10.1 Number of Equity Shares outstanding at the beginning and at the end of the year are same i.e. 19500011 of ? 10/- each and hence no reconciliation is required
10.2 Terms/Rights attached to equity shares
The company has issued only one class of equity shares having a par value of ? 10/- per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the numbers of equity shares held by shareholders.
10.3 Details of shresholders holding more than 5% of the total shares
13.1 The Company has not received any intimation from the suppliers under the Micro, Small & Medium Enterprises Development Act 2006 & therefore
disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said act have not been given.
14.1 Working Capital facilities is secured by Hypothecation of all Current Assets of the Company. The facilities are further collaterally Secured by equitable Mortgage of Land and Building at Boisar Unit and Hypothecation of all Fixed Assets of Boisar Unit.
14.2 Interest Rate-base rate 4.50% currently 14.75% per annum with monthly rest.
14.3 The Company has defaulted in repayment of dues including interest and principal to Canara Bank, on its various fund facilities availed, outstanding amounting to T 4026.00 Lacs.
14.4 The lender bank has issued a Legal Notice dated 22/12/2014, to the Compnay asking them to pay outstanding dues of 3704.84 Lacs within 7 days, failing which Lender Bank will intiate legal action against the Company. In view of Legal Notice and based on the Legal advice received by the Company it has been decide not to provide any interest on outstanding liability of Canara Bank w.e.f. 01/04/2014. Further, on 22nd October 2018, Canara Bank sold factory premises at J 20, MIDC, boisar, including the Plant & machinery thereon, by an e Auction on "as is where is" basis for Rs. 321.50 Lacs. The accounting effect of the same has accoordingly been given in the books of accounts.
The Company has not provided for Interest payable to Canara Bank amounting to X 2535.14 Lacs for the year ended 31st March 2024. Also for the financial year 2014-15, 2015-16, 2016-17, 2017-18, 2018-19, 2019-20, 2020-21, 2021-22 & 2022-23 the company has not provided for X 10601.86 lacs. The Company has also not made any provision for penal interest claimed by the bank. As a result the loss for the year ended 31st March 2024 is understated by ? 2535.14 Lacs & current liabilities as at 31st March, 2024 are also understated by X 2535.14 Lacs and reserves are overstated by X 2535.14 Lacs. As a result the accumulated Reserves are overstated by X 13137 Lacs. The amount of penal interest cannot be quantified as the details have not been received from the bank.
14.5 Other unsecured loan received from related party Bil Energy Systems Ltd. X 328.73 Lacs (P.Y. X 328.73 Lacs), Bilpower Limited 43.25 Lacs (P .YT. 43.25)
24. Financial Instruments 1) Capital Management
The primary objective of the Company's capital management is intended to maximise the return to shareholders for meeting the long-term and shortterm goals of the Company through the optimization of the debt and equity balance. The Company is monitoring capital using debt equity ratio as its base which is debt to equity. For the purpose of capital management, capital includes issued equity capital, securities premium and all other reserves attributable to the equity shareholders of the Company. Net debt includes all long and short-term borrowings (including current maturities of long term debt) as reduced by cash and cash equivalents.
2) Financial Risk Management Objective And Policies
The Company is exposed to market risk, credit risk and liquidity risk. Risk management is carried out by the company under policies approved by the board of directors. The Company's documented risk management policies are effective tool in mitigating the various financial risk to which the business is exposed to in the course of daily operations This Risk management plan defines how risks associated with the Company will be identified, analysed, and managed. It outlines how risk management activities will be performed, recorded, and monitored by the Company. The basic objective of risk management plan is to implement an integrated risk management approach to ensure all significant areas of risks are identified, understood and effectively managed, to promote a shared vision of risk management and encourage discussion on risks at all levels of the organisation to provide a clear understanding of risk/benefit trade-offs, to deploy appropriate risk management methodologies and tools for use in identifying, assessing, managing and reporting on risks, and to determine the appropriate balance between cost and control of risk and deploy appropriate resources to manage/optimize key risks. Activities are developed to provide feedback to management and other interested parties (e.g. Audit committee, Board etc.). The results of these activities ensure that risk management plan is effective in the long term
a) Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: foreign currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity risk.
i) Foreign Exchange Risk and Sensitivity
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the Company's operating activities. Currently, the Company does not have any transaction in Foreign Currencies.
ii) Interest Rate Risk and Sensitivity
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates .In order to optimize the Company's position with regards to interest expenses and to manage the interest rate risk treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.
iii) Commodity Price Risk
The Company is engaged in construction work and commodities like ferrous and non ferrous metal materials, Welded pipes, MS TMT bars & Metals, Cements, etc are the basic commodity for consumption. Commodity price risk arises due to fluctuation in prices of metal products. The Company mitigate the risk by natural hedge as any increase/ decrease in materials price directly reflect the changes in finished goods price.
b) Credit Risk
Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk for trade receivables, other bank balances, loans, other financial assets and financial guarantees.
i) Trade Receivables
The Company extends credit to customers in normal course of business. The Company considers factors such as credit track record in the market and past dealings with the Company for extension of credit to customers. The Company monitors the payment track record of the customers.
