2.18 Provisions and contingencies
A provision is recognised when the Company has a present obligation as a result of past events and
it is probable that an outflow of resources will be required to settle the obligation in respect of which
a reliable estimate can be made. Contingent liabilities are not recognised but are disclosed in the
Notes as much as possible. Contingent Assets are neither recognized nor disclosed in the financial
statements. There has been various disputes between creditors and debtors and majority of them are
subject to Legal proceedings initiated by / against the company, management reviews them on
yearly basis. Provisions (excluding retirement benefits) are not discounted to their present value and
are determined based on the best estimate required to settle the obligation at the balance sheet date.
Contingent liability is disclosed for (1) Possible obligations which will be confirmed only by future
events not wholly within the control or (2) Present obligations arising from past events where it is
not probable that an outflow of resources will be required to settle the obligation or a reliable
estimate of the amount of the obligation cannot be made.
2.19 Balances
Balances of Sundry Debtors, Unsecured Loan & Advances and Sundry Creditors are subject to the
confirmation and reconciliation. The company has adjusted some balance of debtors and creditors
which it understands were related. Any amount for which dispute is created has not been recognised
until the same is confirmed by the legal forum and/or accepted by the company. The company also
charges interest on few outstanding receivable balances of debtors which are to be realised in future
or are subject to legal cases..
2.20 Investments
Investments are carried at Cost as fluctuation of market value is short term phenomenon.
2.21 Rounding of Amounts
All amounts disclosed in the Financial Statements and notes have been rounded off to the nearest
Lakhs (with two decimal places) as per the requirements of Schedule III, unless otherwise stated.
2.22 Estimation of uncertainties from Assets
The eventual outcome of the impact of various legal cases on assets and debtors as on the date of
approval of these financial statements are not taken and the Company continues to closely monitor
the situation including any material changes to outcome of such proceedings and consequential on
financials.
2.23 Objective, Policies and Processes for Managing Capital
The Company maintains an actively managed capital base to cover risks inherent in the business and
is meeting the capital adequacy requirements as prescribed by the Reserve Bank of India (RBI). The
adequacy of the Company’s capital is monitored using, among other measures, the regulations
issued by the RBI.
2.24 Dividends on ordinary shares
The Company recognises a liability to make cash distributions to equity holders when the
distribution is authorised and the distribution is no longer at the discretion of the Company. As per
the Companies Act, 2013 in India, a distribution is authorised when it is approved by the
shareholders. A corresponding amount is recognised directly in equity. Presently no dividend has
been proposed.
2.25 General Disclosure
Disclosure mandated by Schedule III of the Companies Act, 2013 is by way of additional
information.
Note:10 (d) There are no shares reserved for issue under options or contracts/commitments for sale of shares / disinvestment
as on 31/03/2024
NOte:10 (e) The company has not issued any bonus shares / neither alloted any share as fully paid up persuant to contracts
without payments being received in cash nor bought back any shares for the period of five years immediately
preceeding 31/03/2024.
Note:10 (f) The company does not have any securities convertible into equity or preference shares as at 31/03/2024.
Note:10 (g) The company does not have any unpaid calls as on 31/03/2024.
Note:10 (h) The company does not have any share application money pending allotment or Share Warrants.
24.1 Other Extraordinary Items
A Sundry Debtors includes Rs. 13,04,000/-, considered doubtful of recovery against which the company
has filed suit for recovery. Debtors also include various disputed customer balances and company has
also charges interest on balance due from some debtors after due dates. Further various cases has also
been initiated by the company for recoveries including interest. It has been decided by management
that necessary provisions will be made as per outcome of the cases already initiated / to be initiated by
the company hence not provision for doubtful debt is being made.
