23.17 Provision, contingent liabilities and contingent assets :
A provision is recognized when the Group has apresent obligation as a result of past event and it is
probable that an outflow of resources will be required to settle the obligation, in respect of which reliable
estimate can be made. If the effect of the time value of money is material, provisions are discounted
using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When
discounting is used, the increase in the provision due to the passage of time is recognized as a finance
cost. Contingent liabilities are disclosed in note no. 24. Contingent liabilities are disclosed for:
(1) possible obligations which will be confirmed only by future events not wholly within the control of the
Group or
(2) present obligations arising from past events where it is not probable that an outflow of resources will
be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.
Contingent assets are not recognized in the consolidated financial statements. Contingent liabilities in
respect of show cause notices are considered only when converted into demands.
23.18 Gratuity:
No provision for gratuity payable is made as there is no eligible employee entitled to gratuity. There are
no other dues payable to employees for which provision / payment has been made in books of accounts
including leave encashment dues etc.
23.19 Current Tax:
The Company uses estimates and judgements based on the relevant rulings in the areas of allocation of
revenue, costs, allowances and disallowances which is exercised while determining the provision for
income tax.
Deferred tax resulting from "timing difference" between book and taxable profit is accounted for using the
tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The
deferred tax asset is recognized and carried forward only to the extent there is a reasonable certainty that
the assets will be realized in future.
24) OTHER NOTES :
24.1) Unclaimed Dividend and Transfer of
Dividend to Investor Protection Fund :
Unclaimed Dividend of Rs. NIL ( P.Y. Rs. NIL/-)
24.2) Amount due to micro & small enterprises:
The Company has not received information from vendors regarding their status under the Micro,
Small and Medium Enterprises Development Act, 2006 and, hence, disclosures relating to amounts
unpaid as at the year end together with interest paid/payable under this Act has not been given.
24.3) Contingent Liability :
Capital and Other Contingencies
Estimated amount of contracts remaining to be executed on capital account and not provided
for (net of advances) Rs. NIL /-. (P.Y. Rs. NIL).
24.4) Segment Reporting :
The company's operations predominantly consist of construction activities. Hence there are no
reportable segments under Accounting Standard - 17.
No provision for gratuity payable is made as there is no eligible employee entitled to gratuity. There
are no other dues payable to employees for which provision / payment has been made in books of
accounts including leave encashment dues etc.
The company is in litigation against one of its borrowers. The decision of the second joint Civil Judge
-Senior division Jalgaon has ruled in favour of the company. Accordingly a sum of Rs. 1,00,000 is
recoverable along with interest awarded at 20 % p.a. this amount is yet to be realized and the
borrower is in further appeal, hence the same is not recognized being contingent on the outcome of
the appeal.
Also the company was not in a position to repay the installments of loan taken from The Jalgaon
Peoples Co-operative Bank Ltd. in earlier and current year also and therefore the said loan account
has become NPA. As the account has become NPA, the bank has not communicated any details
regarding interest / other charges payable if any with respect to said loan amount. The said bank has
issued a notice of demand U/s. 13(2) of SARFAESI Act, 2002, for the recovery of overdue amount
with interest. It has also transferred the account to Asset Reconstruction Company. The Asset
Reconstruction company has approved a one time settlement scheme of the said loan under a group
settlement scheme vide its letter Dt. 03.02.2021. In terms of the settlement scheme, the OTS amount
of Rs. 43 Crores has to be paid by a total of 13 concerns, with Rs. 2.50 Crores to be paid immediately
and balance in 7 instalments upto 01.02.2023. Since the OTS approved by the ARC is for the
group as a whole, of which the company is one of the beneficiaries, the share of the amount payable
under OTS would be paid by the company in subsequent years, in accordance with mutual
understanding. It may be noted that the payments due as per the schedule of OTS have duly not
been made by other members covered by the OTS, the OTS is therefore is not in force. Therefore
on balance sheet date no adjustments are made to the carrying amount of the
borrowings.
24.11) Tenancy Rights :
The tenancy rights in property at Mumbai being held for more than 12 months and classified as stock
in trade upto 31.03.2017, and as it has remained unsold till date and also being not likely to be
saleable in the near future,is treated as non-current asset.
24.12) Other Non-Current Advance :
An advance of Rs. 10.29 Crores is given to a related party for purchase of immovable property at
Mumbai, to be held as stock in trade, has become sticky due to resistance from tenants and
bottlenecks in re-construction of the said property and therefore no furtherance of the contract with
the said party is likely to take in near future and hence the same is treated as interest free Non¬
Current Advances.
AS PER OUR REPORT OF EVEN DATE
For Ratan Chandak & Co. FOR AND ON BEHALF OF BOARD OF DIRECTORS OF
Chartered Accountants MAN RAJ HOUSING FINANCE LIMITED
( Kaushal K. Mundada ) PRAMODKUMAR MEHTA ISHWARLAL JAIN
Partner DIRECTOR CHAIRMAN & MANAGING DIRECTOR
Membership No. 122492 (DIN: 00386505) (DIN: 00386348)
Firm Registration No. : 108696W/W101028.
UDIN No.: 25122492BMLNUJ5086
Place: Jalgaon. Place: Jalgaon.
Date: 28/05/2025. Date: 28/05/2025.
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