(l) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
A provision is recognised if, as a result of a past event, the Company has a present 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 recognised at
the best estimate of the expenditure required to settle the present obligation at the balance sheet date. The provisions are
measured on an undiscounted basis.
Provision in respect of loss contingencies relating to claims, litigation, assessment, fines, penalties, etc. are recognised when
it is probable that a liability has been incurred and the amount can be estimated reliably.
A contingent liability exists when there is a possible but not probable obligation, or a present obligation that may, but
probably will not, require an outflow of resources, or a present obligation whose amount cannot be estimated reliably.
Contingent liabilities do not warrant provisions, but are disclosed, unless the possibility of outflow of resources is remote.
Contingent assets are neither recognised nor disclosed in the financial statements. However, contingent assets are
assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income
are recognised in the period in which the change occurs.
(m) INVENTORIES
Inventories are valued at cost which is based on FIFO method or net realisable value, whichever is lower.
Unserviceable/damaged/discarded stocks and shortages are charged to the statement of Profit or Loss.
(n) Assets held for Sale
Non current assets are classified under 'Assets held for sale' if their carrying amount is intended to be recovered principally
through sale rather than through continuing use. The condition for classification as 'assets held for sale' is fulfilled when the
non current asset is expected to be sold immediately. During the year the assets held for sale has been written off.
2. Recent accounting pronouncements
New standards/amendments that are not yet effective and have not been early adopted:
Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from
time to time. For the year ended March
31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.
3. Significant estimates and judgements
(a ) The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal
the actual results. Management also needs to exercise judgement in applying the company's accounting policies.This
note provides information about the areas that involved a higher degree of judgement or complexity, and of items which
are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those
originally assessed.
(b ) The preparation of financial statements in conformity with the measurement principle of Ind AS requires management to
make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of
accounting policies and the reported amounts of assets and liabilities. The disclosures of contingent assests and liabilities
at the date of finincial statements and reported amounts of revenues and expenses during the period. Accounting
estimates could changes in estimates are madeas management becomes aware of changes in circumstances surrounding
the estimates. Differences between the actual results and estimates are recognized in the year in which the result are
known / materialized and, if material their effect are disclosed in the notes to the financial statements.
Application of accounting policies that require significant areas of estimation, uncertainty and critical judgments and the
use of assumptions in the financial statements have been disclosed below. The key assumptions concerning the future
and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a
material adjustment to the carrying amount of assets and liabilities within the nest financial year are discussed below:
a. Determining whether as arrangement contain leases and classification of leases : The Company enters into service /
hiring arrangements for various assests / services. The determination of lease and classification of the sevice / hiring
arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited
to, transfer of ownership of leased asset at end of lease term, lessee's option to purchase and estimated certainty of
exercise of such option, proportion of lease term to the asset's economic life, proportion of present value of minimum
lease payments to fair value of leased asset and extent of specialized nature of the leased asset.
b. Fair value as Deemed cost for PPE and Investment Property : The Company has opted to use its previous GAAP carrying
amounts as on the date of transition i.e. 1st April 2016 as its deemed costs.
c. Depreciation of and impairment loss on property, plant and equipment / investment property : Property, plant and
equipment and Investment Property (except land) are depreciated on written down value method over the estimated
useful lives in accordance with Schedule II of the Companies Act, 2013, taking into account the estimated residual value,
wherever applicable. The Company reviews the estimated useful lives of the assets regularly in order to determine the
amount of depreciation to be recorded during any reporting period. This reassessment may result in change in
depreciation expense in future periods.
The company reviews its carrying value of its Tangible and Investment Property whenever there is objective evidence tha
the assets are impaired. The required level of impairment losses to be made is estimated by reference to the estimated
value in use or recoverable amount.
d. Impairment loss on trade receivables : The Company evaluates whether there is any objective evidence that trade
receivables are impaired and determinies the amount of impairment loss as a result of the inability of the debtors to
make required payments. The Company bases the estimates on the ageing of the trade receivable balance, credit
worthiness of the receivables and historival write-off experience. If the financial conditions of the trade receivable were
to deteriorate, actual write-offs would be higher than estimated.
e. Disclosure of the Corporate Social Responsibility (CSR) activities:
The Company was required to spend Rs.4.20 lakhs during the year for the Corporate Social Responsibility (CSR) activities
under section 135 of the companies Act, 2013, and the company has spent Rs.4.25 lakhs on such activities.
