(i) Property, Plant and Equipment pledged as Security
Refer to note 36 on Property, Plant and Equipment and Capital Work-in-progress pledged as security by the Company.
(ii) Capital Commitments
Refer to note 28 for disclosure of contractual commitments for the acquisition of Property, Plant and Equipment.
The Company had recognised Deferred Tax Assets amounting to Rs 51,706.60 Lakhs upto 31st March, 2018. The Company believes that based on the infusion of fresh funds coming to the company with the Investors support there will be adequate future taxable profits available to the Company against which the Deferred Tax Assets can be utilised. However, the Company has not recognised further Deferred Tax Assets thereafter on prudent basis.
“Each Equity Share has a par value of Rs 10/-. It entitles the holder to participate in dividends, and to share upon liquidation of the company in proportion to the number of shares held and amounts paid thereon. Every holder of Equity Shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.
Each CCPS is compulsorily convertible into one Equity Share at any time within 18 months from the date of allotment. CCPS shall have priority with respect to payment of dividend or repayment of capital over equity shares of the Company.
The holders of CCPS would not participate in the surplus assets and profits on winding up which may remain after the entire capital has been repaid.
Each CCPS would carry a dividend of 1% which would be non cumulative. ii) Shares of the company held by Holding/Ultimate Holding Company
The Company does not have a Holding Company.
Nature and purpose:
In earlier years, the Company had recognised fair valuation gain of Rs. 83,804.25 Lakhs on account of deferred repayment of Inter Corporate Deposit from Seajuli Developers & Finance Limited (“SDFL”) and Woodside Parks Limited (“WPL”). Under CIRP, both the companies have submitted their financial claims to RP. RP has admitted such claims and as such the Company has reversed its fair valuation gain.
A. 11.50% Non-Convertible Redeemable Cumulative Preference Shares
(i) Non-Convertible Redeemable Preference Shares were redeemable in 8 equal quarterly installments commencing from 5th June, 2018 and the last installment payable was on 5th March, 2020 which has been on default as on the date of approval of these Standalone Financial Statements.
B. External Commercial Borrowing from ICICI Bank Limited
(i) Terms of repayment:
Loan having a balance outstanding of USD 6.60 lakhs,the last instalment date was due on 23rd December, 2018 which has been on default as on the date of approval of these Standalone Financial Statements.
(ii) Security details
Refer Note 36 for details of assets charged as security against these borrowings.
(ii) Leave Obligations
At Present there is no accumulation of leave which is encashable in future year.
(iii) Gratuity
The company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a funded plan and the company makes contributions to recognised funds in India. The company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.
The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.
The plan liabilities are calculated using a discount rate set with reference to government bonds. If the plan assets underperform this yield, this will create a deficit. The plan asset investments is with the Life Insurance Corporation of India which administers the fund. The investments are expected to earn a return in excess of the discount rate and reduce plan deficit.
The weighted average duration of the defined benefit obligation is 4.13 years (March 31, 2023 - 4.67 years). The expected contribution to the fund during the financial year 2024-25 would be Rs. 29.78 Lakhs
(iv) Provident fund
The company has an obligation to fund any shortfall on the yield of the trust's investments compared to the administered interest rates on an annual basis. These administered rates are determined annually predominantly considering the social rather than economic factors and in most cases, the actual return earned by the company has been higher in the past years. The actuary has provided a valuation for provident fund liabilities on the basis of guidance issued by the Actuarial Society of India and based on the assumptions provided below, there is no shortfall as at March 31, 2024 and March 31, 2023.
In accordance with actuarial valuation done for interest rate guarantee, the fund has sufficient assets against the defined benefit liability and hence no further liability arises for interest rate guarantee.
The plan assets have been primarily invested in government securities.
The company contributed Rs. 81.48 Lacs and Rs. 99.50 Lacs during the years ended March 31, 2024 and March 31, 2023, respectively, and the same has been recognised in the Statement of Profit and Loss under the head employee benefit expenses.
Risks arising from defined benefit obligations
The defined benefit obligation plans typically expose the Company to actuarial risks i.e. investment risk, interest risk, longevity risk and salary risk.
Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.
Interest risk: A decrease in bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan assets.
Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.
Salary risk: The present value of defined plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan liability.
(i) The claim of EIG ( Mauritius ) Limited admitted by RP as per Arbitration Award has been recognised in the books of accounts.
(ii) McNally Sayaji Engineering Limited (MSEL), subsidiary of the Company, was admitted to CIRP vide order dated 11.02.2021 and eventually the Resolution plan of the successful Resolution Applicant was approved by COC and thereafter by the Hon'ble National Company Law Tribunal, Kolkata Bench, Court-I vide its order dt. 24.02.2023. The existing share capital of MSEL stands cancelled and delisted. Hence entire carrying value amounting to Rs 17,923.73 Lakhs and advance of Rs 70.15 Lakhs has been written off from the books of accounts as 'Exceptional Items'.
Note 24: Capital Management
Capital Management
The Company strives to manage its capital efficiently with a view to safeguard its ability to continue as a going concern and to bring returns to its shareholders and stakeholders. The capital structure of the company is based on management's judgement of the appropriate balance of key elements in order to meet its strategic and day to day needs. The amount of capital in proportion to risk is considered for capital structure management in light of changes in economic conditions and the risk characteristics of the underlying assets. The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investors, creditors and market confidence and to sustain future
developments and growth of its business. For the purpose of company’s capital management, capital includes issued capital and all other equity reserves. The Company manages its capital structure in light of changes in the economic and regulatory environment and the requirments of the financial covenants. However, in view of certain factors, challenges and changes faced by the Company over past few years as explained in Note 41 to the Standalone Financial Statements, networth of the Company has been fully eroded. The management expects that overall financial health of the Company would improve upon successful implementation of resolution plan as approved by the Hon’able National Company Law Tribunal.
Loan Covenants
Under the terms of the major borrowing facilities, the Company is required to comply with various financial covenants. The Company has been under financial stress due to external factors. EBITDA margins of the Company have not been sufficient to service interest/ principal repayment even after infusion of funds by the promoters from time to time during the earlier years. The company has not been able to comply with some of the covenants during the current as well as the previous years. The Company has persisting defaults in repayment of loans or borrowings to banks and other lenders.
Note 25: Risk Management
The Company’s activities is exposed to credit risk, liquidity risk and market risk.
The Company’s risk management is carried out by a treasury department under policies approved by the Board of Directors. The treasury department identifies, evaluates and hedges financial risks in close cooperation with the Company’s operating units. The Board provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.
(A) Credit Risk
Credit risk arises from Cash and Cash Equivalents, other bank balances, investments and other financial assets carried at amortised cost and deposits with banks and financial institutions, as well as credit exposures to customers including outstanding receivables and due from customers.
(i) Credit Risk Management
The Company assigns the following credit ratings to each class of financial assets based on assumptions, inputs and factors specific to the class of financial assets.
VL1: High-quality assets, negligible credit risk
VL2: Quality assets, low credit risk
VL3: Standard assets, moderate credit risk
VL4: Substandard assets, relatively high credit risk
VL5: Low quality assets, very high credit risk
VL6: Doubtful assets, credit impaired
Macroeconomic information (such as regulatory changes, market interest rate or growth rates) is incorporated as part of the internal rating model. Financial Assets are written off when there is no reasonable expectations of recovery, such as debtor failing to engage in a repayment plan with the Company or where payer/borrower does not have financial capability to repay its debts. Where loans or receivables have been written off, the Company continues to engage in enforcement activities to attempt to recover the receivable dues.
(ii) Provision for Expected Credit Losses
The Company provides for expected credit loss of trade receivables, due from customers and other financial assets based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Whenever required, past trend is adjusted to reflect the effects of the current conditions and forecasts of future conditions that did not affect the period on which the
historical data is based, and to remove the effects of the conditions in the historical period that are not relevant to the future contractual cash flows.
Significant Estimates and Judgements Impairment of Financial Assets
The impairment provisions for financial assets disclosed above are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Company’s past history, industry practices, existing market conditions and business environment as well as forward looking estimates at the end of each reporting period.
