs. NIL).
Term loan (secured) from Tata Motors Finance Limited, in form of commercial vehicle finance facility secured
against hypothecation of commercial vehicles of the company. The financier is also holding personal guarantee
of managing director of the company, The Said loan carries interest rate @ 9.75% p.a. and the loan is repayable
in monthly equated installment of Rs. 25,250/- each inclusive of interest. (Current year- Balance Outstanding Rs.
10,00,000/- P. Y. Balance Outstanding Rs. NIL).
Term loan (secured) from Mahindra and Mahindra Financial Services Ltd. In form of motor vehicle finance facility
secured against hypothecation of motor vehicles of the company. The Said loan carries interest rate @ 11.15%
P.A and The loan is repayable in monthly equated installment of Rs. 20,730/- each inclusive of interest. (Current
year- Balance Outstanding Rs. 5,99,192/- P. Y. Balance Outstanding Rs. 7,68,328/-.
Term loan (secured) from Mahindra and Mahindra Financial Services Ltd. In form of motor vehicle finance facility
secured against hypothecation of motor vehicle of the company. The financier is also holding personal guarantee
of director of the company, The Said loan carries interest rate flat @ 9.49% P.A and The loan is repayable in
monthly equated installment of Rs. 42,360/- each inclusive of interest. (Current year- Balance Outstanding Rs.
NIL/- P. Y. Balance Outstanding Rs. 32,344/-)
Working Capital Loans from bank includes Rs 2816.99 Lac against Cash Credit Limit and Rs. 2000.00 Lac against
Export Packing Credit Limit from Punjab and Sind Bank has been slipped to Non-Performing Assets with effect
from 31-03-2012. The company has also defaulted in interest payable on said loan amounting to Rs 1,82,92,452/-
for the period from 01/04/2013 to 31/03/2014 and Rs. 4,69,38,398/- for the period from 01/04/2014 to
31/03/2015 and Rs. 48102318/- for the period from 01/04/2015 to 31/03/2016 and Rs. 16837421/- for the period
from 01/04/2016 to 31/03/2017. The Interest provision on loan taken from the bank has not been accounted for
the financial year 2017-18 to 2022-23 due to legal dispute between the company and the bank as Double Bench
of Hon'ble Calcutta High Court has issued order in favour of the company. The Bank filed a Special Leave Petition
against the said order of the Double Bench of Hon'ble Calcutta High Court in Hon'ble Supreme Court. Special
Leave Petition order was passed against the Company by setting aside the Double Bench of Hon'ble Calcutta High
Court order. Company had filed Miscellaneous Application.
The said Miscellaneous application has been heard and Apex Court had passed an order in favour of the Company
for allowing the Civil Court to proceed the Suit on Merit in the Hon'ble Calcutta High Court.
Fair values
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either:
a) In the principal market for the asset or liability, or
b) In the absence of a principal market, in the most advantageous market for the asset or
liability.
The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market
participants would use when pricing the asset or liability, assuming that market participants act
in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant's
ability to generate economic benefits by using the asset in its highest and best use or by selling
it to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximising the use of relevant observable
inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements
are categorised within the fair value hierarchy, described as follows, based on the lowest level
input that is significant to the fair value measurement as a whole:
a) Level 1 -- This includes financial instruments measured using quoted prices. The fair value of
all equity instruments which are traded on the Stock Exchanges is valued using the closing price
as at the reporting period.
b) Level 2 -- The fair value of financial instruments that are not traded in an active market (for
example over-the-counter derivatives) is determined using valuation techniques which
maximise the use of observable market data and rely as little as possible on entity-specific
estimates.
c) Level 3 -- If one or more of the significant inputs is not based on observable market data,
the instrument is included in level 3
For assets and liabilities that are recognised in the financial statements on a recurring basis, the
Company determines whether transfers have occurred between levels in the hierarchy by re¬
assessing categorisation (based on the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.
