2.18 Provisions and contingencies
A provision is recognised when the Company has a present obligation as a result of past events and it is
probable that an outflow of resources will be required to settle the obligation in respect of which a reliable
estimate can be made. Contingent liabilities are not recognised but are disclosed in the Notes as much as
possible. Contingent Assets are neither recognized nor disclosed in the financial statements. There has
been various disputes between creditors and debtors and majority of them are subject to Legal
proceedings initiated by / against the company, management reviews them on yearly basis. Provisions
(excluding retirement benefits) are not discounted to their present value and are determined based on the
best estimate required to settle the obligation at the balance sheet date. Contingent liability is disclosed for
(1) Possible obligations which will be confirmed only by future events not wholly within the control or (2)
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 cannot be made.
2.19 Balances
Balances of Sundry Debtors, Unsecured Loan & Advances and Sundry Creditors are subject to the
confirmation and reconciliation. The company has adjusted some balance of debtors and creditors which it
understands were related. Any amount for which dispute is created has not been recognised/ is continues
as its, until the same is confirmed by the legal forum, adjusted as per advice of professional and/or
accepted by the company. The company also charges interest on few outstanding receivable balances of
debtors which are to be realised in future or are subject to legal cases. Disclosure of various creditor /
debtors / liabilities are subject to litigation / suits/ claims filed against / by the company and also subject to
confirmation and reconcilation.
2.20 Investments
Investments are carried at Cost as fluctuation of market value is short term phenomenon.
2.21 Rounding of Amounts
All amounts disclosed in the Financial Statements and notes have been rounded off to the nearest Lakhs
(with two decimal places) as per the requirements of Schedule III, unless otherwise stated.
2.22 Estimation of uncertainties from Assets
The eventual outcome of the impact of various legal cases on assets and debtors as on the date of approval
of these financial statements are not taken and the Company continues to closely monitor the situation
including any material changes to outcome of such proceedings and consequential on financials.
Additional note 24.39._
2.23 Objective, Policies and Processes for Managing Capital
The Company maintains an actively managed capital base to cover risks inherent in the business and is
meeting the capital adequacy requirements as prescribed by the Reserve Bank of India (RBI). The
adequacy of the Company’s capital is monitored using, among other measures, the regulations issued by
the RBI._
2.24 Dividends on ordinary shares
The Company recognises a liability to make cash distributions to equity holders when the distribution is
authorised and the distribution is no longer at the discretion of the Company. As per the Companies Act,
2013 in India, a distribution is authorised when it is approved by the shareholders. A corresponding
amount is recognised directly in equity. Presently no dividend has been proposed.
2.25 General Disclosure
Disclosure mandated by Schedule III of the Companies Act, 2013 is by way of additional information.
2.26 Non Acknolwedgement of Laibility
Balances shown in liability are without admission of liability by company against any specific creditor or
as a whole and are shown as per requirement of Regulatory disclosures and prudent practice as adviced by
Board including taxation effect. The company refused to acknowledge any / all of liability and balances
also includes balances which are in denied as liability, disputed or subjudice.
Note:10 (d) Details regarding number and class of shares for the period of five years immediately preceding March 31, 2025
a) The company has not allotted any shares as fijlly paid-up without payment being received in cash.
b) The company has not alloted any shares as fully paid up bonus shares.
c) The company has not bought back any of its shares.
Note:10 (e) Other Details regarding issue of shares
There are no shares reserved for issue under options and contracts / commitments for the sale of shares.
There are no securities convertible into equity or preference shares.
There are no calls unpaid on any shares.
There are no forfeited shares.
The company does not have any pending share/warrannt application money.
Note Particulars
24.1 Other Extraordinary Items
A Sundry Debtors includes Rs. 13,04,000/-, considered doubtful of recovery against which the
company has filed suit for recovery. Debtors also include various disputed customer balances and
company has also charged interest on balance due from some debtors after due dates. Further various
cases has also been initiated by the company for recoveries including interest. It has been decided by
management that necessary provisions will be made as per outcome of the cases already initiated / to
be initiated by the company hence no provision for doubtful debt is being made.
B No provisions has been made in the accounts for the followings:
a) The company has given some assets to a customer which has gone into liquidation and accordingly
a claim has been filed with the official liquidator appointed by the Court and awaiting the result.
b) Advances include Rs. 9,71,668/- due from company against which company has filed a case for
recovery of said advances, matter is subjudice and the same is pending with the Calcutta
Metropolitan Magistrate awaiting for decision. Necessary effects of the same will be given in the
accounts based on outcome of the case.
c) Vehicle shown in Fixed Asset of the Company includes a vehicle which is not under company
possession and also include some movable fixed assets which are not in possession of the company.
