3.13 Provisions and Contingencies
A provision is recognized when an enterprise has a present obligation as a result of past event and it is probable
that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can
be made. Provisions are not discounted to its present value and are determined based on best estimate of
amounts required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet
date and adjusted to reflect the current best estimates.
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by
the occurrence or non-occurrence of one or more uncertain future events beyond the control of Company or
present obligation that is not recognized because it is not probable that an outflow of resources will be required
to settle the obligation. A contingent liability also arises in extreme rare cases where there is a liability that
cannot be recognized because it cannot be measured reliably. The Company does not recognise a contingent
liability but discloses its existence in the financial statements.
3.14 Leases
Company as a Lessee (IND AS 116)
Lease of assets, where the Company, as a lessee, has substantially assumed all the risks and rewards of
ownership are recognised as Leases for all leases above 12 months, unless the underlying asset is of low value.
Assets classified are capitalised and depreciated as per Company’s policy on Property, Plant and Equipment.
The corresponding lease rental obligations, net of finance charges, are included in borrowings or other financial
liabilities as appropriate. Each lease payment is allocated between the liability and finance cost. The finance
cost is charged to the Statement of Profit and Loss over the lease period so as to produce a constant periodic
rate of interest on the remaining balance of the liability for each year.
3.15 Segmental Reporting:
The company carries out business operations only in one business segment viz. infrastructure and hence
segmental reporting does not arise.
3.16 Earnings per Share
The Company presents basic and diluted earnings per share data for its equity shares. Basic and diluted
earnings per share is calculated by dividing the profit or loss attributable to owners of the equity shares of the
Holding Company by the weighted average number of equity shares outstanding during the year.
3.17 Financial instruments
Financial assets
The Company classifies its financial assets in the following categories:
i) Financial assets at amortised cost- Assets that are held for collection of contractual cash flows where
those cash flows represent solely payments of principal and interest are measured at amortised cost.
These are presented as current assets, except for those maturing later than 12 months after the reporting
date which are presented as noncurrent assets. Financial assets are measured initially at fair value which
usually represents cost plus transaction costs and subsequently, if maturing after 12 month period, carried
at amortised cost using the effective interest method, less any impairment loss.
Financial assets at amortised cost are represented by trade receivables, security and other deposits, cash
and cash equivalent, employee and other advances.
ii) Financial Assets at Fair Value through Other Comprehensive Income (FVTOCI) - All equity investments
are measured at fair values. Investments which are not held for trading purposes and where the Company
has exercised the option to classify the investment as at FVTOCI, all fair value changes on the investment
are recognised in Other Comprehensive Income (OCI). The accumulated gains or losses are recognised
in OCI are reclassified to retained earnings on sale of such investment.
iii) Financial assets at Fair Value through Profit and loss (FVTPL) - Financial assets which are not classified
in any of the categories above measured at FVTPL. These include surplus funds invested in mutual funds
etc.
iv) Impairment of financial assets - The Company assesses expected credit losses associated with its assets
carried at amortised cost and fair value through other comprehensive income based on Company’s past
history of recovery, credit-worthiness of the counter party and existing market conditions. The impairment
methodology applied depends on whether there has been a significant increase in credit risk. For trade
receivables, the Company applies the simplified approach for recognition of impairment allowance as
provided in Ind AS 109 - Financial Instruments, which requires expected lifetime losses to be recognised
on initial recognition of the receivables.
3.18 Financial liabilities and equity instruments
3.18.1 Initial recognition and measurement
All financial liabilities are recognised initially at fair value and in case of loans and borrowings net of directly
attributable costs.
Financial liabilities are subsequently measured at amortised cost using effective interest method. For trade and
other payable maturing within one year from the balance sheet date, the carrying value approximates fair value
due to short maturity of these investments.
3.18.2 Classification as debt or equity
Debt and equity instruments issued by a Group entity are classified as either financial liabilities or as equity in
accordance with the substance of the contractual arrangements and the definitions of a financial liability and an
equity instrument.
3.18.3 Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting
all of its liabilities. Equity instruments issued by a group entity are recognised at the proceeds received, net of
direct issue costs.
Repurchase of the Company’s own equity instruments is recognised and deducted directly in equity. No gain
or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the Company’s own equity
instruments.
3.18.4 Financial liabilities
All financial liabilities are subsequently measured at amortised cost using the effective interest method or at
FVTPL.
However, financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition
or when the continuing involvement approach applies, financial guarantee contracts issued by the Group,
and commitments issued by the Company to provide a loan at below-market interest rate are measured in
accordance with the specific accounting policies set out below.