(B) 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 net market positions. Due to the dynamic nature of the underlying business, the Company’s treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn borrowing facilities as below) and cash and cash equivalents on the basis of expected cash flows. 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.
(i) Maturity of Financial Liability
The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for:
• all non-derivative financial liabilities, and
• net and gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows.”
The amounts disclosed in the table are the contractual cash flows, balances due within 12 months and more than 12 months.
(C) Market Risk
(i) Foreign Currency Risk
The Company is exposed to foreign exchange risk arising from foreign currency transactions primarily with respect to the USD and EUR. Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the Company's functional currency (Rupees ). The risk is measured through the expected foreign currency cash flows based on the Company’s receipt and repayment schedule for recognised assets and liabilities denominated in a currency other than “Rupees” . The objective of the hedging is to minimize the volatility of the INR cash flows of such recognised assets and liabilities.
(ii) Cash flow and fair value interest rate risk
The Company’s main interest rate risk arises from Current Borrowings with variable rates, which exposes the Company to cash flow interest rate risk. During the year ended 31st March, 2024 and 31st March, 2023, the Company’s borrowings at variable rate were mainly denominated in INR.
The Company’s Borrowings are carried at amortised cost. The fixed rate borrowings are 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.
(i) Fair Value Hierarchy
This section explains the judgements and estimates made in determining the fair values of the Financial Instruments. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its Financial Instruments into the three levels prescribed under the Indian Accounting Standards. An explanation of each level follows underneath the table.
Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities.
Level 2: Inputs other than quoted price included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). The fair value of financial instruments that are not traded in an active market is determined using market approach and valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.
Derivatives are valued using valuation techniques with market observable inputs such as foreign exchange spot rates and forward rates at the end of the reporting period, yield curves, risk free rate of returns, volatility etc., as applicable.
Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). If one or more of the significant inputs is not based on observable market data, the fair value is determined using generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparty.
The fair value of trade receivables, trade payables and other current financial assets and liabilities is considered to be equal to the carrying amounts of these items due to their short-term nature. Where such items are non-current in nature, the same has been classified as Level 3 and fair value determined using discounted cash flow basis.
Similarly, unquoted equity instruments where most recent information to measure fair value is insufficient, or if there is a wide range of possible fair value measurements, cost has been considered as the best estimate of fair value.
(ii) 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
- the fair value of forward foreign exchange contracts is determined using forward exchange rates at the Balance Sheet date
(iii) Fair value of the Financial Assets and Liabilities measured at Amortised Cost
The Management considers that the carrying amount of finanicial assets and liabilities recognised in the financial statements and carried at amortised cost approximates their fair value as on 31st March, 2024 and 31st March, 2023. Initial recognition of financial assets and liabilities are at fair value with subsequent measurement at amortised cost.
a) This does not include the impact of provision made on actuarial valuation of retirement benefit/ long term Schemes and provision made during the year towards Post employment benefits as the same are not separately ascertainable for individual directors.
b) Transactions with related parties mentioned above are as per terms and contracts approved by the COC. All transactions disclosed above were done on normal commercial terms and conditions and wherever applicable as per the market rates.
The Company has also leasing arrangements in respect of operating leases for premises. These leasing arrangements which are cancellable in nature are renewable by mutual consent and agreement. The aggregate of such lease rentals on account of short-term leases and low-value assets are charged as rent to the Standalone Statement of Profit and Loss.
*In earlier years, the Company had entered into a put option agreement with EIG(Mauritius) Limited, who invested in one of its subsidiary companies. In order to exercise the put option, the Investor submitted its request for Arbitration to the International Chamber of Commerce Court, Singapore. The Arbitrator issued a dissenting opinion requiring the company to pay damages amounting to Rs 21,102.69 Lacs (including interest) and legal cost. Thereafter Corporate Insolvency Resolution Process “CIRP” has been initiated against the Company. Hence, EIG (Mauritus) Limited had filed its claim to IRP/RP on 17th May 2022 and accordingly the liability of Rs. 7,773.61 Lakhs along with interest of
Rs. 888.94 Lakhs has been booked and remaining amount of Rs. 13,056.93 Lakhs has been considered as Contingent liability included in 'Claims against the company not acknowledged as debt'.
