(xvi) Provision, Contingent Liabilities and Contingent Assets
Provisions evolving substantia! degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingenl Liabilities are not recognized but are disclosed in notes Contingent Assets are neither recognized nor disclosed in the financial statements.
ixvii) Retirement Benefits
(a) Contribution towards Provident Fund is being charged to revenue on accrual basis and is deposited to regional office of the concerned authority
(b) Provision for gratuity has been made on the method as prescribed in the respective act.
(c) Provision has been made for accrued leave salary due to the employees, computed with reference to unavailed leave of the employee at the year end.
(xviii) Income Tax & Deferred Tax IncomeTax
Current tax is determined as the amount of tax payable in respect cf taxable income for the year as per prevailing tax laws.
Deferred Tax
Provision for Tax is made for current and deferred taxes. Current taxes is provided on the taxable income using applicable tax rates and tax laws.Deferred Tax Assets and Liabilities arising cn account of timing differential and which are capable of reversal in subsequent periods are recognized using the Tax rates and Tax Laws that have been enacted or substantively enacted till the date of the Balance Sheet. Deferred Tax Assets are not recognized unless there is ‘Virtual Certainty'' thal Sufficient lulure taxable income wiil be available againsl which such Deferred Tax Assets will be realized.
(xix) Impairment of Assets
The carrying amounts of assets are reviewed at each balance sheet date If there is any incication of impairment based on internal/external factors, i.e. when the carrying amount of the assets exceeds the recoverable amount, an impairment loss is charged to the profit & loss account in the year in which an asset is identified as impaired
(xx) Earnings per share
Basic earnings per share is calculated by dividing the net profit or loss for the period/year attributable to equi'ty shareholders by the weighted average number of equity shares outstanding during the penod/year. The weightec average number of equity shares outstanding during the period/year is adjusted for everts of bonus issue; bonus element in ? rights issue to existing shareholders; share split; ana reverse share split (consolidation of shares) if any.
{xxi) Cash and cash equivalents
For Ihe purpcse of presentation in the statement of cash flows, cash and cash equivalents includes cash in hand, deoosits held at call wilh banks/ financial institutions, other short-term highly liquid investment with original maturities of Ihree months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value and bank overdrafts
(xxii) Income recognition
Interest income is recognised using the effective interest rate melhod ”he effective interest rate is Ihe rale that exactly discounts estimated future cash rece<pts through the expected life or the financial asset to the gross carrying amount of a financial asset When calculating the effective interest rate, the Company estimates the expected cash flows by considering ail the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) but does not consider the expectea credit losses
(xxiii) Financial Liabilities
(a) Financial liabilities of the Company are contractual obligation to deliver cash or another financial asset to another entity or to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the Company The Company's financial habililies primarily includes trade and other payables.These amounts represent liabilities fcr goods and services provided to the Company prior to the end of the financial year which are unpaid. The amounts are unsecured and aie usually paid within credit period of recognition. Trade and other payabies are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method
(b) Classification, initial recognition and measurement
Financial labilities are recognised initially at fair value. Transaction costs that are directly attributable to the issue of financial liabilities (other than financial liabilities carried at fair value through profit or loss) are added or deducted from the fair value measured on initial recognition of financial liability. Financial liabilities are classified as subsequently measured at amortised cost.
(c ) Subsequent measurement
After initial recognition financial liabilities are subsequently measured at amortised cost using the effective interest rate (‘ElR’) method. Gains and losses are recognised in profit cr loss when the liabilities are derecognised.
(d) De-recognition of financial liability
A financial liability is derecognised when Ihe obligation under the liability is discharged or cancelled or expires. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss as other income or finance cost.
