12. Provisions:
• A provision is recognized when there exists a present obligation as a result of past events and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to present value and are determined based on best estimates required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.
13. Contingent liabilities:
• A contingent liability is a possible obligation that arises from past events whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a 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 extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably; the Company does not recognize a contingent liability but discloses its existence in the financial statements.
14 Cash and cash equivalent:
• Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short term deposits with banks with an original maturity of three months or less.
II. NOTES ON ACCOUNTS:
1. The Provision for Income tax has been made based on the computation as per the provisions of Income Tax Act.
2. Provision for Gratuity is made at the time of Payment.
3. Since the company has only one segment, Segment reporting is not applicable to it.
4. The amount shown under receivables / payables is subject to confirmation from respective parties.
5. Previous year figures have been re-grouped / re-arranged wherever necessary.
6. Particulars of Employees:
16. In respect of the above parties, there is no provision for doubtful debts as on 31st March, 2024 and no amount has
been written off or written back during the year in respect of debts due from/to them.
17. Contingent Liabilities
1) The Company has issued 16% Cumulating Redeemable Preference Shares to promoters in the year 1995-96 redeemable on or before 12.01.2005 which is pending redeemable to the tune of Rs. 8.00 Lacs. The company has also issued 16% Cumulative Redeemable Preference shares for RS.400.00 Lacs in the year 1996-97 redeemable on or before 10.02.2006. The company could not redeem the above shares in time as it was registered with BIFR. If redeemed with accumulative dividend the liability is to be ascertained in terms of the modified SEBI rules.
2) Income Tax claim of Rs.70.76 Lacs for A.Y. 2013-14 against which appeal is pending with Appellate Authority. The Company has paid Rs. 10.62 Lacs against above claim.(as on date status to be ascertained)
3) The company during the financial year 2022-23 has received order from the office of the commissioner of Central Excise, GST Commissionerate, Tirupati, confirming recovery of Rs.161.18 Lacs towards Service Tax payable on GTA Services availed by the company during the period from 01.01.2005 to 31.03.2009 along with recovery of interest and penalty under Section 75 & 78 of the Finance Act 1994 respectively.
However, the Company had preferred an appeal before the Commissioner of Central Tax and Customs (Appeal), Guntur, to set aside the impugned order. The matter is presently pending adjudication after Personal Hearing to be granted to the Company to present our Case.
4) The Company is contesting appropriately all legal cases in the matter related to Mr.Chadlavada Krishna Moorty.
As per our report of even date attached.
For PPKG & CO For and on behalf of Board
Chartered Accountants
Firm Registration No. 009655S Vinod Baid Y. Ravinder Reddy
GIRDHARI LAL TOSHNIWAL Chairman Director
Partner DIN:00010142 DIN:00011040
M.No.205140
UDIN:24205140BKALJA8365
Date : 30.05.2024 Anit Surana Sandeep Daga
Place : Hydearabad Chief Finance Officer Company Secretary
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