Deferred taxes are recognized when there is Timing difference between taxable income and accounting income for a period that originate in one period and are capable of reversal in one or subsequent periods.
As per the management there is no reasonable certainty that sufficient future taxable income will be available against which deferred tax assets can be realized hence no deferred tax assets has been recognized in the books for Unabsorbed Losses Carry Forwarded as per Income Tax Act 1961.
g. The Company has not provided Contingent liabilities in respect of Following Disputed Tax Liability:
1. Income Tax liabilities in respect of AY 1996-97 of Rs.104.96 Lakhs for which appeal is pending before the ACIT Assessing Officer.
2. Income Tax liabilities in respect of AY 2006-07 of Rs.1.33 Lakhs for which appeal is pending before the ACIT Assessing Officer.
3. Income Tax liabilities in respect of AY 2007-08 of Rs.55.45 Lakhs for which appeal is pending before the ITAT.
4. Income Tax liabilities in respect of AY 2007-08 of Rs.68.69 Lakhs for which appeal is pending before the CIT(Appeals), Chennai.
5. Income Tax Liabilities in respect of AY2010-11 of Rs.22.16 lakhs for which appeals is pending before the ACIT Central Circle -12.
6. Income Tax Liabilities in respect of AY2011-12 of Rs.13.71 lakhs for which appeals is pending before the ACIT Assessing Officer.
7. Income Tax Liabilities in respect of AY2014-15 of Rs.259.71 lakhs for which appeals is pending before the ITO Corporate ward 3(4) Chennai.
8. Income Tax Liabilities in respect of AY2015-16 of Rs.22.74 lakhs for which appeals is pending before the ACIT (Appeals)
It is not practicable to estimate the timing of cash outflows in respect of this matter. However, the company has been advised that it has fair chance of winning the appeals.
h. The Company had made contingency provision in F.Y. 2014-15 of Rs. 75 lacs towards estimated settlement cost of Rs.75 lacs payable to Gujarat Industrial Investment Corporation for pending legal cases in the High Court of Chennai. According to the Management estimates sufficient provision has been made for on review and does not require any additional provision for the contingency.
Mr. Sundar Iyer, Promoter of Twenty first Century Management Services Limited have given 18,05,000 equity shares of the said company as collateral security for Bills Discounting Limit of Rs.75 Lacs. Honorable High Court, Chennai vide its order has stayed creating any encumbrance on the said shares which are under dispute vide case no -Civil Suit No -749/2019. These shares are lying in the demat account of Mr. Sundar Iyer.
i. The Company had an investment of 3100 Equity Shares (in physical form) of AVANTEL LIMITED 20 years back and same was untraceable and subsequently written off in the books of account since its market value was insignificant at that time. Subsequently AVANTEL LIMITED has declared bonus shares in the ratio of 3 shares for one share held and also Rs. 10 paid up shares was split into 5 shares of 2 each. As a result, post-split we have received 62000 physical shares from the company. During November 2023, we sent these physical shares for demat. We have recognized the same in the accounts as per fair market value as on 31-03-2024 and corresponding addition to OCI and in the event of sale of the same in future date, entire sale proceeds will be offered as capital gain with applicable tax. Further, bonus entitlement not yet credited to the demat account for pending KYC details and will be recognized in the next financial after due compliance.
The Company had 1000 Equity Shares of M/s. Sarda Energy Limited, which was also written of in the books of account on the same line. Subsequently Rs. 10 paid up shares was split in to
10 shares of 1 each and as a result, post-split we have received 10000 physical shares. During November 2023, we sent these physical shares for demat. We have recognized the same in the accounts as per fair market value as on 31-03-2024 and corresponding addition to OCI and in the event of sale of the same in future date, entire sale proceeds will be offered as capital gain with applicable tax.
j. The Management is not able to receive the Bank Statement for the following accounts as the accounts have become dormant accordingly balances have been taken as per last year:
l. Under the Micro, Small and Medium Enterprises Development Act, 2006 which came into force from October, 2 2006, certain disclosure is required to be made relating to Micro, Small & Medium Enterprises. There have been no reported cases of delays in payments to Micro and Small Enterprises or of interest payments due to delays in such payments.
m. In the Opinion of the Management, the current Assets and Loans and Advances as shown in the books are expected to realize at their Book Values in the normal course of business and adequate provision have been made in respect of all known liabilities.
n. Figures of the previous year have been regrouped/ rearranged wherever necessary to correspond with the figures of the current year. Amounts and other disclosures for the preceding period are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.
The financial statements are presented in Indian Rupees (INR) which is also the Company’s functional currency. All amounts have been rounded off to lakhs up to two decimal places, unless otherwise indicated.
o. Pursuant to criteria specified in section 135 of the Act read with Companies (Corporate Social Responsibility Policy) Rules, 2014, CSR provisions are applicable to the Company for FY 2023-24.
The Company has constituted a Corporate Social Responsibility (CSR) committee which have recommended to the Board a Corporate Social Responsibility Policy (CSR Policy) indicating the activities to be undertaken by the Company. The Corporate Social Responsibility policy has been devised in accordance with Section 135 of the Companies Act, 2013. The brief outline of the corporate social responsibility (CSR) policy of the Company is set out in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014.
p. MCA notification dated 24th March 2021 for amendments to Schedule iii disclosures which are
applicable:
i. Title deeds of Immovable Property not held in name of the Company - Not applicable as there are no immovable properties other than lease hold properties
ii. Revaluation of Property, plant & equipment by registered valuer - Not applicable since no revaluation of property, plant & equipment has been performed by company during the financial period.
iii. Details of Benami Property and its proceedings- Not applicable as there are no proceedings which have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
iv. Willful Defaulter - Not applicable as the Company has no loans from Banks or Financial Institution and the Company has not been classified as a willful defaulter
v. Relationship with Struck off Companies - Not applicable as there no transactions with Stuck off Companies
vi. Compliance with number of layers of companies - Not Applicable as the Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.
vii. Compliance with approved Scheme(s) of Arrangements - Not Applicable as the Company no Scheme of Arrangements that has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013
viii. Details of Crypto Currency or Virtual Currency - Not Applicable as the Company has not traded or invested in Crypto currency or Virtual Currency during the financial year
ix. Registration of charges or satisfaction with Registrar of Companies - Following are the charges which are still appearing in the records of Ministry of Corporate Affairs:
However, all the loans have been repaid and there are no dues with these banks / creditors as on 31st March 2024. Company has filed relevant forms with Registrar of Companies, Chennai towards satisfaction of charges. We have taken up the matter with Registrar of Companies, Chennai to clear the charges in their records.
OTHER STATUTORY INFORMATION
i. As per section 248 of the Companies Act, 2013, there are no balances outstanding with struck off companies.
ii. The Company do not have any Capital-work-in progress or intangible assets under development, whose completion is overdue or has exceeded its cost compared to its original plan.
iii. The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) 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
(b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
iv. The Company have 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 or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
v. The Company do not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income-tax Act,1961.
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