(b) Terms and Rights attached to equity shares
The Company has only one class of equity shares having a par value of Re.1/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The holders of equity shares are entitled to receive dividend as declared from time to time. The Company has not declared dividend for the year.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
18.1 Contingent Liabilities not provided for in respect of
a. Bank Guarantees outstanding Rs. 107/- Thousand (previous year Rs. 107/- Thousand) against which fixed deposit receipts of Rs. 355.99/- Thousand (previous year Rs. 333.52/- Thousand) pledged with a bank.
b. The lease agreement between MCGM and Jolly Bhavan No. 1 Commercial Premises Co-operative Society Ltd. (“the Society”) has expired on 14th December, 2000 and not been renewed as MCGM has raised a demand for additional lease rent which has been challenged by the Society who has filed an appeal before The Asst. Commissioner (Estates), MCGM. The Company is one of the members of the Society and has given an indemnity bond to it on 17th August 2012, that in the event that the Society is ultimately called to pay any additional lease rent from 14th December, 2000 onwards to MCGM on the outcome of its appeal, then the same will be borne by the Company.
18.2 There are no dues outstanding to any micro, small and medium enterprises. Accordingly, the presentation as per MSMED Act is not applicable.
18.4 Employee Benefits
As per Ind AS “Employees Benefits”, the disclosure of Employees Benefits as defined in the Accounting Standard is given below:
a) Defined Contribution Plan
The Company makes contribution at a specified percentage of its payroll cost towards the Employees Provident Fund (EPF) for such employees who qualify for the same.
The Company has recognised Rs. 196/- Thousand (Previous Year Rs.189/- Thousand) towards provident fund contribution in the Statement of Profit and Loss.
b) Defined Benefit Plans
The Company provides annual contributions as a non-funded defined benefit plan for qualifying employees. The gratuity scheme provides for payment to vested employees as under:
i) On normal retirement / early retirement /withdrawal / resignation:
As per the provisions of the Payment of Gratuity Act, 1972 with a vesting period of 5 years of service.
ii) On death while in service:
As per the provisions of the Payment of Gratuity Act, 1972 without any vesting period.
The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity was carried out at 31st March, 2024 by an Actuary using the Projected Unit Credit Method.
18.5 Fair Value Hierarchy
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV and listed equity instruments are being valued at the closing prices on recognised stock exchange.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.
The Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.
18.6 The figures of the previous year have been reworked, regrouped, rearranged and reclassified wherever necessary. Accounts and other disclosures for the preceding year 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.
18.7 Deferred Tax Assets/ Liabilities have been recognised during the year.
18.8 Provision for depreciation as per Companies Act 2013 as presented in Schedule II has been accounted for on the basis of the useful life of the asset.
18.9 Pursuant to the Taxation Laws (Amendment) Bill 2019, passed on November 25, 2019, the Company had exercised in the financial year 2021-22, the option permitted u/s 115BAA of the Income Tax Act, 1961, to compute income tax at revised rate and accordingly, the Company has written off MAT credit available and the same is reflected under Tax Expense in the Statement of Profit and Loss for FY ended 2021-22.
NOTE - 19
19.1 Companies operations are closed and therefore company has not prepared its financial statement on the basis of going concern assumptions.
19.2 Additional regulatory information
1 Title deeds of immovable properties are held in name of the company.
2 The Company has not revalued its property, plant and equipment or intangible assets or both during the current or previous year.
3 The Company has not provided or given Loans or Advances in the nature of Loans granted to Promoters, Directors, Key Managerial Personnel and Related Parties either severally or jointly with any other person.
4 The Company does not own any benami property.
5 The Company has no outstanding borrowings from banks on the basis of security of current assets.
6 The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
7 The Company has no transactions with the companies struck off under the Act or Companies Act, 2013.
8 There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.
9 The Company has complied with the number of layers prescribed under the Act.
10 The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.
11 Utilisation of borrowed funds and share premium:
(a) 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.”
(b) 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.”
12 There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.
13 The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
14 CSR is not applicable to the company in accordance with Section 135 of the Companies Act 2013.
19.3 The Company has been engaged in investment activities and hence, the provisions of Non Banking Financial Companies (NBFC) under the Reserve Bank of India Act, 1934 are applicable to it. The company is in the process of restructuring its business operations.
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