B No provisions has been made in the accounts for the followings:
a) The company has given some assets to a customer which has gone into liquidation and accordingly a
claim has been filed with the official liquidator appointed by the Court and awaiting the result.
b) Advances include Rs. 9,71,668/- due from company against which company has filed a case for
recovery of said advances, matter is subjudice and the same is pending with the Calcutta Metropolitan
Magistrate awaiting for decision. Necessary effects of the same will be given in the accounts on
settlement of the case.
c) Vehicle shown in Fixed Asset of the Company includes a vehicle which is not under company
possession and for which the company has initiated legal steps for recoveries and also include some
movable fixed assets which are not in possession of the company.
d) Loans and Advances includes advances paid for purchase of machines/ vehicles by the company but
disputed by the seller, no provisions has been made to that regards. Company has taken legal steps for
recovery of the same and as matter is subjudice, hence necessary effect will be given on settlement of
the same.
e) Company has not made any provision / payment for gratuity in the year as the calculation was not
received from LIC for the same.
f) There has been third party claims and disputes towards the immovable properties held by the
company including title dispute. A series of cases are ongoing. The company has recognised assets as
per purchase and development cost and no provision has been made due to the litigations. Subject to
outcome of court order, respective financial effect will be given.
C Contingent Liability not recognised includes Gratuity payment, guarantee/counter guarantee agreement
, other agreement signed by the company. Company has also parted with its possession of few of the
assets (including land) under the agreements for which no provision has been made/ whose assets are
recognised and are appearing at cost price in the books. As the outcome of such assets/liability is
related to respective agreement hence no amount is determinable on present day and all identified
assets are shown at cost.
24.2 Disclosure under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006
There has been no dues to Micro and Small Enterprises which have been determined to the extent such
parties have been identified on the basis of information provided by the suppliers to the management.
This has been relied upon by the auditors.
24.3 FAIR VALUE MESUREMENTS
(a) Fair value
The fair value of the financial assets and liabilities approximates their carrying amounts as on the
Balance Sheet date
(b) Fair valuation Techniques
The fair value of the financial assets and liabilities are included at the amount that would be received to
sell an asset or paid to transfer a liability in an orderly transactions between market participants at the
measurement date.
The following method of assumption were used to estimate the fair values :
(i) The fair value of cash and cash equivalents, trade receivables, trade payables, current financial
liabilities / financial assets approximate their carrying amount largely due to the short term nature of
these instruments. The management considers that the carrying amounts of financial assets and
financial liabilities recognised at nominal cost /amortised cost in the financial statements approximate
their fair value. Many of the same has been challenged in courts, hence amounts may change based on
legal outcome or customer reconciliation of the balances.
(ii) A portion of the company's long-term debts has been contracted at fixed rate of interest. Fair value
of variable interest borrowings approximates their carrying value subject to adjustments made for
transaction cost.
24.4 FINANCIAL RISK MANAGEMENT
The company’s risk management is carried out by a Financial Controller who identifies, evaluates and
hedges financial risks in close co-operation with the company’s operating units. The board provides
principles for overall risk management, as well as policies covering specific areas, such as foreign
exchange risk, interest rate risk, credit risk, liquidity risk and investment of excess liquidity.
(A) Market Risk - (i) Foreign currency risk - The Company does not operates internationally. The
company does not have significant foreign currency exposure.
(ii) Interest rate risk - The company is exposed to interest rate risk, further attention is drawn to note on
2.12
(iii) Price risk - The is exposed to significant market price risk on the securities it had invested.
(B) Credit Risk - The Company is exposed to credit risk from its activities and from its financing
activities including unsecured credit provided to parties.
(C) Liquidity Risk - Company is exposed to Liquidity risk as the Company may not be able to meet its
present and future cash and collateral obligations.
24.5 CAPITAL MANAGEMENT - RISK MANAGEMENT
The company’s objectives when managing capital are to safeguard their ability to continue as a going
concern, so that they can continue to provide benefits for all stakeholders. In order to maintain or adjust
the capital structure, the company may adjust the amount of dividends paid to shareholders, return
capital to shareholders, issue new shares or sell assets to reduce debt.
Regulatory capital-related information is presented as part of the RBI mandated disclosures. The RBI
norms require capital to be maintained at prescribed levels. There were no changes in the capital
management process during the periods presented. Tier I Capital comprises - Share Capital and
Reserves (Except statutory reserves). Tier II Capital comprises - Statutory Reserves Asset which are
not present in books (fully written off NPA).
