M. Provisions and Contingent Liabilities:
Provisions are recognized when the company has a legal or constructive obligation as a
result of a past event, for which it is probable that a cash outflow will be required and a
reliable estimate can be made of the amount of obligation. The amount recognised as a
provision is the best estimate of the consideration required to settle the present obligation at
the end of the reporting period, taking into account the risks and uncertainties surrounding
the obligation. When a provision is measured using the cash flows estimated to settle the
present obligation, its carrying amount is the present value of those cash flows (when the
effect of the time value of money is material).
Contingent Liabilities are disclosed when the company has a possible obligation or a present
obligation and it is probable that a cash outflow will not be required to settle the obligation.
N. Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit / (loss) before tax is adjusted
for the effects of transactions of non-cash nature and any deferrals or accruals of past or
future cash receipts or payments. The cash flows from operating, investing and financing
activities of the Company are segregated based on the available information.
O. Financial instruments
Financial assets and financial liabilities are recognised when the Company becomes a party
to the contractual provisions of the instruments.
Financial assets and financial liabilities are measured at fair value except when amortised
cost approach is used. Transaction costs that is directly attributable to the acquisition or
issue of financial assets and financial liabilities (other than financial assets and financial
liabilities at fair value through profit or loss) are added to or deducted from the fair value of the
financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs
directly attributable to the acquisition of financial assets or financial liabilities at fair value
through profit or loss are recognised immediately in profit or loss.
Financial assets
All recognised financial assets are subsequently measured in their entirety at either amortised
cost or fair value, depending on the classification of the financial assets.
Classification of financial assets
Debt instruments that meet the following conditions are subsequently measured at amortised
cost (except for debt instruments that are designated as at fair value through profit or loss on
initial recognition): the asset is held within a business model whose objective is to hold
assets in order to collect contractual cash flows; and the contractual terms of the instrument
give rise on specified dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding. Debt instruments that meet the following conditions are
subsequently measured at fair value through other comprehensive income ("FVTOCI") (except
for debt instruments that are designated as at fair value through profit or loss on initial
recognition): the asset is held within a business model whose objective is achieved both by
collecting contractual cash flows and selling financial assets; and the contractual terms of
the instrument give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding. Interest income is recognised in profit or
loss for FVTOCI debt instruments. All other financial assets are subsequently measured at
fair value.
Effective interest method
The effective interest method is a method of calculating the amortised cost of a debt instrument
and of allocating interest income over the relevant period. The effective interest rate is the
rate that exactly discounts estimated future cash receipts (including all fees and points paid
or received that form an integral part of the effective interest rate, transaction costs and other
premiums or discounts) through the expected life of the debt instrument, or, where appropriate,
a shorter period, to the net carrying amount on initial recognition. Income is recognised on an
effective interest basis for debt instruments other than those financial assets classified as at
FVTPL. Interest income is recognised in profit or loss and is included in the "Other income"
line item.
Impairment of financial assets
The Company applies the expected credit loss model for recognising impairment loss on
financial assets measured at amortised cost, debt instruments at FVTOCI, trade receivables,
other contractual rights to receive cash or other financial asset, and financial guarantees not
designated as at FVTPL. Expected credit losses are the weighted average of credit losses
with the respective risks of default occurring as the weights.
Derecognition of financial assets
The Company derecognises a financial asset when the contractual rights to the cash flows
from the asset expire, or when it transfers the financial asset and substantially all the risks
and rewards of ownership of the asset to another party.
Financial liabilities and equity instruments
Classification as debt or equity
Debt and equity instruments issued by Company are classified as either financial liabilities
or as' equity in accordance with the substance of the contractual arrangements and the
definitions of a financial liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an
entity after deducting all of its liabilities.
Financial liabilities
Financial liabilities that are not held-for-trading and are not designated as at FVTPL are
measured at amortised cost at the end of subsequent accounting periods. The carrying
amounts of financial liabilities that are subsequently measured at amortised cost are
determined based on the effective interest method.
