P. Provisions & Contingencies
A provision arising from claims, litigation, assessment, fines, penalties, etc. is recognised when the Company has a present obligation
(legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate can be made of the amount of the obligation. These are reviewed at each balance
sheet date and adjusted to reflect current management estimates. Contingent liabilities are disclosed in respect of possible obligations
that have arisen from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of the enterprise. When there is a possible obligation or present obligation where the
likelihood of an outflow is remote, no disclosure or provision is made.
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or
non-occurrence of one or more uncertain future events not wholly within the control of the entity. A contingent asset is disclosed, where
an inflow of economic benefits is probable.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable
is recognized as an asset, if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured
reliably.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate,
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.
Q. Income Taxes
Income tax comprises current tax and deferred tax. Income tax expense is recognized in the statement of profit and loss except to the
extent it relates to items directly recognized in equity or in other comprehensive income.
Current tax
Current tax for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities
based on the taxable income for the period. The tax rates and tax laws used to compute the current tax amount are those that are
enacted or substantively enacted by the reporting date and applicable for the period. The Company offsets current tax assets and current
tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis
or to realize the asset and liability simultaneously.
Deferred tax
Deferred tax is recognized using the balance sheet approach. Deferred tax assets and liabilities are recognized for deductible and taxable
temporary differences arising between the tax base of assets and liabilities and their carrying amount in standalone financial statements,
except when the deferred tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business
combination and affects neither accounting nor taxable profits or loss at the time of the transaction.
Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible
temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.
Deferred tax liabilities are recognized for all taxable temporary differences.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable
that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realized or
the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
NOTES RELATED TO BALANCE SHEET
3 PROPERTY, PLANT AND EQUIPMENT
The following table shows changes in Property, plant and equipment during the year ended 31st March, 2025
The company obtains independent valuations for its investment properties at least annually. The best evidence of fair value is current
prices in an active market for similar properties. Where such information is not available, the company considers information from a variety
of source including:
- Current prices in an active market for properties of different nature or recent prices of similar properties in less active markets,
adjusted to reflect those differences
- Capitalised income projections based upon a property's estimated net market income and a capitalisation rate derived from an
analysis of market evidence
The fair values of investment properties have been determined by an accredited registered valuer as defined under rule 2 of Companies
(Registered Valuers and Valuation) Rules, 2017, holding the recognised and relevant professional qualification and has recent experience
in the location and category of the investment property being valued. The main inputs used are the local enquiries and prevailing market
trends adjusted for location, size, utility, condition and other factors having influence over the fair value. All resulting fair value estimates
for investment properties are included in level 3.
Title deeds of the immovable properties not held in the name of the company
All the title deeds of the immovable properties are held in the name of the company subject to the following limitations:
*Department of Fertilizers, Ministry of Chemical and Fertilizers has raised a demand, including interest, amounting to ? 11,142.00 Lakh on delay
in refund of subsidy for VII and VIII pricing periods. The company has filed a writ before Hon'ble Delhi High Court for which decision is pending.
Management envisage no liability on account of interest as the refund of excess amount of subsidy claimed by the Union was itself not payable
for which Letters Patent Appeal (LPA) had been filed and pending before the Hon'ble Delhi High Court The amount of demand is held in Escrow
Account jointly with Kribhco Fertilizers Limited as security deposit in the case of demand including interest raised by the Government on delay in
refund of subsidy for VII and VIII pricing period. Refer Note 13.
Note: Interest and other levies in addition to above to be ascertained at the time of final outcome of the adjudications.
37 A dispute has arisen relating to interest charged on Inter Corporate Deposits with one of the borrower for the period relating to Covid
and subsequent to it. The company has invoked arbitration clause as per the ICD agreement.
In view of this dispute the company has decided not to charge any further interest pending the arbitration proceedings. Consequently, the
Interest Income and Current Assets are understated by Rs 4242.55 lakh (previous year Rs 3262.92 lakh) and 7505.47 lakh (previous
year Rs 3262.92 lakh) respectively.