The rights, preference and restrictions including restrictions on the distribution of dividends and the repayment of capilaL
The Company have two class of shares i.e. Equity & Preference carrying a nominal value of Rs 10 each and Rs 100 each respectively. Each holder of equity Shares is entitled to one vole per share. The Company shall declare and pay dividend in Indian Rupees. When the company have distributable profit, the company shall propose dividend, subject !? the approval of shareholders in annual general meeting. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, afler distribution of all prefential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. Also the preference shares shall be redeemed only when the company have distributable profits which would otherwise be available for dividend or out of proceeds of fresh issue of shares made For the purpose of redemption, hence for the year under review the shares shall not be redeemed
11% Redeemable Cumulative Preference shares were redeemable before September 1995 by giving six months notice by such redemption to the holders thereof. However, as per the terms of the Sanctioned Rehabilitation Scheme, the preference Shares are to be continued with roll over option for another 5 years and no interest is payable during such rehabilitation period. Accordingly, no provision for any interest has been made during the year. Due to non-availability of profit, no provision has been made for payment of dividend to the Preference Shareholders; cumulative from the date of allotment i.e 20th September 1980 upto the due date of redemption amounting to Rs 41.60 Lacs or the dividend payable thereafter. Further 0% Redeemable Preference Shares shall be subject to redemption when the Company has distributable profit. Hence, for the year under review the Shares shall not be redeemned
Issue of Shares9,00,000 0% ftedemmable Preference Share of Rs. 10D/- at par has been issued ana allotted by the Company by conversion of unsecured Loans during the financial year ended on 31st March 2017.The Preference Shares shall from Iho date cf allotment rank pari-passu in all respects with all other preference shares cf similar category in Ihe Company then on issue.The Preference shares shall be redeemed before the expiry of 20 years when the company has distributable profits and upon mutual consent of the allottees and company with an option to redeem at the sole discretion of the company at any time after the expiry of thirty six month from the date of the allotment, at par or at a premium out oF the distributable profits of the company.
(a) Voluntary Retirement Scheme (VR5) was introduced under which terminal dale of employment was Nxed as 31st July 2002. Provision for unpaid compensation has been made for Ihe employees who have not taken the same. Modified Golden Handshake Schemes containing similar benefits as that of Voluntary Separation Scheme were introduced (in respect of ex-employees who were separated under Ihe Golden handshake Scheme 3 £ 4) wherein cut off dale for computation of compensation was kept as 31st July 2QQZ Provision Tor unpaid lump sum payment has been made for the ex-employees who have not taken the same.
(b) Confirmation of Parties concerned for amounl due, receivable from and/or payable to them as per the accounts of the compary were not received Necessary adjustment, if any, shall be dene at the time of settlement of respective
(c) The financial result of the company pertains to operations related to refractories which is the only significant business segment of the Company as per AS-17 issued by the I CAT.
(d) There are no Micro, Sinall and Medium enterprises to whom the company owes dues, which ore outstanding for more than 45 days as at March 31, 2024. The above information regarding micro, small and medium enterprises have been determined to the extent such parties have been identified on the basis of information available with Ihe company. This has been relied upon by the auditors
(e) In view of unabsorbed losses and unabsorbed depreciation brought forward, there being no tax liability, hence no provision for current Income Tax have been mode during the year.
(f) in the opinion of the management, aggregate value of current assets and other loans and advances on realization in the ordinary course of business will not be less than the amount at which these are stated in Ihe balance sheet.
(g) Figures for the previous period are re-classified/ re-arranged /re-grouped, wherever necessary to correspond with the currenl year classification disclosure.
(h) The Company has incurred a not loss of Rs. 6*9.66 lakhs (Previous Year Rs. 179.48 lakhs) during fhe year ended March 3i, 2024 and as of that date, the Company's current liabilities exceeds its current assets by Rs. 1283,02 lakhs, As on 3’sl March 2024 the corf^-an/s total liabilities exceeds its total assels leading to a negative nel worth of Rs. 592.13 Lacs. However, the management is frying to rope in strategic inveslor and also intends to diversify into business which can be carried do in alignment with the industry it is operating. The management is also undertaking a plan to carry out optimum utilisation of its resources and cost reduction initiatives, The management is Further looking at expanding its product lines and enter new markets to increase its business and is hopeful to capture foreign market since there exists a demand supply gap for Ihe products the company manufactures The company has already initiated dialogue with the foreign buyers and there has been very encouraging response from them.
in view cf the above the management firmly believes that the coiripany continues to be a going concern and accordingly financial statements have been prepared on a going concern basis.