The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely
to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to
significant actuarial assumptions the same method i.e. projected unit credit method has been applied as that used for calculating the defined
benefit liability recognised in the balance sheet.
(VI) RISK EXPOSURE
The defined benefit obligations have the undermentioned risk exposures :
INTEREST RATE RISK : The defined benefit obligation calculated uses a discount rate based on yield on long term government bonds. The
Company is exposed to the risk of fall in discount rate. A fall in discount rate will eventually increase in the ultimate cost of providing the
above benefit thereby increasing the value of the liability.
SALARY INFLATION RISK : Future salary increase assumed here has three basic components, namely, increase due to price inflation,
increase due to increase in future living standard (periodic wage re-negotiation) and increase due to career progress by way of promotion
as more skill is acquired. The Scheme cost is very sensitive to the assumed future salary escalation rates for all final salary defined benefit
Schemes. If actual future salary escalations are higher than that assumed in the valuation actual Scheme cost and hence the value of the
liability will be higher than that estimated.
DEMOGRAPHIC RISK : In the valuation of the liability certain demographic (mortality and attrition rates) assumptions are made. The
Company is exposed to this risk to the extent of actual experience eventually being worse compared to the assumptions thereby causing
an increase in the scheme cost.
PAY-AS-YOU-GO RISK: For unfunded schemes financial planning could be difficult as the benefits payable will directly affect the revenue
and this could be widely fluctuating from year to year. Moreover there may be an opportunity cost of better investment returns affecting
adversely the cost of the scheme.
LIQUIDITY RISK: This risk arises from the short term asset and liability cash-flow mismatch thereby causing the company being unable to
pay the benefits as they fall due in the short term. Such a situation could be the result of holding large illiquid assets disregarding the
results of cash-flow projections and cash outgo inflow mismatch. (Or it could be due to insufficient assets/cash.)
35. Other notes to Financial Statements
35.1 Contingent liabilities
A claim of Rs 68 lacs towards enhanced municipal taxes over 10% of the previous rate was raised by the landlords of the
premises from where the Company, as a sub-tenant, was operating one of its retail stores, in terms of the Company's
sub tenancy agreement with them.
The said claim has been disputed by the Company on the ground that the said enhancement pertained to assessment
of Annual Valuation based on the status (residential or commercial) of the property in question, which the Landlords
had concealed before the municipal authorities as well as before the Company and the Company has initiated legal
proceedings which are on.
Management believes that the outcomes of the above matterrs does not have any material adverse impact on the
Company's financial position.
35.2 Advances recoverable in cash or in kind or for value to be received include 742.37 lacs (previous year - 742.37 lacs) on
Account of Tai Projects Private Ltd, in which one of the directors of the Company is also a director, incorporated with an
object of settng up of a Family Entertainment Complex (FEC) at Nonadanga in Eastern Metropolitan, Kolkata in
pursuance of a decision to make investment in the said Company, which was approved by the share holders of the
Company in its Annual General Meeting held on 17 September 2002. The Company is not in physical possession of the
complex. The Company has initiated legal proceedings against KMDA which is now pending disposal before the
Calcutta High Court.
