10. Provisions, Contingent Liability & Contingent Assets
(a) Provisions involving substantial degree of estimation in measurement, are recognized when the present obligation resulting from past events given rise to probability of outflow of resources embodying economic benefits on settlement.
(b) Contingent liabilities are not recognized and are disclosed in notes.
(c) Contingent assets are neither recognized nor disclosed in financial statements.
(d) Provisions are reviewed at each Balance sheet date and adjusted to reflect the current best estimates.
11. Employees Benefits
(a) Retirement benefits in the form of Provident fund, Pension Schemes and Superannuation are defined contribution schemes and the contributions are charged to the Profit & Loss Account of the year when the contributions to the respective funds are due.
(b) During the year 2023-2024, there is no Staff eligible for Gratuity there for no provision for gratuity is made during the year.
(c) Provision for Leave encashment is accrued and provided for on the basis of an actual valuation made at the end of each financial year.
(d) Actuarial gains / losses are immediately taken to Profit & Loss Account and are not deferred.
(e) Expenses incurred on voluntary retirement of employees are charged off to the Profit & Loss Account in the year of incurrence.
(f) Liability on account of short term employee benefits, comprising largely of performance incentives is recognized on an undiscounted, accrual basis during the period on the vesting period of benefit.
12. Tax Expense
a) Current year charge
Provision for taxation is ascertained on the basis of assessable profits computed in accordance with the provision of Income Tax Act, 1961.However, where the tax is computed in accordance with the provision of Section 115JB of the income Tax act,1961,as Minimum Alternate Tax(MAT),it is charged.
b) Deferred Tax
i) Deferred tax is recognized, subject to the consideration of prudence, as the tax effect of timing difference between the taxable income and accounting income computed for the current accounting year and reversal of earlier years' timing differences.
ii) Deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty, except arising from unabsorbed depreciation and carry forward losses which are recognized to the extent that there is deferred tax liabilities or there is virtual certainty,that suffucient future taxable income.
(C) MAT TAX
No provision is made for MAT credit entitlement as per past practice followed by Company.
C) In the year 2020-2021 Company has Purchased 26800 sqmtrs Industrial Land and 1 Biga 7 biswa Agriculture land for Rs. 7,51,56,189 through open auction as directed by Hon. N.C.L.T. Jaipur Bench Conducted by Official Liquidator on 31.8.2020. and the same sale deed registered in favour of the company on 03.02.2021 in Registrar Office Bhilwara. However, M/s Pammvi Consultancy Services ltd (An operational Creditor of Liquidated Company, Global Syntex Bhilwara Ltd) and GST department has filed a Legal suit before Hon N.C.L.T Jaipur Bench against Liquidator and also made the company as Respondent No. 4 as The Financial Creditor/Auction Purchaser. The matter is still pending before The N.C.L.T. Bench Jaipur and subpubic and Company does not anticipate any financial liability. The Order pronounced by Hon.NCLT on 23.04.2024 and the instant Application no IA(IBC)340/JPR/2029 of M/s Pammvi Consultancy Services Ltd and IA NO (IBC) NO 68/JPR/2022 of CGST Department is dismissed and stands disposed of, however in Hon. NCLT order it was directed Financial Creditors to return interest charged on finance amount required to be return ,due to this liability of Rs.6147967.00 on account of interest is arisen but company has not accepted the said liability and preferring and appeal before the upper bench i.e NCLAT.
27. EMPLOYEES BENEFITS PLANS
1. The Company makes contribution towards employees’ Provident Fund, Pension Fund, Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. During the year the Company has recognized Rs. .85 Lac as expenses to these plans.
28. Debtors, Creditors and advances are subject to confirmations, Reconciliations and adjustments, if any. The Management does not expect any significant variation and in the process of taking the necessary steps in this regard in the current year.
29. Related party disclosure in accordance with the Accounting Standard 18 issued by the Institute of Chartered Accountants of India is given below : Names of Related parties and nature of relationship where control exists
i) Key Management personal and relative of such personal
In Accordance with our Report attached For ABN & COM
Chartered Accountants FRN : 004447C
C.A S.C. Kabra Ashok Kothari Anshul Kothari Bhopal Singh Choudhary
Partner , M. No. 035604 Director, DIN 00132801 Director, DIN 02624500 Chief Financial Officer
Place : Bhilwara Smt. Sushila Kothari Smt. Anjali Jain
Date : 24.05.2024 Director, DIN 00132802 Company Secretary
Acs 43429
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