4.1 In preparing this report we have heavily relied on the completeness and accuracy of the information, data and assumptions provided to us orally and in writing by or on behalf of the Company and its advisors. We have not completed any detailed validation checks/investigation on the information, data and assumptions provided, however preliminary broad consistency is viewed in respect of data. As compared to previous valuation assumptions, changes, if any, may be due to change in yield to government bonds/change in entity's long term views for future.
4.2 This report is based on going concern basis and as per requirements of Accounting Standard mentioned above and its application to the Plan. These results should not be used for any other purpose. In particular, this Report does not constitute a formal funding actuarial valuation of the Plan and does not present any recommendation of contributions or funding levels and hence results will not hold good incase company is closed or mass attrition. This report is provided solely for the company use and for the specific purposes indicated above. Except where I expressly agree in writing, it should not be disclosed or provided to any third party. In the absence of such consent and an express assumption no responsibility what so ever is accepted by me for any consequences arising from any third party relying on this report or any advice relating to its contents. In any case, irrespective of vendor agreement etc. liability of undersigned towards entity or anyone is strictly limited to the billed amount for this report. The Company may provide copy of this Report to its auditors along with rules of the plan, but I make no representation as to the suitability of this report for any purpose other than that for which it was originally provided and accept no responsibility or liability to the company or its auditors in this regard. The company should draw the provisions of this paragraph to the attention of its auditors.
5.1 Principal assumptions are discount rate and salary increase. The discount rate is based upon the yield on govt bonds and the salary increase should take account inflation, seniority, promotion and other relevant factors. However, no explicit allowance is used for disability. As per Accounting Standard, selection of appropriate assumption is responsibility of the entity. Though entity has been advised on the suitability wherever applicable, the report is based on assumptions finalized by the entity (after considering long term view entity might have considered these assumptions prudent).
Risk Factors: Other assumptions would have produced different results e.g. a decrease in discount rate or an increase in salary inflation will lead to an increase in reported liability as per table of sensitivity analysis .Similarly change in attrition rates will also impact the liability. Funded plan carries usual investment risks including asset liability mismatch which will impact net liability/expenses and OCI if any.
6. Projected Unit Credit (PUC) Method: is used to assess the plan liabilities, including those related to death-in-service and incapacity benefits. Under this method a projected accrued benefit is calculated at the beginning of the year and again at the end of the year for each benefit that will accrue for all active members of the plan. The projected accrued benefit is based on the plans accrual formula and service as of the beginning or end of the year, but using final compensation, projected to the age at which the employee is assumed to exit. The plan liability is actuarial present value of the projected accrued benefit as on date of valuation.
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GLOSSARY:
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Actuarial Gain or Loss
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From one plan year to the next, if the experience of the plan differs from that anticipated using the actuarial assumptions, an actuarial gain or loss occurs.
For example, an actuarial gain would occur if the plan assets earned 12% for the year while the assumed rate of returned in the valuation was 8%.Other causes of actuarial gain so losses would include changes in actuarial assumptions and /or demographic changes in the population profile.
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Balance Sheet Asset/ (Liability)
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The sponsor's balance sheet asset/ (liability) entry, the net recognized amount, is the sum of the cumulative excess of contributions to the plan over net annual expense and other plan-related charges to in come due either to business combination or accelerated recognition pursuant to IAS19.The difference between this account and the funded status is the unrecognized net loss/(gain) unvested prior service costs [and net transition obligation.]
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Funded Status
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This is the excess /(shortfall) of the fair value of plan assets over the plan liability.
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Plan Liability
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This quantity is discounted present value of all benefits attributed by the plan's benefit formula to service rendered prior to the measurement date. It is measured using an assumption as to future pay levels.
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Service Cost
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This is the discounted present value of benefits attributed by the plan's benefit formula to services rendered by employees during the accounting period. It is measured using an assumption as to future pay levels.
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Interest Cost
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The increase in the plan liability over the accounting period due to interest (the time value of money).
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Expected Return on Assets
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The expected return on plan assets over the accounting period, based on an assumed rate of return.
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Net Periodic Benefit Cost
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This is the profit and loss charge for the accounting period, and comprises the sum of the service and interest costs less the expected return on assets, plus allowance for amortization of any net liabilities not recognized in the balance sheet.
