(r) Provisions, Contingent Liability and Contingent Assets
The Company creates a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure of contingent liability is made when there is a possible obligation or a present obligation that will probably not require outflow of resources or where a reliable estimate of the obligation cannot be made. Contingent Assets are neither recognized nor disclosed in the Financial Statements
(s) Impairment of Financial Assets
Expected credit losses are recognized for all financial assets subsequent to initial recognition other than financials assets in FVTPL category.
(t) Impairment of Non-Financial Assets
The Company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. If any such Indication exists; the Company estimates the recoverable amount of assets. If such recoverable amount of the assets or the recoverable amount of the cash generating unit to which the assets belong is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of Profit & Loss. If at the Balance Sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the assets is reflected at recoverable amount.
(u) Exceptional Items
Exceptional items are disclosed separately in the financial statements ’where it is necessary todo so to provide further understanding of the financial performance of the company. These are material items of income or expense that have to be shown, separately due to their nature or incidence.
(v) Earnings pershare
The Company presents basic and diluted earnings per share data for its ordinary shares. Basic earnings per share is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the year. Dilutee earnings per share is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding, adjusted for own shares held, for the effects of all dilutive potential ordinary shares.
(w) Events afterthe reporting period
Adjusting events are events that provide further evidence of conditions that existed at the end of the reporting period. The financial statements are adjusted for such events before authonzation for issue.
Non-adjusting events are events that are indicative of conditions thatarose after the end of the reporting period. Non-adjusting events after the reporting dale are net accounted, but disclosed.
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l> rtr Looil Bank hi> Hied paiiin Frforc f»RI IX'Id ur.Ki tecoxi 19(41 of Ih: Ad Ih: t mn,inr> n cotecinnji iK- raaoa vn«r lt» BnlniKiiSnn Dale
rhe I fiffptwy lu» rcechtd U ktiee tKm ILICl Umii l.nl icuhUhb «4l(MlieilloflM*< ofCoin.miiv in F/udein ARC Led vdc lick uwt-roflfta lyieniiein dacd HMrt.2fl24 «joc ilr* Hail lut *utrd I bit « >«b iiK-iim) all f> net* ai leUbon to llic un'ilruliej: cifruuec olitc (o<i!(un>.
iv Join I Director (Investigation) cum [K-puty Commissioner Slate Tax, Bhalinda bad served notice for bearing re-yarding Company appeal under action 62 of the PVAT Acl 2005 for the additional demand created uniter the PI DU Act 2(102 for the FY 20IW-I0, IY 2010-11 & FY 2<ll 1-12 amounting to Rs. 455.671 ac» The Company has filed appeal in Chandigarh Tribunal and the mailer is yet to be luted.
v An appeal before the Customs. Txc.se it Sen ice Tax Appellate Tribunal. Ness Delhi is lying pending against ihc order of Commissioner of Ccmral Txclsc
< Appeals). IX-lhi -III in respect uf aiklitioiul excise duty of Rs, 42.01 Lacs demanded by the Excise department in connection of dispute over classification of goads -food product pnvIiKcJ at Baltalgarh Factory- as per the Central Tariff Acl. As the matter is still pending before Ihc Tribunal, no provision in the boob of accounts have been made.
xl During the financial ycai 2(116-17, the company lias received an order from Hoablc Central Excee and Service Tax Appellate Tribunal. New Deih (C'ETSTAT) against the order passed by Cdmmitttaocr of Service lax (Adjudication). New Delhi demanding a service lux of Rs.25V.25 Lacs. Ihc Honblc CT1STAT vide its order dated I6AI2.20I1 2 3 4 5 6 7 lias granted tnajoi relief of Rs 250.1A Lac> against the aforesaid demand
vii VAT-Delhi had raised the demand of 726 UJ l acs against pending 'F Toons in respect ol years 2(115-2016 & 20lf>-2(l! 7. Pending F forms were related to s>x quarter
out of the above, for five quarter all F forint were submitted and ait order dated I6-08-2022 lias been received, nullifying the demands of these quarter For quarter one for the vear 2016-2017 I tonus are pending tlicre a Jcmaixl of Rs. 22.63 Lacs has been raised by VAT-£X:l|u. Appeal against the said order Iuls been filed w ith VAT-Dclhi. the IX-partmcnl has passed an order nullifying die demand, thus there is no liability to the discharge with regard to "F" lurm.
