27. AS 29-PROVISIONS AND CONTINGENT
LIABILITIES:
Provisions have been made in the books of accounts
wherever applicable, where the outflow of economic
resources from the Company is probable and quantifiable.
Claims against the company not acknowledged as debt.
Show-cause notices issued by various Government
Authorities are generally not considered as obligations.
When the demand notices are raised against such show
cause notices and are disputed by the Company, these are
classified as contingent liabilities.
(i) The GST Department has raised demand of
'20,01,526/- vide Order No. 527/2024 - SUPDT dated.
August 20, 2024 issued u/s 73 (9) of the Central
Goods & Service Act, 2017 and Tamil Nadu Goods
& Service Act, 2017; against which the company
has filed an appeal to the appellate authority dated
November 26, 2024.
(ii) The GST Department has raised demand of
'19,87,584/- vide Order No. 17/2024 - SUPD dated.
February 27, 2024 issued u/s 73 (9) of the Central
Goods & Service Act, 2017 and Tamil Nadu Goods
& Service Act, 2017; against which the company
has filed an appeal to the appellate authority dated
June 21,2024
(iii) The GST Department has raised demand of
'38,38,488/- vide Order No. 30/2025- SUPD dated.
March 24, 2025 issued u/s 73 (9) of the Central
Goods & Service Act, 2017 and Tamil Nadu Goods
& Service Act, 2017; against which the company has
filed a reply on 18/04/2025 and is awaiting personal
hearing for the same.
(iv) RoC Chennai vide Adjudication Order dated
20/01/2026 passed under Section 454 of the
Companies Act, 2013 ('The Act') imposed a penalty
of '17,27,343/- on the Company for non-compliance
with the provisions of Section 135(5) and Section
135(6) of the Act for the FY-2019-20. The Company
has filed an appeal against the adjudication order
before the Hon'ble Regional Director, Southern
Region, Ministry of Corporate Affairs, vide SRN
AC2562921 dated March 6, 2026.
(v) RoC Chennai vide Adjudication Order dated
07/01/2026 passed under Section 454 of the
Companies Act, 2013 ('The Act') imposed a penalty
of '25,99,631/-on the Company for non-compliance
with the provisions of Section 135(5) and Section
135(6) of the Act for the FY-2020-21. The Company
has filed an appeal against the adjudication order
before the Hon'ble Regional Director, Southern
Region, Ministry of Corporate Affairs, vide SRN
AC2562861 dated March 6, 2026.
(vi) RoC Chennai vide Adjudication Order dated
07/01/2026 passed under Section 454 of the
Companies Act, 2013 ('The Act') imposed a penalty
of ' 27,12,722/-on the Company for non-compliance
with the provisions of Section 135(5) and Section
135(6) of the Act for the FY-2021-22. The Company
has filed an appeal against the adjudication order
before the Hon'ble Regional Director, Southern
Region, Ministry of Corporate Affairs, vide SRN
AC2562670 dated March 6, 2026.
(vii) RoC Chennai vide Adjudication Order dated
07/01/2026 passed under Section 454 of the
Companies Act, 2013 ('The Act') imposed a penalty
of ' 19,64,272/-on the Company for non-compliance
with the provisions of Section 135(5) and Section
135(6) of the Act for the FY-2022-23. The Company
has filed an appeal against the adjudication order
before the Hon'ble Regional Director, Southern
Region, Ministry of Corporate Affairs, vide SRN -
AC2562117 dated March 6, 2026.
28. PREVIOUS YEARS' FIGURES have been re-grouped
and re-aligned wherever appropriate, to facilitate better
comparison. Consequent to Schedule III mandatory
requirement, figures have been rounded off in ' thousands
and the summations / differences are to be construed
accordingly.
29. AS 30, 31 & 32- FINANCIAL INSTRUMENTS-
RECOGNITION AND MEASUREMENT,
PRESENTATION AND DISCLOSURE:
These Standards are not applicable to the Company for
the year under review.
31. ADDITIONAL REGULATORY INFORMATION
relating to Balance Sheet Items:
A. Title Deeds of Immovable Property: The Company
has Immovable Property as on the Balance
Sheet date.
