k) Provisions, contingent liabilities and contingent
assets
Provision is recognised in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is
considered probable.
A provision is recognized, if, as a result of a past event, the Company has a present legal obligation that can be estimated reliably, and it
is probable that an outflow of economic benefits will be required to settle the obligation.
Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the balance
sheet date.
Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date. Re-imbursement expected in respect of
expenditure to settle a provision is recognised only when it is virtually certain that the reimbursement will be received.
A Contingent Asset / Liability are not recognized in the Accounts.
As per our report attached of even date For and on behalf of the Board
For B D S & Co.
Chartered Accountants
Firm Registration No. 326264E For Shree Hanuman Sugar & Industries Ltd.
Bharat D Sarawgee Datta Ram Gill Chinmoy De
Partner Director Director
Membership No. 061505 DIN: 03366342 DIN: 09057498
Place : Kolkata
Dated : 24/05/2024
22. Notes Forming Part of Financial Statements
l.Contingent Liabilities
i. The Company had given a guarantee to the Bank of India for cash credit facilities of Rs. 250 lacs, Working Capital Term Loan
for Rs. 650 lacs and guarantee issue facility to the extent of Rs. 150 lacs sanctioned to Eastern Sugar & Industries Limited.
Eastern Sugar & Industries Limited had defaulted in payment of dues to its financial creditors including Bank of India. The
financial creditors has filed before NCLT U/s. 7 of the IBC and COC formed & Resolution Professional(RP) is appointed. Bank of
India forms part of the said Committee of Creditors (COC). Resolution plan has been approved by the Hon'ble NCLT vide order
dated 04/10/2023. DRT, Patna, has issued order dated 15.03.2024 attaching the PAN of the company.
ii. The Company has given guarantee and has mortgaged, by way of deposit of title deeds, all immovable properties pertaining
to its sugar division situated at Motihari, Champaran East, Bihar as security inter-alia for the punctual payment of Lease
Rentals, Cost Compensatory and Finance Charges, expenses and other moneys payable by Eastern Sugar & Industries Limited
to IDBI in respect of assistance granted under Equipment Lease Finance Scheme and Term Loan aggregating to Rs. 2625 lacs
who had initiated Corporate insolvency Resolution Process for recovery and the case was admitted with NCLT on 11.02.2022.
Resolution Plan has been approved by the Hon'ble NCLT vide order dated 04/10/2023 . In view of the resolution plan being
executed successfully by the applicant of the resolution plan, the Company assumes the liability of the guarantor is
extinguished.
The SASF had acquired the above mentioned stressed assets of IDBI (Dues payable by Eastern Sugar to IDBI against which
company has given the guarantee) and had issued notice of U/s 13(2) of the SARFAESI Act dated 18.01.2023 for recovery from
the Guarantors and/or Mortgagers. Further, they have also made an application u/s 7 of the IBC Act before NCLT, Kolkata
bench for the recovery of the dues, the same is yet to be admitted. An affidavit has been filed by the company on the grounds
that once the resolution plan of the principal debtor Eastern Sugar has been approved by NCLT on 04.10.23,the settlement
mechanism of debt is already devised, and so the same debt cannot be again contested against guarantors to unjustly enrich
the lender as seeking double recovery is against the Bankruptcy Code.
iii. The Company had determined the lease with The Eastern Sugar & Industries Ltd., which was terminated w.e.f 1st June, 2006.
All the fixed assets of the said lessee company will be acquired on deferred payment basis over a number of years by the
Company at a value (to be ascertained) on the date of transfer. Such purchases shall be accounted for as and when the assets
are acquired and the amount payable for such purchases / acquisition of fixed assets shall be adjusted against loans given to
and other claims due from the lessee company. All Fixed Assets of Eastern Sugar & Industries Limited which were to be
acquired by Shree Hanuman Sugar & Industries Limited is covered in the Resolution Plan, hence the understanding of Eastern
Sugar & Industries Limited and Shree Hanuman Sugar & Industries Limited for such purchase/acquisition of fixed assets of
Eastern Sugar & Industries Limited stands nullified.
iv Income Tax Disputed Cases which have not been provided in books pending settlement
7 Financial Instruments- Accounting, Classification and Fair Value Measurements contd..
B. Fair Values Hierarchy
i) Financial assets and financial liabilities measured at fair value in the statement of financial position are
Companied into three Levels of a fair value hierarchy. The three Levels are denied based on the observability of
significant inputs to the measurement, as follows:
Level 1: quoted prices (unadjusted) in active markets for financial instruments.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using
valuation techniques which maximise the use of observable market data rely as little as possible on entity specific
estimates.
8. Risk Management
Operations of company are suspended since 2014, hence major risks of Credit, liquidity and financial risk due for
management by the company are restricted to outsatnding balances in the books which are primarily non moving.
Company does not have any operational debtors outstanding balance, hence the trade credit risk is absent.
Financial and Liquidity risks are restricted to the outstanding loan balances which are not being repaid.
11 Additional Disclosures
Plant is Inoperative since 2014 but management has not taken any impairment since. Only Capital Work In progress expenses were written off
in the year 2021-22 .
a.
b Deferred T ax has not been recognized in the books.
TDS on interest other than interest on securities, rent, salary & fee for professional & Technical services u/s 194-A, 192 & 192-J respectively,
c. of Income Tax Act, 1961 have not been deducted and / or deposited / deposited in time. Interest and penalty on delayed deposit if any, will be
d. Gratuity, Leave liabilities towards employees, bonus & income from interest on securities and other deposits are being accounted for on cash
e. Professional Taxes and Trade License Fees are accounted for on cash basis.
f. Balance Confirmation Certificates for loans given and taken and Creditors are awaited from respective parties.
g. No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
h. The Company has no borrowings from any bank/Financial institution which is secured against property. Though the property is secured
i. The Company have never been declared wilful defaulter by any bank or financial institution or government or any government authority.
j. The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.
k. The Company has complied with the number of layers prescribed under the Companies Act, 2013.
l. The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.
m. The Company has not borrowed any fund from any bank/Financial institution.
There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act,
1961, that has not been recorded in the books of account.
n.
o. The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
p. The Company has not revalued its property, plant and equipment or intangible assets or both during the current or previous year.
Copies of the title deeds of the immovable property held in the name of the company are not available with the company, since the same was
q. mortgaged to IDBI for Financial assisstance to Eastern Sugar & Industruies Ltd.
| 