In view of Company’s admission under CIRP all existing civil legal proceedings will be kept in abeyance being under moratorium u/s 14 of the Insolvency and Bankruptcy Code, 2016 till the conclusion of CIRP. Therefore, no impact has been considered in the Financial Statements as of now. (Refer Note 40 to Note 42)
Details of Corporate Guarantees given covered under Section 186(4) of the Companies Act, 2013:-
b. Tata Capital Financial Services Limited (TCFSL), one of the Non-Convertible Redeemable Preference Shareholders of the Company has preferred commercial arbitration petition during the year demanding redemption of Non-convertible Redeemable Preference Shares due to breach of various financial covenants therein for their outstanding balance of Rs. 2,831.63 Lakhs along with 100% liquidation damages which is disputed by the Company. The Arbitrator has issued interim directions to deposit an amount of Rs 2,831.63 Lakhs in Specifically designated Escrow Account or alternatively furnish an unconditional and irrevocable bank guarantee of such amount. The order also restrained an Injunction of any dealing of share of Mcnally Sayaji Engineering Limited which is pledged against the loan. Further, the Company submitted an affidavit, the details of all its assets , properties (Movable or immovable) which are restrained for any dealing , transfer and disposal of assets. Further, TCFSL had filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (“the IBC”) before the National Company Law Tribunal (“the NCLT’”) to initiate Corporate Insolvency Resolution Process (“the CIRP”) against the Company. The NCLT has dismissed the application filed by the TCFSL not being a financial creditor as per the provisions of the IBC. Further, TCFSL had filed an application with (“the NCLAT). As per NCLAT order dated 17.08.2022, the appeal has dismissed as withdrawn granting liberty to raise any legally permissible contentions at appropriate stage.
c. The Director General of GST Intelligence (DGGI) Kolkata had conducted investigation in 2019-20 at the Corporate Office of the Company and denied Input Tax Credit of Rs. 945.04 Lakhs and also denied Input tax Credit of Rs 200.00 Lakhs in 2020-21 availed by the Company. Pending adjudication of the matter, the Company has included the Input Tax Credit in Note 10 under Balance with Statutory/Government authorities. During the year, the department has conducted audit for F.Y. 2017-18 and provided its observations thereon. Further proceedings in this matter has been kept in abeyance till the conclusion of CIRP as moratorium is applicable u/s 14 of the Insolvency and Bankruptcy Code, 2016 .
It is not practicable to estimate the timing of cash outflows if any, in respect of the above matters pending resolution of the arbitration/appellate proceedings.
Note 31: Dues to Micro,Small & Medium Enterprises
The amount due to Micro, Small and Medium Enterprises as defined in the “The Micro, Small and Medium Enterprises Development Act, 2006” has been determined to the extent such parties have been identified on the basis of information available with the Company. The disclosures relating to Micro and Small Enterprises are as below:
Note 32: Excess Remuneration paid to Key Managerial Personnel
On 13th December 2022, the term of the Managing Director of the company had expired and the company has not appointed the Managing Director or Manager in their place after the expiry of their term. Therefore, the company had not paid or liable to pay any sum of remuneration to the KMP of the company. However, as per section 197(17) the company has no need to taking any approval from the lender and shareholders in the current year.
*Sale of equipments and contract revenue in respect of construction contracts as reported in this accounts is in proportion to the actual costs incurred on such contracts to their estimated cost. Here costs represent actual costs incurred inclusive of future losses based on estimates of future costs of all on going projects made by the engineers of the Company and such estimates are verified independently and certified by a Chartered Engineer. Unbilled revenue represents such contract sales values less actual billing done on the basis of costs incurred.
The Company has made provision, as required under the Indian Accounting Standards, for material foreseeable losses on long term contracts.
The Company has made revisions in the cost to complete certain projects during the year as part of their periodical review of cost estimates.
Current assets are pledged for working capital loans and cash credit facilities.
Non-current assets are pledged under first charge for ECB from ICICI Bank Limited and as second charge for working capital loans.
