Note:
1 The company has adequate brought forward losses eligible for set off against current year's income under Income Tax Act, 1961 and therefore there is no liability towards Income Tax for the year.
2 The company has dedded to opt for Sec 115BAA of the Income Tax Act, 1961 from the year ending 31st March 2020 onwards. Therefore liability to tax u/s 1153B (Minimum Alternate Tax) does not arise.
3 Due to absence of certainlty In utilisation, deferred tax asset has not been recognised In respect of the following items because it is not probable to expect that future taxable profits will be available in the time limit prescribed under the Income Tax Ad, 1961 against which the deductible temporary difference can be utilised.
(i; Kignts and restrictions attached to equity shares
^Pm^ny *** 0niy ^ 0,355 of share'i-e'' shares having the face value of INR 10 per share. Each holder of equity share Is entitled to one vote per share. Dividend is paid n Indian Rupees. The dividend, rf any, recommended by the Board of Directors is subject to the approval of the shareholders at the ensuing Annual General Meeting. In the event of liquidation of the Company, equity shareholders will be entitled to receive remaining assets of the Company after distribution of all liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.
(A) The Net Liabilities of the Company exceed its assets by INR 490.44 Lakhs. Considering the change in management of the company , business plans and support from the new promoters, the Company expects to recover from the losses. According to the Company, considering all these facts, the assumption of Going concern is not vitiated even though the net worth is eroded.
(B) Confirmation of balance from suppliers and customers have been called for and is awaited. The company does not expect any material variation in respect of these accounts.
(C) The Company did not enter into any long term contracts and there are no material forseable losses to be recognised under applicable laws or accounting standards in the financial statements
(D) Figures of Previous reporting period have been regrouped/ reclassified/ recast wherever required to conform to current reporting period's presentation
(F) Regarding Wnte-back of Liabilities
During the quarter ended 31st March 2024, the vendor / customer balances outstanding for more than 3 years amounting in aggregate to INR 7.1 Lakhs has been written back as no longer payable and dlsdosed the same under "Other Income" of the financial statements. The company sought confirmations of balances from these parties and in the absence of response therefrom, the company has written back these liabilities as no longer payable.
(G) Bfigardjqq .NQnPffiyisiQn of Interest on Inter Corporate Loans
Interest has not been provided for INR 5.63 Lakhs on Inter-Corporate Borrowing from Miven Mayfran Conveyors Pvt Ltd for the year ended 31st March 2024 as the management is in discussion with the lender for waiver of loan and accumulated interest thereon.
(H) During the quarter ended 31st March 2024, the company reoeved an email notice from the Stock Exchange BSE Limited [BSE India] seeking clarifications on audited financial statements of the company for the past year(s). In this regard, the company has provided necessary details on 17th March 2024 and no further communications have been received from BSE India till the date of this Board Meeting.
(I) The financial statements were reviewed and recommended by the Audit Committee on 29th May, 2024 and subsequently approved by the Board of Directors at their meeting held on the same date.
(J) 1. The company is currently reconciling its GST balances and liabilities between the figures recorded in its books and those reported in its returns. Any liability identified will be discharged either at the time of filing annual returns or through Form DRC-03.
2. TDS credits as per books of accounts and Form 26 AS are pending recondlation
(K) Vendor and customer balances, including advances and security deposits, are subject to third-party confirmation and reconciliation.
