16. Contingent Liabilities not provided for:
a) In the settlement with the secured creditors a larger share is claimed by a party (as mentioned in Note No.17 below) by filing an appeal
in Honourable High Court of Gujarat. The Amount for the same is not ascertainable.
b) Interest on disputed liability to creditors, the amount is not ascertainable as there is a counter claim by the Company and the matter
is pending with the Debt recovery Tribunal-Ill, Mumbai (DRT-III). The Management is of the opinion that no provision is required for
interest, in terms of the Order of the Hon. High Court of Gujarat dated 16.05.2008 mentioned in Note No.17 below.
17. In terms of the Scheme of Compromise or Arrangement under Sec.391 of the Companies Act 1956 with its Secured Creditors, Unsecured
Creditors and Equity Shareholders which had been approved by Hon. High Court of Gujarat in their Order dated 16.05.2008 during the
financial year 2008-09:
a) The Company has paid Rs.20,000,000/- to the Financial Institutions and Bank as full and final Settlement of their claims which includes
Rs.5,141,000/- deposited with the Hon. High Court of Gujarat in respect of one of them arising out of securitisation of assets. The said
institution has already withdrawn the amount deposited with Hon. High Court of Gujarat fully.
b) The Company has reduced the face value of the Equity share of Rs.10/- to Rs.l/- and has subsequently issued 1 (One) Equity Share (new)
of Rs.10/- each as fully paid up against 10 (Ten) shares of Rs.l/-each.
c) The Company has issued New Equity Shares of Rs.10/- at a premium of Rs.740/- per Equity share to few unsecured creditors in full and
final settlement of their claims.
d) The Company has paid 25% of dues of other unsecured creditors in full and final settlement of their claims and balance 75% of their
dues is accounted under Business Restructuring Account.
Meanwhile, the party referred to in (a) above in respect of Rs.5,141,000/-filed an appeal against the above Order before a Division Bench
of the Hon. High Court of Gujarat claiming additional amount, for the same matter is still pending.
18. GoineConeern:
(a) The Company has incurred losses in the past which has resulted into erosion of more than 50% of their net worth. Consequently the
Company was registered as a sick company under the Sick Industrial Companies Act, 1985.The accounts of the Company have been
prepared on going concern basis in spite of erosion of net worth and order of the Board for Industrial and Financial Reconstruction
(BIFR) in its order dated 1.9.2000 it is stated that prima fade the Company was not likely to make up its net worth within a reasonable
time while meeting all its financial obligations and was not likely to become viable in future and hence it was just, equitable and in
public interest that it should be wound up. Company had filed an application to the Honourable Gujarat High Court for a Scheme of
Compromise or Arrangement u/s391 of Companies Act 1956 with its Secured Creditors, Unsecured Creditors and Equity Shareholders,
The Company has received an order from High Courtof Gujarat dated 16.05.2008 and the same is under the process of implementation.
Also, in Financial Year 2009-10 the company has leased out its Plant & Machinery and land & building. The lease duration forthe same
is 99 years as per the agreement.
(b) Meanwhile a secured creditor filed an application before Debt recovery Tribunal-Ill, Mumbai (DRT-III). On 05.01.2015 DRT-III, Mumbai
passed an ex-party Order for secured creditor with Physical possession of Secured property Le., factory at Bharuch including that from
third party. The secured creditor who was acting in consonance with the understanding for over the period of eight months, suddenly
initiated steps for taking Possession without awaiting for further order on 06.08.2015,DRT-III Mumbai appointed Court Receiver for
the same. The said property is still in the possession of the court receiver. There are various original documents including title deeds of
immovable property which are lying in the said premises. The management does not expect any risk for non-availability of documents.
The matter is still pending before DRT-III, Mumbai. The Company is continuously making reasonable efforts to take relief from said
order.
(c) The management based on various legal opinions believe that going concern is susta inable. According to the Management, the com pa ny
is Going concern and the accounts have been prepared on Going Concern basis. The Company's advocate has stated that the money
deposited with Hon. High court as referred in note 17 above has been withdrawn by the said institution without prejudice its right and
contention in the said Appeal referred in notel6 above. The Companies' assets of land and building have also appreciated. It is only
that the court is not able to take up the matter on earlier basis. Based on the same Company has opined that there will not be any
adverse impacts on the proceedings before Hon. High Court and so as to affect the functioning of theCompany.
19, Taxation;
(a) Income Tax Assessments have been completed up to the Assessment Year 2014-15. Provision for Income Tax has not been made
considering the negative profits and carries forward losses. Also, as the Company continues to be a sick in terms of Sick Industrial
Companies Act 19S5 and Net Worth still remains to be negative, the MAT provision as per Income Tax Act 1961 has not been made.