38 RELATED PARTY DISCLOSURES
(A) Related parties and transactions with them as identified by the management are given below:
(a) Entities with significant influence over the company
Oswal Agro Mills Limited - Entity to which company is an associate
(b) Key Managerial Personnel (KMP)
Mrs. Aruna Oswal Chairperson & Whole Time Director
Mr. Anil Kumar Bhalla Managing Director & CEO
Mr. Ayussh Sanghi Independent Director (Resigned w.e.f 24th Feb, 2025)
Mr. Pulkit Gupta Independent Director
Ms. Shikha Jain Independent Director (Resigned w.e.f 8th April, 2024)
Mr. Akhil Bansal Independent Director
Ms. Shipra Shroff Independent Director (Appointed w.e.f. 12th June 2024)
Mr. Namit Gupta Independent Director (Appointed w.e.f. 03rd March 2025)
Mr. Vipin Kumar Vij Chief Financial Officer
Ms. Sonal Gupta Company Secretary
(c) Other related parties
Aruna Abhey Oswal Trust The entity is controlled by a key managerial person
Crest Commercial Projects (I) Private Limited The entity is controlled by a key managerial person
(ii) The management assessed that fair value of cash and cash equivalents and bank balances other than cash and cash equivalents
and other financial assets and financial liabilities measured at amortised cost approximates their carrying amounts due to the short¬
term maturities of these instruments and the transactions being entered at arm's length. In respect of loans, the fair value equals the
carrying value as the risk management mechanism established by the company indicates that no impairment in the value of these
loans. The fair value of lease liabilities is also considered to be equal to its book value
The fair value of investments in mutual fund is determined on the basis of NAV of mutual fund declared on the last day of the
financial year. The fair values of the listed equity instruments were determined on the basis of the closing price on the last day of the
financial year. The fair value of preference shares has been determined by an accredited registered valuer as defined under rule 2
of Companies (Registered Valuers and Valuation) Rules, 2017, holding the recognised and relevant professional qualification.
DETAILS OF ASSETS PLEDGED AS COLLATERAL/SECURITY
The carrying amount of assets as at 31st March, 2025 and 31st March, 2024 that the company has provided as collateral for obtaining
borrowings and other facilities from the bankers or is restricted for use are as follows:
42 FAIR VALUE HIERARCHY
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices)
or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
The following tables present the fair value measurement hierarchy of financial assets and liabilities measured at fair value on recurring
basis as at 31st March, 2025 and 31st March, 2024
Quantitative disclosures of fair value measurement hierarchy for assets as at 31st March, 2025
There have been no transfers among Level 1, Level 2 and Level 3 during the year ended on 31st March, 2025 or on 31st March, 2024.
A one percent change in the unobservable inputs used in fair valuations of level 3 assets does not have a significant impact in its value.
The fair value of investments in mutual fund is determined on the basis of NAV of mutual fund declared on the last day of the financial
year. The fair values of the listed equity instruments were determined on the basis of the closing price on the last day of the financial year.
The fair values of investment properties have been determined by an accredited registered valuer as defined under rule 2 of Companies
(Registered Valuers and Valuation) Rules, 2017, holding the recognised and relevant professional qualification and has recent experience
in the location and category of the investment property being valued. The main inputs used are the local enquiries and prevailing market
trends adjusted for location, size, utility, condition and other factors having influence over the fair value. All resulting fair value estimates
for investment properties are included in level 3.
The fair value of preference shares has been determined by an accredited registered valuer as defined under rule 2 of Companies
(Registered Valuers and Valuation) Rules, 2017, holding the recognised and relevant professional qualification.
3 FINANCIAL RISK MANAGEMENT
The Company's principal financial assets include investment in equity instruments, preference shares and mutual funds, inter-corporate
deposits, other receivables and cash & bank balances.
The Company's principal financial liabilities mainly comprise of creditors for expenses and employee benefits payable.
The Company's activities expose it to credit risk and liquidity risk. The company is not exposed to any market risk, neither in form of
interest rate risk as the debt instruments issued by the company (i.e. intercorporate deposits) bear a fixed rate of interest as per the
inter-corporate deposit agreements nor any foreign exchange risk. The different types of risk the company is exposed to are as follows:
(i) Credit risk
Credit risk is the risk that customer or counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Company's significant credit risk concentration is in its loans given [i.e. intercorporate deposits
(ICD)] and interest receivable thereon aggregating to ? 65,301.55 lakh i.e. 47.83% of total financial assets as at 31st March, 2025
(? 65,924.53 lakh i.e. 54.69% of total financial assets as at 31st March, 2024). The objective of managing counter party credit risk is
to prevent losses in financial assets. The Company assesses the credit quality of the ICD parties on regular basis by analysing their
default pattern, reviewing annual financial performance and creditworthiness as evident from their financial statements. The company
regularly assesses the increase in risk of default since initial recognition. The company considers a default of more than 6 months
as an indicator for increased risk of default requiring the assessment of expected credit losses and resulting impairment, if any. The
company uses a provision matrix to compute the expected credit losses (ECL) for trade receivables. The provision matrix takes into
account internal and external credit risk factors and the company's historical experience for customers.
