2.33 Employee benefits
Gratuity: The Company provides for gratuity, a defined benefit retirement plan ("the Gratuity Plan1') covering eligible employees of Madhucon.
Liabilities with regard to these defined benefit plan are determined by actuarial valuation, performed by an external actuary.
Provident Fund: Eligible employees receive benefits from a provident fund, which is a defined benefit plan.
2.35 Segment Reporting;
The Company's operations predominantly consist of construction/project activities. Hence there are no reportable segments under Ind AS 108.
2.40 Some of the Bank Accounts at closed projects which are in dormant and have not been reconciled due to non-availability of statements,
2.41 Certain accounts are pending from long times which are not recoverable/payable as per limitation Act, passed necessary entries in books of account*
2.42 Going Concern
In Preparing the financial statements the Board of Directors have considered the operations of the Company as going concern notwithstanding that the Company incurred a netoss of Rs.2,096.53 Lakhs (Previous Year a net loss of Rs. 979.58) Lakhs for the financial year ended 31st march 2025, and as at that date, the Company is in net current liabilities position of Rs. 37,034.83 Lakhs (Previous year Rs. 92,331.50 Lakhs) as at 31st March 2025, and has defaulted in payments of dues to Banks. Company settled the bank loans on OTS basis received the NOC, except Punjab National Bank and Cana Bank. OTS agreement already entered with Punjab National Bank and Canara Bank cleared fund-based liability. Company is working out to clear the non-fund based outstanding. However, the management believes the use of going concern assumption on the preparation of the financial statements of the company is still appropriate in view of dosing most of the liabilities and also that the company will continue to be in operation in the foreseeable.
2.43 Additional Regulatory Information
i) Title Deeds of all immovable properties are held in the name of the company.
ii) The Company is not in possession of any Investment property,
iil) The Company has not revalued any of its Property, Plant and Equipment during the year,
iv) No loans and advances were granted to promoters, directors, KMPs
v) There is no capital work-in-progress
vi) There areno proceedings initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition} Act, 19S8 (45 of 1988) and rules made thereunder.
vii) The company has borrowed from banks on the basis of security of current assets and some has been settled on OTS except Canara Bank and Punjab National Bank. Company has entered OTS agreement with Canara Bank and Punjab National Bank and closed the fund-based limits. Company is working out to surrender the Bank Guarantees to obtain NOC certificates from both the banks
viii) The company was not declared as a willful defaulter by any bank or financial institution.
ix) The company did not enter into any transactions with struck off companies.
x) There are no charges or satisfaction yet to be registered with ROC beyond the statutory period
xi) The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies [Restriction on number of Layers] Rules, 2017,
xii) There are no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.
sill) Utilization of Borrowed funds and share premium;
(A) The company didn't advance or lend or invest 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 didn't receive 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
(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 xiv) The Company has neither declared nor paid any dividend during the year.
Debt-Equity Ratio:
Due to reduction in the overall debts
Debt Service Coverage Ratio:
Significant improvement in the ratio due to reduction in the liabilities by clearing long pending dues
Return on Equity Ratio:
Reduction in the Return on Equity Ratio due to net loss incurred by the company during the current financial year.
Trade payables turnover ratio:
Reduction in the Ratio due to reduction in the turnover Net capital turnover ratio:
Net Capital Turnover Ratio is improved due to significant deducfiDiiiabilities by clearing the dues.
Inventory turnover ratio:
Inventory Turnover Ratio is increased as result of better utilization of materials and effective management policies.
Net profit ratio:
Net profit Turnover Ratio is negative due to incurring of net loss by the company during the year
Undisclosed Income
There were no transactions relating to previously unrecorded income that were surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 (43 of 1961) during the year.
xvi) Corporate Social Responsibility
Since the company is incurring losses in current year and consecutively for preceding 2 financial years CSR is not applicable
xvii) Details of Crypto Currency or Virtual Currency
The company has neither traded nor invested in Crypto currency or Virtual Currency during the financial year
2.44 Figures for the previous year have been regrouped/re classified to confirm to the figures of the current year.
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