There are substantial unabsorbed depreciation and carried forward business losses under the Income Tax Act 1961. As a measure of
prudence and in the absence of virtual certainty to earn taxable profits in future, deferred tax assets have been recognised only to the
extent of reversal of deferred tax liability.
20. Segment Information:
The Company is engaged mainly in the business of trading in Aluminum Extrusions and other activities which are directly related thereto.
As such there are no separate reportable segments as envisaged under Ind AS 108.
22, Financial instruments and risk management
1, Financial risk management objectives and policies
The Company's principal financial liabilities comprise of trade and other payables and other financial liabilities. The main purpose of these
financial liabilities is to finance the Company's operations. The Company's principal financial assets include cash and cash equivalents and
other financial assets.
The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the management of
these risks. Company's financial risk activities are governed by appropriate policies and procedures laid out by the senior management
and financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives. It is the Company's
policy that no trading in derivatives for speculative purposes may be undertaken. The Soard of Directors reviews and agrees policies for
managing each of these risks, which are summarized below,
I. Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices.
For the Company, the market risk is the possibility of changes in commodity prices which may affect the value of the Company's financial
assets, liabilities or expected future cash flows,
a. Commodity Risk
The principal stock-in-trade for the Company are aluminum products which are purchased by the Company from the approved list of
suppliers.
In order to mitigate the risk associated with stock prices, the Company manages its procurement through constant pricing negotiation with
vendors. It renegotiates the prices with its customers in case there is more than normal deviation in the prices of its major products.
IL Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial
loss. The Company is exposed to credit risk arising from cash and cash equivalents and deposits with banks. Hence, the Company has no
credit risk.
The Company has no trade receivables and no sales during the year; hence the Company has not formed any policy for expected credit loss.
The policy will be formed once sales resume.
Liquidity
Risk Assessment
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities. The Company has liabilities which are
expected to mature within 12 months Rs.7,76,44,124/- as on March 2024 (as on March 2023 is Rs. 7,48,22,553/-), The Company has assets
which are expected to be realized within 12 months Rs.1,02,451/- as on March 2024 (as on March 2023 is Rs. 40,769/-). Hence Company had
a working capital of Rs. (77,609,324/-) as on March 2024 (as on March 2023 is Rs. (74,781,784/-).
Risk Management
Company's entire net worth erosion, hence Company can borrow only from directors and other related whenever working capital is required.
Management monitors rolling forecasts of Company's liquidity position and cash and cash equivalent on the basis of expected cashflows.
23. Capital management
For the purpose of the Company's capital management, capital includes issued equity capital, share premium and all other equity reserves
attributable to the equity holders of the company. The primary objective of the Company's capital management is to maximize the
shareholder value and maintain an optimal capital structure to reduce the cost of capital.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions. Company entire net worth
erosion, hence Compa ny can borrow only from directors and other related whenever working capital is required. Com pany in Process to find
out a solution which maximum the shareholder wealth and reduce debt.
24. Employee benefits
As per Ind AS "Employee Benefits" (Ind AS -19), the disclosures of Employee Benefits as defined in the Standard are given below:
1. Defined contribution plans
a. Employer's contribution to Provident Fund
b. Employer's contribution to Employee's state insurance
d. Reconciliation of Statement of Cash Flow
There is no adjustments to the statement of Cash Flows as reported under the previous GAAP.
26. Significant accounting judgments, estimates and assumptions
The preparation of the Company's financial statements requires management to make judgments, estimates and assumptions as described
below that affect the reported amounts and the accompanying disclosures. Uncertainty about these assumptions and estimates could
result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
a. Assumptions
The cost of the defined benefit plans and the present value of the defined benefitobligations are determined using actuarial valuations. An
actuarial valuation involves making various assumptions that may differ from actual developments in the future. For further details refer to
note 26.
b. Estimates
The estimates used by the company to present the amount in accordance with Ind AS reflect conditions as at the transition date and as of
March 31, 2017.
27. Previous year's figures have been regrouped and restated wherever necessary to make their classification comparable with that of the
current year.
As per our report of even date For and on behalf of the Board
For SVH & Associates
Chartered Accountants Sd/-
FRN . (138024W) Kantilai B. Patel
(Chairman and Managing Director)
DIN:01441306
Sd/- Sd/-
Hiren Vora Milan R. Patel
Partner (Director and CFO) DIN:02143088
Membership No.153268
Dated:28th May, 2024 Sd/-
Sayati Patil
(Company Secretary)
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