20.15 Provisions, Contingent Liabilities and Contingent Assets:
Provisions are recognised when the Company
(a) has a present obligation (legal or constructive) as a result of a past event,
(b) it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and
(c) a reliable estimate can be made of the amount of the obligation.
Provisions are measured at the best estimate of the expenditure required to settle the present obligation at
the Balance Sheet date. If the effect of the time value of money is material, provisions are discounted to
reflect its present value using a current pre-tax rate that reflects the current market assessments of the time
value of money and the risks specific to the obligation. When discounting is used, the increase in the provision
due to the passage of time is recognised as a finance cost.
Contingent liabilities are not recognized, but are disclosed 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 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
obligation or a reliable estimate of the amount cannot be made.
Contingent Assets are neither recognized nor disclosed in the Financial Statements.
20.16 Contingencies and Commitments
(a) Income-tax and Sales tax/ VAT Demands
There are appeals pending before various Income Tax, Sales tax/VAT authorities. Please refer
note : 20.15 for detailed working. The future cash outflows in respect of the above matters
and the effects of the same on the Company's financial position are determinable only on
receipt of the respective judgments/ decisions/ awards
(b) Insurance Claim
The Company had filed a petition in Hon'ble Bombay High Court against The New India Assurance
Co Ltd to settle the insurance claim filed by the Company due to fire at Chemical Waste Recycling
Plant at Vijaygad, Tal. Wada. Hon'ble High Court vide its order dated 3rd February, 2014 granted
Decree in favour of the Company. The Insurance Company has deposited the entire decreed
amount of Rs. 7.38 Crs in court and preferred an appeal against the said order.
(C) Others
There are litigations against the company pending before Various courts/ forums/ authorities for
protracted period of time. The future cash outflows in respect of the above matters and the
effects of the same on the Company's financial position are determinable only on receipt of the
respective judgments/ decisions/ awards which are currently pending at various forums or when
the pending litigations are settled otherwise or in any other manner as the management may
deem fit.
The Ministry of Corporate Affairs had granted exemption of ROC fees towards increase of
authorized share capital vide its order dated 28th June 2017 received by the company on 22nd
May 2018. However, the Revenue Department, Government of Maharashtra vide its Letter dated
15th December 2018, has informed its inability to grant relief or exemption from payment of
Stamp Duty. Though, the company has been pursuing the matter with the state government, in
view of the significant time lapse since the issue of the aforesaid letter, the Company may be
required to pay the applicable stamp duty.
The Company has not paid the Listing Fees to BSE since 2022 including the Current Financial Year.
The Company has reversed an amount of Rs. 16.82 Lacs out of the amount of Rs. 46.61 Lacs
provisionally provided for in the Financials for the year ended 31 March 2023, in respect of the
outstanding listing fees dues and certain SOP fines for non-compliances.
20.17 Financial Risk Management
The Company has exposure to the following risks arising from financial instruments:
• Credit risk ;
• Liquidity risk ; and
• Market risk
A. Credit risk
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The
company is exposed to credit risk from its operating activities (primarily for trade receivables) and from its
financing activities (deposits with banks and other financial instruments).
Credit risk management
Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the credit
worthiness of customers to which the Company grants credit terms in the normal course of business. The
Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred
losses in respect of trade and other receivables.
The Company's maximum exposure to credit risk as at 31st March, 2024 and 2023 is the carrying value of each
class of financial assets.
Trade and other receivables
Credit risk on trade receivables is limited based on past experience and management's estimate.
Cash and Cash Equivalents
The Company held cash and bank balance with credit worthy banks of Rs.93,985 at March 31, 2024 (Rs. 2,08,422
at March 31, 2023). The credit risk on cash and cash equivalents is limited as the Company generally invests in
deposits with banks where credit risk is largely perceived to be extremely insignificant.
B. Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at
a reasonable price. For the Company, liquidity risk arises from obligations on account of financial liabilities - trade
payables and borrowings.
Liquidity risk management
The Company's approach to managing liquidity is to ensure that it will have sufficient funds to meet its liabilities
when due without incurring unacceptable losses. In doing this, management considers both normal and stressed
conditions. A material and sustained shortfall in our cash flow could undermine the Company's credit rating and
impair investor confidence.
The Company maintained a cautious funding strategy, with a positive cash balance throughout the year ended
31st March, 2024 and 31st March, 2023 This was the result of cash delivery from the business. Cash flow from
operating activities provides the funds to service the financing of financial liabilities on a day-to-day basis. The
Company' regularly monitors the rolling forecasts to ensure it has sufficient cash on-going basis to meet
operational needs. Any short-term surplus cash generated by the operating entities, over and above the amount
required for working capital management and other operational requirements, are retained as cash and cash
equivalents (to the extent required).
C. Market risk
Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and equity
prices will affect the Company's income or the value of its holdings of financial instruments. Market risk is
attributable to all market risk sensitive financial instruments. The Company is exposed to market risk primarily
related to the market value of the investments.
Currency Risk
The functional currency of the Company is Indian Rupee. Currency risk is not material, as the Company does not
have any exposure in foreign currency.
Interest Rate Risk
Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate
risk is the risk of changes in fair values of fixed interest-bearing investments because of fluctuations in the
interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest-bearing
investments will fluctuate because of fluctuations in the interest rates.
Exposure to interest rate risk
According to the Company interest rate risk exposure is only for floating rate borrowings. Company does not
have any floating rate borrowings on any of the Balance Sheet date disclosed in this financial statement.
Price Risk
Price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded
price. It arises from financial assets such as investments in quoted instruments.
a Fair value sensitivity analysis for fixed rate Instruments
The Company does not account for any fixed rate financial assets or financial liabilities at fair value through Profit
or Loss. Therefore, a change in interest rates at the reporting date would not affect Profit or Loss.
b Cash flow sensitivity analysis for variable rate Instruments
The company does not have any variable rate instrument in Financial Assets or Financial Liabilities.
20.18 Capital Management
The company's objectives when managing capital are to
• safeguard their ability to continue as a going concern, so that they can continue to provide returns for
shareholders and benefits for other stakeholders, and
• maintain an optimal capital structure to reduce the cost of capital.
The capital structure of the Company is based on management's judgement of the appropriate balance of key
elements in order to meet its strategic and day-today needs. We consider the amount of capital in proportion to
risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the
underlying assets.
The management monitors the return on capital as well as the level of dividends to shareholders. The Company
will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.
20.19 MSME Disclosure
The details of amounts outstanding to Micro and Small enterprises under the Micro and Small Enterprises
Development Act, 2006 MSED Act, are as under:
This information regarding Micro, Small and Medium Enterprises has been determined to the extent such
parties have been identified on the basis of information available with the Company and the same has been
relied upon by the auditors.
20.20 Related Parties Disclosures
Information on related party transactions as required by Indian Accounting Standard 24 (Ind AS 24) on related
party disclosures for the year ended 31 March 2024.
7) The previous year figures have been regrouped /reclassified wherever considered necessary. Figures have been
rounded off to the nearest lacs.
The accompanying notes are an integral part of the Financial Statements.
AS PER OUR REPORT OF EVEN DATE
For H.G. SARVAIYA & CO.
Chartered Accountants
Firm Registration No.: 115705W
sd/- sd/- sd/- sd/-
(H.G. SARVAIYA) R. G. PARIKH B B MAKWANA MOHINI V SAWANT
PROPRIETOR Executive Chairman & CEO CFO Company Secretary
Membership No. 45038 DIN:00496747 PAN:AOHPM2069J M. No. A49186
Place: Thane
Dated: 28th May 2024
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