xiii) Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognized when there is a legal or constructive obligation as a result of
past events and it is probable that there will be an outflow of resources and a reliable estimate can be made of the amount of obligation. Provisions
are not recognized for future operating losses. The amount recognized as a provision is the best estimate of the consideration required to settle the
present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.
Contingent liabilities is not recognized and are disclosed by way of notes to the financial statements when there is a possible obligation arising from
past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly
within the control of the Company or when there is a present obligation that arises from past events where it is either not probable that an outflow of
resources will be required to settle the same or a reliable estimate of the amount in this respect cannot be made.
Contingent Assets are disclosed in the financial statements by way of notes to accounts when an inflow of economic benefits is probable.
xiv) Employee Benefits
a) Short term Employee benefits are accrued in the year services are rendered by the employees.
b) Provident & Family Pension Fund: In accordance with the provisions of the Employee Provident Funds and Miscellaneous Provisions Act, 1952,
eligible employees of the company are entitled to receive benefits with respect to provident fund, a defined contribution plan, in which both the
company and employee contribute monthly to Provident Fund Scheme by the Central Government/Trust at a determined rate. The company contrib¬
utes to the Employees’ Pension Scheme, 1995 for certain categories of employees. The Company’s contribution is charged off to the Statement of
Profit and Loss.
c) Gratuity: Post Employment and Retirement benefits in the form of Gratuity are considered as defined benefit obligations and is provided for on
the basis of third party actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet. Every Employee who has
completed five years or more of service is entitled to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972.
The liability or asset recognized in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation
at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the project¬
ed unit credit method.
The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at
the end of reporting period on government bonds that have terms approximating to the terms of the related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets.
This cost is included in employee benefit expense in the statement of profit and loss.
Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions of the defined benefit obligation are
recognized in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of
changes in equity and in the balance sheet.
d) Leave encashment benefits: The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of the period in
which the employees render the related service. They are therefore measured as the present value of expected future payments to be made in
respect of services provided by employees up to the end of the reporting period on government bonds using the projected unit credit method. The
benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligation.
Re-measurements as a result of experience adjustments and changes in actuarial assumptions are recognized in profit or loss.
The obligations are presented as current liabilities in the balance sheet if the Company does not have an unconditional right to defer settlement for
at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.
xv) Revenue
a) Sale of Goods
Revenue is recognized at the fair value of consideration received or receivable when the significant risk, rewards and ownership of goods have been
transferred and the amount thereof can be measured reliably. This represents the net invoice value of goods supplied to third parties after deducting
trade discounts, returns, volume rebates and outgoing sales tax and is inclusive of packing charges and excise duty there against.
b) Interest, Dividend and Claims
Dividend income is recognized when the right to receive payment is established. Interest has been accounted using effective interest rate method.
Insurance claims/other claims are accounted as and when admitted / settled.
xvi) Borrowing Cost
Borrowing cost comprises of interest and other costs incurred in connection with the borrowing of the funds. All borrowing costs are recognized in
the Statement of Profit and Loss using the effective interest method except to the extent attributable to qualifying Property Plant and Equipment (PPE)
which are capitalized to the cost of the related assets. A qualifying PPE is an asset, that necessarily takes a substantial period of time to get ready
for its intended use or sale.
xvii) Taxes on Income
Income tax expense representing the sum of current tax expenses and the net charge of the deferred taxes is recognized in the income statement
except to the extent that it relates to items recognized directly in equity or other comprehensive income.
Current income tax is provided on the taxable income and recognized at the amount expected to be paid to or recovered from the tax authorities,
using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. Taxable Income differs from ‘profit
before tax’ as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and
items that are never taxable or deductible.
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the Financial Statements and the
corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differenc¬
es. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be
available against which those deductible temporary differences can be utilized.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset
realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that
sufficient taxable profits will be available to allow all or part of the deferred tax asset to be utilized.
xviii) Earnings Per Share
Basic earnings per share are computed by dividing the net profit attributable to the equity holders of the company by the weighted average number
of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit attributable to the equity holders of
the company by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average
number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.
xix) Non-current assets held for sale
Non-current assets held for sale are measured at the lower of their carrying amount and the fair value less costs to sell.