However, as at the date of balance sheet all parties were regular in meeting their contractual obligations and none of the financial
assets are credit impaired other than those for which adequate allowance for credit losses have been made. Credit risk on cash & cash
equivalents and other bank balances is limited as the company holds these deposits with scheduled banks with high credit ratings.
Investments are primarily in quoted equity instruments of companies. Further, the company invests on short term basis in mutual
funds having high credit rating from domestic credit rating agencies.
Exposure to credit risk
The gross carrying amount of financial assets, net of any impairment recognised represents the maximum credit exposure. The
maximum credit exposure as at 31st March,2025 and as at 31st March, 2024 is as follows:
(ii) Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The company does
not have any significant financial liability as at March 31,2025 or March 31,2024 and Company has enough liquid funds in the form
of cash and cash equivalents to meet its financial obligations as and when they become due. The Company manages its liquidity
risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.
As at 31st March, 2025, the company has a working capital of ? 1,42,016.88 lakh (Previous year ? 1,36,069.33 lakh). Further, the
company has substantial pool of highly liquid financial assets like cash & cash equivalents and short term investments in mutual
funds aggregating to ? 18,704.27 lakh (Previous year ?9,470.65 lakh) as against the total current liabilities (excluding provision
for legal liabilities, settlement of which is uncertain) of ? 2,201.70 lakh (Previous year 1,358.70 lakh) which clearly establishes the
strong liquidity position of the company.
The maturity analysis of the financial liabilities of the company as on 31.03.2025 is given as below:
i) Cases in respect of entry tax, electricity duty, sales tax and property tax are pending before different adjudication authorities and will
be settled at the amount finalised by the judgement of the respective authorities.
ii) In respect of civil cases, the proceedings are pending at different legal forums. However, these are expected to be settled in the
succeeding financial years.
iii) Provisions are made herein for medium risk oriented issues as a measure of abundant precaution.
iv) Remote risk possibility of further cash outflows is presumed pertaining to contingent liabilities as listed in note no. 36.
15 ADDITIONAL REGULATORY INFORMATION
(i) The company has not granted any Loans or Advances in the nature of loans to promoters, directors, KMPs and the related parties
(as defined under Companies Act, 2013,) either severally or jointly with any other person.
(ii) The company has no borrowing from banks or financial institutions on the basis of security of current assets.
(iii) The company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of
Companies Act, 1956.
(iv) Registration of charges or satisfaction with Registrar of Companies (ROC)
(v) The Company has 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, 1961) during the year.
(vi) CORPORATE SOCIAL RESPONSIBILITY:
As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its
average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas
for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and
rehabilitation, environment sustainability, disaster relief, COVID-19 relief and rural development projects. A CSR committee has
been formed by the company as per the Act. The funds were allocated to a charitable institution for spending towards healthcare
promotion as covered under activites specified in Schedule VII of the Companies Act, 2013.
46 OTHER NOTES:
(i) Capital management: The company has only equity capital as the only source of capital and has no funds raised in form of
borrowings. The company aims at utilising the capital in the most optimum manner. Hence the comprehensive disclosures required
by Ind AS 1, in respect of capital management are not required by the company.
(ii) Based on the information available with the Company, there are no dues as at 31st March, 2025 or 31st March, 2024 payable
to enterprises covered under “Micro, Small and Medium Enterprises Development Act, 2006”. No interest is paid/payable by the
Company in terms of Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006.
(iii) As per the internal assessment of the company, there is no non financial asset requiring allowance for impairment in compliance
of IND AS 36 on “Impairment of Assets” other than already provided for, if any.
(iv) Previous year's figures have been regrouped /reclassified wherever necessary to correspond with the current year's classification/
disclosure.
As per our report of even date attached
For Oswal Sunil & Company For and on behalf of the Board of Directors of
Chartered Accountants OSWAL GREENTECH LIMITED
(Firm Registration No. 016520N)
Anil Kumar Bhalla Aruna Oswal
Nawin K Lahoty CEO and Managing Director Chairperson
Partner DIN : 00587533 DIN : 00988524
Membership No. 056931
Vipin Vij Sonal Gupta
Place : New Delhi Chief Financial Officer Company Secretary
Date : 21st May, 2025 PAN : ABBPV1208K M.No.: 36974
UDIN : 25056931BMLDCM4779
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