26 Employee benefit plans Defined Benefit plans
The Company’s gratuity scheme is a defined benefit plan. The present value of obligation as at the end of the financial year is determined based on actuarial valuation using the Projected Unit Credit method, which recignises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment as at the end of the financial year is also recognised in the same manner as gratuity.
28 Contingent Liability
a) The Company has pledged part of its investment of 91,74,860 Equity shares of Haldia Coke and Chemicals Private Limited with a lender for moneys borrowed by the above company. The liability, if any, that may arise on account of the pledge is not quantifiable.
b) Income Tax Demand on Appeal: Assessment Year 2015-16 the assessment was completed with a demand of Rs. 5,21,10,390. For the Assessment Year 2017-18 the assessment was completed with a demand of Rs. 2,13,16,410/. The company has preferred an appeal with the Commissioner of Income Tax, Chennai and based on advise by its consultants, it does not foresee any material liability on account of the above demand raised by the Income Tax Department.
29 Details of dues to Micro,Small and Medium enterprises as defined under the MSMED Act, 2006
The Identification of Micro,Small and Medium Enterprises Suppliers as defined under “The Micro,Small and Medium Enterprises development Act 2006” is based on the Information available with the management. As certified by the Management, the amounts overdue as on 31st March 2021 (31st March 2020) to Micro, Small and Medium Enterprises on account of principal amount together with interest, aggregate to Rs. Nil (Rs.Nil).
30 Installed capacity, Licensed capacity and Capacity utilisation
Particulars relating to Installed capacity, Licensed capacity an Capacity Utilisation are not applicable.
31 Segment Information
As the Company operates in a single business segment (i.e.) Development and Maintenance of facilities, segmental reporting is not provided.
32 Operating Leases
The Holding Company has its office premises under operating lease arrangement which is cancellable at the option of the Company, by providing 3 months prior notice.
33 Going Concern
Though the company’s current liabilities exceeded its net realisable current assets, fhe company is in the process of relisting the shares in BSE for which necessary application has been submitted to BSE for restoration of trading. The company is looking for new business opportunities, including promoting low-cost housing projects, which will be finalised in the year 2024-25. Considering these and financial commitment of the promoter group, the management has prepared the financial statements by applying the “Going Concern” assumption.
34 Based on the order of the Special Appellate Tribunal (SAT) for relisting of the company, BSE has reclasified the shares from Delisted Catagory to Suspended category The company has submitted application for Revocation of suspension and is awaiting orders from BSE for removal of Suspension in trading in shares.
35 Fair value Measurements
Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels:
Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities.
Level 2: Inputs other than quoted price included within level 1 that are observable for the asset or liability, either directly.
Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
The fair value of current trade receivables, current trade payables and other Current financial assets and liabilities is considered to be equal to the carrying amounts of these items due to their shortterm nature.
35.2 Financial instrument measured at amortised cost
The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their face values since the Company does not anticipate that the carrying cost would be significantly different from the values that would eventualy be received or settled.
35.3 Financial risk management - objectives and policies
The Company has a well- managed risk management framework, anchored to policies and procedures and internal financial controls aimed at ensuring early identification, evaluation and management of key financial risks (such as liquidity risk, market risk, credit risk and foreign currency risk) that may arise as a consequence of its business operations as well as its investing and financing activities. Accordingly, the Company’s risk management framework has the objective of ensuring that such risks are managed within acceptable risk parameters in a disciplined and consistent manner and in compliance with applicable regulation.
1. Market risk
Market risk is a risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. The Company is exposed to market risk through its use of financial instruments and specifically tointerest rate risk, which result from both its operating and investing activities.
Interest Rate Risk
The Company’s main interest rate risk arised from long term and short term borrowings with variable rates, which expose the Company to cash flow interest rate risk. During March 31,2021 and March 31,2020, the exposure of Company’s borrowings to interest rate changes are as follows:
2. Liquidity Risk
Liquidity risk is the risk that the Company will encounter due to difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash oranother financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value.
The company has sound financial strength represented by its aggregate current assets as against aggregate current liabilities and its strong equity base and lower working capital debt.
3. Credit Risk
Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company Credit risk arises primarily from financial assets such as trade receivables, other balances with banks and other receivables.
Credit risk arising from balances with banks is limited because the counterparties are banks with high credit ratings.
All other financials assets including those past due for each reporting date are of good credit quality.
35.4 Capital management
For the purpose of the Company’s capital management, capital includes issued share capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value.
The company has not distibuted any dividend to its shareholders. The company monitors net debt to capital ratio i.e., total debt in proportion to its overall financing structure i.e., equity and debt. Total debt comprises of term loans and cash credits. The company manages its capital structure and makes changes to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.
37 Recent Pronouncements
There are no standards of accounting or any addendum thereto, prescribed by Ministry of Corporate Affairs under section 133 of the Companies Act, 2013, which are issued and not effective as at March 31, 2024.
38 Corporate social responsibility (CSR)
The company has not crossed the threshold limit for applicability of CSR, hence the company is not required to have CSR commitee and has not incurred any expenditure towards the same.
Reason for variance
(a) Due to decreast in Profit and decrtease in Loan Repayment
(b) No Interest Expenses. Hence not computed
(c) Marginal variance
(d) Marginal variance
(e) No Long Term Debt. Hence not computed
(f) No Bad Debts. Hence Not computed
(g) N0 Change
(h) Marginal variance
(i) No Trade Refeivables. Hence not computed
(j) No inventory in the current year. Hence not computed.
(k) Due to increase in operating profit.
(l) Due to decrease in gross income.
40 Other Statutory Information :
Details of benami property held -
No proceedings have been initiated on or are pending against the company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
Utilisation of borrowed funds
The company did not obtain any secured borrowing and overdraft facilities during the year.
Borrowing secured against current assets
The company did not obtain any secured borrowing and overdraft facilities during the year.
Wilful defaulter
Company have not been declared wilful defaulter by any bank or financial institution or government or any government authority.
Relationship with struck off companies
The company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.
Compliance with number of layers of companies
The has no subsidiaries accordingly reporting under the Companies (restriction on number of layers) rules 2017 is not applicable.
Compliance with approved scheme(s) of arrangements
The company currently does not have any approved/pending scheme of amalgamation or arrangements, accordingly reporting under clause is not applicable.
Undisclosed income
There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.
Details of crypto currency or virtual currency
The company has not traded or invested in crypto currency or virtual currency during the current or previous year. Registration or satisfaction of charges with ROC
The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
41 Events after the reporting period
There has been no significant subsequent events after the reporting period requiring either disclosure or adjustment to the reported financial statements.
42 Previous years figures
Previous year's figures have been regrouped and reclassified where necessary to confoirm to this year’s classification.
During the year, the company has reworded its Significant Accounting Policies and there is no change in Accounting Policies from last year. Accounting Policies were reworded for better presentation.
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