External valuers are involved, wherever required, for valuation of significant assets, such as
properties, unquoted financial assets and significant liabilities. Involvement of external valuers
is decided upon by the Company after discussion with and approval by the Company's
management. Selection criteria include market knowledge, reputation, independence and
whether professional standards are maintained. The Company, after discussions with its external
valuers, determines which valuation techniques and inputs to use for each case.
At each reporting date, the Company analyses the movements in the values of assets and
liabilities which are required to be remeasured or re-assessed as per the Company's accounting
policies. For this analysis, the Company verifies the major inputs applied in the latest valuation
by agreeing the information in the valuation computation to contracts and other relevant
documents. The Company also compares the change in the fair value of each asset and liability
with relevant external sources to determine whether the change is reasonable.
For the purpose of fair value disclosures, the Company has determined classes of assets and
liabilities on the basis of the nature, characteristics and risks of the asset or liability and the
level of the fair value hierarchy as explained above.
This note summarises accounting policy for fair value measurement. Other fair value related
disclosures are given in the relevant notes.
Valuation technique used to determine fair value:
Specific valuation techniques used to value financial instruments include:
the use of quoted market prices or dealer quotes for similar instruments
Fair Value of Financial Assets & Liabilities measured at amortized cost
S The carrying amounts of trade receivables, trade payables, capital creditors and cash and cash
equivalents are considered to be the same as their fair values, due to their short-term nature.
S The fair values of non-current borrowings are based on discounted cash flows using a current
borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the
use of unobservable inputs, including own credit risk. They are subsequently measured at
amortised cost at balance sheet date.
1. Financial Risk Management
The Company's activities expose it to market risk, liquidity risk and credit risk. This note
explains the sources of risk which the entity is exposed to.
Credit Risk Management
Company assesses and manages credit risk based on internal credit rating system. The finance function
consists of a separate team who assesses and maintains an internal credit rating system. Internal credit
rating is performed on for each class of financial instruments with different characteristics.
The company is making provision on Trade Receivables based on Expected Credit Loss Model (ECL).
Liquidity Risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the
availability of funding through an adequate amount of committed credit facilities to meet obligations when
due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company
treasury maintains flexibility in funding by maintaining availability under committed credit lines.
Management monitors rolling forecasts of the Company's liquidity position and cash and cash
equivalents on the basis of expected cash flows. This is generally carried out at local level in the
operating companies of the Company in accordance with practice and limits set by the Company. These
limits vary by location to take into account the liquidity of the market in which the entity operates. In
addition, the Company's liquidity management policy involves projecting cash flows in major currencies
and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity
ratios against internal and external regulatory requirements and maintaining debt financing plans.
Market Risk Management
Foreign Currency Risk
The Company operates internationally and is exposed to foreign exchange risk arising from foreign
currency transactions, primarily with respect to the US$, EUR. Foreign exchange risk arises from future
commercial transactions and recognized assets and liabilities denominated in a currency that is not the
company's functional currency (INR). The risk is measured through a forecast of highly probable foreign
currency cash flows.
Cash flow and fair value interest rate risk
The Company's main interest rate risk arises from long-term borrowings with variable rates, which
expose the Company to cash flow interest rate risk.
The Company's fixed rate borrowings are carried at amortised cost. They are therefore not subject to
interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows
will fluctuate because of a change in market interest rates.
Price Risk
The Company's exposure to equity securities price risk arises from investments held by the Company
and classified in the Balance Sheet at fair value through profit or loss.
To manage its price risk arising from investments in equity securities, the Company diversifies its
portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.
35.2 Capital Management
The Company's objectives when managing capital are to
S safeguard their ability to continue as a going concern, so that they can continue to provide
returns for shareholders and benefits for other stakeholders, and
S Maintain an optimal capital structure to reduce the cost of capital.
Consistent with others in the industry, the Company monitors capital on the basis of the
following gearing ratio:
Identification of Segments:
The chief operational decision maker monitors the operating results of its Business segment separately for the
purpose of making decision about resource allocation and performance assessment. Segment performance is
evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements,
Operating segment have been identified on the basis of nature of products and other quantitative criteria specified
in the Ind AS 108.