Outstanding customer receivables are regularly monitored.
ii) Bank Balances
The Company seeks to limit its credit risk with respect to banks by only dealing with reputable banks.
c) Liquidity Risk
Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company's objective is to, at all times, maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company limits its liquidity risk by ensuring funds from trade receivables.
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25. Contingent Liabilities
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(^ in Lacs)
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Sr. No.
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Particulars
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As at 31st March, 2024
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As at 31st March, 2023
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(A)
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Guarantees outstanding
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248.33
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253.33
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(B)
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Sales Tax Demands pending in appeals
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341.94
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341.94
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(C)
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Income Tax Demands including interest which is under dispute and pending in appeals
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4.62
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4.62
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(D)
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Custom duty on pending export obligation against import of machinery
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144.85
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144.85
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26. Segment Reporting
The company primarily deals in the business of Manufacturing, Repair, Refurbishment and Upliftment of transformers and there are no material exports hence there is no Primary reportable segment, either product wise or geographical, in the context of Indian Accounting Standard 108 issued by The Institute of Chartered Accountants of India.
1. Receiving of Services
A) Remuneration Payment:-Suresh More ? 3.58 Lacs (P.Y ^ 2.11 Lacs)
B) Directors Sitting Fees : Meenakshi Chimata 0.20 lacs , Tabassum Shaikh 0.70 Lacs
2. Finance (Including Loans & Equity Contributions on Cash or Kind)
A) Loans & Advances Given includes:- Meenakshi Chimata ^ 0.35 Lacs
3. Outstanding as at 31st March, 2024.
A) Loans & Advance Received includes:- Bil Energy Systems Limited ^ 328.73 Lacs (P.Y. ^ 328.73 Lacs)
Bilpower Limited 43.25 Lacs (P.Y. ^ 43.25)
B) Loans & Advance Given includes : Choudhary Global Limited ^ 866.50 Lacs (P.Y. ^ 866.50 Lacs )
Meenakshi Chimata ^ 0.35 Lacs
28. Raw Material Consumed:-
The material purchases have been applied towards manufacturing as well as repairs of transformers. Since the material has been used in common facilities towards both and since the requirement of law is to show consumption of Raw Material for Manufacturing, the same has not been given.
36. Term Deposit Receipts wherever obtained are endorsed in favor of Banks and Government Departments against Bank Guarantee, L/C Facility etc.
37. Disclosure pursuant to adoption of Indian Accounting Standard 19
Gratuity liability for the year is determined on actuarial valuation by the Life Insurance Co of India with whom the company has taken a policy for the settlement of future liability.
38. Some of the Creditors / Debtors / Loans / Advances are subject to Confirmations and resultant reconciliation, if any.
39. The Company has not received any intimation from the suppliers under the Micro, Small & Medium Enterprises Development Act 2006 & therefore disclosures, if any relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.
40. In terms of the requirements of the Indian Accounting Standards-36 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India, the amount recoverable against Fixed Assets has been estimated for the period by the management based on present value of estimated future cash flows expected to arise from the continuing use of such assets. The recoverable amount so assessed was found to be adequate to cover the carrying amount of the assets, therefore no provision for impairment in value thereof has been considered necessary, by the management.
41. As per the best estimate of the management, no provision is required to be made as per Indian Accounting Standard (Ind AS) 37 "Provision, Contingent Liabilities & Contingent Assets", in respect of any present obligation as a result of a past event that could lead to a probable outflow of resources which would be required to settle the obligation.
42. Sundry Debtors as on the date of Balance Sheet are net of amounts received after discounting of Letter of Credits.
43. Utilisation of Borrowed Funds and Share Premium:
A. The company has advanced or loaned or invested funds (either borrowed funds or share premium 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 to or on behalf of the Ultimate Beneficiaries
B The company has not received any fund from any person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the company 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 to or on behalf of the Ultimate Beneficiaries;
44. Previous Year Figures have been regrouped / Re cast wherever necessary.
Signature to the Balance Sheet, Statement of Profit and Loss and notes which form an integral part of account.
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