12. Contingent Liabilities & Provisions
a) A provision is recognized when there is a present obligation as a result of a past event
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. Provisions are
reviewed at each balance sheet date and adjusted to reflect the current best
estimate.
b) A disclosure for a contingent liability is made when there is a possible or present
obligation that may but probably will not require an outflow of resources. When
there is a possible obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made.
B. NOTES ON ACCOUNTS
i. Previous year figures are regrouped, rearranged, recast wherever considered
necessary to compare it with the current year figures.
ii. Contingent Liabilities and Commitments: NIL.
iii. In opinion of the management Current Assets, Loans & Advances are approximately
of the values stated if realized in ordinary course of the business.
iv. Imports of materials, components, spares parts and Capital Goods Rs. Nil
v. Preliminary Expenses not written off during the year under Audit.
vi. In view of the management, there was no certainty to set off of the loss or
depreciation arising due to timing difference and hence no provision for Deferred Tax
Assets has been provided for the year under audit.
vii. We have called for confirmation of accounts of Loans and Advances, Sundry Debtors
and advance for Purchase of fixed assets which are still not received. The balances of
the same are subject to confirmation.
viii. Financial Risk management objectives: The financial risks mainly include market risk
(interest rate risk), credit risk and liquidity risk.
ix. Statement of compliance
The financial statements have been prepared in accordance with Indian Accounting
Standards ("Ind AS") notified under the Companies (Indian Accounting Standards)
Rules, 2015.
x. The Company is in Corporate Insolvency Resolution Process to revamp its business, but
had not any operational income during the year as well as preceding year and seems
that no operational income would be generate at this stage.
xi. In accordance with the applicable provisions of the Insolvency and Bankruptcy Code
2016, (IBC), Mr. Harshadbhai Govindbhai Vankar, in his capacity as operational
creditor has filed a petition under IBC with the Honorable National Company Law
Tribunal, Ahmedabad Bench (NCLT). The NCLT vide its order dated 15th March,
2021 admitted the Corporate Insolvency Resolution Process (CIRP) in respect of the
Company and appointed Mr. Pinakin Surendra Shah, as the Resolution Professional
(RP) in terms of the IBC. On appointment of the RP under the Code, the powers of the
Board of Directors of the Company were suspended. Further, vide meeting of
Committee of Creditor of Mangalya Soft-tech Limited dated 27th September, 2021,
M/s Ratnakar Securities Private Limited is selected as successful resolution applicant.
The Honorable National Company Law Tribunal, vide its order dated
27/09/2022, had approved the Resolution Plan and the company is in process to
implement the Resolution Plan.
Further, the Company has incurred losses during the current and previous years, the
Company has accumulated losses and its net worth has been fully eroded. Also, the
Company do not have any operational Income during last three years.
xii. Financial instruments
The carrying value and fair value of the financial instruments as at March 31,
2024 and March 31, 2023 are as follows:
The management assessed that fair value of Investment, cash and short-term
deposits, trade and other short-term receivables, trade payables, other
current liabilities, approximate their carrying amounts largely due to the
short-term maturities of these instruments.
Signature of Note "1" to "17" forming part of Balance Sheet and Profit & Loss
A/c. As per our report of even date attached herewith.
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