k. Provisions & Contingent Liabilities
Provision is recognized when there is a present obligation as a result of past event that probably
requires an outflow of resources and a reliable estimate can be made of the amount of the
obligation. Disclosure for contingent liability is made when there is a possible obligation or
present obligation that may, but probably will not require an outflow of resources. No provision
is recognized or disclosure for contingent liability is made when there is a possible obligation
or a present obligation and the likelihood of outflow of resources is remote.
l. Impairment of Non-financial Assets
An impairment loss is recognised in the Statement of Profit and Loss to the extent, asset’s
carrying amount exceeds its recoverable amount. The recoverable amount is higher of an
asset’s fair value less cost of disposal and value in use. Value in use is based on the estimated
future cash flows, discounted to their present value using pre-tax discount rate that reflects
current market assessments of the time value of money and risk specific to the assets.
m. Cash and Cash Equivalents
Cash and Cash equivalents for the purpose of Cash Flow Statement comprise cash and
cheques in hand, bank balances, demand deposits with banks where the original maturity is
three months or less and other short term highly liquid investments.
n. Cash flow statement
Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary
items and 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. Trade & Other Payables
These amounts represent liabilities for services received by the company prior to the end of
financial year which are unpaid. The amounts are unsecured and are usually paid within 90 days
of recognition. Trade and other payables are presented as current liabilities unless payment is
not due within 12 months after the reporting period. They are recognised initially at their fair value
and subsequently measured at amortised cost using the effective interest method.
p. Segment reporting
The Company operates in only one segment i.e., Capital Market operations, hence segment
reporting in accordance with Indian Accounting Standard-108 is not applicable.
c. Deferred taxes are recognized when there is timing difference between taxable income and
accounting income for a period that originate in one period and are capable of reversal in one
or subsequent periods.
As per the management there is no reasonable certainty that sufficient future taxable income
will be available against which deferred tax assets can be realized hence no deferred tax
assets has been recognized in the books on unabsorbed losses as per Income Tax Act, 1961.
g. The Company has not provided for contingent liabilities in respect of following disputed tax
Liability:
1. Income Tax liabilities in respect of AY 1996-97 of '104.96 Lakhs for which appeal is
pending before the ACIT Assessing Officer.
2. Income Tax Liabilities in respect of AY2014-15 of '259.71 lakhs for which appeals is
pending before the ITO Corporate ward 3(4) Chennai.
3. Income Tax Liabilities in respect of AY2015-16 of '22.74 lakhs for which appeals is
pending before the ACIT (Appeals)
4. Income Tax Liabilities in respect of AY2018-19 of '66.46 lakhs for which appeals is
pending before the CPC
It is not practicable to estimate the timing of cash outflows in respect of this matter.
However, the company has been advised that it has fair chance of winning the appeals.
h. The Company had made contingency provision of ' 75 lacs in the financial year 2014-15 towards
estimated settlement cost of '75 lacs payable to Gujarat Industrial Investment Corporation for
pending legal cases in the High Court of Chennai. According to the management estimates,
sufficient provision has been made on review and does not require any additional provision for
the contingency.
Mr. Sundar Iyer, Promoter of Twenty first Century Management Services Limited has given
18,05,000 equity shares of the said company as collateral security for Bills Discounting Limit of
'75 Lacs. Honorable High Court, Chennai vide its order has stayed creating any encumbrance
on the said shares which are under dispute vide case no -Civil Suit No -749/2019. These
shares are lying in the demat account of Mr. Sundar Iyer.
i. During the year, the management has decided to write off loan of ' 22.13 lakhs which was
under dispute and is considered irrecoverable.
j. The Management is not able to receive bank statement for the following bank accounts as
the accounts have become dormant. Accordingly, the balances have been considered as per
previous year.
m. During the year the Company has filed for settlement of cases where the company was in
appeal under the Direct Tax Vivad se Vishwas Scheme, 2024 and has deposited ' 249.38
lacs, ' 21.06 lacs and ' 5.54 lacs for AY 2007-08, AY 2009-10 and AY 2010-11 respectively.