B. Revaluation of PPE: The Company has not revalued
its Property, Plant and Equipment during the current
financial year ending on 31st March. Hence, the
reporting relating to whether the revaluation is
based on the valuation by a Registered Valuer as
defined under Rule 2 of the Companies (Registered
Valuers and Valuation Rules 2017, does not arise for
this Company.
C. Advances given to Promoters, etc.: There are
no Loans and Advances in the nature of Loans are
granted to Promoters, Directors, KMPs and the
Related Parties (as defined under Companies Act,
2013.) either severally or jointly with any other
person, that are: (a) repayable on demand or (b)
without specifying any terms or period of repayment,
during the current financial year or during the
previous financial year. Balances with related party
is disclosed in Notes to Financial Statements.
The Company has purchased a "COSMOS Maximus
CNC Double Column Machining Center" to enhance
operational efficiency and strengthen its manufacturing
capabilities. As at the Balance Sheet date, the machinery
had been delivered to the Company's manufacturing
facility and was under installation and commissioning.
Accordingly, the same was classified as Capital Work-in¬
Progress (CWIP) as at the reporting date.
E. Intangibles under Development: There are no
items of Intangible Assets under development.
Hence, the details pertaining to Ageing Schedule of
Intangible Assets under development does not arise
for this Company.
F. No Benami Property: The Company does not
have any item in respect of Benami Property held.
There are no proceedings initiated or pending
against the Company under the Benami Transactions
(Prohibition) Act, 1988 and the Rules made
thereunder.
G. Quarterly Statement of Current Assets:
The Company has Bank Working Capital Facilities
from Banks or Financial Institutions on the basis
of security of Current Assets, and also secured
by its Movable and Immovable Properties.
The Quarterly Returns or Statements of Current
Assets are in agreement with the Books of Accounts
of the Company.
H. Not Wilful Defaulter: The Company has NOT
been declared as a Wilful Defaulter by any Bank of
Financial Institutions or Other Lender during the
current financial year or during the previous financial
year. Hence, the reporting relating to Wilful Defaulter
does not arise for this Company.
I. Relationship with Struck Off Companies:
The Company does not have any transaction or
other relationship with struck-off Companies, to the
extent of the knowledge of the Board.
J. Charges / Satisfaction: In respect of Loans closed,
the Company has obtained No Due Certificates from
Lenders and filed the satisfaction of charges with the
Registrar of Companies as on date of this report.
K. Layers of Companies: The Company does not have
any related layer of Companies. Hence, the reporting
as to compliance with Number of Layers prescribed
under Clause (87) of Section 2 of the Act read with
the Companies (Restriction of number of Layers)
Rules, 2017, does not apply to this Company.
L. Approved Scheme(s) or Arrangement(s):
The Company has no scheme(s) of arrangements
as approved by the competent authority in terms
of Sections 230 to 237 of the Companies Act, 2013,
that requires reporting and disclosure.
M. Usage of Borrowed Funds and Share Premium:
(a) The Company has not 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 will : (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 behalf of the Ultimate
Beneficiaries.
(b) 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 (i) 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 (ii) provide any guarantee,
security or the like on behalf of the Ultimate
Beneficiaries.
32. ADDITIONAL INFORMATION relating to
Statement of Profit & Loss Items:
A. Reserves for Specific Liability, etc.: (a) There are
no material amounts set aside or proposed to be
set aside, to Reserve, but not including Provisions
made to meet any Specific Liability, Contingency
or Commitment known to exist at the date as to
which the Balance Sheet is made up. (b) Also, no
material amounts have been withdrawn from any
such Reserves.
B. Provisions for Specific Liability, etc.: (a) There
are no material amounts set aside to Provisions
made for meeting Specific Liabilities, Contingencies
or Commitments. (b) Also, no material amounts
have been withdrawn from such Provisions, as no
longer required.
E. Undisclosed Income: There is no transaction 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 (such as, search or survey or
any other relevant provisions of the Income Tax Act, 1961).There is no material item of previously unrecorded income
and related assets that have been properly recorded in the books of account during the year.
F. Corporate Social Responsibility (CSR): In accordance with the provisions of Section 135 of the Companies Act, 2013,
(Act) the Company is required to undertake Corporate Social Responsibility (CSR) activities, and incur CSR Expenditure as
per the provisions of the Act, provided the Company meets the specified criteria / thresholds with respect to the profits
or turnover or net worth in the immediately preceding financial year.
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