2.7 Provision for Current and Deferred Tax
Provision for current tax is made after taking into consideration benefits admissible under the provisions of
the Income Tax Act, 1961.
Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for
using the tax rates and lows that are enacted or substantively enacted as on the balance sheet date.
Deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that
the asset will be realized in future.
2.8 Provisions, Contingent Liabilities and Contingent Assets
Provision is recognized when there is a present obligation as a result of past event that probably requires
an outflow of resources and reliable estimate can be made of the amount of the obligation. Disclosure for
Contingent Liabilities is made when there is a possible obligation or a present obligation that may, but
probably will not, requires an outflow of resources. No provision is recognized or disclosure for Contingent
Liability is made when there is a possible obligation or a present obligation in respect of which the
likelihood of outflow of resources is remote. Contingent Asset is neither recognized nor disclosed in the
financial statements.
i) For Secured Term Loan from HDFC Bank :
- In the current year, there was a transfer of existing loan from Kotak mahindra bank to HDFC Bank on 26th March, 2025
- The loan is secured against:
1. Hypothication of current assets and movable fixed assets
2. Mortgage charge on factory land and building situated at C-18, GIDC, Saykha, Dist. Bharuch - 392140 in the name of Ushanti Colour Chem Ltd.
3. Personal guarantee of directors and relatives.
4. Corporate guarantee of Ushanti Colour Chems ltd.
ii)For Debentures:
5,95,840 Zero coupon Compulsory Convertible Debetures alloted on 02/03/2021 and 8,63,960 allotted on 08/03/2021 @ Rs. 10/- convertible at the end of 5 months
from the date of allotment.
- On 15/02/2022 the date of conversion changed with mutual consent of allottees by giving a notice of Conversion to the Company on or before 01 March, 2031.
- 3,59,160 Unsecured 0% to 12% Variable Coupon bearing Convertible Debentures of Rs.100/- each were allotted which are convertible with mutual consent of
allottees by giving a notice of Conversion to the Company on or before 01 March, 2031.
7.1 Particulars of borrowings
1. Loan from Directors & other related Parties are repayable on demand and carries interest @ 9.25%p.a. (P.Y. 9.25% p.a.)
2. Loans from inter corporate companies are taken interest @ 9.25%, 7.40% and 15% p.a. (P.Y. 9.25% and 7.40 % p.a.)
3. Working Capital loan is secured against hypothecation of present and future inventories and book-debts of the company, equitable mortgage of residence of directors and
industrial property of the company and personal guarantee of directors and Holding Company. The same is repable on demand and carries interest @ 8.75%.
Note :During the financial year, the Company transferred its existing Working Capital Facility from Kotak Mahindra Bank Ltd. to HDFC Bank Ltd. The transfer was
executed by availing a new working capital facility from HDFC Bank Ltd., the proceeds of which were directly utilised to settle the outstanding liability with Kotak
Mahindra Bank Ltd.
39 Other statutory disclosures as per the Companies Act, 2013
The Company does not have anything to report in respect of the following:
• Benami properties
• Trading or investment in crypto or virtual currency
• Giving/receiving of any loan or advance or funds with the understanding that the recipient shall lend, invest, provide security or guarantee on behalf of the Company / funding party
• Transactions not recorded in books that were surrendered or disclosed as income during income-tax assessment
• Charges or satisfaction not registered with ROC beyond statutory period
• Title deeds in respect of freehold immovable properties not being held in the name of the Company.
• Transactions with struck-off companies
• Non-compliance with number of layers as prescribed under the Companies Act, 2013, read with Companies (Restriction on number of Layers) Rules, 2017.
• Wilful Defaulter by any bank or financial institution or other lender.
40 Regrouping
Previous year's figures have been re-grouped, re-classified and re-arranged whenever necessary.
41 MSME
The Company has received intimation from "Suppliers" regarding their status under Micro, Small and Medium Enterprise Development Act, 2006, and hence, disclosures, if any, relating to amount unpaid as at the period
end as required under the act has been given. The interest has not been provided as per the explanation provided by the management after confirmation letters from the parties that the payment is made within due dates.
For DJNV & Co. For and on behalf of the Board
Chartered Accountants Ushanti Colour Chem Limited
Firm's Registration No. 115145W
CA Shruti C Shah Maunal Gandhi Minku Gandhi Pradip Parikh
Partner Managing Director Managing Director CFO
Membership No. : 175839 DIN : 00118559 DIN : 00118617 PAN : AIZPP5478J
UDIN: 25175839BOEOWF9193
Vishakha T anwar
Place : Ahmedabad Company Secretary
Date : 29th May,2025 M. No: 40517
|