(L) Earnings in Foreign Currency - NIL (PY - NIL)
(M) Expenditure in Foreign Currency - NIL (PY - NIL)
(iv) Municipal Tax in respect of Land
The company’s erstwhile manufacturing plant was situated In Tarihal Industrial Area, Tarihal, Hubii which was originally under Rainal Mandal Panchayat. Although the company has sold the entire land parcel during the earlier year(s), the company continues to be liable for any past demands. Provision has been made in the books towards tax due to them for the period 1992 to 2003 aggregating to INR 3.18 Lakhs. This panchayat subsequently merged with Hubii Dharwad Municipal Corporation (HDMC), Hubii. As the Industrial estate is yet to be fully developed by KIADB, the same has not been handed over to HDMC. However maintenance charges is being collected by KIADB which was remitted by the company till FY 2007 08. Subsequently KIADB made daims for annual maintenance charges and Interest for delayed payment totalling to INR 2.94 Lakhs which is disputed by the company. HDMC has daimed municipal tax, induding interest thereon, aggregating to INR 569.91 Lakhs for the period from 1995 till 2016 which is disputed by the company through Greater Hubii Dharwad Industries Association. The company is confident that the daim relating to past periods will be withdrawn by the authorities and will not be payable in view of existing favourable court orders in respect of similar cases.Consequently no nmvision has heen made in the honks for these demands
hi Transfer* tetwMw the fair value hierarchy
There were no transfers in either direction m the fair value hierarchy Ouma the vtar ercied 3lst March 2024 B- Capital Manaoement
The Company strives to maintain a strong capita; oase so as to maintain investor, creditor and market confidence and to suaam future devetopment of B« Duuness. Management monaors the retxen on cap«al as v*e« •» the level of dividends to ordinary sharehoWery The hoard of directors seeks to maintain a balance between the rubier iearns and levels of twroninQs and the atfranQQes and secuity afforded by a sound capital position AHtxxxjh the Net woith of the con^any is negative, due to accumtiated losses, the new management has taken effective steps to improve the financial posoorVperformance by way of disposal of Ian). Infusion of fresh loans
D. Financial risk management
The Company is broadly exposed to credit risk, liquidity risk and market risk as a result of financial instruments. The Company rs exposed to financial risk, such as market risk (fluctuations m exchange rates, interest rates and price risk), credit risk and liquidity risk. The general risk management program of the Company focuses on the unpredictability of the market factors, and attempts to minimize their potential negative influence on the financial performance of the Tnmnanw
The Company's Board of Directors has the overall responsibility for the establishment, monitoring and supervision of the Company's risk management framework. Treasury Management Team In the company take appropriate steps to mitigate financial risks within the framework set by the top management Company does not trade in derivatives for speculation.
(i) Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting m financial loss to the Company. Credit risk arises from credit exposures from customers, cash and cash equivalents held with banks and current and non-current debt investments.
The Company regularly follows-up the receivable to minimise losses arising from credit exposure from credit customers. Credit control assises the credit quality of the customers, their financial position, past experience in payments and other relevant factors. Deposits and cash balances are placed with reputable
crhortnlivl Kaol’c
The carrying amount of financial assets represents the Company's maximum exposure to credit risk. No other financial assets carry a significant exposure to credit risk.
Trade and other receivables
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, the management also considers the factors that may Influence the credit risk of its customer base.
The management has established a system under which each new customer is analysed individually for creditworthiness before the Company's standard payment and delivery terms and conditions are offered. The Company's review indudes external ratings. If they are available, and m some cases bank references.
The Company establishes an allowance for impairment that represents its estimate of expected losses in respect of trade and other receivables based on factual information as on the Balance sheet date.
Any past due from Government Customers and those fully covered by guarantees or collaterals received are not tested for impairment. The credit quality of the financial assets is satisfactory, taking into account the allowance for doubtful trade receivables-The Company has not received any collaterals for receivables as at reporting date.
The company has tested for impairment loss allowance at 31 March 2024 in respect of Trade Receivables and is of the firm opinion that the amounts stated as receivable will be fully realised and no allowance is called for.
(ii) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset, or the risk that the Company will face difficulty In raising financial resources required to fulfil its commitments. The Company's approach to managing liquidity is to ensure, as far as possible, that It will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without Incurring unacceptable losses or risking damage to the Company's reputation.
Liquidity risk is maintained at low levels through effective cash flow management, low borrowings and availability of adequate cash. Cash flow forecasting rs performed internally by forecasts of the Company's liquidity requirements to ensure that it has sufficient cash to meet operational needs, to fund scheduled investments and to comply with loan covenants.
To ensure continuity of funding, the Company primarily uses short-term bank facilities in the nature of bank overdraft facility, cash credit facility and short-term borrowings to fund Its ongoing workJng capital requirements needs.