35.3 The amount due to Micro and Small Enterprises as defined in 'The Micro, Small and Medium Enterprises Development
Act,2006 has been determined to the extent such parties have been identified on the basis of information available
with the Company. The disclosures relating to Micro and Small enterprises as at 31st March, 2024 are as under:
35.4. Reconciliation of GST liability for the year with Input Tax Credit for GST is nearing completion.
Additional regulatory information:
a. Title deeds of Immovable Properties are held in the name of the Company.
b. The Company is not in possession of any investment property.
c. There is no revaluation based on valuation by a Registered Valuer as defined under rule 2 of Companies
(Registered Valuers and Valuation) Rules, 2017 of any of the assets held as property, plant and equipment including
any of the Intangible assets of the Company
d. There are no loans and advances in the nature of loans granted to Promoters, Directors, KMP and the related
parties ( as defined under the Companies Act, 2013 ) either severally or jointly with any other person that are
(i) repayable on demand or (ii) without specifying any terms or period of repayment.
e. The Company has no Capital Work-in-progress.
f. There are no intangible assets under development.
g. There are no proceedings initiated or pending against the company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
h. The Company has no borrowings from banks or financial institutions on the basis of security of current assets.
I. The company has not been declared as a willful defaulter by any bank or financial institution or other lenders.
j. The Company has no transacti'ons/relati'onships with companies struck off under section 248 of the Companies
Act, 2013 or section 560 of Companies Act, 1956.
k. The Company presently has no loans and there are no charges or satisfaction of charges to be registered with ROC
beyond the statutory period.
l. The Company has no subsidiary.
m. Financial Ratios of the Current year with previous year comparatives are mentioned in note no. 46 Further the
Company not being a Banking Company under the Banking Regulation Act,1949 some of the ratios like Capital to
risk-weighted assets rati'oo (CRAR), Tier I, CRAR, Tier II CRAR, Liquidity Coverage Ratio is not applicable.
n. There has been no arrangement in terms of Section 230 to 237 of the Companies Act, 2013.
Utilisation of Borrowed funds and share premiumo.
(A) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any
other sources or kind of funds) to any other person(s) or enti'ty(ies), including foreign entities (Intermediaries)
with the understanding (whether recorded in writing or otherwise) 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;
(B) The company has not received any fund from any person(s) or enti'ty(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 (ii) provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries,
36 Reconciliation of deferred tax assets and liabilities is under process and the same will be completed in due course and
necessary adjustment, if any, will be made in the books of accounts.
41. The Company has not obtained year-end confirmation certificates from most of Trade receivables and Trade Payables and for
loans & advances and deposits. However, the Company has a system of obtaining balance confirmations more than once
during the year and adjustment for difference in balance, arising out of such confirmation/ reconciliation statement, is made
in the accounts on receipt of final agreed balances/reconciliati'on statement. The management is of the opinion that the
impact of adjustment, if any, on year-end balances is not likely to be significant.
Furthermore, in the opinion of the mangement, all Trade Receivables, advances and Deposits (both current and non-current)
would be realised at values at which these are stated in the accounts in the ordinary course of business.
42. Management is continuing with its efforts to locate the relevant papers and documents for reconciling old outstanding
debtors balances and in the process has been able to recover / adjust substantial funds.
43. A. Exemptions and exceptions availed
A. 1 Ind AS optional exemptions
Deemed cost
Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and
equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the
previous GAAP and use that as its deemed cost as at the date of transition. This exemption is also used for intangible
assets covered by Ind AS 38 Intangible Assets.
Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at
their previous GAAP carrying value, which has been considered as deemed cost.
A. 2 Ind AS mandatory exceptions
(a) Estimates
Estimates made under Ind AS as at April 1, 2015 are consistent with the estimates as under previous GAAP.
(b) Classification and measurement of financial assets
Ind AS 101 requires that an entity should assess the classification of its financial assets on the basis of facts and
circumstances exist on the date of transition. Accordingly, in its Opening Ind AS Balance Sheet, the company has
classified all the financial assets on basis of facts and circumstances that existed on the date of transition, i.e.,
April 1, 2016.
Signatures to Notes 1 to 47
For KAMG & ASSOCIATES
For and on behalf of the Board
Chartered Accountants
Firm's Registrati°n l\l°. 311027E VINAY kilLA ROHAN GHOSH
ANJAN SIRCAR Director Managing Director
Partner (DIN : 00060906) (DIN : 00032965)
Membership No. 050052
Place : Kolkata SNIGDHA KHETAN MOU MUKHERJEE
Date : 28thMay,2024 Company Secretary, Membership No.A-55079 Chief Financial Officer
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