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4.1 In preparing this report we have heavily relied on the completeness and accuracy of the information, data and assumptions provided to us orally and in writing by or on behalf of the Company and its advisors. We have not completed any detailed validation checks/investigation on the information, data and assumptions provided, however preliminary broad consistency is viewed in respect of data. As compared to previous valuation assumptions, changes, if any, may be due to change in yield to government bonds/change in entity's long term views for future.
4.2 This report is based on going concern basis and as per requirements of Accounting Standard mentioned above and its application to the Plan. These results should not be used for any other purpose. In particular, this Report does not constitute a formal funding actuarial valuation of the Plan and does not present any recommendation of contributions or funding levels and hence results will not hold good incase company is closed or mass attrition. This report is provided solely for the company use and for the specific purposes indicated above. Except where I expressly agree in writing, it should not be disclosed or provided to any third party. In the absence of such consent and an express assumption of responsibility, no responsibility whatsoever is accepted by me for any consequences arising from any third party relying on this report or any advice relating to its contents. In any case, irrespective of vendor agreement etc. liability of under signed towards entity or anyone is strictly limited to the billed amount for this report. The Company may provide copy of this Report to its auditors along with rules of the plan, but I make no representation as to the suitability of this report for any purpose other than that for which it was originally provided and accept no responsibility or liability to the company or its auditors in this regard. The company should draw the provisions of this paragraph to the attention of its auditors.
5.1 Principal assumptions are discount rate and salary increase. The discount rate is based upon the yield on govt bonds and the salary increase should take account inflation, seniority, promotion and other relevant factors. However no explicit allowance is used for disability. As per Accounting Standard, selection of appropriate assumption is responsibility of the entity. Though entity has been advised on the suitability wherever applicable, the report is based on assumptions finalized by the entity (after considering long term view entity might have considered these assumptions prudent).
Risk Factors: Other assumptions would have produced different results e.g. a decrease in discount rate or an increase in salary inflation will lead to an increase in reported liability as per table of sensitivity analysis. Similarly change in attrition rates will also impact the liability. Funded plan carries usual investment risks including asset liability mismatch which will impact net liability/expenses and OCI if any.
6. Projected Unit Credit (PUC) Method: is used to assess the plan liabilities, including those related to death-in-service and incapacity benefits. Under this method a projected accrued benefit is calculated at the beginning of the year and again at the end of the year for each benefit that will accrue for all active members of the plan. The projected accrued benefit is based on the plans accrual formula and service as of the beginning or end of the year, but using final compensation, projected to the age at which the employee is assumed to exit. The plan liability is actuarial present value of the projected accrued benefits as on date of valuation.
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GLOSSARY:
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Actuarial Gain or Loss
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From one plan year to the next, if the experience of the plan differs from that anticipated using the actuarial assumptions, an actuarial gain or loss occurs.
For example, an actuarial gain would occur if the plan assets earned 12% for the year while the assumed rate of return used in the valuation was 8%. Other causes of actuarial gains or losses would include changes in actuarial assumptions and/ or demographic changes in the population profile.
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Balance Sheet Asset/(Liability)
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The sponsor's balance sheet asset/ (liability) entry, the net recognized amount, is the sum of the cumulative excess of contributions to the plan over net annual expense and other plan-related charges to in come due either to business combination or accelerated recognition pursuant to IAS19.The difference between this account and the funded status is the unrecognized net loss/ (gain) unvested prior service costs [and net transition obligation.]
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Funded Status
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This is the excess/(shortfall)of the fair value of plan assets over the plan liability.
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Plan Liability
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This quantity is discounted present value of all benefits attributed by the plan's benefit formula to service rendered prior to the measurement date. It is measured using an assumption as to future pay levels.
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Service Cost
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This is the discounted present value of benefits attributed by the plan's benefit formula to services rendered by employees during the accounting period. It is measured using an assumption as to future pay levels.
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Interest Cost
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The increase in the plan liability over the accounting period due to interest (the time value of money).
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Expected Return on Assets
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The expected return on plan assets over the accounting period, based on an assumed rate of return.
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Net Periodic Benefit Cost
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This is the profit and loss charge for the accounting period, and comprises the sum of the service and interest costs less the expected return on assets, plus allowance for amortization of any net liabilities not recognized in the balance sheet.
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3.5: Sensitivity Analysis: Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate and expected salary increase rate. Effect of change in mortality rate is negligible. Please note that the sensitivity analysis presented below may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated. The results of sensitivity analysis are given below:
13. Cash flow statement
Cash flows are reported using the indirect method, whereby net profit / (loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past of future cash receipts and payments. The cash flows from operating, investing and financing activities of the Company are segregated.