vili l-tgal Casts against tlir Coomanv
a) The Board of Trustee of the poit of Mumbai has tiled a money suit for recovery of Rs. 963.94 Lacs towards alleged outstanding demurrage charges against which the company has filed ns counter claim of Rs 10.851 Cr. towards the financial losses interest on the investment, refund of the license fees, refund of the demurrage charges, compensation and damages ere The nutter is still pending
b) The Municipal ( orporatinn h3s issued notice to the Builder of Pinnacle Tower tor vacating of pemuses Pinnacle Tower, at Surajkund l andahad. The Builder obtained interim stay on the order of Muneipal Commissioner. FandaKsd from Hon'hc High Court Punjab and Haryana. The Company also filed a petition before the civil judge, senior division. Faridabod with regard to stay of proceeding against order of Municipal Corporation. Fatidabad. Tne Ikm'blc Fatidabad Court has stated ilut already interim suy have been granted by the Hon'ble High Court. hence no ground to gram relief prayed for is made out at this stage I he next date of hearing is I Ith July 2024.
<11 Financial Risk Management
The company hi* exposure to lie follow-mu ri*k« arising from Finuitcinl Instrument*
• Credit Risk
- Liquidity Risk
- Mar ket Rivk
CKKUn RISK
Credit risk a lac rak Ihic counterparty will not meet its obligations under j financial mstruitxrul ot customer contract. leasing to a fmancml lost. Tfae Company a exposed tn .-rcdi! risk front its opc-iating activities (pinnirily trade receivables i and from its fiiutncinu activities, inrhidinc cash and cash equivalents and deposits with banks and financial institutions.
( KMJII RISK MANAtikMK-N I I nide rittlsnble rvlalsd credit risk
All trade receivable are reviewed and assessed fur default i« routine Kim*, tku hwtonv.il experience of cotyeoing receivable* is of Rgnifruivt credit risk Other fin uncial averts
The company maintains low exposure in emit and cash equivalents. The CompanyV maxotimi exposure lo credit risk a the catryinp value otrtcb dun of financial assets I igl lltm RISK:
Liquidity nsk u the ntk dial Ihc Company wtil lace in meeting it* obligations associated with tlx fnutncul luhiltltes. The Company's approach tn managing liquidity i$ to ensure that it will have sufficient funds tn meet its liabilities when due without incurring unacceptable kstgci.
Maturltlrs «f financial IlMbllltlrs
The table below analyses the Company's fmnneinl liabilities into relevant ntmiiity £raupingx based on their contractual maturities for all non-derivafivv finnneinl linhilit-o.
Market Risk
Market risk »the risk tbai the frnt vah*c of future cash flows of a fiauxatl uttintuietu will fluctuate because cf cliaugcs tu marks'! pc*x*. live Company » exposed to the following matket risks that utrre limn its use of financial uistfuments:
- Currency Nek
- Puce Risk
- Interest Rate Risk
Currents Risk
The Company operates utlcnuuutuily uni consequently the Company ix ex|xtted to fuevi^i exchange risk through ib sales tu ovutseas matket. Tlte Compiuy evaluates exchange rase exposure amine from foreign emtvney transactions arxl thr Company fbOosvi policies which includes the use of derivatives like foreign exchange forward contracts to hedge expiwurc to foreign cummey nsk.
I>l There are nu outstanding tom uni roinru.is as ua 51 March 5024.
C> Otitstmidinit forward exchange contracts entered l»> thr omipanv for the purpose ot hedging ill foreign currency exposures.
rhere wre no outstanding ft*\snnl exchange etnitract filtered by the 00115x10)' as on 31,03.2024 mid 31 .05.203.V Price Risk
TV price risk it ihr n*k arising from insrvtmrnK held hy shr Company and classified m the halnn.-e sheet etiher at fair value through Other Cemiprehrmivr lecceoe or ar fair value through proto ut loss.