Investments in Mutual Funds relating to Rs. 86.90 Lakhs were put to lien for Loan taken from L&T Finance Limited. The given loan has been fully repaid in earlier year, however lien against the investment pledged has not been satisfied till date.
The Company had entered in September 2003 a joint venture agreement with Elsamex S.A. where officially it was appointed as a subcontractor in “West Bengal Corridor Development Project - Improvement of Gazole Hilli Section of SH 10 with a link to Balurghat from Patiram,” (the project). However consequent to considerable delay in execution of the project the Public Works Department of Government of West Bengal (PWD) had unilaterally terminated the contract in January 2006. The Company and Elsamex S.A. felt that such delay in execution was due to the inability of PWD to hand over the stretch of encumbrance free land for widening of road and non-availability of construction drawings on time by PWD. The Company has a legitimate claim of Rs. 1,517 lakhs towards receivable and Rs. 1,133 lakhs on account of deposit against Performance Guarantee. Elsamex S.A. moved to arbitration and had claimed an amount of Rs. 7,334 lakhs including an additional claim on consequential losses as per guidelines of “Federation Internationale Des Ingenieurs-Conseils” (FIDIC). Arbitral Board in their meeting held on 25th October, 2010 has upheld Elsamex S A's claim and has given award in favour of Elsamex S A. Under the award, a total amount of Rs. 3,535 Lakhs is receivable by the Company. A claim has already been lodged with PWD. PWD has preferred to challenge the verdict of the Arbitrators and has appealed to the High Court in January, 2011 for a stay in the matter of payment of award money. The matter is still pending for hearing.
Pursuant to the application under section 7 of Insolvency and Bankruptcy Act, 2016 filed by one of the Financial Creditors, being C.P (IB) No. 891/KB/2020, the National Company Law Tribunal (NCLT), Kolkata Bench, while disposing off, admitted the application vide order dated 29.04.2022 and directed to initiate Corporate Insolvency Resolution Process (CIRP) against the Company. CA Anuj Jain (IBBI/IPA-001/IP-P00142/2017-18/10306) was appointed as the Interim Resolution Professional (IRP). Thereafter, Mr. Ravi Sethia (IBBI/IPA-001/IP-P 01305/2018-2019/12052) has been appointed as Resolution Professional (RP) vide NCLT order dt.26.08.22. Upon commencement of CIRP, the powers of the Board of Directors of the Company stand suspended and management of the Company vest with the IRP/Resolution Professional (RP). Committee of creditors (COC) of the Holding Company has been constituted on 18.05.2022 on the basis of collation of all claims by the IRP and report is submitted to NCLT by IRP. The COC has been further reconstituted from time to time by the IRP/RP and intimation filed with the Hon'ble NCLT, Kolkata Bench.
The Resolution Plan of one of the Resolution Applicants has received the approval of COC by requisite majority, in term of the Insolvency and Bankruptcy Code, 2016 and COC authorised the RP to issue the Letter of Intent in term of the request for Resolution Plan and thereafter submit the application before the Hon'ble NCLT Court for final approval of the Resolution Plan. The application had been submitted before the Hon'ble NCLT Court on 3rd August, 2023. The Hon'ble National Company Law Tribunal, Kolkata bench-Court-I (NCLT) has approved the Resolution plan of the successful resolution applicant, namely M/s BTL EPC LTD vide its order dated 19.12.2023. However, the resolution plan submitted by BTL EPC Limited has not been implemented till date. Subsequently, the committee of creditors of the company filed an application with the Hon'ble NCLT to seek appropriate directions and recourse with respect to the approved resolution plan and the Corporate Insolvency Resolution Process(CIRP) of the Company. The matter is being heard by the Hon'ble NCLT and hearing has not been completed. The matter is currently Subjudice. Accordingly, the financial result of the company has been prepared on a going concern basis.
The Company’s ability to continue as a going concern is dependent upon many factors including continued support from the financial creditors, operational creditors, customers, and successful implementation of resolution plan respectively. In view of the opinion of the management, resolution and revival of the Company is possible in the foreseeable future and the monitoring committee shall also endeavor to protect and preserve the value of the property of the corporate debtor and manage the operations of the corporate debtor as going concern till the effective date yet to be identified by the resolution applicant. Accordingly, the financial statements of the company have been prepared on going concern basis.