3. In the opinion of the management, current assets, loans and advances are of the value stated if realised in the ordinary
course of business except otherwise stated. The provision for all the known liabilities is adequate and not in excess of the amount considered reasonable.
5. INCREASE IN AUTHORISED CAPITAL
During the year the Authorised Share Capital of the Company was increased from existing Rs. 1,12,82,50,000/- (Rupees One-Hundred and Twelve Crores Eighty-Two Lakhs Fifty Thousand Only) divided into 8,28,25,000 (Eight Crores Twenty-Eight Lakhs Twenty-Five Thousand) Equity Shares of Rs. 10/- (Rupees Ten) each and 30,00,000 (Thirty Lakhs) Preference Shares of Rs. 100/- (Rupees One Hundred) each to Rs. 1,14,32,50,000/- (Rupees One Hundred and Fourteen Crores Thirty -Two Lakhs Fifty Thousand Only) divided into 8,43,25,000 (Eight Crores Forty-Three Lakhs Twenty-Five Thousand) Equity Shares of Rs. 10/- (Rupees Ten) each and 30,00,000 (Thirty Lakhs) Preference Shares of Rs. 100/- (Rupees One Hundred) each.
6. TRADE RECEIVABLES
Trade Receivables amounts to Rs. 5892.28.40 lakhs, out of which trade receivables amounting to Rs. 919.29 lakhs are outstanding for more than six months, the trade receivable of Rs. 46.04 lakhs are under litigation. No provision has been made by the company in respect of debtors under litigation, as the company is of view that it will recover the entire amount.
7. Inventory
Additional information (Being technical matter and valued and certified by the management and auditors have relied upon the same
9. SUNDRY CREDITORS:
The dues payable to Micro and Small Enterprises is based on the information available with the Company and takes into account only those suppliers who have responded to the enquiries made by the Company for this purpose.
MSME
The Management has identified enterprises which have provided goods and services to the Company and which qualify under the definition of micro and small enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006. Accordingly, the disclosure in respect of amounts payable to such enterprises as at 31 March 2025 has been made based on the information available with the Company and interest amounting to Rs 13,28,786/- is computed in regards to the delayed payment.
10. LEASE
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the Risks and rewards of ownership to the lessee. All other leases are classified as operating leases. In respect of assets taken on operating lease, lease rentals are recognized as an expense in the Statement of Profit and Loss on straight line basis over the lease term unless another systematic basis is more representative of the time pattern in which the benefit is derived from the leased asset; or the payments to the lessor are structured to increase in the line with expected general inflation to compensate for the lessor's expected inflationary cost increases
11. PREFERENCE SHARES
In accordance to Ind AS 109 read with Ind AS 32, redeemable preference shares are classified as financial liability. Therefore, the treatment has been given in the financials in accordance with the aforesaid Ind AS.
Financial liabilities: Classification, subsequent measurement and gains and losses financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held for trading, or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in the Statement of Profit or Loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in the Statement of Profit or Loss. Any gain or loss on de-recognition is also recognised in the Statement of Profit or Loss.
The company has redeemed 7,52,500 preference share of face value of Rs. 100 each during the year at par and the correspondence effect has been taken towards financial liability and its reserve.
12. IMPAIRMENT OF ASSETS
In accordance with IND AS 36 'Impairment of Assets' issued by Institute of Chartered Accountants of India, the company has assessed the potential generation of economic benefits from its business units as on the balance sheet date and is of the view that assets employed in continuing business are capable of generating adequate returns over their useful lives in the usual course of business: there is no indication to the contrary and accordingly, the management is of the view that no impairment provision is called for in these accounts.
14. SEGMENT REPORTING
The Company is having two segment Paper division and Hotel Division. The segment reporting of the company has been prepared in accordance with IND AS - 108 'Accounting for Segment Reporting' issued by Institute of Chartered Accountants of India.
Primary -
The Company has considered Business segments as primary format for segment reporting, namely Paper Division & Hotel Division.
Geographical Segment
No Geographical segment reporting is required as per the IND AS 108 issued by the Institute of Chartered Accountants of India.
