f) Provisions and Contingent Liabilities
The Company creates a provision when there is a present obligation as a result of a past
event that probably requires an outflow of resources and a reliable estimate can be made
of the amount of the obligation. A disclosure for a contingent liability is made when there is
a possible obligation or a present obligation that may, but probably will not, require an
outflow of resources. Where there is possible obligation or a present obligation in respect
of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
g) Income Taxes
Current Taxes
Income tax expense for the year comprises of current tax and deferred tax. Income Tax is
recognised in Statement of Profit and Loss, except to the extent that it relates to items
recognised in the comprehensive income or in equity. In which case, the tax is also
recognised in other comprehensive income or equity.
Current tax is the expected tax payable/receivable on the taxable income/ loss for the year
using applicable tax rates at the Balance Sheet date, or Minimum Alternate Tax payable /
receivable using applicable rates at the Balance Sheet date, and any adjustment to taxes
in respect of previous years. Management periodically evaluates positions taken in tax
return with respect to situations in which applicable tax regulations are subject to
interpretation and establishes provisions where appropriate
Deferred Taxes
Deferred tax is recognised in respect of temporary differences between the carrying amount
of assets and liabilities for financial reporting purposes and the corresponding tax base
used for computation of taxable Income.
A deferred tax liability is recognised based on the expected manner of realisation or
settlement of the carrying amount of assets and liabilities, using tax rates enacted, or
substantively enacted, by the end of the reporting period. Deferred tax assets are
recognised only to the extent that it is probable that future taxable profits will be available
against which the asset can be utilised. Deferred tax assets are reviewed at each reporting
date and reduced to the extent that it is no longer probable that the related tax benefit will
be realised.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit
or loss (either in OCI or in equity).
((S<mumba/fo\
' 51 045038 >•
feV”5705W,«
h) Employee Benefits
Short-term employee benefits
Employee benefits payable wholly within twelve months of availing employee service are
classified as short-term employee benefits. This benefit includes salaries and wages, bonus
and ex- gratia. The undiscounted amount of short-term employee benefits to be paid in
exchange of employees’ services are recognised in the period in which the employee
renders the related service.
No Provision for retirement benefits as required by the Accounting Standard to be made by
the Company.
i) Earnings per share (EPS)
In determining Earnings per Share, the Company considers net profit after tax and includes
post tax effect of any exceptional item. Number of shares used in computing basic earnings
per share is the weighted average number of the shares, excluding the shares owned by
the Trust, outstanding during the period. Dilutive earning per share is computed and
disclosed after adjusting effect of all dilutive potential equity shares, if any except when
result will be anti - dilutive. Dilutive potential equity Shares are deemed converted as at the
beginning of the period, unless issued at a later date.
j) Provisions, contingent liabilities and contingent assets
The Company creates a provision where there is present obligation as a result of a past
event that probably requires an outflow of resources and a reliable estimate can be made
of the amount of the obligation. A disclosure for a contingent liability is made when there is
a possible or a present obligation that may, but probably will not require an outflow of
resources. When there is a possible obligation in respect of which the likelihood of outflow
of resources is remote, no provision or disclosure is made. Contingent Assets are disclosed
only when an inflow of economic benefit is probable.
k) Cash and cash equivalents
Cash and cash equivalents comprise cash and cash on deposit with banks and
corporations. The Company considers all highly liquid investments with a remaining
maturity at the date of purchase of three months or less and that are readily convertible to
known amounts of cash to be cash equivalents.
//Ýr—
II ?/mUM8AI \b\\
The Company had paid Rs. 68.82,885/- in the year 1997 -1998, to Brooklyn Hills & Properties Pvt. Ltd towards deposit for occupying office No. 317 at Maker
Chambers V, Nariman point. Mumbai 400 021. Brooklyn Hills & Properties Pvt Ltd has not refunded the said deposit amount and therefore the Company is in the
possession of the said premises since 1997 -1998 and the same is included and shown in Other Deposits-Note No. 4 Other Financial Assets.
Note - 23
In the opinion of the board, the Current Assets. Loans and Advances are approximately of the value stated and realised in the ordinary course of business.
The Provisions of all known liabilities is adequate and not in excess of the amount reasonably necessary.
