The Company creates a provision when there is present obligation as a result of past event that
probably requires an outflow of resources and a reliable estimate can be made of the amount of
obligation. A disclosure for a contingent liability is made when there is a possible obligation or a
present obligation that probably will not require an outflow or where a reliable estimate of the
obligation can not be made.
b. The title in respect of self-constructed buildings and title deeds of all other immovable properties (other
than properties where the Company is the lessee and the lease agreements are duly executed in favour of
the lessee), disclosed in the financial statements included under Property, Plant and Equipment are held in
the name of the Company as at the balance sheet date.
c. The Company does not have any Benami property, where any proceeding has been intiated or pending
against the Company for holding any Benami property.
d. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial
year.
e. The Company has not been declared as a wilful defaulter by any lender who has powers to declare a
company as a wilful defaulter at any time during the financial year or after the end of reporting period but
before die date when the financial statements are approved.
f. As contended by the management and as verified by the Auditors on sample test check basis, the
Company does not have any transactions with struck-off companies.
g. The Company has used the borrowings from banks for the specific purpose for which it was obtained.
h. The Company does not have any subsidiaries and therefore, compliance as to the number of layers
prescribed under clause (87) of section 2 of the Companies Act 2013 read with Companies (Restrictions on
number of Layers) Rules; 2017 is not applicable.
i. The Company has not advanced or loaned or invested funds to any other person(s) or entity(is), including
foreign entities(intermediaries), with the understanding 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.
j. The Company has not received any funds 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 j
ii. Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
k. The Company does not have any transactions which is not recorded in the books of accounts but has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961
(such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
l. Quarterly returns or statements of current assets filed by the Company with banks are generally in
agreement with the books of accounts. Certain differences were found in the figures of net current assets
as per the books and as reported to the banks, which were not material.
m. The Company does not have any charges or satisfaction, as on the date of this report, which is yet to be
registered with the Registrar of Companies (ROC) beyond the statutory period.
n. During the year, the management confirms that the accounting software implementated by the Company
for maintaining books of account does not have a feature of recording audit trail (edit log) facility after
implemantation for all transactions recorded in the software.
/CnJ ' if C>-\
26 Physical verification of inventories was not carried out by the Auditors. Inventories and
valuation thereof are, therefore, taken as verified, valued and certified by the management of
the Company. Auditors have not been able to verify the quantity or valuation of inventories
aggregating to Rs. 3,773.54 lacs as the sufficient details and adequate records related thereto
have not been maintained by the Company. The management has, however, provided a
confirmation with respect to inventory listing and valuation. However, in absence of any
corroborative evidences, such confirmation cannot be accepted by the Auditors. The Auditors,
have therefore, solely relied upon the information and explanations furnished to them by the
management of the Company in so far as relates to the disclosure of inventories in the
financial statements.
27 As informed by the management, 18,00,000 equity shares issued to one of the promotors, Mr.
Narendrasinh Chauhan, at the price of Rs. 14 upon conversion of share warrants on 8th May,
2023 have not been listed for the trading by the NSE, the only stock exchange where the
shares of the Company are listed.
28 All the balances with the banks have been verified on the basis of the bank statements
produced before us. Balance confirmations from the banks for the balances as on the balance
sheet date have not been obtained and furnished to us.
Balances with banks (as stated above), balances for trade receivables, balances for advances
from customers and trade payables, balances for loans and advances are subject to
confirmations from the respective parties. In absence of such confirmations, balances as per
books have been relied upon by the Auditors.
29 The management of the Company has, during the year, carried out technological evaluation
for identification of impairment of assets, if any, in accordance with the Accounting Standard
AS-28. Based on the Judgment of the management and as certified by the Directors, no
provision for impairment is found to be necessary in respect of any of the assets.
30 As the Company7s business activity, in the opinion of the management, falls within a single
primary segment subject to the same risks and returns, the disclosure requirements of
Accounting standard AS-17 "Segment Reporting" are not applicable.
31 Unsecured loans accepted from others (refer note no. 4) are subject to compliance with section
73 of the Companies Act, 2013.
32 Contingent Liabilities:
One of the personal creditors of the managing director has filed a suit against him for a
recovery of Rs. 535.00 lacs and inter alia joined the Company also as one of the parties liable to
pay the said amount jointly with other seven parties. The Company is suitably defending the
said litigation and contends that the Company has never entered into any agreement with the
/said petitioner and is not involved in the matter in any capacity whatsoever.
33 All the amounts are stated in Indian Rupees, unless otherwise stated.
•J*-
34 Previous year's figures are regrouped and rearranged, wherever necessary.
|