a) Investments include an amount of Rs 2.36 lacs representing equity shares in a co-operative society towards purchase of flat.
b) Investments Rs 0.10 are kept as security with authorities. These investments have matured. The Company is not in a position to get the same from authorities as the same are lost or misplaced. No provision is made for loss of investments Rs 0.10 and accrued interest Rs 0.01 lacs as company is still following up with the authorities
c) Investments in Debentures or Bonds (i, ii and iii above) aggregating to Rs 0.56 lacs are destroyed in fire in the year 1998. In absence of adequate data, no provision is made for loss of above investments.
(i) Investments Rs 0.05 are kept as security with authorities. These investments have matured. The Company is not in a position to get the same from authorities as the same are lost or misplaced. No provision is made for loss of investments Rs 0.05 and accrued interest Rs. 0.01 as company is still following up with the authorities.
(i) The Company has called for balance confirmations from Trade Receivables. It has received a few of the confirmations which have been reconciled with the records of the Company . As regards the remaining Trade Receivables, reconciliation will carried out in the year in which confirmations are received.These balances have been taken as per the records of the Company.
(ii) Trade Receivables are non interest bearing .
Rights, preferences and restrictions
a) The company has one class of Equity Shares having a par value of Rs 10 per share . Each shareholder is eligible for one vote. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting, except in the case of the Interim Dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts in proportion to their shareholdings.
b) In order to bring in line the paid up capital which was not represented by the assets due to huge carried forward losses the company had made a petition the the Hon. Bombay High Court under section 100 and other applicable provisions of the Companies Act, 1956 for reduction of capital from Rs 2.50 crores to Rs 25 Lacs by reducing the paid up value of the equity share from Rs 10 to Rs 1. The Hon.Bombay High Court has confirmed the reduction of capital vide their order dated 15th April 2004.Consequently Rs 22,375,012 ( after adjusting forfeiture of 27,775 shares and Rs13,888 amount paid on forfeited shares) has been reduced from the accumulated losses of the company during the year ended 31st March 2005. The Company has consolidated its equity shares from Rs 1 to Rs 10.
c) During the period of five years immediately preceeding the year 31 March, 2025, the company has not issued any bonus shares or shares for consideration other than cash and also the company has not bought back any shares during the said period.
d) The company has not reserved any shares for issue under options and contracts/commitments for the sale of shares/ disinvestment as at 31 March 2025 and 31 March 2024
e) Originally the Company had 25,00,000 shares of Rs. 10 each issued. Out of the above 27,775 shares (Paid up Rs. 5 each) were forfeited by the Company. Pursuant to the order of the court for reduction of share capital and subsequent consolidation of shares, 2,778 shares were forfeited with paid up amount of Rs. 0.14 lakhs.
i) Retained earnings are the profits/ losses that company has earned/ incurred till date, as reduced by transfer to reserves, dividend or other distribution paid to the share holders and transfer from/ to OCI.
ii) General Reserve
“General reserve represents the amount appropriated out of retained earnings pursuant to the earlier provisions of Companies Act, 1956.”
iii) Capital Reserve
Capital Reserve includes Rs 10.92 lacs capital profit on Sale of Fixed Assets. The company is not in possession of information relating to the remaining balance as the same was created more than 40 years ago.
i) The Company had borrowed amounts from its bankers aggregating to Rs 82561.29 Lakhs including interest. Since said amounts were not repaid, Bankers approached Debt Recovery Tribunal. The Hon'able Bombay High Court had approved the application of the banks for transfer of debts owed to them to a lending company (hereinafter referred to as “Lending Company”) along with securities and mortgage charges in the past pursuant to the consent terms filed in the Debt Recovery Tribunal. Consequently, suits filed by the banks before the Debt Recovery Tribunal had transposed the “Lending Company” in place of the banks. The Hon. Bombay High Court had passed a decree in two of the suits in favour of the said “Lending Company” to dispose off / sell the immoveable property and flats belonging to the company to recover its dues. Total amount due to the “Lending Company” as per the decree together with interest is Rs. 86109.08 lakhs as on 31st March 2025. The lending Company has given an unconditional deferment of its loans up to September, 30 2026 and accordingly this loan from the lending company is classified as non-current.If Company had accounted for differential liability in the books, the loss would have increased by Rs. 3547.79 lakhs, negative net worth would have increased by Rs 3547.79 lakhs, and secured borrowings would have increased by Rs. 3547.79 lakhs
ii) Consequent to the one time settlement made by the Company with its bankers, loans from Banks were transferred to a “Lending Company” referred to in Note 15(i) above. The company is in the process of restructuring the debts with the said “Lending Company”
a) Trade payables include an amount of Rs 26.51 lacs ( Previous Year Rs 26.51 lacs) which represents old balances for which no write back has been made pending the review /confirmations of the same.
