19. PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources would be required to settle the obligation, the provision is reversed.
Contingent assets are not recognized 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 recognized in the period in which the change occurs.
Loss contingencies arising from claims, litigation, assessment, fines, penalties, etc. are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated.
1. Disclosure under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED ACT, 2006)
In accordance with the Notification No GST 719 dated 16th November 2007, issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to Micro, Small & Medium Enterprises as defined under the said Act. Based on the information/ documents available with the Company, disclosures required are as under:
4. The Company operates in one segment and hence no separate disclosure of segment wise information has been made as per Accounting Standards as per (AS-17) Segment Reporting Issued by the Institute of Chartered Accountants of India.
10. Charge: During the year no charge has been created by the company & as per MCA site No Charges Exists for Company.
11. Balance of trade receivables, payables and loans and advances are subject to reconciliation and confirmation from the parties. These balances are therefore, subject to adjustments, if any, as may be required on settlement of these balances with the parties.
12. During the financial year the Company has not traded or invested in Crypto Currency or Virtual Currency.
13. The Company is a not a declared willful defaulter by any bank or financial Institution or other lender.
14. No Benami Property is held by the Company and that no proceedings have been 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.
15. The company has not entered into any transactions with the companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956.
16. No Scheme of Arrangement has been undertaken by the Company during the financial year in terms of sections 230 to 237 of the Companies Act, 2013.
17. There are no transactions not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.
18. The company has complied with the provisions for number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.
19. Search by the Goods & Service Tax Department
(a) GST Search: In the month of July, 2022, a search was conducted by the Directorate General of Goods and Services Tax Intelligence (DGGI), Pune at the premises of the company and its directors. As informed by the Management of the Company, that the investigation has not been completed by the department and no demand has been crystalized. During the investigation, the department has seized the goods as lying in the premises of M/ s. F O Industries Private Limited, (Subsidiary Company of Foce India Limited) Bhiwandi which was received for do repair work. The investigation of the seized goods was not completed and it was released by the department after submission of Bank Guarantee and Bond.
(c) The management has informed us that, on 16-01-2023 there was a search carried out in the premises of the company and at the residential premises of the residence of the directors under PMLA Act, 2002. As informed to us, there is no demand has been raised and no show cause notice has been issued to the company till 31st March, 2024. The matter is still under investigation by the department. During the course of search, the following Bank Accounts has been freeze under section 17(1) (A) of PMLA 2002 by the authorities' w.e.f. 16/01/2023:
(c ) FO Industries Private Limited (Subsidiary Company of FOCE India Limited) has given a Bond of (Amount in 'Lakhs') Rs. 1,042.74/- for release of Goods by the GST department.
21. Previous year's figures have been rearranged and regrouped wherever considered necessary.
The accompanying notes are an integral part of the financial statements As per our report of even date
For SDG & CO For and on behalf of the Board
Chartered Accountants
Firm Registration No.: 137864W
Sd/- Sd/-
(Manoj Agarwal) (Utkarsh Agarwal)
Managing Director Director & CFO
DIN: 00159601 DIN: 08021945
Sd/-
Tarun Prakash Dhandh Partner
Membership No.: 131057 Sd/-
UDIN: (Ankit Devendra Pandit)
24131057BKFVSM7614 Place: Company Secretary
Mumbai
Date: 30-05-2024
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