l. Provisions, Contingent Liabilities and Contingent Assets:
Provisions involving substantial degree of estimation in measurement are recognized when there is a present
obligation as a result of past events and it is possible that there will be an outflow of resources. Contingent
Liabilities are not recognized but are disclosed in the notes on accounts. Contingent Assets are neither recognized
nor disclosed in the financial statements.
m. Earnings per Share:
The basic Earnings Per Share (“EPS”) is computed by dividing the net profit after tax for the year by the weighted
average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per
share, net profit after tax but before OCI for the year attributable to equity shareholders and the weighted average
number of shares outstanding during the year are adjusted for the effects of all dilutive potential of equity shares.
SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
Preparation of the financial statements requires management to make judgments, estimates and assumptions, as
described below, that affect the reported amounts and the disclosures. The Company based its assumptions and
estimates on parameters available when the financial statements were prepared and reviewed at each Balance Sheet
date. Uncertainty about these assumptions and estimates could result in outcomes that may require a material
adjustment to the reported amounts and disclosures.
18. Contingent Liabilities:
a) Disputed seigniorage fees liability of ? 28.43 lakhs (Fees ? 4.77 lakhs and penalty of ? 23.66) for which revision
petition has been filed by the company. Revision Petition was disposed and directed to pay Normal signiorage fees
of? 4.77 lakhs along with one time penalty as per Demand notice dt 20.12.2022 and also granted Six monthly
installments with applicable interest for payment of said amount. Accordingly revision petition is disposed off.
b) Company has received GST Order dated 18.04.2024 for the financial year 2018-19 to pay an amount of ? 23.10
lakhs on account of disallowance of Input Tax Credit. Company is in the process of filing an appeal against this
Order before the Appellate Joint Commissioner (ST) Secunderabad Division and the company is confident of
winning the case.
23. Dues to Micro, Small and Medium Enterprises :
The identification of micro, small and medium enterprise suppliers as defined under the provisions of “Micro,
small and medium enterprises Act, 2006” is based on Management’s knowledge of their status. There are no dues
to micro, small and medium enterprises as on 31 March 2024.
24. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's
classification / disclosure. Figures are rounded off to the nearest ?.
25.a Mrs.Kodali Vijayarani, Promoter Shareholder & Director of the company has filed a petition in NCLT under
Section 241 of the companies Act against allotment of 1,24,50,000 Equity Shares of Rs.10/- each, made to 7
individuals for consideration other than cash. Praying the NCLT to declare the allotment as illegal and affect
consequent reduction of the Share Capital of the company and also prayed for an Interim Relief of not to alienate
/ not to create any third party interest in the said shares of 1,24,50,000.
The case is admitted by NCLT and passed an Interim Order dt 14th October, 2020 restaining the 7 individual
shareholders from dealing with 1,24,50,000 shares and directed not to alienate, transfer or enter into any agreement
or create any third party interest until further orders. The Petition filed by Promoter Shareholder was dismissed by
NCLT on 15.06.2022.
Mrs. Kodali Vijayarani, Promoter Shareholder & Director of the company has filed an appeal petition at National
Company Law Appellate Tribunal at Chennai under Section 421 of the Companies Act, 2013 vide Petition No. 59
of2022. After several adjournments the case was listed on 28.03.2024 and the "Office of Registry" directed to list
the matter on 22.07.2024 under the caption "For Hearing".
25.b The Company filed a petition under Section 213 with NCLT, Praying for restoring the Original position of the
company prior to the allotment of 1,24,50,000 Equity Shares allotted vide MoU dt 14th February, 2019. The
Petition filed by the company was dismissed by Hon'ble NCLT on 15.06.2022.
Company is a Respondent in the appeal petition filed by Mrs. Kodali Vijayarani, Promoter Shareholder & Director
of the company at National Company Law Appellate Tribunal at Chennai under Section 421 of the Companies
Act, 2013 vide Petition No. 59 of 2022. The Company has filed counter on the said petition . After several
adjournments the case was listed on 28.03.2024 and the "Office of the Registry" directed to List the matter on
22.07.2024 under the caption "For Hearing".
25. c The Company has received a notice from 5 shareholders regarding the petition filed by them in the NCLT alleging
suppression and mismanagement of Sri G.Satyanarayana, Managing Director & Sri Kodali Vijayarani, Director
and to pars all the resolutions passed by the Board & Annual General Meeting dated 04th December, 2020 against
the Petitioners. The Petition filed was dismissed by Hon'ble NCLT on 15.06.2022 .
26. Other Statutory Information
i) The Company does not have any Benami property, where any proceeding has been initiated or pending against
the company for holding any Benami property.
ii) The Company does not have any transactions with companies struck off.
iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
iv) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
v) The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.
ri) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies) including
foreign entities (Intermmediaries) with the a) directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the Company (Utimate Beneficiaries) or b) provide any
guarantee, security or the like to or on behalf of the ultimate Beneficiaries.
vii) 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 (a) directly or
indirectly lend or invest in other persons or entities indetified 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
Benefeciaries.
viii) The Company does not have any such transaction which is not recored 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).
In terms of our report of even date attached.
For Suryanarayana & Suresh For and on behalf of the Board
Chartered Accountants
Firm Regd. No. : 006631S
V. N agendra Rao G. S atyanarayana K. Vijaya Rani
Partner Managing Director Director
Membership No. 227679 DIN : 02051710 DIN : 00102286
Place : Hyderabad M.R. Koteswara Rao
Date : 29.05.2024 Chief Financial Officer
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