Ihc Company's cspiity invcslmnsts arc mainly strategic tn natmc and are generally be Id on a loegk-nr. basis.
Interest Risk
Interest mte risk ix lire risk that lire (ini salts; or future cash Hows tif a financial immanent mil fluctuate because of changes in matket iittereit rates. As at March 31. 2024. the Company hat short lerm bommings of Rs. <s3fil2 tic* which in exposed in f*uroal rwk.
Commodity Risk
The Company is extxmsd U> the llticlutitksns in conunoiit) pnees Mismatch in dscn*d and svpply. udsetse sscathci conditions, market expectations etc can had to price flucnmUont. The CuDipuuy minium these prwc flurnaiUous by actively muiixeutg the uauskic of the one mu .tail and olkct products.
41 As per Ok junssnil cf lie mncjcnrent the rectneraMe imam oTAe ittra is higher Pan 'll airsisp vatic ml hoftc r*> inpnmrert of aorta reals to be records! ir lie fturext tfricMML
41 TtvcoitrokofCusil IV hs» Ur tniy nrp ttttd bastren gktulh rwMirg inlti TV- currpnrs tnJvjirvibattcmi snpx: on opcnvoi sod rocovintwlirr of tnnnre Jo; fruit fXktiait An luCovid IV ml thr kciukiuninjured by di: piscnm;it
45 lire sMnpayun sir. reclin'd *• stxndutyanumi n respsvI of Ý mpirili»«il irstvtwbiily (< Slti fit ciiirolyvo ml fin (train*. >m inpn re.ts.-u 155 uffWpiiuo. Ail,
4t llk*s\<liisuvhB miaul: un ion, iiitsiii in anv p,local uits dunryj s-roni sear nsj (lesnita sen 4b Dump die sear us imruit nf Dtxdoid las been nmllcd it I ream curries » V« Roidiri nil id: Intii 4* Scene J die Ns rents uf fXhlws rent CnuJiluN rev vatw ui ureifiimitian
47 CW.stimlitti fpo.’s ks lire fts svm year fuse twai wtniofed ruimutsd, ntuvxvx mvomiv in ssofitm » (uncut year chtsifiaiton 4Jt t ciTCioc t lUc muulxiunnr uin.» act nature ip to its hill capacity die tn aro ai iitihim dicrntc ot luuli
The above note* funn part of the lommrial statotn.ixa In terms of «or sqstrnte reporr uf even date attached
l or ami on lichatf of the board of directors
for N C Raj & Associates Chartered Accountants FRN: 002249N
Sar«3y Garq Sabutu Arera (iu,wn'A,UIU
P4irtn«r tu Mg. Director R. Mg. Director
MnOmliip No 088636 dinn*.oxitvnt
Ffridatiwl fbtshti Arena Drepak Kmi-lwl
20-May-2024 C.f.0 Company Secretary
1
M's. Regal Kitchen Foods Limited filed an arbitration petition towards alleged outstanding, against which company is m process of filing its counter claim towards
2
the finaneul losses T he Company has booked income towards the financial losses of Rs 387 Lakhs, which is to be recoverable from M 's. Regal Kitchen Foods Limited. Case is filed in District and Session court Faridabud The Company filed a petition before ihc Hon'ble Apex Court with regard to contesting of proceeding before District 3nd Session Court. Fandalxtd five Hon'ble Apex Conti had allowed live company pennon w ith granting relief to the Company and parties against the impugned oedet of Faridabad District Court and asked the Company to dcposii l\R 50 I aslts each m two tranches in gap of two weeks before the Hon'bk High Court for seeking direction for thither relief
3
56 Cimmuimeois
4
There arc no comnulrncm for contracts remaining to be executed on capitul account as at the end of current year or previous year.
5
57 Derails uf loans given, investment made and guarantee given covered u s 1X6 (4| of the f ompanles Act-2015.
6
i Details of Loans given urxl investment made are given under the respective heads.
7
^ As pet the assessment of Management the company continues to be going concern. T his assessment :s based on Resolution plan submitted to die Banks by company and die interest shown by prospective mwslors in live <ompany
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