Exposure to liquidity risk
The table below details the Company’s remaining contractual maturity for its financial liabilities and derivative financial liabilities. The contractual cash flows reflect the undiscounted cash flows of financial liabilities and derivative financial liabilities based on the earliest date on which the Company can be required to pay.
(iii) Market risk
Market risk is tire risk Oral changes in market prices - such as foreign exchange rates, interest rates and equity / commodity prices - wiH affect the Company's The Company's activities expose It primarily to the financial risks of changes in foreign exchange rates and interest rate movements (refer to notes below on
(iv) Currency risk- NIL
Foreign currency risk is the risk arising from exposure to foreign currency movement that wiH impact the Company's future cash flows and profitability in the ordinary course of business.
The Company operates domestically and is not exposed to currency risk on account of its borrowings, other payables and receivables being m functional
(v) Interest rate risk
Interest rate risk can be either fair value interest rate risk or cash flow interest rate nsk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate nsk Is the risk that the future cash flows of floating interest bearing Instruments will fluctuate because of fluctuations in market interest rates.
Exposure to interest rate risk
The Company's interest rate risk arises from borrowings and loans and advances made. Borrowings availed at fixed rates expose the Company to fair value interest rate risk. The interest rate profile of the Company's interest-bearing financial instruments as reported to the management of the Company is as follows.
(vi) Equity and commodity price risk
Price risk is the risk of fluctuations in the value of assets and liabilities as a result of changes in market prices of investments. The Company has not invested in equity securities and hence it is not exposed to equity price risk. The Company does not invest in commodities and Is not exposed to commodity price risk.
(R) Additional Regulatory Information
(I) Title Deeds of Immovable Property not held in the name of the Company
The Company did not hold any immovabe properties m its name during the financial year.
(ii) The Company shall disclose as to whether the fair value of investment property (as measured for disclosure purposes in the financial statements) is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.D
There are no investment properties held by the Company.
(Ill) Where the Company has revalued its Property, Plant and Equipment (including Right-of-Use Assets), the company shall disclose as to whether the revaluation is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules. 2017.
There has been no revaluation of assets dunng the year.
(iv) Where the company has revalued its intangible assets, the company shall disclose as to whether the revaluation Is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.
There has been no revaluation of intangible assets dunng the year
(v) Disclosures to be made where Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined under Companies Act 2013,) either severalty or Jointly with any other person, that are:
(a) repayable on demand or
(b) without specifying any terms or period of repayment
There are no loans advanced by the Company to related parties mdudmg promoters,directors, KMPs either jointly or severally with any other persons.
(vi) Capital Work in Progress - Aging Schedule
There are no capital work in progress as on current & previous reporting date.
(vii) Intangibles under development- Aging Schedule
There are no intangibles under development as on ament & previous reporting date.
(viii) Details of Benami Property hek! by the company
There are no benami properties held ri the name of the company and no proceedings has been initiated upon the same.
(ix) Where the Company has borrowings from banks or financial institutions on the basis of security of current assets, it shall disclose the
f.M. i . -
The company does not have any borrowings on the basis of security of cunent assets for ament or previous reporting period.
(x) Wilful Defaulter
The company has not been declared as wilful defaulter by any bank or financial institution for the ament or previous reporting period.
(xi) Relationship with Struck off Companies
The Company s on no way related to any of the companies struck-off by the Registrar of Cnmpantnes during the year
(xii) Registration of charges or satisfaction with Registrar of Companies
TTiere are no charges pending satisfaction with the Registrar of Companies, Bangalore.
(xiii) Compliance with number of layers of companies as per Companies Act,2013
The Companies has complied with the provisions guiding layering of companies as per Companies Act, 2013.
(xiv) Compliance with approved schemefs) of arrangements
There are no schemes of arrangement impending m relation or applicable to the Company
(xv) Utilization of borrowed funds and share premium
(a) In case of bans/funds received by the Company, there are no amounts received, where the Company is obliged to advance monies to intermediaries m order to be ultimately lent to or invested «i other entities (ultimate beneficiaries).
(b) In case of funds given or advanced by the Company, there are no amounts given where, the Company requres the borrowers/receiving entities (intermediaries) to ultimately tend to or invest in other entities (ultimate beneficiaries).
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