• Financial Liabilities:
Borrowings, Trade Payable, and other financial liabilities are initially recognised at the value of the respective contractual obligations. They are subsequently measured at amortised cost Any discount or premium on redemption or settlement is recognised in the Statement of Profit and Loss as finance cost over the life of the liability using the effective interest method and adjusted to the liability figure disclosed in the Balance Sheet. Financial Liabilities are de-recognised when the liability is extinguished i.e., . when the contractual obligation is discharged, cancelled, and on expiry.
• Offsetting Financial instruments:
Financial Assets and Financial Liabilities are offset and the net amount I included in the Balance Sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.
14.07 REVENUE RECOGNITION
Interest income is accounted for on a time proportion basis taking into account the amount outstanding and the applicable interest rate.
Other Incomes are accounted for on confirmation provided by the constituents.
14.08 LEASES
Leases are recognised as financial leases whenever the terms of the lease transfer substantially al! the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
Company as Lessee: Assets used under finance lease are recognised as property, plant, and equipment in the Balance Sheet for an amount that corresponds to the lower of fair value and the present value of minimum lease payments determined at the inception of the lease and a liability is recognised for an equivalent amount.
The minimum lease payments are apportioned between finance charges and the reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in the Statement of Profit and Loss
14.09 EMPLOYEE BENEFITS
Short-term employee benefits are recognised as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service has been rendered.
Contributions to Provident Fund & other Funds including under the provisions of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, will be accounted for on an accrual basis whenever applicable.
Leave encashment benefit, as and when required, will be determined on the basis of actuarial valuation. However, during the previous year as well as in the current year no Actuarial Valuation was considered necessary in view of the resignation of most of the employees.
Provision for Gratuity is not made in accounts and will be accounted for as and when paid.
14.10 TAXES ON INCOME
Taxes on income comprise (a) Current Tax and (b) Deferred Tax,
Current Tax in the Statement of Profit and Loss is provided as the amount of tax payable in respect of taxable income for the period using tax rates and tax laws enacted during the period, together with any adjustment of tax payable in respect of previous years.
Deferred Tax is recognised on account of temporary differences between the carrying amounts of assets and liabilities and the amount used for taxation purposes (tax base), at the tax rates and tax laws enacted or substantively enacted by the end of the reporting period.
Deferred tax assets are recognised for future tax consequences to the extent it is probable that future taxable profits will be available against which the deductible temporary difference can be utilised.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when deferred tax balances are related to the same taxation authority. Current tax assets and liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.
14.11 CLAIMS
Claims against the Company not acknowledged as debt are disclosed after a careful evaluation of facts and legal aspects of the matter involved.
The Company has no ongoing litigations with any regulatory authorities. Where an outflow of funds is believed to be probable and a reliable estimate of the outcome of the dispute can be made based on the Management's assessment of the specific circumstances of each dispute and relevant external advice, Management provides for its best estimate of the liability. Information about such litigations is provided in the Note to the Financial Statements.
14.12 PROVISIONS
Provisions are recognised when as a result of a past event, the Company has a legal or constructive obligation; it is probable that an outflow of resources will be required to settle the obligation; and the amount can be reliably estimated. The amount so recognised is the best estimate of the consideration required to settle the obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation.
14.13 FINANCIAL AND MANAGEMENT INFORMATION SYSTEM
The Company's Accounting System is designated to unify the financial records, to comply with the relevant provisions of the Companies Act, 2013, and to provide financial information appropriate to the businesses and facilitate internal control.
15 RELATED PARTY DISCLOSURES15.01 Disclosure of transactions between the Company and related entities and the status of outstanding balances as on 31.03.2025: -
List of Key Managerial Personnel (KMP):-
Mr. Pranab Chakraborty Whole-time Director
Mr Sovan Chatterjee Independent Director
Mr Harendra Kumar Baitha Independent Director
Mrs. Simran Saha Woman Independent Director
Mr Shouvik Kundu Chief Financial Officer
Mr. Gunjan Bagla Company Secretary
15.02 Remuneration to Key Managerial Personnel other than MD/Manager/WTD:
(Amount in Rs. hundreds)
Remuneration to Company Secretary Rs.1800 (2024-25) Rs.1800 (2023-24)
16 ADDITIONAL NOTES
1 6.01 The Company was maintaining separate accounts in scheduled banks for dividends declared for the financial years 2002-03, 2003-04, and 2004-05 from which dividends were paid to the shareholders. It is learnt that in respect of stale dividend warrants the scheduled banks transferred the sums to the Reserve Bank of India since long as the accounts have remained inoperative for years. As the Company is not holding any amount in Unclaimed Dividend Account as of now, no amount is transferable to Investor Protection & Education Fund.
16.02 The company, at its Annual General Meeting, held on 20th September, 2024 passed a special resolution for reducing the issued, subscribed and paid up capital from Rs 14,14,14,530/- (Rupees fourteen cores fourteen lakhs fourteen thousand five hundred thirty only) divided into 1,41,41,453/- equity shares of Rs 10/- each to Rs 8,28,200/- (Rupees eight lakh twenty eight thousand two hundred only) divided into 82820 equity shares of Rs 10/- each. A request has been submitted to Bombay Stock Exchange for in-principal approval of such capital reduction. Further, confirmation of NCLT still remains to be obtained.
16.03 There was no manufacturing or trading activity of the Company during the current year or in the previous year and hence disclosure under Segment Reporting does not arise.
16.04 There are no dues outstanding for more than 45 days during the year, payable by the Company to its suppliers of goods and services which are covered by the Micro, Small, and Medium Enterprises Development Act, 2006.
16.05 Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification/disclosure.
The accompanying notes 1 to 16 are an integral part of the Financial Statements.
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