o) Accounting for Provisions, Contingent Liabilities and Contingent Assets
Provision and liabilities are recognized in the period when it became probable that there will be a future outflow of funds resulting from past event or operation that can be reasonably estimated. The timing of recognition requires application of judgments to existing fact and circumstances which may be subject to change. The amounts are determined by discounting the expected future cash flow at pre-tax rate that reflects current market assessment of the time value money and the risk specific to the liability.
In the normal course of business, contingent liabilities are arising from litigation and other claims against the company. Potential liabilities that are possible to be quantified reliably are treated as contingent liabilities. Such liabilities are disclosed in the notes but are not recognized.
The company does not recognize the contingent asset since whose existence will only be confirmed by the occurrence or non - occurrence of one or more uncertain future events not wholly within the control of the entity.
p) Taxation
Income tax expense comprises of both current and deferred taxes are recognized in the Statement of Profit and Loss.
Current tax
Current Income tax expense is recognized in the Statement of Profit and Loss except to the extent that it relates to the items recognized directly in equity, in which case it is recognized in equity or other comprehensive income (OCI).Current tax for current and prior periods is recognized at the amount expected to be paid or recovered from the tax authorities, in accordance with the Income Tax Act, 1961.The tax rates and the tax laws used to compute the amount are those that are enacted or substantially enacted, at the reporting date.
Deferred Tax
Deferred Tax assets and liabilities are recognized on temporary differences arising between the tax base of assets and liabilities and their carrying amounts in the financial statements.
Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent 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.
The carrying amount of deferred tax assets in reviewed at the end of each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow for 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 year 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.
Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
q) Cash and Cash Equivalents (for purposes of Cash Flow Statement)
Cash and Cash equivalents for the purpose of Cash Flow Statement comprise Cash at bank, Cash on hand and demand deposits with bank with an original maturity of three months or less from the date of acquisition.
r) Events after reporting date
Where events occurring after the balance sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the financial statements. Otherwise, events after the balance sheet date of material size or nature are only disclosed.
s) Earnings Per Share
Basic Earnings Per Share is calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.
The Company has not issued any potential equity shares, and accordingly, the Basic Earnings Per Share and Diluted Earnings Per Share are the same.
t) Statement of Cash Flow
Cash flows are reported using the indirect method, whereby profit/ loss before exceptional items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the company are segregated based on the available information.
u) Recent Pronouncements ,Standards ,Interpretation and Amendments adopted by the company
Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time.
Changes in Ind AS notified during the financial year 2023-24 , if any, effective from the financial year 2024-25 and applicable to the company shall be taken care off by the company from 01/04/2024 onwards.
NOTE 35: Additional Regulatory Information (to the extent applicable)
a) All the title deeds of immovable properties are held in the name of company as at the balance sheet date.
b) No item of property plant and equipment (including the right of use of assets) are both have been revalued during the current / earlier financial year as
such the disclosure with respect to revaluation if any done based on the valuation by registered valuer as defined under the rule 2 of the Companies (Registered Valuer and Valuation) Rules, 2017 is not applicable.
c) The company does not have any Intangible asset as such revaluation of the same does not arise.
d) No loans or advances in the nature of loans are granted to the promoters, directors, kmps and the related parties (as defined under Companies
Act,2013) either severally or jointly with any other person that are repayable on demand or without specifying any terms or period of repayment.
e) The company does not hold any benami property ,where any such proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act,1988 (45 of 1988) and rules made thereunder.
f) The company has not borrowed funds from bank and financial institution on the basis of security of current assets during the current/previous year.
g) The company has not been declared willful defaulter by any bank or financial institution or government or any government authority.
h) The company does not have any transactions with companies struck off under section 248 of the Companies Act,2013 or section 560 of Companies
Act,1956.
i) The company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
j) The company has only one associate and it has complied with the number of layers prescribed under clause (87) of Section 2 of the Companies Act
read with the Companies (Restriction on Number of Layers) Rules, 2017.
k) Utilization of borrowed Funds and Share premium
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 lend or invest in party identified by or on behalf of company (Ultimate beneficiaries).
l) The company has not received any fund from any party(s) (funding party) in the current year with the understanding that the company shall whether directly or indirectly lend or invest in other person or entities identified by or on behalf of company (“ultimate beneficiaries”) or provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
* Other expenses exclude Foreign Fluctation Reserve of CY Rs. 1179 thousands (PY Rs. 6572 Thousands)
Reasons for Variation
S. No. 2: Debt equity ratio has been increased due to higher profit in current year as compared to previous year.
S. No. 4: Return on equity ratio in current year has increased due to effect of increase in net profit for the year as compared with previous year.
S. No. 5: Trade receivable turnover ratio has reduced in current year due to increase in trade receivable at the end of the current year
S. No. 6: Total expense (net of FC fluctation) has increased in current year by Rs.26.90 thousand as compared with previous year, hence the trade payable Turnover Ratio has increased by 110%.
NOTE NO: 36 Restatement in Financial Statement
Provision for diminution/impairment carried out in earlier years in respect of Investment in equity shares held by the company in its associates (i.e SBEC Sugar Ltd) has been reversed to comply with the requirements in accordance with IND AS 8 ‘Accounting Policies, Changes in Accounting Estimates & Errors' by restatement of Rs. 73,707 thousand in the opening balance of earliest comparative period presented (i.e. 1.04.2022) of ‘Retained Earning' under the head ‘Other Equity' by giving corresponding effect with the same amount under Investment in Associates since the investments in equity shares of the associate is not intended to be sold, transferred or otherwise disposed off and the quoted market price of such equity shares is higher than the face value during/at the end of the last three financial years continuously and the associate has also earned profit during the recent financial year. In view of this, figures for previous period/year have been restated.
NOTE NO.: 37 In the opinion of the board of directors current assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet and provisions for all known expected liability have been made.
NOTE NO.: 38 The figures of the previous year have been re classified according to current year classification whenever required.
As per our report of even date attached,
For Thakur, Vaidyanath Aiyar & Co Sd/- Sd/- Sd/-
Chartered Accountants S.S.Agarwal J.C. Chawla Vijay K.Modi
Firm Reg.No.000038N Director & CEO Director Director
DIN-00004840 DIN-05316202 DIN-00004606
Sd/-
M.P Thakur Sd/- Sd/-
Partner Priyanka Negi Lakhmi Chand Sharma
Membership No.052473 Company Secretary Chief Financial Officer
M.No 36819
Place: New Delhi Date : 29.05.2024
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