Company has initiated legal steps for recoveries.
d) Loans and Advances includes advances paid for purchase of machines/ vehicles by the company
but disputed by the seller, no provisions has been made to that regards. Company has taken legal
steps for recovery of the same and as matter is subjudice, hence necessary effect will be given based
on outcome of the matter.
e) Company has not made any provision / payment for gratuity in the year as the calculation was not
received from LIC for the same.
f) There has been third party claims and disputes towards the immovable properties held by the
company including title dispute. A series of cases are ongoing. The company has recognised assets as
per purchase and development cost and no provision has been made due to the litigations. Subject to
outcome of court order, respective financial effect will be given.
g) Some of assets owned by the company including land has been acquired by the Government but no
official communication has been sent by the government in this regards. The company will take
active steps to safeguard its assets.
C Contingent Liability not recognised includes Gratuity payment, guarantee/counter guarantee
agreement , other agreement signed by the company. Company has also parted with its possession of
few of the assets (including land) under the agreements for which no provision has been made/ whose
assets are recognised and are appearing at cost price in the books. As the outcome of such
assets/liability is related to respective agreement/subjudice, hence no amount is determinable on
present day and all identified assets are shown at cost.
24.2 Disclosure under Section 22 of the Micro, Small and Medium Enterprises Development Act,
2006
There has been no dues to Micro and Small Enterprises which have been determined to the extent
such parties have been identified on the basis of information provided by the suppliers to the
management. This has been relied upon by the auditors.
24.3 FAIR VALUE MESUREMENTS
(a) Fair value
The fair value of the financial assets and liabilities approximates their carrying amounts as on the
Balance Sheet date
(b) Fair valuation Techniques
The fair value of the financial assets and liabilities are included at the amount that would be received
to sell an asset or paid to transfer a liability in an orderly transactions between market participants at
the measurement date.
The following method of assumption were used to estimate the fair values :
(i) The fair value of cash and cash equivalents, trade receivables, trade payables, current financial
liabilities / financial assets approximate their carrying amount largely due to the short term nature of
these instruments. The management considers that the carrying amounts of financial assets and
financial liabilities recognised at nominal cost /amortised cost in the financial statements approximate
their fair value. Many of the same has been challenged in courts, hence amounts may change based
on legal outcome or customer reconciliation of the balances. Further some non acknowledged
liabilities are shown in the balance sheet as proper accounting impact of same was not being done
being sub judice matters and pending accounting adjustments.
(ii) A portion of the company's long-term debts has been contracted at fixed rate of interest. Fair
value of variable interest borrowings approximates their carrying value subject to adjustments made
for transaction cost.
Note Particulars
24.4 FINANCIAL RISK MANAGEMENT
The company’s risk management is carried out by a Financial Controller who identifies, evaluates and
hedges financial risks in close co-operation with the company’s operating units. The board provides
principles for overall risk management, as well as policies covering specific areas, such as foreign
exchange risk, interest rate risk, credit risk, liquidity risk and investment of excess liquidity.
(A) Market Risk - (i) Foreign currency risk - The Company does not operates internationally. The
company does not have significant foreign currency exposure.
(ii) Interest rate risk - The company is exposed to interest rate risk, further attention is drawn to note
on 2.12
(iii) Price risk - The is exposed to significant market price risk on the securities it had invested.
(B) Credit Risk - The Company is exposed to credit risk from its activities and from its financing
activities including unsecured credit provided to parties.
(C) Liquidity Risk - Company is exposed to Liquidity risk as the Company may not be able to meet its
present and future cash and collateral obligations.
24.5 CAPITAL MANAGEMENT / RISK MANAGEMENT
The company’s objectives when managing capital are to safeguard their ability to continue as a going
concern, so that they can continue to provide benefits for all stakeholders. In order to maintain or
adjust the capital structure, the company may adjust the amount of dividends paid to shareholders,
return capital to shareholders, issue new shares or sell assets to reduce debt.
Regulatory capital-related information is presented as part of the RBI mandated disclosures. The RBI
norms require capital to be maintained at prescribed levels. There were no changes in the capital
management process during the periods presented.Tier I Capital comprises - Share Capital and
Reserves (Except statutory reserves). Tier II Capital comprises - Statutory Reserves Asset which are
not present in books (fully written off NPA).
24.6 Related party transactions
Related Party are a person or entity that is related to the Company as defined under Section 2(76) of
the Companies Act, 2013 or under Regulation 2(zb) of the Listing Regulations, as may be amended
from time to time.
Related Parties and their
Note Particulars
24.9 Contingent Liabilities to the extend not provided for
Claims against the company not acknowledged as debts
a Company has many disputed liability & loss faced due to negligence of creditors. The company has
taken various legal measures to safeguard its interest in all such matter and major of the matters are
raised before appropriate court of law and are subjudice.
b No liabilities as mentioned in this report are acknowledged by the company.
c Incase of any adverse judicial order, the outflow of assets might be there, but as all such matters are
subjudice.