15. INCOME TAX CASE
M/s Alchemist Asset Reconstruction Company Limited (AARC) had acquired NPA account(s) of Magnum Ventures Limited ("Company", "MVL) maintained with Punjab National Bank, Oriental Bank of Commerce, Indian Overseas Bank, Allahabad Bank and Syndicate Bank and had entered into agreement(s) dated 31-03-2018 with the company.
Relying upon some incrementing material gathered during search conducted by the Investigation wing of Income Tax Department at various premises of Alchemist AARC Group i.e. a third-party, the income of the company was reassessed under section 147 of the Income Tax Act, 1961 issuing a demand notice(s) u/s 156 amounting to Rs. 2501.88 lacs for the Assessment Year 2018-19 to Assessment Year 2023-24.
Being aggrieved, the company has preferred appeals before Hon'ble CIT (Appeals), which are still pending for disposal. The company expects a substantial relief in the appellate proceedings in view of the facts of the case and relevant applicable laws.
16. During the year under consideration, the Company has issued Listed, Secured 18% Coupon, Non-Convertible Debentures of face value of Rs. 1 lac each on Private Placement basis to Neo Special Credit Opportunity Fund under the Trusteeship of Catalyst Trusteeship Limited of Rs 3,000 lacs (for security and repayment schedule, refer Schedule 13).
17. PLEDGING OF SHARES
During the year, 83,24,255 equity shares held by Mr. Parv Jain were pledged in favour of Catalyst Trusteeship Limited, as security for the 18% Secured, Listed, Redeemable, Non-Convertible Debentures (NCDs) amounting to '15,000 lakhs issued to M/s. Neo Special Credit Opportunity Fund (under the trusteeship of Catalyst Trusteeship Limited), in accordance with the terms of the Debenture Trust Deed, as amended (if any).
Subsequently, the same 83,24,255 pledged equity shares were further extended as security for an additional issuance of 18% Secured, Listed, Redeemable, Non-Convertible Debentures amounting to '3,000 lakhs, also issued to M/s. Neo Special Credit Opportunity Fund (under the trusteeship of Catalyst Trusteeship Limited).
Warrant have a dilutive effect only when the average market price or ordinary shares during the period exceed the exercise price of the warrant.
Company has issued warrant at the prevailing market price at the date of issue, so it does not have any dilutive effect on the EPS. Further in respect of warrants, the company has not received the full amount (partial payment received)
19. Corporate Social Responsibility
The provisions of Corporate Social Responsibility (CSR) under Section 135 of the Companies Act, 2013, read with Schedule VII, were not applicable to the Company for the Financial Year 2024-25, as the Profit Before Tax for the year ended March 31,2024, was '4.80 crores, which is below the prescribed threshold of '5 crores.
20. Additional Regulatory Information
(i) Revaluation of Property, Plant and Equipment -
The company has not revalued its Property, Plant and Equipment during the financial year 2024-25. The Company had revalued its Property, Plant and Equipment in the financial year 2022-23 by adopting revaluation mode in accordance with the provisions of Ind AS 16.
(ii) No Loans or Advances has been granted to promoters, directors, KMPs and related parties during the year ended on March 31,2025.
(iv) 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 during the year ended March 31st, 2025 and March 31st, 2024.
(v) The company has not obtained any borrowings from the banks and financial institutions on the basis of security of current assets.
(vi) The Company has not been declared as willful defaulter by any bank or financial Institution or other lender during the year ended March 31st, 2025 and March 31st, 2024.
(vii) The company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.
(viii) The Company does not have any subsidiary as at March 31st, 2025 and March 31st, 2023 and accordingly clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable.
(ix) Undisclosed Income
There are no transactions not recorded in the books of accounts during the year ended March 31st, 2025 and March 31st, 2024 that has been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961.
There are no previously unrecorded income and related assets to be recorded in the books of account during the year ended March 31st, 2025 and March 31st, 2024.
(x) Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended March 31st, 2025 and March 31st, 2024.
(xi) Utilisation of Borrowed funds and share premium:
(A) During the year ended and as at March 31st, 2025 and March 31st, 2024, 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) During the year ended and as at March 31st, 2025 and March 31st, 2024, 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
(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.
21. Previous year figure has been regrouped and reclassified wherever considered necessary to make them comparable to those of the current year.
The above Note on Significant Accounting Policies 1 to 13 and Other Note 1 to 20 form an integral part of the Balance Sheet as at 31st March 2025 and has been authenticated as such.
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