24.9 Contingent Liabilities to the extend not provided for
Claims against the company not acknowledged as debts
a UCO Bank has initiated recovery proceedings against the company inspite of dispute in liability &
loss faced due to negligence of bank. The matter is raised before appropriate court of law and its
subjudice. To settle all disputes and as proactive measure the company has given one settlement
offer to the bank for which reply is awaited.
b The unsecured loan is Inter Corporate deposit received from one of the corporate. No further
provision of interest and payment are made after 2019 as dispute coped up. Management is
planning to take legal action in this matter.
Additional Disclosures
24.10 In the opinion of Board of Directors, the current assets, loans and advances have a value on
realisation in the ordinary course of business at least equal to the amount at which they are stated in
the Balance Sheet except for the one which are fully doubtful/ not under litigation.
24.11 Balances with Trade Receivable / Trade Payables and Loans and advances are subject to
confirmation.
24.12 Some of the securities lying in demat account of the company also include companies which are
under IBC, hence realisability of the same is subject of legal outcome.
24.13 The company has borrowing from financial institutions on the basis of security of current assets,
but no statements are being shared with institutions due to dispute with them (Note. 24.9). Total
such borrowings was less than 5 cr.
24.14 The company has not been declared as wilful defaulter by any bank / financial institution.
24.15 During the year the company has not entered into any transaction with companies struck off under
section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956
24.16 There are no pending charges / satisfaction which are yet to be registered with Registrar of
Companies
24.17 The company has no subsidiary company, hence compliance with clause (87) of section 2 of the
Act read with Companies (Restriction on number of Layers) Rules, 2017 is not required.
24.18 Company don’t get covered under section 135 of the companies act, hence CSR activities are not
undertaken.
24.19 Company has not drawn down any amount from reserves during the year.
24.20 Company has not received any loan related complaint from its customers during the year.
24.21 Company has no investment in Immovable Properties whose Title deeds of not held in name of the
Company.
24.22 The fair value of investment property (whereever mentioned in statement) is not based on valuation
by registered valuer.
24.23 The company has not revalued its Property, Plant and Equipment (including Right-of-Use Assets)
& intangible assets during the year.
24.24 No Loans or Advances in the nature of loans were granted to promoters, directors, KMPs and the
related parties (as defined under Companies Act, 2013), either severally or jointly with any other
person that are (a) repayable on demand or (b) without specifying any terms or period of
repayment.
24.25 The company has no transactions in current year with companies struck off under section 248 of the
Companies Act, 2013 or section 560 of Companies Act, 1956.
24.26 Various Important Ratios/ Figures are as follows in Rupee
24.27 Gross Non-Performing Assets (INR) GNPA are as follows (Rs in lacs):
_ Opening_14.45_
Added during the period 217.51
Written off during the period 0
_ Closing_231.96_
24.28 Details of Single Borrower Limits (SBL)/Group Borrower Limits
(GBL)_
The Company has not exceeded the single group borrower limits as set as by Reserve Bank of
India, where applicable.
24.29 The Company don’t have any long-term contracts including derivatives for which there are any
foreseeable losses.
24.30 There are no transactions not recorded in the books of accounts that has been surrendered or
disclosed as income in the books of account during the year in the tax assessment under the Income
Tax Act, 1961.
24.31 The Company has not traded or invested in Crypto Currency or Virtual Currency during the current
and previous year and therefore, the disclosures as sought is not applicable.
24.32 Company has not drawn down any amount from reserves during the year.
24.33 Company is not engaged in digital lending and has no tieup with LSP/ Collection Agencies.
As per our report of even date
For SARKAR GURUMURTHY & ASSOCIATES
Chartered Accountants
FRN 314062E
(Parimal Sarkar) (Sumit Bhansali) (Nilesh Chopra)
(Partner) (Managing Director & CFO) (Director)
(M.No. 051550) (Din : 00361918) (Din: 03482117)
Date: 30-05-2024 Ramakant Goenka
Place: Kolkata (Company Secretary)
UDIN : 24051550BKACGQ2448
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