Further an amount of ' 13.25 lacs was deposited towards an income tax demand for AY 2011¬
12. These have been recorded in the Statement of Profit and Loss as short provision for tax of
earlier years.
n. Share certificates representing the holding of 10,000 shares in Rishiroop Limited have been
lost. The Company is following up with the Registrar and Transfer Agents for duplicate share
certificates.
o. In the Opinion of the Management, the current Assets and Loans and Advances as shown in
the books are expected to realize at their Book Values in the normal course of business and
adequate provision have been made in respect of all known liabilities.
p. Figures of the previous year have been regrouped/ rearranged wherever necessary to
correspond with the figures of the current year. Amounts and other disclosures for the preceding
period are included as an integral part of the current year financial statements and are to be
read in relation to the amounts and other disclosures relating to the current year.
The financial statements are presented in Indian Rupees (INR) which is also the Company’s
functional currency. All amounts have been rounded off to lakhs up to two decimal places,
unless otherwise indicated.
q. Pursuant to criteria specified in section 135 of the Act read with Companies (Corporate Social
Responsibility Policy) Rules, 2014, CSR provisions are applicable to the Company for FY
2024-25.
The Company has constituted a Corporate Social Responsibility (CSR) committee which have
recommended to the Board a Corporate Social Responsibility Policy (CSR Policy) indicating
the activities to be undertaken by the Company. The Corporate Social Responsibility policy
has been devised in accordance with Section 135 of the Companies Act, 2013. The brief
r. MCA notification dated 24th March 2021 for amendments to Schedule iii disclosures which are
applicable:
i. Title deeds of Immovable Property not held in name of the Company - Not applicable as
there are no immovable properties other than lease hold properties
ii. Revaluation of Property, plant & equipment by registered valuer - Not applicable since
no revaluation of property, plant & equipment has been performed by company during
the financial period.
iii. Details of Benami Property and its proceedings- Not applicable as there are no proceedings
which have been initiated or pending against the company for holding any benami property
under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made
thereunder.
iv. Willful Defaulter - Not applicable as the Company has no loans from Banks or Financial
Institution and the Company has not been classified as a willful defaulter
v. Relationship with Struck off Companies - Not applicable as there no transactions with
Stuck off Companies
vi. Compliance with number of layers of companies - Not Applicable as 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.
vii. Compliance with approved Scheme(s) of Arrangements - Not Applicable as the Company
no Scheme of Arrangements that has been approved by the Competent Authority in terms
of sections 230 to 237 of the Companies Act, 2013
However, all the loans have been repaid and there are no dues with these banks / creditors as
on 31st March 2025. Company has filed relevant forms with Registrar of Companies, Chennai
towards satisfaction of charges. We have taken up the matter with Registrar of Companies,
Chennai to clear the charges in their records.
OTHER STATUTORY INFORMATION
i. As per section 248 of the Companies Act, 2013, there are no balances outstanding with
struck off companies.
ii. The Company do not have any Capital-work-in progress or intangible assets under
development, whose completion is overdue or has exceeded its cost compared to its
original plan.
iii. The Company have not advanced or loaned or invested funds to any other person(s)
or entity(ies), including foreign entities (Intermediaries) with the understanding that the
Intermediary shall:
(a) Directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
(b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
iv. The Company have not received any fund from any person(s) or entity(ies), including
foreign entities (Funding Party) with the understanding (whether recorded in writing or
otherwise) that the Company shall:
(a) Directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
v. The Company do not have any such transaction which is 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.
As per our report of even date
For Shankar & Kishor For and on behalf of the Board
Chartered Accountants
Firm Registration No. 112451W
Shankar B Shetty Sundar Iyer Karthik Sundar Iyer
Partner Director Managing Director
M. No.038139 DIN:00481975 DIN:08853430
Place: Mumbai AVM Sundaram Bhaskar Shetty
Date: 29th May 2025 Company Secretary CFO
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