(M) Provisions, Contingent Liabilities and Contingent Assets :
Provisions are recognised only when there is a present obligation as a result of past event and when a reliable estimate of the
amount of the obligation can be made Provisions are determined by discounting the expected future cash Tows at a pre-tax
rate that reflects current market assessments of the time value of money and the nsks specific to the liability Contingent
liability is disclosed for (i) Possible obligations which will be confirmed only by the future events not wholly within the control of
the company or (ii) Present obligations arising from past events where it is not probable that an outflow of resources will be
required to settle the obligation or a reliable estimate of the amount of the obligation can not be made Contingent Assets are
not recognised in the financial statements.
(N) Use of Estimates
The preparation of the financial statements requires the Management to make estimates and assumptions considered in the
reported amounts of Assets and Liabilities (including Contingent Liabilities) as of the date of the financial statements and the
reported income and expenses dunng the reported period. The Management believes that the estimates used in the
preparation of the financial statements are prudent and reasonable Future results could, however, differ from these
estimates Difference between the actual results and estimates are recognised in the penod in which the results are known/
matenalised /
If
(O) Government grants
Government grants are recognised
(a) where there is reasonable assurance that the company will comply with the conditions attached to them and
(b) where such benefits have been earned by the company and ultimate collection is reasonably certain
(P) Leases
Operating lease
Payments are recognised as expenditure in the Statement of Profit and Loss on a straight-line basis over the lease term
Finance Lease
The lower of the fair value of the assets and present value of the minimum lease rentals is capitalised as Fixed Assets with
corresponding amount disclosed as lease liability The principal component in the lease rental is adjusted against the lease
liability and the interest component is charged to Profit and Loss Statement
(Q) CORPORATE INSOLVENCY RESOLUTION PROCESS
MATTER USTED WITH NCLT
An application was filed for the initiation of Corporate Insolvency Resolution Process (‘CIRP'j under Section 9 of the
Insolvency and Bankruptcy Code, 2016 ("IBC") against Innovative Tyres & Tubes Limited (“the Company") before the Hon'ble
National Company Law Tribunal, Ahmedabad Bench ("NCLT"), with a prayer to commence the CIRP The Hon'ble NCLT vide
its order dated 28th March 2022 admitted the said application for initiation of CIRP against the Company Further, the Hon'ble
NCLT gave orders for the appointment of Mr. Abhishek Nagori as the Interim Resolution Professional ("IRP") to perform all the
functions as per the IBC and that the management of the Company shall vest in the IRP The NCLT order also provided for a
moratorium with effect from 28th March 2022 till the completion of the CIRP under the IBC, or until the Hon'ble NCLT
approves the resolution plan or passes an order for liquidation of the company, whichever is eartier Further. In the ongoing
CIRP of the Corporate Debtor, the Resolution Professional (RP) with the approval of Committee of Creditors (CoC) invited the
Expression of Interest (EOI) in Form G on 31.10.2022 from the Potential Resolution Applicants (PRAs) to submit the
Resolution Plan Thereafter, the RP has received Resolution Plans from the Resolution Applicants. Subsequently, the CoC
has approved the Resolution Plan submitted by Resolution Applicant in the 12th meeting held on 31 12 2022 and the said
Resolution Plan has also been submitted to the honourable NCLT for approval Further. In the ongoing CIRP of the Corporate
Debtor, the Resolution Plan submitted on 31-12-2022 by M/s Ten on Ten Rubtech Private Limited was approved by Hon'ble
NCLT vide order dated 09 08 2023 Accordingly, the Company has come out from the Corporate Insovency Resolution
Process (CIRP). Therefore, as per the order of Hon’ble NCLT, a Monitoring Committee has been constituted on 16-08-2023 to
monitor the implementation of Approved resolution Plan and progress thereof
As per the Honourable NCLTs order dated 9th August, 2023. the promoter's shareholding was stated as 38,06.104
(representing 19.49%) equity shares and public shareholding as 1,44,85.457(representing 80.51%) equity share of Rs. 10/-
each respectively whereas the actual shareholding on 9th August 2023, the promoter's shareholding was 25.19,104
(representing 14 00%) equity shares and public shareholding was 1.54,72.457 (representing 86 00%) equity share of Rs 10/-
