18 Provisions. Contingent Liabilities and Contingent Assets
A provision arising out of a present obligation, as a result of past event, is recognised only when it is probable that an outflow of resources will
be required to settle the obligation and the amount can be reasonably estimated.
Wherever, there is a possible obligation that may but probably will not require an outflow of resources, the same is disdsoed by way of
contingent liability.
The Company claims to have no Contingent liability and hence, it is not provided for in the books of accounts. Contingent assets are not
recognised in the financial statements.
(vi) No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
(vii) The company does not have sanctioned working capital limits during the year, from banks or financial institutions on the basis of security
of current assets and hence, it is not required to submit quarterly statements of current assets with the Banks or financial institutions for
its borrowings.
(viii) The Company is not declared wilful defaulter by any bank or financial institution or other lender.
(ix) The Company does not have any transactions with companies struck off u/s. 248 of the Companies Act, 2013 or u/s. 560 of the
Companies Act, 1956.
(x) No charges or satisfaction is pending to be registered with Registrar of Companies beyond the statutory period.
(xi) The company does not have any subsidiary and hence, there is no violation with regard to the number of layers prescribed u/s. 2(87) of
the Act r.w. Companies (Restriction on number of Layers) Rules, 2017.
11 Reasons for significant variation in ratios:
The reasons for variation in excess of 25% in various ratios are explained as follows
Interest Expense/Interest Income
The ratio has increased during the year, on account of increase in interest expenses on long term borrowings being unsecured
loans and OD facility as availed from State Bank of India against FDRs.
24 No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.
25 Utilisation of Borrowed funds, share premium or any other source or kind of fund:
(A) Company has not advanced or loaned or invested any funds to any person(s) or entity(ies) including foreign entities (Intermediaries)
with the understanding that the Intermediary shall -
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoevr by or on behalf of the company
(Ultimate beneficieries) or
(ii) provide any guarantee, security or the like to or on behalf of the Untimate Beneficiaries.
(B) Company has not received any funds from any person(s) or entity(ies) including foreign entities (Funding Party) with the understanding
that the company shall -
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoevr by or on behalf of the Funding
Party (Ultimate beneficieries) or
(ii) provide any guarantee, security or the like to or on behalf of the Untimate Beneficiaries.
|