b) The Company has called for balances confirmations from Trade Payables. It has received a few of the confirmations which have been reconciled with the records of Company. As regards the remaining Trade Payables, reconciliation will be carried out in the year in which confirmations are received.These balances have been taken as per the records of the Company.
c) The information has been given in respect of such suppliers to the extent they could be identified as micro and small enterprises on the basis of information received and available with the Company. Auditors have relied on the same.
26. Defined Benefit Plan/Long Term Compensated Absences : In terms of the provisions of the Standard applicable to the company, the company is required to provide for accrued liability for the year in respect of gratuity and long term compensated absences based on acturial valuation as at year end. However the company has made provision for the year for gratuity and long term compensated absences on arithmetical basis as stated in note 2(m). The effect of the Profit & Loss Account for the year had the company determined the accrued liability for gratuity and long term compensated absences based on actuarial valuation has not been ascertained. Further the transitional liability/gain as at April 1, 2007 which is required to be accounted in terms of transitional provisions of the Standard, has not been ascertainedand accounted for.
27 CONTINGENT LIABILITIES
i) Claim not acknowledged as debts
(a) Fine of Rs 1,003 lakhs is levied on Company and its Officers for alleged violation of Foreign Exchange Regulation Act in respect of transactions relating to purchase of ships in foreign currency in the year 1978. The Company had filed an appeal against the said order with Appellate Tribunal for Foreign Exchange. The Tribunal has allowed the company's appeal against which the concerned department had filed an appeal with the Hon. High Court of Bombay. The Hon. High Court of Bombay has referred the matter back to the Appellate Tribunal. An amount of Rs 0.25 lakhs paid as deposit against the penalty is relected in Loans and Advances. The matter is still not disposed off and final orders are awaited.
(b) The ground lease of the premises of the company has expired on 22nd May 2017. The Company has made an application for renewal of lease. The company has received a demand notice for arrears of compensation /Spl Way Leave fees for the period 1st May 2017 till 31st March 2025 for Rs 26,38,41,496.65 towards renewal of lease. The company has responded to the above demand notice contesting the demand and contents thereof. The Company has accounted for rent due from its tenants for the entire quarter on the basis of it being a holding out tenant as per legal opinion received.
(c) The Bombay Municipal Corporation ( “BMC) introduced Capital Value System for collecting property taxes from 1st April 2010. The Property Owners Association filed a petition in the Hon. Bombay High Court ( “Court”) challenging the proposal . The said Court passed an interim order(Order) on 25th February 2014 to pay taxes at the old rate plus 50% differential between old and new rates . The company has provided taxes at the old rate plus 50% differential between old and new rates in the books of account. The BMC has filed a Special Leave Petition ( “SLP”) in the Hon. Supreme Court against the said order. The company has not provided 50% differential between old and new rates in the books amounting to Rs 1,35,79,227 as at 31st March 2025 pending disposal of the SLP.
28 The company's old records were destroyed owing to heavy rains which took place in Mumbai on 26th July 2005, resulting in heavy seepage in the premises where old records were kept. The company is in the process of reconstructing the records to the extent possible
* All amounts are in lakhs except for Weighted average number of Shares, Basic and Diluted Earnings per Shares and Face Value per Share
31. The Company has accumulated losses and its net worth has been fully eroded. The Company has incurred a net loss of Rs 16.66 Lacs during the current year and accumulated losses of Rs 87137.02 Lacs and, the Company's current liabilities exceeded its current assets as at the balance sheet date. The management of the Company is evaluating various options to revive the company. The “lending company” which has taken over in the past debts due by the Company to the banks, has given a support letter to extend repayment for foreseeable future and also the financial support which may be required by the Company. In view of this support letter, the management has assessed that the company continues to be a going concern. Accordingly, going concern basis has been adopted in the prepartion of these financial statements based on management expectations and projections.
