S Provisions and Contingent Liabilities and Assets:
A provision is recognised when the Company has a present obligation (legal or constructive) as a result of past events and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, in respect of which a reliable estimate can be made of the amount of obligation. Provisions (excluding gratuity and compensated absences) are determined based on management's estimate required to settle the obligation at the Balance Sheet date. In case the time value of money is material, provisions are discounted using a current pre-tax rate that reflects the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost. These are reviewed at each Balance Sheet date and adjusted to reflect the current management estimates.
Contingent liabilities are disclosed in respect of possible obligations that arise from past events, whose existence would be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. A contingent liability also arises, in rare cases, where a liability cannot be recognised because it cannot be measured reliably.
Contingent asset is not recognised unless it becomes virtually certain that an flow of econimic benefits will arise.
T Employee Benefits
i) Defined Contribution Plan
Contributions to defined contribution schemes such as provident fund, employees’ state insurance, labour welfare are charged as an expense based on the amount of contribution required to be made as and when services are rendered by the employees. The above benefits are classified as Defined Contribution Schemes as the Company has no further obligations beyond the monthly contributions.
ii) Defined Benefit Plan
The Company also provides for gratuity which is a defined benefit plan, the liabilities of which is determined based on valuations, as at the balance sheet date, made by an independent actuary using the projected unit credit method. Re-measurement, comprising of actuarial gains and losses, in respect of gratuity are recognised in the OCI, in the period in which they occur. Re-measurement recognised in OCI are not reclassified to the Statement of Profit and Loss in subsequent periods. Past service cost is recognised in the Statement of Profit and Loss in the year of plan amendment or curtailment. The classification of the Company’s obligation into current and non-current is as per the actuarial valuation report.
iii) Leave entitlement and compensated absences
Accumulated leave which is expected to be utilised within next twelve months, is treated as short-term employee benefit. Leave entitlement, other than short term compensated absences, are provided based on a actuarial valuation, similar to that of gratuity benefit. Re-measurement, comprising of actuarial gains and losses, in respect of leave entitlement are recognised in the Statement of Profit and Loss in the period in which they occur.
iv) Short-term Benefits
Short-term employee benefits such as salaries, wages, performance incentives etc. are recognised as expenses at the undiscounted amounts in the Statement of Profit and Loss of the period in which the related service is rendered. Expenses on non-accumulating compensated absences is recognised in the period in which the absences occur.
v) Termination benefits
Termination benefits are recognised as an expense as and when incurred.
J Accounting for Taxes of Income:) Current Taxes
Current income tax is recognised based on the estimated tax liability computed after taking credit for allowances and exemptions in accordance with the Income Tax Act, 1961. Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.
i) Deferred Taxes
Deferred tax is determined by applying the Balance Sheet approach. Deferred tax assets and liabilities are recognised for all deductible temporary differences between the financial statements’ carrying amount of existing assets and liabilities and their respective tax base. Deferred tax assets and liabilities are measured using the enacted tax rates or tax rates that are substantively enacted at the Balance Sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognised in the period that includes the enactment date. Deferred tax assets are only recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised. Such assets are reviewed at each Balance Sheet date to reassess realisation.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset. Current tax assets and tax 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.
iii) Minimum Alternative Tax
MAT Credit is recongnised as assets in the Balance Sheet when the asset can be measured reliably and it is probable that the furure econimic benefit associated with asset will be realised
vi) Details of Benami Property held
No proceedings 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.
vii) The Company has no borrowings from banks or financial institutions on the basis of security of current assets. Hence the disclosures relating to quaterly statements is not applicable
viii) Wilful Defaulter*
The company has not been declared wilful defaulter by any bank or financial Institution or other lender.
* “wilful defaulter” here means a person or an issuer who or which is categorized as a wilful defaulter by any bank or financial institution (as defined under the Act) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.
ix) Relationship with Struck off Companies
The company has not entered into any sort of transaction (investmenr in securities, any amount receivable , any amount payable, shares held by such company or or any other outstanding balance) with any struck off company under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
x) Registration of charges or satisfaction with Registrar of Companies
No charges or satisfaction of any charge is yet to be registered with Registrar of Companies beyond the statutory period.
xi) Compliance with number of layers of companies
1 Debt Service Coverage Ratio - The DSCR has increased from 0.18 in FY 2021-22 to 0.51 in FY 2022-23 due to increase and improvement in Net Operating Income.
The EBIT in FY 2021-22 stood at Rs. 27.83 Lakhs while the EBIT in FY 2022-23 stands at Rs. 86.84 Lakhs.
2 Return on Equity Ratio - The ROE Ratio has increased due to increase in earnings / reduction in loss available to equity share holder i.e. loss. The earnings available to equity share holder (loss) in FY 2021-22 was Rs.-90.44 L while in FY 2022-23 it reduced to Rs. -56.74 Lakhs. The same is due to increase in earnings of the company.
3 Return on capital employed / Return on investment:- The ROCE / ROE has increased due to increased in earning before interest and taxes / reduction in losses as compared to previous year. The same is due to increase in earnings of the company in current year.
xiii) Compliance with approved Scheme(s) of Arrangements
No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013
xiv) Utilisation 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 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 (Funding Party) with the understanding (whether recorded in writing or otherwise) that the 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.
2. The aging schedule of trade payables in the prescribed format is already mentioned as per note annexed separately.
3. The aging schedule of trade receivables in the prescribed format is already mentioned as per note annexed separately.
4. There are no proceedings that have been initiated or pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended from time to time) (earlier Benami Transactions (Prohibition) Act, 1988) and the rules made thereunder.
5. The company has not availed any working capital limit from the bank.
6. The Company has not been declared a willful defaulter by any bank or financial institution or other lender.
7. The Company has no transactions with companies struck off under Companies Act, 2013 or Companies Act, 1956.
8. The Company does not have any 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). Further, there was no previously unrecorded income, and no additional assets were required to be recorded in the books of account during the year.
9. The Company has neither traded nor invested in Crypto currency or Virtual Currency during the financial year ended March 31, 2024. Further, the Company has also not received any deposits or advances from any person for the purpose of trading or investing in Crypto Currency or Virtual Currency.
10. The company neither held any immovable property nor revalued any of its Property Plant & Equipment.
11. Following disclosures shall be made where Loans or 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:
15. 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.
16. No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.
The explanation for variance in Ratios has been mentioned below: -
a) Current Asset Ratio: - The current ratio has decreased on account of increase in current liabilities in higher proportion in comparison to increase in the current assets.
b) Debt-Service Coverage Ratio: - As on 31st March 2024, DSCR has increased due increase in the profit.
c) Return on Equity Ratio: - As on 31st March 2024, Return on Equity Ratio has increased due increase in the profit.
d) Return on Capital Employed: - Increased due to increase in profits for the year ended March 24
e) Return on Investment: - Increased due to increase in profits for the year ended March 24
For and on behalf of the Board
In terms of our report of even date of Directors
For J.S. Uberoi & Co. Ceenik Exports (India) Limited
Chartered Accountants
FRN: 111107W
Mr. Narain Hingorani Managing Director
CA Bharat Jeswani DIN-00275453
Partner
Mem No: 142376
UDIN: 24142376BKFMRX9870
Place: Nagpur Mrs. Kavita Hingorani
Date: 03/05/2024 Director
DIN - 00275442
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