Segment revenue and results:
The expenses and income which are not directly attributable to any business segment are shown as unallocable
expenditure (net of allocable income).
Segment assets and Liabilities:
Segment assets include all operating assets used by the operating segment and mainly consist of property, plant
and equipment, trade receivables, Inventory and other operating assets. Segment liabilities primarily include trade
payable and other liabilities. Common assets and liabilities which cannot be allocated to any of the business
segment are shown as unallocable assets / liabilities.
Inter Segment transfer:
Inter Segment revenues are recognised at sales price. The same is based on market price and business risks. Profit
or loss on inter segment transfer are eliminated at the group level.
The company has provided Corporate Bank Guarantee to UCO Bank and J&K Bank in respect of Credit Facilities
enjoyed by Fairdeal Supplies Ltd. In respect of such guarantee, company has given some of its Investment
Properties as Collateral Securities. Details of such Assets have been given in Note No 6. UCO Bank has issued
demand notice dated 05-08-2012 to the borrowers/guarantors/mortgagors to repay the amount mentioned
in the notice being Rs 235,94,31,422.65, failing on which the bank has taken Symbolic Possession of the
properties in exercise of powers conferred upon them under the SARFAESI Act, 2002.
Fairdeal Supplies Ltd. has made a One Time Settlement with UCO Bank and commenced repayment thereof,
however due to impact of COVID-19 on its business, the repayment has been delayed and company requested
to the bank for further extension of the repayment duration for balance settled amount. The bank considered
the request of the Fairdeal Supplies Ltd and revalidated of their proposal during the year 2021-22 and the
company has started making repayment as per revised terms and conditions of the bank.
The said Company has started making repayment of the OTS since then and the said Company has repaid Rs. 75.00
Crores (100.00%) of OTS amount during 2023-2024 and interest on delayed payments of Rs 11.89 crores was paid
in April 2024. However the Bank is yet to issue NO Due CERTIFICATE for filing of Form CHG 4 with MCA for the
same.
Fairdeal Supplies Ltd has made OTS with J&K Bank for repayment of OTS amount and has paid full and final
settlement amount during the previous financial year. J & K Bank have withdrawn the legal case in the matter
of SA 1316/2014 in DRT consequent upon full & final settlement of credit facilities by Fairdeal Supplies Limited
to J&K Bank Limited. However, the Bank is yet to issue NO Due CERTIFICATE for filing of Form CHG 4 with MCA.
35.9 The Company has a process whereby periodically all long-term contracts (including derivative contracts) are
assessed for material foreseeable losses. At the year end, the Company has reviewed and there are no long¬
term contracts for which there are any material foreseeable losses. The Company has ensured that adequate
provision as required under any law/accounting standards for material foreseeable losses on derivative
contracts has been made in the books of accounts.
35.10 There have been no transactions which have not been recorded in the books of accounts, which have been
surrendered or disclosed as income during the financial year ended 31 March 2024 and 31 March 2023, in the
tax assessments under the Income Tax Act, 1961. There have been no previously unrecorded income and
related assets which were to be properly recorded in the books of account during the financial year ended 31
March 2024 and 31 March 2023.
35.11 The Company has borrowings from Punjab & Sind Bank on the basis of security of current assets and the
quarterly returns filed by the Company with the bank has been declared NPA by bank since May 2012, hence
no compliance has been done during the year.
35.12 The Company does not have any charges which is yet to be registered with ROC beyond the statutory period
except two instances mentioned below. As regards satisfaction of some of the charges of GE Capital Transport
Financial Services LTD for which our company has been repaid the whole financed amount but could not filed
the satisfaction of charge due to non-receipt of NO DUE Certificate for MCA filing. GE Capital Transport
Financial Services LTD has amalgamated and closed its all branch offices, meanwhile we send many reminder
mails to the company for issue of No Due Certificate, but no reply has been received so far. The loan borrowed
by Fairdeal Supplies Limited from UCO Bank Ltd and Jammu and Kashmir bank for which corporate guarantee
has been given by our company has been fully repaid by the said company, however the satisfaction is pending
for non-receipt of No due certificate from the bank.
