Contingent Liabilities
a) A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation Contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably The company does not recognize a contingent liability but discloses its existence in the financial statements.
b) Demand of Rs 179.51 Lakhs includingthe interest and penalty under VAT the Company is of the opinion that there are no groundsfor levying VAT Based on legal Opinion obtained the company is of the view that said demandcontesting Hence, no provision has been considered by the management in these financialstatements.
c) The Company name is in the list of shell companies (Vide SEBI on its letter bearing no. SEBI /HO/ISD/OW/P/2017/18183 dated August 7, 2017). Exchange had initiated a process of verifying the credentials / fundamentals of the company. It had appointed an auditor to conduct audit of the company to verify its credentials/fundamentals.
On verification, if Exchange do not find appropriate credentials / fundamentals about existence of the company, Exchange may initiate the proceeding for compulsory delisting against the company, and the said company shall not be permitted to deal in any security on exchange platform and its holding in any depository account shall be frozen till such delisting process is completed.
Accordingly, the forensic audit was conducted, however, till date the company has not received any further communication from BSE.
Balances in respect of certain sundry debtors, sundry creditors and loans and advances are taken as shown by the books of account and am subject to confirmation and consequent adjustments and reconciliation if any
(i) As per the management opinion current assets, loans and advances have a value on realization which in the ordinary course of business would not be less than the amount in which they are stated in the balance sheet and the provisions for all known and determined liabilities are adequate and not in excess of the amount reasonably required.
(ii) Details of dues to micro and small enterprises as defined under the MSMED Act2006 there are no micros small and medium enterprises, to which the Company owes dues
which are outstanding for more than 15 days at March 31 2021.Thisinformation as required to be disclosed under the Micro Small and Medium Enterprises Development Act 2006 as been determined to the extent such parties have been identified on the basis of information available with the Company
' Figures for the previous year have been regrouped / amended wherever necessary
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