Interest expense that is not capitalised as part of costs of an asset is included in the 'Finance
costs' Line item. The effective interest method is a method of calculating the amortised cost
of a financial liability and of allocating interest expense over the relevant period. The effective
interest rate is the rate that exactly discounts estimated future cash payments (including all
fees and points paid or received that form an integral part of the effective interest rate,
transaction costs and other premiums or discounts) through the expected life of the financial
liability. All financial liabilities are subsequently measured at amortised cost using the effective
interest method or at FVTPL.
Derecognition of financial liabilities
The Company derecognises financial liabilities when, and only when, the Company's
obligations are discharged, cancelled or have expired.
Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet
where there is a legally enforceable right to offset the recognised amounts and there is an
intention to settle on a net basis or realise the asset and settle the liability simultaneously.
The legally enforceable right must not be contingent on future events and must be enforceable
in the normal course of business and in the event of default, insolvency or bankruptcy of the
Company or the counterparty.
Rounding off amounts
All amounts disclosed in financial statements and notes have been rounded off to the nearest
Lakh as per requirement of Schedule III of the Act, unless otherwise stated.
ii) Demand had been raised by M/s WESCO Ltd. in respect of arrear electricity charges
amounting to ' 16.58 lakh. The company had filed suit against the claim before the
pertinent Appellate Authorities and favorable verdict had been ruled in favour of the com¬
pany. The company had paid 50% of the amount against the same which is shown under
Deposit Others under Short Term Loans and Advances as the company is claiming refund
of the same. However M/s WESCO Ltd. had filed petition before Hon. High Court of
Odisha. The company does not foresee any liability in respect of above contingent liabili¬
ties and hence no provision has been made for the same.
b) Commitments
Estimated amount of contracts remaining to be executed on capital account and not
provided for INR 50.00 lakhs (net of advances) (P.Y.75.00 Lakhs).
42. Disclosure under Section 186(4) of the Companies Act, 2013
During the year, the Company has given the following loans to other bodies corporate:
43. Capital management
For the purpose of the Company's capital management, capital includes issued equity capital,
share premium and all other equity reserves attributable to the equity holders of the Company.
The primary objective of the Company's capital management is to maximize the shareholder
value.
The company determines the capital requirement based on annual operating plans and long¬
term and other strategic investment plans. The funding needs are met through equity, cash
generated from operations, long-term and short-term borrowings. The Company monitors the
capital structure on the basis of net debt to equity ratio and maturity profile of the overall debt
portfolio of the company. Net debt includes interest bearing borrowing, cash and cash equivalents.
The table below summarises the capital, net debt and net debt to equity ratio of the company
44. The company has commissioned captive Power Plant (CPP) during the FY 2016-17. The said
units is eligible to claim deduction under section 80IA of the Income tax act ,1961 with respect
to 100% of the profit & gains derived from this business for any Ten years in the subsequent
fifteen years (referred to as Tax Holiday Period). The Company has started availing benefits
under section 80IAof the Income Tax Act from the financial year 2021-22.
45. The Income-Tax authorities ('the department') had conducted search activity during 2023-2024.
The Company had received communication from the department regarding the assessment
proceedings, however no assessment has been completed. The Management, after considering
all available records and facts known to it, is of the view that there is no material adverse impact
on the financial position of the Company and no adjustments are required to the financial
statement.
46. Advance for land includes Rs.645 Lacs has been paid to State Bank of India for purchase of
land at Rajgangpur, Odisha. The matter is sub-judice. Necessary adjustments in the financial
will be made based upon the outcome of the matter.
47. Financial Assets & Liabilities
a) Fair Market Value Disclosure: The management considers that the carrying amounts of
financial assets and financial liabilities recognised in the financial statements approximate
their fair values.
b) Financial Risk Management Objectives:
The company's management monitors and manages the financial risks relating to the
operations of the company. These risks include market risk (including currency risk, interest
rate risk and other price risk), credit risk and liquidity risk.