The company created a charge of Rs 10,00,00,000/- in favour of Punjab & Sind Bank Limited against grant of
various credit facilities vide charge ID 80056888 on dated 07/12/2005. However, the name of the Bank is
wrongly appeared as Punjab National Bank in the index of charge downloaded from MCA portal. Steps are
being taken for rectification of name of the Bank.
35.13 The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority. It has been informed that one of the companies and the directors (common directors
of our company) in which our company has issued Corporate Guarantee against the facilities granted to the
said company, has been declared wilful defaulter by UCO bank. It has been further informed that the said
company made One Time Settlement with the UCO bank and has repaid around 100.00% of the One Time
Settlement amount along with interest up to 30-04-2024.
The company has also been informed that the said company and the directors in which directors are common
with our company, has been declared wilful defaulter by Indian Overseas Bank. It has been further informed
that the said company made One Time Settlement with the Indian Overseas Bank and has fully repaid the
principal amount of One Time Settlement amount as on the balance sheet date, Interest on delayed payment
is yet to be served.
35.14: There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March
31, 2024.
35.15: Contribution to political parties during the year 2023-24 is Rs. NIL
35.16: Other Statutory Information
• No proceedings have been initiated or pending against the Company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 and rules made thereunder, as at 31 March 2024 and 31 March
2023.
• The Company did not have any material transactions with companies struck off under Section 248 of the
Companies Act, 2013 or Section 560 of Companies Act, 1956 during the financial year.
• The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended 31 March
2024 and 31 March 2023.
• No funds have been advanced / loaned / invested (from borrowed funds or from share premium or from any
other sources / kind of funds) by the Company 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 (i)
directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (Ultimate Beneficiaries) or (li) provide any guarantee, security or the like to or on behalf
of the Ultimate Beneficiaries.
• The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
o directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Funding Party (Ultimate Beneficiaries) or
o provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
35.17: The Company has taken borrowings from banks and financial institutions and utilised them for the specific
purpose for which they were taken as at the Balance sheet date.
35.18: Derivatives: There are no derivative instruments in the Company for the year ended 31 March 2024 and 31 March
2023.
35.19: Compliance with number of Layers of companies: The Company has not violated with the number of layers
prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017
for the financial years ended March 31, 2024 and March 31, 2023.
35.20: There were no instances of fraud reported during the year ended 31 March 2024.
We hereby make disclosure that our Company has filed complaint on 04.10.2022 with Ellisbridge Police Station,
Ahmedabad, against Mr. Arjun Singh, ex-employee of our company for the fraud of Rs. 7,67,998/- committed by him,
during his employment with the Company in the past. During his employment, Mr. Arjun Singh raised incorrect invoices
on the debtors resulting loss of Rs. 7,67,998/-.
35.21: Code on Social Security, 2020: The Code on Social Security, 2020 ('Code') relating to employee benefits during
employment and post- employment benefits received Presidential assent in September 2020. The Code has been
published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The
Company will assess the impact of the Code when it comes into effect and will record any related impact after the Code
becomes effective.
35.22: Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 requires all companies which use accounting
software for maintaining their books of account, to use such an accounting software which has a feature of audit trail,
with effect from the financial year beginning on 1 April 2023 and accordingly, reporting under Rule 11(g) of Companies
(Audit and Auditors) Rules, 2014 (as amended) is implemented for the current financial year.
35.23: Figures of previous year have been reworked/regrouped/reclassified wherever necessary.
On Behalf of Board of
As Per our Report of Even Date Frontline Corporation Ltd
For For S M Pansuriya & Co. Ram Prasad Agarwal
Chartered Accountants S.K.Verma Director
FRN: 126729W Company Secretary (DIN NO: 00060359)
Snehal Pansuriya Pawankumar Agarwal
Proprietor Komal Shah Managing Director
M.No. 121039 C.F.O. (DIN NO: 00060418)
Date: 30-05-2024 Date: 30-05-2024
Place: Ahmedabad Place: Ahmedabad
UDIN: 24121039BKASZH9409
|