Note - 24 Commitments and Contingencies
Upon the death of the promotor Mr. Bimal Gandhi on 08-06-2001 NSE did not permit the Company then named as Dll Vikas Finance Ltd to transact any business
. From the above date the Company has not transacted any business on the exchanges. The NSE vide its letter dated 08-02-2006 confirmed that after adjusting
the Company's dues, no dues were outstanding.
The Company then decided to venture out into completely new busuness and thus on 13-04-2020 the name of the Company was changed to Kratos Energy &
Infrastructure Ltd and the" Objects * clause of the Memorandum of Association were suitably amended to reflect the new business. The Company had deposits
with NSE ( Shown in the Assets side of the Balance Sheet) and thus the Company in September, 2017 applied for surrender of its Trading Membership of the
NSE and return of the deposits. The NSE by its letter dated 08-12-2017, approved the Company's requests for surrender of its membership.
Subsequently, in August 201$, the Company received letter from NSE forwarding therewith SEBI's letter dated 08-08-2019 demanding outstanding" Others "
Fees amounting to Rs. 6.08 Crores ( Comprising of Rs. 1,48,14,580/- as the pnncipal and Rs. 4,60,39,986/- as the Interest). The Company lias vehemently
contested the same on various counts before SEBI and the Hon'ble Securities Appeliate Tribunal ( SAT ) and finally filed a Civil Appeal before the Hon'ble
Supreme Court of India. The Hon'able Supreme Court of India vide its order dated 16-05-2023 admitted the Civil Appeal and passed an order to the effect that
further proceedings for the recovery of the balance amount would remain stayed till next date of hearing.
The Company is undergoing PPIRP process vide petition filed with NCLT Mumbai dated 27th September, 2023 . The Resolution Plan was submitted by the
Company along with strategic Investor M/s Lord's Mark Industries Limited , the NCLT admitted the application on 1st February 2024 and appointed Mr. Amit
Poddar as Resolution Professional ( RP ) / Insolvancy Professional (IP ) in the matter. The plan was approved by Commitee of Creditors ( COC ) on 27th April,
2024 and submitted by RP on 1st May. 2024 to the NCLT.
Note -25 Details of dues to micro and small enterprises as per MSMED Act, 2006
There are no Micro and Small Enterprises as defined in the Micro and Small Enterprises Development Act, 2006 to whom the Company owes
dues on account of principal amount together with interest and accordingly no additional disclosures have been made. The above information
regarding Micro and Small Enterprises has been determined to the extent such parties has been identified on the basis of information available
with the Company. ___
a) The Company does not have anytrasactions with companies struck off under Section 248 of the Companies Act, 2013.
b) The Company does not have any unrecorded transactions that have been surrendered or disclosed as income during the year in
the tax assessment under Income Tax Act. 1961.
c) No proceedings are initiated or pending against the Company for holding any benami property under the Benami Transactions
( Prohibition ) Act, 1988.
d) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial yeaar or preceeding
financial year
e) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statuory period.
f) The Company has neither earned any income in foreign currency nor incurred any expenses in foreign currency
g) The Company have not declared willful defaulter by any bank or any other financial institution at any time during the
financial year.
h) The Company have not advanced or loaned or invested funds to any other person(s) or entityfies ) , including foreign
entities (Intermediaries ) with the understanding that the (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 beneficiarirs.
i) The Company have 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 Group 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.
Note - 29
Previous year's figures have been regrouped / reclassified and rearranged wherever necessary to confirm current year's classification.
Significant accounting policies and
Notes forming part of financial statements
For and on behalf of the Board of Directors of
As per our report of even date as attached KRATOS ENERGY & INFRASTRUCTURE LIMITED
For H.G. Sarvaiya & Co. L
Chartered Accountants —-
ICAI Firm Registration No: 115705W ___^ Rajesh R. Pawar Feroza J. Panday
ÝWhole Time Director Director
--\DIN-00232533 * DIN-00232812
Hasmukhbhai G. Sarvaiya (U(
Prop. Membership No: 045038 ppAFVJ ) Wjj
J £rJJ Mur alidharan P. Pisharam Prerana Joshi
__Chief Financial Officer Company Secretary
Place Ý Mumbai ^ " Membership No. A 51735
Date: ?’XV>-----
|