(i) Market Risk
Market risk is the risk that the fair value or the future cash flows of a financial instrument
will fluctuate because of changes in market prices. Such change in value of financial
instruments may result from changes in the foreign currency exchange rates, interest
rates, credit, liquidity and other market changes.
Foreign Currency Risk
The company has its operations based mainly within the country. So, the company
does not have any significant foreign currency risks.
Interest Rate Risk
The company has investments mainly in fixed interest bearing investments. Hence
the company is not significantly exposed to interest rate risks. The interest rate on
borrowings ranged from 8.95% to 9.25% in the previous year & 9.00% to 9.50% in the
current year.
(ii) Credit Risk
Credit Risk refers to the risk of default on its obligation by the counterparty resulting
in a financial loss. The maximum exposure to credit risk is on account of trade
receivables amounting to Rs.1410.96 Lakhs as at 31st March, 2025 and Rs. 794.88
Lakhs as at 31st March, 2024. Trade receivables are typically unsecured and derived
from revenue earned from customers. Credit risk is managed by establishing credit
limits and reviewing the credit approvals provided to various customers. The company
has no expected credit loss as at 31st March, 2025.
(iii) Liquidity Risk
Liquidity risk is the risk that the company will encounter difficulty in meeting obligations
associated with financial liabilities that are settled by delivering cash or other financial
asset.
The company's principal sources of liquidity are cash and cash equivalents, bank
fixed deposits and the cash that is generated from operations.
The company manages liquidity risk by maintaining adequate reserves and by
continuously monitoring forecast and actual cash flows. The company generates
sufficient cash flows from current operations which together with the available cash
and cash equivalents provide liquidity both in the short-term as well as in the long¬
term.
48 . The following additional information (other than what is already disclosed elsewhere) is disclosed
in terms of amendments dated March 24, 2021 in Schedule III to the Companies Act 2013 with
effect from 1st day of April, 2021:
(a) There is no proceeding initiated or pending against the company during the year for
holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and
rules made thereunder.
(b) The Company has borrowings from banks on the basis of security of current assets. The
quarterly returns or statements of current assets filed by the Company with banks or
financial institutions are generally in agreement with the books of accounts except some
minor differences which are not material to report.
(c) The company is not declared willful defaulter by any bank or financial Institution or any
other lenders.
(d) There is no scheme of arrangements has been approved during the year by the Competent
Authority in terms of Sections 230 to 237 of the Companies Act, 2013.
(e) There is no transaction that has not been recorded in the books of accounts and surrendered
or disclosed as income during the year in the tax assessments under the Income Tax
Act, 1961.
(f) The company has complied with the number of layers prescribed under clause (87) of
section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017
(g) The Company has not traded or invested in Crypto currency or Virtual Currency during
the financial year.
(h) There are no creation or satisfaction of charges as at 31st March, 2025 pending with
ROC beyond the statutory period.
(i) No funds have been advanced or loaned or invested (either from borrowed funds or share
premium or any other sources or kind of funds) by the Company to or in any other person
or entity, including foreign entities ("Intermediaries") with the understanding, whether
recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified
by or on behalf of the Company (Ultimate Beneficiaries).
(j) The Company has not received any fund from any party(Funding Party) with the
understanding that the Company shall whether, directly or indirectly lend or invest in
other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries")
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
L Previous year's figures have been regrouped /reclassified wherever necessary to correspond
with the current year's classification/disclosure.
> per our report attached of even date For and on behalf of Board of Directors
)R G A R V & Associates C. K Bhartia Y. K. Dalmia
lartered Accountants Chairman Managing Director
m Registration No. 301094E DIN-00192694 DIN-00605908
shish Rustagi)
irtner Gagan Goyal Neha Singhania S. Dalmia
ambership No. 062982 Executive Director Director Director
DIN-06678938 DIN-06879112 DIN-00605973
ace : Kolkata
ate : 17th day of May, 2025 M. K. Hati A. N. Khatua
Chief Financial Officer Company Secretary
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