IV. Provisions and contingent liabilities:
Provisions are recognised when the Group has a present legal or
constructive obligation as a result of past events, it is probable that
an outflow of resources will be required to settle the obligation and
the amount can be reliably estimated. If the effect of the time value
of money is material, provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the risks specific to the
liability. When discounting is used, the increase in the provision due
to the passage of time is recognised as a finance cost. Contingent
Liabilities are disclosed in respect of possible obligations that arise
from past events but their existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of the Group or where any
present obligation cannot be measured in terms of future outflow of
resources or where a reliable estimate of the obligation cannot be
made.
O. Cash and bank balances
Cash and bank balances include fixed deposits, margin money
deposits, earmarked balances with banks and other bank balances
which have restrictions on repatriation. Short-term and liquid
investments being subject to more than insignificant risk of change
in value, are not included as part of cash and cash equivalents.
P. Functional and Presentation currency
These financial statements are prepared in Indian rupees; the
national currency of India, which is functional currency of the
company.
8.3 Calls in arrears include unpaid allotment money related to
Debentures which have been converted on its due date into Equity
Shares as per the terms of the issue but in respect of which the
Company, in exercise of its lien on such shares, has not issued the
Shares Certificates to the defaulting Debenture Holders. The
Company's lien on such shares will extend to the forfeiture of such
shares, if considered necessary by the Company.
8.4 The Issued and Subscribed Share Capital of the Company
includes 62,00,000 Equity Share of Rs. 10 Each alloted as fully paid
- up without payment being received in cash pursuant to a Scheme
of Amalgamation in the year 1987.
(A) Loans of Rs. 278.42 (305.74) lacs taken from Non-Banking
Financial Company against purchase of specific assets on hire
purchase / lease are secured against those specific assets.
(B) During the year the company has repaid Rs. 759.48 lacs
(Rs.179.95 lacs ) to the strategic Investors M/s Seftech Phosphate
Private Limited against Unsecured Loans of Rs. 8170.42 lacs taken
for OTS purpose.
24 (C).The company received a demand notice dt.17.01.2024 from
the GST dept. of Rs.21.50 cr. on account of sale/transfer of
leasehold premises (MIDC office) in the year 2017-18. During that
period, company paid Rs.50 lacs under protest which was wrongly
adjusted against demand, hence, Company challenged the issue
in writ before Bombay High Court. The Hon'ble Court vide its order
dated 07.10.2024 queshed & set aside the above said order.
Lateron, company received a revised demand notice dt.20.12.2024
from the GST dept. of Rs.21.59 cr. on the same issue. Company
has challenged the recently issued demand notice before the
Deputy Commissioner (Appeal), GST dept. on 13.03.2025 in due
consultation with the legal team available with company and is
hopeful of getting due relief in the matter.
25. Expenditure in foreign currency
Expenses incurred by the Company include Rs. 12.96 lacs
(Rs.7.06 Lacs ) in Foreign Exchange on Foreign travelling.
26. Related Party Disclosure
1. Key Managerial Personnel and Relatives
Mr. M. V. Chaturvedi - Chairman
Mrs. Pooja Bagwe - Wholetime Director & Company Secretary
(Till 25.12.2024)
Mr. A. K. Sharma - Wholetime Director
Mr. Ravindra Chaturvedi - Chief Financial Officer
Mrs.Anita M. Chaturvedi - Relative of a Director
Seftech India Pvt. Ltd. - Company in which relative of a director
is director
Seftech Phosphate Pvt. Ltd. - Company in which relative of
a director is director
R A Agro Product - Firm in which relative of a director is
Proprietor
Ms. Sarada Patro - Company Secretary ( From 11-02-2025 )
27. Segment Reporting
The Company is engaged in manufacturing and trading of
Engineering equipments, Project supplies / Services for various
Industries only . Hence segment reporting as defined in Ind AS 33 is
not given.
27 (A) The reporting under rule 11(g) of the Companies ( Audit and
Auditors) Rules 2014 is applicable from 1st April,2023.
The Company has used accounting software for maintaining its
books of accounts, which have a feature of recording audit trail ( edit
log) facility and the same has operated throughout the year for all
relevent transactions recorded in the respective software.
28. In the opinion of the Management, current assets, loans and
advances have a value on realization at least equal to the amount
at which they are stated in the Books of Accounts and provision for
all known liabilities has been made, except as mentioned
otherwise.
29. Corporate Social Responsibility
As per section 135 of the Companies Act, 2013 a CSR committee
has been formed by the company. The gross amount required to be
spent by the company during the year is Rs.8.51 lacs (6.31 lacs),
however, Rs. 9.12 lacs has actually been paid during the year.
30. Following are the analytical ratios for the year ended March 31,
2025 and March 31,2024
31. Additional Disclosures :-
a) The Company do not have any benami property, where any
proceeding has been initiated or pending against the company for
holding any Benami property.
b) The Company is not declared as wilful defaulter by any bank or
financial Institution or other lender.
c) The Company did not have any transactions with companies
struck off under Section 248 of the Companies Act, 2013 or Section
560 of Companies Act, 1956 during the financial year.
d) The Company does not have 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).
e) The Company has not traded or invested in Crypto currency or
Virtual Currency during the current financial year and any of the
previous financial years.
f) During the year, no funds (which are material either individually or
in the aggregate) have been advanced or loaned or invested (either
from borrowed funds or share premium or any other sources or kind
of funds) by the Company to or in any other person(s) or entity(ies),
including foreign entities (“Intermediaries”), with the understanding,
whether recorded in writing or otherwise, that the Intermediary
shall, 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 provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries.
g) During the year, no funds (which are material either individually or
in the aggregate) have been received by the Company from any
person(s) or entity(ies), including foreign entities (“Funding
Parties”), with the understanding, whether recorded in writing or
otherwise, that the Company shall, directly or indirectly, lend or
invest in other persons or entities identified in any manner
whatsoever by or on behalf of the compay (“Ultimate Beneficiaries”)
or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.
32. The figures for previous year have been regrouped/rearranged
wherever necessary to make them comparable.
For RHAD & Co. For and on behalf of the Board of Directors
Chartered Accountants
Firm Registration No. 102588W
ANKIT D. BANGAR M. V. CHATURVEDI K.S. NALWAYA
Partner
M. No. 172618 (DIN-00086331) (DIN-01259966)
P|ace: Mumbai RAVINDRA CHATURVEDI SARADA PATRO
Dated :28.05.2025. Chief Financial Officer Company Secretary
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