19.PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
The Company creates a provision when there is present obligation as a result of a past event that probably requires an
outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent
liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an
outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of
outflow of resources is remote, no provision or disclosure is made.
Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer
probable that an outflow of resources would be required to settle the obligation, the provision is reversed.
Contingent assets are not recognized in the financial statements. However, contingent assets are assessed continually and
if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognized in the
period in which the change occurs.
Loss contingencies arising from claims, litigation, assessment, fines, penalties, etc. are recorded when it is probable that a
liability has been incurred and the amount can be reasonably estimated.
For Calculation of Debt and Equity Ratio and Debt Service Coverage Ratio, the Management has a policy to consider only
Long Term Debts. During the year the management does not have any long term debt and having only short term debt.
Note: 25 Other Notes
1. Disclosure under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED ACT, 2006)
10. Charge: During the year no charge has been created by the company & as per MCA site No Charges Exists for
Company.
11. Balance of trade receivables, payables and loans and advances are subject to reconciliation and confirmation from the
parties. These balances are therefore, subject to adjustments, if any, as may be required on settlement of these balances with
the parties.
12. During the financial year the Company has not traded or invested in Crypto Currency or Virtual Currency.
13. The Company is a not a declared willful defaulter by any bank or financial Institution or other lender.
14. No Benami Property is held by the Company and that 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 rules
made thereunder.
15. The company has not entered into any transactions with the companies struck off under section 248 of Companies Act,
2013 or section 560 of Companies Act, 1956.
16. No Scheme of Arrangement has been undertaken by the Company during the financial year in terms of sections 230 to
237 of the Companies Act, 2013.
17. There are no transactions 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.
18. The company has complied with the provisions for number of layers prescribed under clause (87) of section 2 of the Act
read with Companies (Restriction on number of Layers) Rules, 2017.
19. Search by the Goods & Service Tax Department
GST Search: In the month of July, 2022, a search was conducted by the Directorate General of Goods and Services Tax
Intelligence (DGGI), Pune at the premises of the company and its directors. As informed by the Management of the
Company, that the investigation has not been completed by the department and no demand has been crystalized. During
the investigation, the department has seized the goods as lying in the premises of M/s. F O Industries Private Limited,
(Subsidiary Company of Foce India Limited) Bhiwandi which was received for do repair work. The investigation of the
seized goods was not completed and it was released by the department after submission of Bank Guarantee and Bond.
The management has informed us that, in case of FO Industries, Office of the Commissioner of CGST & Central Excise,
Mumbai Central have adjudicated the matter and passed the adjudicating order on 26-03-2025 vide GST Form DRC-07
confirm the demand of Rs. 91,83,910/- along with the applicable interest & penalty.
Details of Bank Guarantee and Bond furnished to Department is as under:
The details of amount paid under protest till date by the company are as under:-
The management has informed us that, on 16-01-2023 there was a search carried out in the premises of the company and
at the residential premises of the residence of the directors under PMLA Act, 2002. As informed to us, that the show cause
notice is served.
Contingent /Disputed Liabilities not provided for:
As per our verification on the TRACES website of the Income Tax Department, there are Outstanding TDS Dues which are
subject to rectification and corrections are as under: -
(c ) FO Industries Private Limited (Subsidiary Company of FOCE India Limited) has given a Bond of (Amount in 'Lakhs')
Rs. 1,042.74/- for release of Goods by the GST department.
21.Previous year's figures have been rearranged and regrouped wherever considered necessary:
The accompanying notes are an integral part of the financial statements
As per our report of even date
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