Additional Disclosures
24.10 In the opinion of Board of Directors, the current assets, loans and advances have a value on
realisation in the ordinary course of business at least equal to the amount at which they are stated in
the Balance Sheet except for the one which are fully doubtful/ not under litigation.
24.11 Balances with Trade Receivable / Trade Payables and Loans and advances are subject to
confirmation/ court order.
24.12 Some of the securities lying in demat account of the company also include companies which are
under IBC, hence realisability of the same is subject of legal outcome.
24.13 Charges exist on Current Assets of the company for loans. Company denies some charges being
created in past and is taking steps to safeguard its interest. No statement of current assets are sent to
any financers on monthly basis.
24.14 The company has not been declared as wilful defaulter by any bank / financial institution.
24.15 During the year the company has not entered into any transaction with companies struck off under
section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956
24.16 There are no pending charges / satisfaction which are yet to be registered with Registrar of
Companies. Company denies some of earlier created charges for which satisfaction will be filed on
receipt of respective judicial order.
24.17 The company has no subsidiary company, hence compliance with clause (87) of section 2 of the
Act read with Companies (Restriction on number of Layers) Rules, 2017 is not required.
24.18 Company don’t get covered under section 135 of the companies act, hence CSR activities are not
undertaken.
24.19 Company has not drawn down any amount from reserves during the year.
24.20 Company has not received any loan related complaint from its customers during the year.
24.21 Company has no investment in Immovable Properties whose Title deeds are not held in name of
the Company.
24.22 The fair value of investment property (whereever mentioned in statement) is not based on valuation
by registered valuer.
24.23 The company has not revalued its Property, Plant and Equipment during the year.
24.24 No Loans or Advances in the nature of loans were granted to promoters, directors, KMPs and the
related parties (as defined under Companies Act, 2013), either severally or jointly with any other
person that are (a) repayable on demand or (b) without specifying any terms or period of
repayment.
24.25 The company has no transactions in current year with companies struck off under section 248 of
the Companies Act, 2013 or section 560 of Companies Act, 1956.
24.26 Various Important Ratios/ Figures are as follows in Rupee
24.27 Gross Non-Performing Assets (INR) GNPA are as follows (Rs in lacs):
24.28 Litigations
Company has some litigation ongoing with regards to various properties which are wrongly
transferred in third parties name and matter is subjudice.
Company has litigations ongoing with creditors and company don’t acknowledge their liabilities or
dues.
Company has various other litigations ongoing before various courts, total list is not disclosed as it
will prejudice interest of company.
Company has been debarrred from trading in Stock market, the company has filed case against
such action and matter is subjudice.
24.29 The Company don’t have any long-term contracts including derivatives for which there are any
foreseeable losses.
24.30 There are no transactions not recorded in the books of accounts that has been surrendered or
disclosed as income in the books of account during the year in the tax assessment under the Income
Tax Act, 1961.
24.31 The Company has not traded or invested in Crypto Currency or Virtual Currency during the current
and previous year and therefore, the disclosures as sought is not applicable.
24.32 Company has not drawn down any amount from reserves during the year.
24.33 Company is not engaged in digital lending and has no tieup with LSP/ Collection Agencies.
24.34 Company does not have any Benami Property under Prohibition of Benami Property Transactions
Act, 1988.
There are no proceedings initiated or pending against the company for holding benami property.
24.35 The Company has no Scheme of Arrangement approved by the competent authority specified under
Section 230 to 237 of the Companies Act, 2013.
24.36 No pledge has been created on shares of the company.
24.37 No transaction for Credit Default Swap has been done during the year by the company.
24.38 In Current/ Previous Financial Year no Assets are acquired in satisfaction of debt.
24.39 The company has no many pending litigations on its financial positions as on financial year
closure. Various litigations with parties are ongoing and the company has also taken legal recourse
and majority of matters are subjudice. Detials of same being confidential in nature are not
mentioned here.
24.40 The Company has unsecured borrowings, which are used for the purpose, it was taken. Further no
specific return is given to creditor for the same.
24.41 The company has not advanced or loaned or invested funds or received any fund to lend or invest
in other persons or entities by or on behalf of the Funding Party (Ultimate Beneficiaries) or provide
any guarantee, security etc on behalf of the Ultimate Beneficiaries.
As per our report of even date
For SARKAR GURUMURTHY & ASSOCIATES
Chartered Accountants
FRN 314062E
(Parimal Sarkar) (Sumit Bhansali) (P.Nahata)
(Partner) (Managing Director & CFO) (Director)
(M.No. 051550) (Din : 00361918) (Din: 11078431)
Date: 30-05-2025 Ramakant Goenka
Place: Kolkata (Company Secretary)
UDIN: 25051550BMLKMN6205
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