Assets and liabilities classified as held for sale are presented separately in the balance sheet. However, there are no such assets described as held
for sale in current Financial year
The Company classifies non-current assets as held for sale if their carrying amount will be recovered principally through a sale rather than through
continuing use. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the
decision to sell will be withdrawn. Management must be committed to the sale expected within one year from the date of classification.
xx) Cash dividend and non-cash distribution to equity holders
The Company recognizes a liability to make cash distributions to equity holders of the Company when the distribution is authorized and the distribu¬
tion is no longer at the discretion of the Company. Distribution is authorized when it is approved by the shareholders. A corresponding amount is
recognized directly in equity.
38. Segment information
The board of directors of the Company has appointed Mr. Sumit Pasari as Chief Operating Decision Maker (CODM) as defined by Ind AS 108,
Operating Segments. The CODM evaluates the Company's performance and allocates resources based on an analysis of various performance
indicators.
The Company deals with various customers, and there was no customer to whom sales of 10% or more of the Company's Revenue were made.
The Company operates predominantly in three business segments, viz., Agriculture, Sugar and Electrical goods. The sales of the Company are
mainly in India. Further, the company does not hold any material assets at overseas locations, hence there are no reportable geographical
segments.
39. Employee benefit obligations / expenses
(I) Post Employment Defined Contribution Plan
The Company contributes to the Provident Fund (PF) maintained with the Regional Provident Fund Commissioner. Under the PF scheme contribu¬
tions are made by both the Company and its eligible employees to the Fund, based on the current salaries. An amount of Rs. 1,91,966/- (31 March
2024 : Rs 11,06,704/-) has been charged to the Statement of Profit and Loss towards Company’s contribution to the aforesaid PF scheme. Apart
from making monthly contribution to the scheme, the Company has no other obligation.
(II) Post Employment Defined Benefit Plan-Gratuity (Funded)
The Company provides for Gratuity, a defined benefit retirement plan covering eligible employees. As per the scheme, the Gratuity Trust Funds
managed by the Life Insurance Corporation of India (LICI) make payment to vested employees on the event of retirement, death, incapacitation or
termination of employment, of an amount based on the respective employee’s eligible salary for specified number of days, as per provisions of
Gratuity Act depending upon the tenure of service subject to a maximum limit of Rs.2,000,000. Vesting occurs upon completion of five years of
service. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation as set out in Note 39 (III) and (IV), based on which, the
Company makes contributions to the Gratuity Fund.
(IX) Risk Exposure:
Valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework which may vary overtime. Thus, the
Company is exposed to various risks in providing the above gratuity benefit, the most significant of which are as follows:"
(X) Interest Rate risk:
The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the
above benefit and will thus result in an increase in the value of the liability (as shown in financial statements)."
(XI) Liquidity Risk:
This is the risk that the company is not able to meet the short term gratuity pay-outs. This may arise due to non availability of enough cash/cash
equivalents to meet the liabilities."
(XII) Salary Escalation Risk:
The present value of the defined benefit planis calculated with the assumption of salary increase rate of plan participants in future. Deviation in the
rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of oblgation will have a
bearing on the plan’s liabilty.
(XIII) Demographic Risk:
The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience
turning out to be worse compared to the assumption."
(XIV) Regulatory Risk:
Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act , 1972(as amended from time to time). There is a risk of
change in regulations requiring higher gratuity payouts (e.g. Increase in the maximum limit on gratuity of Rs. 20,00,000). An upward revision of
maximum gratuity limit will result in gratuity plan obligation."
Fair Value Technique
The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between participants at the measurement date. The following methods and assumptions were used to estimate the fair
values:
(a) The fair value of cash and cash equivalents, trade receivables, trade payables, current financial liabilities and borrowings approximate their
carrying amount largely due to the short-term nature of these instruments. The board considers that the carrying amounts of financial assets and
financial liabilities recognised at cost/amortised costs in the financial statements approximates their fair values.
(b) Investments in quoted equity shares are measured using quoted market prices at the reporting date multiplied by the quantity held.
(c) Fair Value for valuation of unquoted equity instruments is arrived based on management estimate.
41. Financial Risk Management objectives and policies
The Company’s principal financial liabilities comprise borrowings in domestic currency, capital creditors and trade and other payables. The main
purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include loans, trade and other
receivables, cash and cash equivalents, investments at cost/fair value and deposits, that derive directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks.
The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.
A. Market risk
Market risk means that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. The goal of
market risk management is optimization of profit and controlling the exposure to market risk within acceptable limits. Market risk comprises two
types of risk: 'Foreign currency risk', 'Interest rate risk', and 'Price risk on traded goods'.