As per our Report of even dale Fnr and on behalf of the Board of DirGyors
For JAIN SAftAOGl SCO LLP .. / /
Firm Regn.No. 3050D4E/E300281
<Nfsred Accountants W^l^T mal Prakash
DIN: 00551970 DIN-00174915
Manoj K ffe/ \\ 1j v\
(Partner) ffef \0l a , p
Mem No.: 055272 II£l jJ n k.. .
vmi *hi* iw bi™
Place, kolkata acDuknabandhu Prusty Company Secretary
Date: 30th May 2D24 CFO M.No.A589?Z
(i) Additional Regulatory Informations:
(i) Title Deed of Immovable Property not held in name of Ihe Company
Title Deed of Immovable Property is in name of the Company. However land having carrying value d1 Rs. 577 Lacs in the erestwhile / formal name of the company.
(ii) Disclosure on Revaluation cF Assets
None of the Assets of the Company has been revalued during the year
(Hi) Loans/ Advance to Directors/ KMP/ Related parties
The Company has not granted any Loans or Advances in the nalure of loans are granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,} with any other poison, either severally or jointly that are (a) repayable on demand or (b) without specifying any terms or period of repayment
(i^) Intangible assets under development
The Company does not have any any intangible assets under developments.
(v) Details of Benami Property held:
The Company does not have any Benami Properly and No any proceedings have been initiated or pending against the company for holding any benami property under Ihe Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules inade thereunder.
(vi) Working Capital/Borrowings:
The company does not have any borrowings from banks or financial institutions on the basis of securily or current assets.
(viii) Wilful Defaulter & End use of Funds
The company is not declared wilful defaulter by any bank cr financial Institution or other lender as at the date of the Financial statement and as on date of approal of these financial statements
(ix) Borrowings from banks and Financial Institutions
Disclosure on utilization of borrowings: The company does not have any borrowings from banks, Loans oblained from Financial Institution have been utihsed for the purpose it Wbs laaken.
(x) Relationship wilh Struck off Companies:
The company aoes not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
(xi) Registration of charges or satisfaction wilh Registrar of Companies
There is no charges or satisfaction aginst the company, yet to be registered with Registrar of Companies beyond the statutory period.
(xii) Compliance with number of layers oF companies
The Company does not have any investment in downstream companies Tor which it has to comply with the nu-rt^er of layers prescribed under clause (87) of section 2 of the Ad read with Companies (Restriction on number of Layers) Rules, 2017.
(xiii) Utilization of Borrowed funds and share premium
(A) The company has not advanced or loaned or invested funds (either borrowed funds or share premum 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
(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 (ii) provide any guarantee, security or the like lo or on behalf of the Ultimate Beneficiaries.
(B) The Company has not received any fund from any person(s) or entity(ies), including foreign enlities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall
(i) directly or indirectly lend or invest in other persons or enlities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, securily or the like or behalf of Ihe Ultimate Beneficiaries.
(xiv) Compliance with approved Scheme(s) of Arrangements
No any Scheme ol Arrangements has been approved by I he Consent Authority in terms of sections 230 to 237 of the Companies Act. 2013. hence no disclosure require to be given.
(xv) Undisclosed Income
The Company does not have any undisclosed Income which was nnl recorded fn the books of accounts and (a) that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tgx An. 1761 (ty unless there is immunity for disclosure under any scheme and (c) also shall stale nvhelher the previously unrecorded income and related assets have been properly recorded n the ooaks of accounl during the year
(xvi) Crypt o Currency or Virtual Currency
The Company has not traded or invested in Crypto Currency or Virtual Currency during ihe financial year.
(xvii) CSR Activities
The company is not required to comply with Ihe provision of section 135 of the Companies Act 2013
|