Further all the above borrowings are also secured by way of personal guarantee of Mr. Naresh Saboo, Managing Director. Further, the secured borrowings are repayable over a period of 3 to 5 years.

Fund based Cash credit facility (sanctioned amount ' 800 lacs) and non fund based Bank Guarantee Facility (sanctioned limit of ' 50 lacs) from Union Bank of India is secured primarily by way of hypothecation of movable current assets of the company including stock of materials, work in progress, finished goods and whole of the company’s bills outstanding, receivables, book debts and collaterally by mortgage of Flat at Mumbai and Nagpur and office premises at Nagpur in the name of the Managing Director, Mr. Naresh Saboo jointly with his wife Mrs. Madhu Saboo and pledge of 50,00,000 equity shares of ' 2/- each of the company held by the promoter company M/s Saboo Capital and Securities Pvt Ltd and also by personal guarantee of Mr. Naresh S. Saboo, Managing Director and Madhu Saboo, wife of Managing Director and corporate guarantee by the promoter company M/s. Saboo Capital and Securities Pvt Ltd.

Micro, Small and Medium Enterprises in terms of section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 have been determined to the extent such parties have been identified on the basis of information available with the Company and relied upon by the auditors. The Company has not received any instruction from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence, disclosures on the face of balance sheet, relating to amounts unpaid as at the year end together with interest payable as required under the said Act have not been given.

The balances appearing under unsecured loans, sundry creditors, sundry debtors, loans and advances, and certain banks are subject to confirmation and reconciliation and consequential adjustment, if any, will be accounted for in the year of confirmation and/or reconciliation

In the opinion of the Board, assets other than fixed assets do have a value on realisation in the ordinary course of business at least equal to the amount at which

* they are stated.

31.2 The Company does not have any employee on payroll from the mid of 2016 and hence we have not provided any provisions for gratuity, leave encashment etc.

The sales tax department in the finacial year 2013-14, raised a demand on the company for 74,64,088/-, against which the Company has preferred an appeal against the department with the Deputy Commissioner of Sales Tax (Appeals). The DCST Appeals has decided the appeal on 28-02-2022 and raised a final 31*3 demand of Rs. 12,50,722/- on the company. The company had already deposited 4,14,473/- as pre deposit. Thus, there was a final demand outstanding of Rs. 8,36,249/- The company has finally settled the demand amount under Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fees Act, 2022 at 20% i.e. Rs. 1,67,500/- as per Settlement Order dated 15-09-2022 and the same has been paid.

The LBT (Local Body Tax Department) of the Nagpur has raised a demand order against payment of tax liability with interest and penalty for which company has filled an appeal in front of Commissioner Appeal by depositing the only duty demanded but the same has been paid under protest, the order has been passed

* by the commissioner against the company and the company has been directed to pay 75,20,319/- includes Interest and Penalty. But the company has filled an Pitition against the order of the Commissioner in the High Court, and till the date of audit no judgement has been passed on the same.

During the current year there were no employees on the payroll. All the above facts cause significant doubt as to going concern principle. However the

* management believes that the event & facts are temporary in nature & they will continue as a Going Concern.

For the purpose of valuation of Investments in Ginger Infrastructure Pvt Ltd , book value as per last year balance sheet is considered as the value of the

* investments due to non availability of latest Audited balance sheet of Ginger Infrastructure Pvt Ltd for calculating the book value per share of the investments.

The company has some long outstanding debt which have not been materialise from that time. On enquring regarding the same we have been informed that the following debtors namely M/s. Sudhir Constructions, Ginger Banquets Pvt Ltd, Mr. Govind Pathak, Khushi Ram Kundnani, M/s. Desire have disputed the matter 31*7 from very long and they are not ready to pay any dues stating that company had supplied lower quality material and due to lower quality supply they are asking for some compensation from the comapny, due to this ongoing matter the balances appearing to the this debtor account has been writeen off during the F.Y. 2022-23 by the managment.

The company has some long outstanding Trades Receivable with contractors which have not materialised since long. On enquring regarding the same we have been informed that due to long ongoing disputed with these contractors the credit balance to their account is not likely to be paid and hence the balances

* appearing as credit balance in Trades Receivable with these contractors namely - a) NSSL Pvt. Ltd. have been writren off during the F.Y. 2022-23 by the managment.

The company had some long outstanding debt which had not materialised since a long time and the debtor namely M/s. A N Traders & Contacators was written 31*9 off during the F.Y. 2021-22. The same has been writen back by the managment to the extent of Rs. 20 lakhs as an amount of Rs. 20 lakhs has been recovered from them during the F.Y. 2022-23.

r

The company has some long outstanding Advance which have not materialised since long. On enquring regarding the same we have been informed that due to 31*10 long ongoing disputes with these the debit balance to their account is not likely to be recovered and hence the balances appearing as Advances namely - a) Shri Govind Pathak - Rs. 7,00,000 have been writren off during the year by the managment.

The company has some long outstanding Security Deposits which have not materialised since long. On enquring regarding the same we have been informed that 31*11 due to long ongoing disputes with the party the Security Deposit is not likely to be recovered and hence the balances appearing as Security Deposit - a) Ashoka Buildcon Limited - Rs. 15,98,492 have been writren off during the year by the managment.

32 Segment Information

The company has identified business segments as its primary segment. Business segments are primarily Infrastructure and Trading. Revenues and expenses directly attributable to segments are reported under each reporatble segment.

Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocated to segments have been disclosed as unallocable expenses. From the previous year company has closed all its segments therefore previous year and current year figures have not been reported. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed unallocable.

Note-34 Critical estimates and judgements in applying accounting policies

The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Information about estimates and judgements made in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements are as follows:

i) Property, plant and equipment and useful life of property, plant and equipment and intangible assets

The carrying value of property, plant and equipment is arrived at by depreciating the assets over the useful life of assets. The estimate of useful life is reviewed at the end of each financial year and changes are accounted for prospectively.

ii) Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm's length, for similar assets or observable market prices less incremental costs for disposing of the asset.

iii) Provisions and contingencies

The assessments undertaken in recognising provisions and contingencies have been made in accordance with the applicable Ind AS.

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Where the effect of time value of money is material, provisions are determined by discounting the expected future cash flows.

In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Guarantees are also provided in the normal course of business. There are certain obligations which management has concluded, based on all available facts and circumstances, are not probable of payment or are very difficult to quantify reliably, and such obligations are treated as contingent liabilities and disclosed in the notes but are not reflected as liabilities in the financial statements. Although there can be no assurance regarding the final outcome of the legal proceedings in which the Company involved, it is not expected that such contingencies will have a material effect on its financial position or profitability