Price Risk on Traded Goods
The company is impacted by the price volatility of goods in which the Company trades. To minimize the risk related to price of traded goods, the
Company obtain order for sales from buyers prior to purchase of goods with immediate despatch to buyer.
B. Credit risks
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations,
and arises principally from the Company’s receivables from customers and others. In addition, credit risk arises from financial guarantees.
The Company implements a credit risk management policy under which the Company only transacts business with counterparties that have a
certain level of credit worthiness based on internal assessment of the parties, financial condition, historical experience, and other factors. The
Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The Company has established a credit
policy under which each new customer is analyzed individually for creditworthiness.
(i) Credit risk exposure
The carrying amount of financial assets represents the Companies’s maximum exposure to credit risk. The maximum exposure to credit risk as of
31 March 2025 & 31 March 2024 are as follows:
44. No Borrowing cost have been capitalised during the year.
45. Earning in Foreign Exchange : FOB Value of Export - Rs. NIL ( PY - NIL-)
46. Production activity of the sugar mill of the company is continued to be under suspension for a long time after incurring heavy losses. Therefore
for the time being company has not considered the business of sugar division as discontinued operation. The management is exploring various
option to come out from above situations and hopeful that some development may take place.
47. In the opinion of the management the realisable value of Property, Plant and Equipment of sugar division could not be less than it’s carrying
value. As such, any provision on account of impairment is not considered necessary during the current FY 2024-25.
48. The company has incurred losses upto the half year ended 30th September 2022 and also in the immediately preceding few financial years, as
such the net worth of the company has reduced. However, due to various business improvement related measures undertaken by the company, it
has earned net profits for the financial year 2022-23 and onwards. The management is hopeful of improved results in subsequent periods/ years
too, as such the accounts of the company have been prepared on going concern basis.
49. The balance of debtors, Creditors, Loan, advance, Claims and deposits are subject to confirmation/ reconciliation. In the opinion of the
management, accounting adjustments, if any, arising therefrom are not likely to be material on conclusion of exercise of confirmation/reconciliation.
50. Additional disclosures required by Schedule III (Division II) of the act, as Amended
1) There was no proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 and rules made thereunder.
2) The Company has availed borrowings for working capital purpose from the banks on the basis of security of current assets. The Company files
the statement of current assets with the bank on periodical basis. Following are the reconciliation between books of accounts and quarterly
statements submitted to the lenders, where borrowings have been availed based on security of current assets:
3) The company has not made any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of
Companies Act, 1956.
4) The Company is not a holding company of any subsidiary company or not a subsidiary of a holding company. The compliance with the number
of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017 is not
applicable for the Company.
5) The Company has granted advances to and made investment in its associate and other companies which have been utilised by them in
ordinary course of business for further investment as per their business requirement or for general corporate purpose. Details of the loans are as
follows :
6) "The Company has no transactions to report against the following disclosure requirements as notified by MCA pursuant to amended Schedule III:
(a) Crypto Currency or Virtual Currency
(b) Relating to borrowed funds:
i. Utilisation of share premium
ii. Discrepancy in utilisation of borrowings
iii. Current maturity of long term borrowings"
7) The company has not applied an accounting policy retrospectively or made a restatement of any items in the financial statements.
8) "The Company have not received any fund from any persons or entities with the understanding 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 Ultimate Beneficiaries or
b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
9) The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income
during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax
Act, 1961).
10) As the company do not have turnover of Rs. 1000 crore or more or Net profit of Rs. 5 crore or more or Net worth of Rs. 500 crore or more in
immediately preceding financial year, the provisions under section 135 of the companies act with regard to CSR activities is not applicable.
53. Previous year figures:
The figures of previous year have been regrouped / reclassified wherever necessary to make them comparable with those of the current period.
The notes referred to above form an integral part of the financial statements
For K.C. Bhattacherjee & Paul For and on Behalf of the Board of Directors
Chartered Accountants
Firm Regn. No. 303026E
Sunay K. Khaitan Gopal Mor
Biswajit Datta Director Director
(Partner) DIN:07585070 DIN: 00555282
Membership No. 055582
UDIN : 25055582BMIEOF4881
Sumit Pasari Chandra Nath Banerjee
Kolkata Chief Financial Officer Company Secretary
28th day of May, 2025 PAN:- AFBPP8184J PAN: -AKUPB6049A
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