There shall be moratorium under section 14 of the Insolvency and Bankruptcy Code, 2016 till the effective date of the NCLT order under sub-section (1) of section 31 of the IBC or adjudicating Authority passes an order for liquidation of corporate Debtors under section 33 of the IBC, as the case may be. The reolution plan is yet to be implemented. The company had received regulatory Enquiries/Notices/Summons/Show-Cause/Demand/Orders from various government authorities such as Goods and Services Tax, Income Tax. In view of Company’s admission under CIRP all existing civil legal proceedings will be kept in abeyance as moratorium u/s 14 of the Insolvency and Bankruptcy Code,2016 is applicable on the till the effective date of the NCLT order. Therefore, no impact has been considered in these results as of now.
The Company has been categorised as Non Performing Asset by the lender banks and majority of the lender banks have stopped debiting interest on their outstanding debts as per the Prudential Norms on Income Recognition issued by the Reserve Bank of India. Accordingly, the Company has not recognised interest expense on Bank borrowings and Inter-Corporate Borrowings till 31st March, 2022. In the previous year, the company has recorded interest expense till 31st March, 2023 on bank borrowing and inter corporate deposits based on the claims filed with the RP and Memorandum Statements, if provided by the bank. For the remaining, the company has charged interest assuming 16% rate of interest compounded quarterly.
In the current financial year the company has provisionally accounted for interest amounting to Rs. 73,333.91 Lakhs on the oustanding borrowings from under the head Finance Costs.
The operational creditors have also submitted claims to the IRP/RP amounting to Rs. 53,320.16 lakhs, out of which RP has admitted claims of Rs. 18,401.82 lakhs.
Trade Receivables, Other Current Assets and Other Financial Assets are subject to confirmation and reconciliation from respective parties and consequential reconciliation, outcomes of pending arbitration/settlements of claims and adjustments arising therefrom, if any. The management, however, does not expect any material variation, Management is also hopeful for recovery/realisation of trade receivables which include Rs. 41,093.12 Lakhs under Arbitration/ Proposed Arbitration in the normal course of business, hence no impairment has been considered at this stage.
Note: Profit/Loss for the year of Joint Ventures which are not material have not been considered in the Financial
Statements
Other Statutory Information
(i) There is no immovable property held in the name of the Company during the year.
(ii) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
(iii) The Company does not have any transactions with Companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956, during the year.
(iv) The Company has not been declared as a wilful defaulter by any bank or financial institution or other lender
(v) Borrowings from bank and financial institution has been classified as Non-Performing Assets. So, filing of quarterly statements are not required.
(vi) The Company does not have any charge or satisfaction of charge, which is yet to be filed with ROC beyond the statutory period.
(vii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(viii) The Company has not advanced or loaned to or invested funds in any other person(s) or entity(ies), including foreign entities (intermediaries) with the understanding that the intemediary shall:
(a) directly or indirectly lend to or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(ix) The Company has 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:
(a) directly or indirectly lend to or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(x) The Company has no such transaction unrecorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessment under the Income tax Act, 1961 Such as , search or survey or any other relevant provision of the Income Tax Act, 1961.
As the powers of the Board of Directors have been suspended, the financial statements have not been adopted by the Board of Directors. However, the same have been reviewed and signed by the Chairman of the Monitoring Committee, Non-Executive director and KMPs of the Company.
There are no significant subsequent events that would require adjustments or disclosures in the Standalone Financial Statements as on the date of approval of these Standalone Financial Statements.
The Company has used accounting softwares for maintaining its books of account which have a feature of recording audit trail (edit log) facility and the same were operating throughout the year for all relevant transactions recorded in the softwares, except that audit trail feature is not enabled at the database level to log any direct data changes and in case of modification by certain users with specific access. Further there was no instance of audit trail feature being tampered with respect to the accounting softwares.
Previous year’s figures have been regrouped/ reclassified wherever necessary to correspond with the current year’s classification/ disclosure.
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