23.17 Provision, contingent liabilities and contingent assets :
A provision is recognized when the Group has apresent obligation as a result of pastevent and it
isprobable that an outflow of resources will be required to settle the obligation, in respect of which
reliableestlmate can be made. If the effect of the time valueof money is material, provisions are
discounted usmga current pre-tax rate that reflects, when appropriate,the risks specific to the liability.
When discountingis used, the increase in the provision due to thepassage 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 confirmedonly by future events not wholly within thecontrol of the
Group or
(2) present obligations arising from past eventswhere it is not probable that an outflowof resources will
be required to settle theobligation or a reliable estimate of the amountof the obligation cannot be
made.Conbngent assets are not recognized in theconsdidated 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 wifi be realized in future.
24) OTHER NOTES i
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 Art, 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.
24.5)
No provision for gratuity payable is made as there is no eligible employee entitled to gratuity. There
are no other dues payable to employees far which provision / payment has been made in books of
accounts including leave encashment dues etc.
24,10) Pending litigations :
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, l,05,000 is
recoverable alongwith 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 ioan taken from The Jaigaon
Peoples Co-operative Bank Ltd, in earlier and current year also and therefore the said loan account
has become MPA, As the account has become MPA, thebankhas 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 5ARFAE5I 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 trme settlement scheme of the said
loan under a group settlement scheme vide its letter Dt 03-02.2021. In terms of the settlement
scheme, Lite 0T5 amount of Rs, 43 Crores has to be paid by a total of 13 concerns, with Rs, 2.50
Cnores to be paid immediately and batance in 7 instalments upto 01.02,2023, Since the QTS
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 GTS 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 QT5 have duly not been made by other members covered by the OT5r the GTS 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-CurrentAdvance:
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 likefy to take in near future and hence the same is treated as interest free Non-
Currentadvances.
AS PER OUR REPORT OF EVEN DATE
For Ratan Chandak ft Co, FOR AND ON BEHALF OF BOARD OF DIRECTORS OF
Chartered Accountants MAN RAJ H OUS1NG FINANC E LIM IT ED
{ Kaushal K. Mmidada ) ISHWARLAL JAIN PRAMODKU MAR MEHTA
Partner CHAIRMAN ft MANAGING DIRECTOR DIRECTOR
Membership No, 122492 (DIN: 00386348) (DIN: 00386505)
Firm Registration No. : 10B69GW
UDIN No, ; 24123492BKCUPC7065
Place: Jalgaon.
Date: 27/05/2024-
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