each respectively. This discrepancy was because one of the promoters group has sold 9.87,000 (representing 5.49%) during
CIRP period Because of this discrepancy, the Company could not cancel promoter's shareholding and reduce public
shareholding to 5,10,000 equity shares as per the NCLT Order
Considering above situation an Interlocutory Application has been filed by the Chairman ol Monitoring Committee appointed
for implementation of the Resolution Plan, before Honourable NCLT, Ahmedabad on dated 1st November, 2023 for modifying
the stipulation of cancellation of equity share capital of promoter shareholders and reduction of equity share capital of the
public shareholders which was rejected hence again a separate interlocutory application was riled on 8th March 2024 The last
hearing was done on 14th May 2024 and the Honourable NCLT, Ahmedabad has reserved the order
Consequent to above situation, the allotment of equity shares to the Successful Resolution Applicant could not be made and
the share application money received to the tune of Rs. 950.00 lakhs remained un allotted for more than 60 days an awaiting
order from Honourable NCLT, Ahmedabad
Since the RP has taken charge of the Company on 28 March. 2022, the Existing directors are not liable or responsible for any
actions and has no personal knowledge of any such actions of the Company prior to their appointment and have relied on the
position of the financial results of the Company as they existed on 17th August 2023 when the charge was handed over to the
new board. The new board have relied upon the explanation, clarifications, certifications, representations and statements
made by the existing officials of the Company, who were also part of the Company during the regime of the RP.
During the year ended 31st March, 2024, the new management taken over the possession of the company and started
overhauling of the plant and it started operations at reduced capacity from 19th September, 2023
As per the Honourable NCLT s order, the company is required to make payment to creditors as per implementation schedule.
The Company has made the payments due as per the of Implementation schedule of the Resolution Plan. However, an
amount of Rs. 4.91 lacs Could not be paid to creditor and employees for want of their banking details This amount has
remained deposited with special account maintained by the Resolution Applicant M/s Ten on Ten Pvt Ltd.
During the year ended 31st March, 2024 Ihe Company has reversed vanous (abilities (net) of Rs 3,826 63 lakhs as per the
Hon'ble NCLT Order and shown as exceptional items. The Gross liabilities written off Is Rs 3854 40 lacs and Gross expenses
is Rs 27.78 Lakhs.
13 Corporate Social Responsibility
The Company is consistently inclining losses. In accordance with section 135 of the Companies Act, 2013 the Company is not
required to spend expenditure under the Corporate Social Responsibality.
14 To the best of our knowledge and information available to us, the company has not entered any transaction with companies struck off under section
248 of Companies Act 2013 or Section 560 of Companies Act 1956
15
During the year ended 31 st March, 2024 the Company has made reversal of impairment loss on its property plant and equipment as per AS-28. On
the basis of independent valuation, the company has recognised Rs 797 11 lakhs as improvement in value of Properly, plant & equipment and
accounted it as reversal of previously booked impairment loss and shown it as other income in the year ended 31 st March 2024
17 The Company is engaged in the business of Tyre & Tubes and therefore, there is only one reportable segment in accordance with the Accounting
Standard on Segment Reporting (AS-17).
18 In the Opinion of the Board the Current Assets / Non Current Assets, Loans & Advances (including Export Benefits / Incentive, Trade Payables are
approximately of the value ststed, if realized l paid in the ordinary course of business and are subject to confirmation I reconciliation
19 The third party payments made / received on behalf of the Company as well as payment to third parties on behalf of suppliers by the Company are
subject to confrmations from respective parties
20 Previous year's figures have been regrouped I reclassified wherever necessary to correspond with the current year's classification / disclosure
As per our report of even date \ l t\ \
For Haribhakti 4 Co LLP. _ \1. /-V U--X A? ^
Chartered Accountantorsf^T^^ y V
F R No. Munish Chawta ' Robin Chawla
/"\ Ý a/K’/' Managing Director Director S CFO
\ A tUn&J Ý \C-A\ DIN No.05454015 DIN No. 10277507
l- A/r I,
M No/117745 ShwetaSharma
Date ]30th May2024 // Company Sacretary
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