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31 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR) Rs. in Lakhs
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Particulars
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As at March 31, 2025
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As at March 31, 2024
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a) Contingent liability with respect to Mumbai Port Trust (MbPT) demand on account of lease rentals. The Company has filed a Suit for injunction before the Honhle City Civil Court restraining MbPT from taking any action against the Company and to withdraw the said Notice/Letter. According to the legal advice, the order is unreasonable and unwarranted. The MbPT vide letter dated 03.11.20, called for certain documents which Company has provided vide letter dated 09.12.20.
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259.21
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240.81
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b) GST Demand Order under the Section 73(9) of the Haryana Goods and Services Tax Act, 2017 and Central Goods and Services Tax Act, 2017 was received on 01 Jan 2024 for the payment of GST liability including interest and penalty. We had made the submissions on 09/11/2023, 17/11/2023 and 06/12/2023 post the Original Show Cause notice of GST was received in the Form DRC-01 for the year 2017-18 (July 17 to March 18) under the Section 73 of HGST/ CGST Act, 2017.
The Demand under the latest aforesaid order for the period July 2017 to March 2018 contains GST of Rs. 54.22 Lakhs, Interest of Rs. 56.16 Lakhs and Penalty of Rs. 5.92 aggregating to Rs. 116.31 Lakhs GST demand summary- Amounts in full Rupees Tax - Interest Penalty Total
1) CGST Rs. 9,899/- CGST Rs. 10,252/- CGST Rs. 25,990/- CGST Rs. 46,140/-
2) SGST Rs. 9,899/- SGST Rs. 10,252/- SGST Rs. 25,990/- SGST Rs. 46,140/-
3) IGST Rs. 54,02,840/- IGST Rs. 55,95,270/- IGST Rs. 5,40,284/- IGST Rs. 1,15,38,394/-TOTAL 1,16,30,674
Items 1) and 2) are towards the difference in credit notes in GSTR 1, GSTR 3B, GSTR 9 and General Penalty
Item 3) is towards ITC short appearing in Form GSTR 2A and SEZ customers related endorsement from the Specified Officer.
The notice of personal hearing in respect of the Appeal filed before the Appellate Authority was served on 16th September 2024 and it was scheduled 26th September 2024, the hearing was undertaken and all the details were explained, the next hearing date was given for 28th November 2024.
The notice of personal hearing in respect of the Appeal filed before the Appellate Authority was served on 16th September 2024 and it was scheduled 26th September 2024. The next hearing date was given for 25 November and 04 December 2024 and it was scheduled 19 December 2024, both the hearing was undertaken and all the details were explained.
We have received the Order No. ZD0612240321331 dated 24 Dec 2024, granting the appeal in our favor. Hence, the Contingent Liability corresponding to that case amounting to Rs. 116.31 Lakhs has been removed.
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116.31
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Level 1: hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.
Level 2 : The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.
Level 3 : If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3
FINANCIAL RISK MANAGEMENT
1 Market risk
The Company’s financial risk management is an integral part of how to plan and execute its business strategies. Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument.
a Interest rate risk :
The company has investment in fixed deposits. However interest income from fixed deposits is a residuary income and will not affect the significant cash flow of the company.
b Foreign currency risk:
Foreign currency risk refers to risk that the fair value of future cash flows of an exposure may fluctuate due to change in foreign expense rates. The Company is exposed to foreign currency risk arising out of transactions in foreign currency.
2 Credit risk
Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses financial reliability of customers and other counter parties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual risk limits are set and periodically reviewed on the basis of such information.
Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of profit and loss.
The Company measures the expected credit loss of trade receivables and loan from individual customers based on historical trend, industry practices and the business environment in which the entity operates.Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.
36. Disclosure on revenue pursuant to Ind AS 115 - Revenue from Contracts with Customers:
(i) Disaggregation of revenue
(a) Revenue from sale of Service are recognised when program is delivered.. There are no further disaggregation of revenue with respect to this information.
(b) Revenue from sale of service is from Domestic market i.e from sales within India. There are no further disaggregation of revenue with respect to this information.
37. Capital Management
For the purpose of the Company’s capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value.
As at March 31, 2025, the Company has one class of equity shares which is in the nature equity. Consequent to such capital structure, there are no externally imposed capital requirements.
38. Other disclosures
(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against The Company for holding any Benami property.
(ii) The Company do not have any transactions with companies struck off.
(iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.
(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the year.
(v) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (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 Beneficiaries.
(vi) 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 Company shall:
WALCHAND PEOPLE FIRST
(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.
vii) The Company do not have any such transaction which is not recorded in the books of accounts and 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)
viii) The company holds all the title deeds of immovable property in its name.
ix) There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.
x) The company is not declared as wilful defaulter by any bank or financial Institution or other lender.
39. Event after reporting Period Proposed Dividend
Dividends proposed or declared after the balance sheet date but before the financial statements have been approved by the Board of Directors for issue are not recognised as a liability at the balance sheet date.
The Board of Directors recommended final dividend of Rs.1/- per equity share for the financial period year ended on March 31, 2025. The payment is subject to the approval of shareholders in the ensuing Annual General Meeting of the Company. (Previous year Rs. 1/- per equity share).
The total estimated equity dividend would result in total cash outflow of Rs. 29.04 Lakhs (Previous year Rs. 29.04 Lakhs).
40. The Financial Statements were authorized for issue in accordence with a resolution passed by the Board of Directors on May 12, 2025. The Financial Statements as approved by the Board of Directors are subject to final approval by it’s shareholders.
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