32 Confirmations are not available in respect of balances of Trade Receivables, Cash and Cash equivalents, Bank Balances other than Cash and Cash equivalent, Other Financials Assets, Other Current Assets, Borrowings and Trade Payables appearing in Notes 8,9,10,11,12,15 and 17 of the accounts respectively.
33 Segment Information
The Company's current business activities has only one reportable segment property owning and leasing.
36 Capital Management
The Company manages its capital to ensure that the Company will be able to continue as going concerns while maximising the return to stakeholders through the optimum utlisation of the equity balance. The Capital Structure of the Company consist of only equity of the Company. The Company is not subject to any externally imposed capital requirements
37 Financial Risk Management Policies and Objectives
The Company's activities expose it to a variety of financial risks. The Company's primary focus is to foresee the unpredictability and seek to minimize potential adverse effect on its financial performance. The Board of Directors of the company (“ the Board”) is responsible for monitoring the Company's risk management policies which are
established to identify and analyse the risks faced by the Company. The Board periodically review the changes in the market condition and reflects the changes in the policies accordingly. The key risks and mitigating actions are also placed before the Board of the Company. The Board oversees how Management monitors compliance with the Company's Risk Management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.
A. Credit risk
It is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due causing financial loss to the Company. Credit risk arises from Company's activities in investments and outstanding receivables from customers. The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer in which it operates. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of the customers, to whom the Company grants credit in accordance with the terms and conditions and in ordinary course of its business.
B. Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.
Management monitors rolling forecasts of the Company's liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates. In addition, management projects/review cash flows in major currencies and considers the level of liquid assets necessary to meet the same.
Maturities of Financial Liabilities
The table below analyze the Company's financial liabilities into relevant maturity groupings based on their contractual maturities for:
- All non-derivative financial liabilities
- Net settled derivatives financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows
The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying amounts as the impact of discounting is not material.
C. Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risks: interest rate risk, currency risk and other price risk. Financial instruments affected by market risk includes borrowings, investments, trade payables, trade receivables, loans and derivative financial instruments.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. As the Company does not have significant exposure to floating-interest bearing liabilities therefore its interest expenses and related cash outflows are not significantly affected by changes in market interest rates. The Company has not used any interest rate derivatives.
D. Financial Insturments
The Significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognized, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 2(j) to the financial statements.
Fair value measurement hierarchy :
Fair value measurement hierarchy of the Company's financial assets and liabilities :
The categories/hierarchy used are as follows:
• Level 1: Quoted prices for identical instruments in an active market;
• Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and
• Level 3: Inputs which are not based on observable market data
There are no such financials assets and liabilities in the Company which can be categorized as above.
Sensitivity Analysis:
Since the Company do not have any receivables/payables denominated in foreign currency at the end of the reporting period, there is no sensitivity to the market risk.
38 Liquidity Risk Management
Ultimate Ultimate resonsibility for liquidity risk management rest with the Board of Directors, which has established an appropriate liquidity risk management framework for the management of the company's short term, medium-term and long-term funding liquidity management requirements. The Comapany manages liquidity risk by by continuously monitoring forecast and actual cash flow and by matching the maturity profiles of financial assets and liabilities. The Company also monitors the level of expected cash inflows on trade and other receivables together with expected cash outflows on trade and other payables.This excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.
40 OTHER STATUTORY INFORMATION
a Company have not given any loans or advances to its promoters, directors or KMPs in the nature of loans. b The Company does not have any benami property, where any proceeding has been initiated or pending against the Company for holding any benami property.
c The Company has not been declared wilful defaulter by any bank or financial institution or other lender during the year. d The Company does not have any transactions or balances with companies struck off under section 248 of the Companies Act, 2013 or under section 560 of the Companies Act, 1956 during the year. e The Company does not have any charges which are yet to be registered or satisfied with ROC, Mumbai
f The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with
the Companies (Restriction on number of Layers) Rules, 2017. g UTILISATION OF BORROWED FUNDS AND SHARE PREMIUM
i The Company has 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
ii The Company has 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.
The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year h The Company does 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 such as, search or survey or any other relevant provisions of the Income Tax Act, 1961 i The company has not filed any Quarterly financial statements with banks or financial institutions.
41 Previous years figures have been regrouped/reclassified wherever necessary to correspond with the current year’s classifications /disclosures.
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