3.18.5 Financial liabilities at FVTPL
Financial liabilities are classified as at FVTPL when the financial liability is either contingent consideration
recognised by the Group as an acquirer in a business combination to which Ind AS 103 applies or is held for
trading or it is designated as at FVTPL.
A financial liability is classified as held for trading if:
• it has been incurred principally for the purpose of repurchasing it in the near term; or
• on initial recognition it is part of a portfolio of identified financial instruments that the Group manages
together and has a recent actual pattern of short-term profit-taking; or
• it is a derivative that is not designated and effective as a hedging instrument.
A financial liability other than a financial liability held for trading or contingent consideration recognised by the
Group as an acquirer in a business combination to which Ind AS 103 applies, may be designated as at FVTPL
upon initial recognition if:
• such designation eliminates or significantly reduces a measurement or recognition inconsistency that
would otherwise arise;
• the financial liability forms part of a Group of financial assets or financial liabilities or both, which is managed
and its performance is evaluated on a fair value basis, in accordance with the Group's documented risk
management or investment strategy, and information about the Companying is provided internally on that
basis; or
• it forms part of a contract containing one or more embedded derivatives, and Ind AS 109 permits the entire
combined contract to be designated as at FVTPL in accordance with Ind AS 109.
Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on remeasurement
recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on
the financial liability and is included in the ‘Other income' line item.
However, for non-held-for-trading financial liabilities that are designated as at FVTPL, the amount of change in
the fair value of the financial liability that is attributable to changes in the credit risk of that liability is recognised
in other comprehensive income, unless the recognition of the effects of changes in the liability’s credit risk in
other comprehensive income would create or enlarge an accounting mismatch in profit or loss, in which case
these effects of changes in credit risk are recognised in profit or loss. The remaining amount of change in
the fair value of liability is always recognised in profit or loss. Changes in fair value attributable to a financial
liability’s credit risk that are recognised in other comprehensive income are reflected immediately in retained
earnings and are not subsequently reclassified to profit or loss.
Gains or losses on financial guarantee contracts and loan commitments issued by the Company that are
designated by the Company as at fair value through profit or loss are recognised in profit or loss.
3.19 Statement of cash flows
Statement of Cash flows is prepared under Ind AS 7 ‘Statement of Cashflows’ specified under Section 133 of
the Act. Cash flows are reported using the indirect method, whereby profit / (loss) before tax and is adjusted for
the effects of transactions of non-cash nature.
Significant management judgement in applying accounting policies and estimation uncertainty.
The preparation of the Company’s financial statements requires management to make judgements, estimates
and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the related
disclosures.
25 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.
27 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.
28 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 2025 (31st March 2024) to Micro, Small and Medium
Enterprises on account of principal amount together with interest, aggregate to Rs. Nil (Rs.Nil).
29 Installed capacity, Licensed capacity and Capacity utilisation
Particulars relating to Installed capacity, Licensed capacity an Capacity Utilisation are not applicable.
30 Segment Information
As the Company operates in a single business segment (i.e.) Development and Maintenance of facilities, segmental
reporting is not provided.
31 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.
32 Going Concern
Though the Company’s Current Liabilities exceeded its net realisable Current Assets by Rs. 3686.48 lacs, it does not
affect the plans of the company as the major liabilities in this are support from the Promoter / Associate Companies
with no immediate pressure for repayment and all outside loans / liabilities are either settled or transferred to Group
companies for settlement. The suspension of Trading in Equity Shares of the company was revoked by BSE and as
also the company has entered into an MOU with Dismutase Biotech Private Limited who have a Project to extract
proteins from Blood Plasma and the Company has other plans to inorganically grow the Company by Merger/
Acquisition going forward. Considering these and the financial commitment of the promoter group, the company is a
“Going Concern.” Hence the financial statements have been prepared as a “Going Concern”.
33 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.
33.2 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.
33.3 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.
33.4 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.
34 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, 2025.
35 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.
36 Ratio
The ratios for the years ended March 31,2025 and March 31, 2024 are as follows:
37 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.
38 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.
39 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.
In terms of our report attached. For and on behalf of the Board of Directors
for R Sundarrajan and Associates
Chartered Accountants
Firm Registration N0. 008282S
C A Narasimma Raghavan R M Narayanamurthi R Swaminathan Iyer
Partner Managing Director Director
M.No. 211700 DIN: 00332455 DIN: 02052310
Place : Chennai A Sriram A. V. Ramalingam
Date : May 27, 2025 Chief Financial Officer Company Secretary
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