Notes to Accounts of Sanmit Infra Ltd.

Mar 31, 2024

The Company''s operations are principally based in India only. Hence secondary segment reporting for geographic segment is not applic The Company is currently focused on four business groups: Infrastructure/Realty, Petroleum and related products, Biomedical Waste recycling Machinery and other equipments (previously categorised as trading segment) and Bitumen Emulsion and other road construction related materials. However there is no revenue generated from the infrastructure/ realty segment during the period reported. Further, the company has identified a new segment - "Bitumen emulsion and other road construction related material" with effect from this year.

The Company''s organisational structure and governance processes are designed to support effective management of multiple businesses while retaining focus on each one of them.

Note	Particulars	31st March, 2024	31st March, 2023
		(Rs. In lakhs)	(Rs. In lakhs)
29.01	Contingent liabilities and commitments (to the extent not provided for)
(i)	Contingent liabilities (a) Claims against the Company not acknowledged as debt	Nil	Nil
	(b) Guarantees (i) Bank guarantees issued by bankers towards security deposits under contracts entered into by the company and outstanding at year end	27.72	27.72
	(ii) Financial guarantee	70.00	-

29.08 The balances appearing under long term borrowings, short term borrowings, trade payables, trade receivables, loans and advances, and banks are subject to confirmation and reconciliation and consequential adjustment, if any, will be accounted for in the year of confirmation and/or reconciliation.

Note - 29 Additional information to the financial statements

29.09 The company had entered into an Memorandum of Understanding (MOU) dated 16th November, 2016 with M/s Sanjay Builders (a partnership firm in which directors of the company are interested as partners) wherein the company is awarded the contract of construction of the property at 48, Mia Mohamad Chotani Road, Mahim (West), Mumbai - 400 016. Expenses incurred during the year on account of the said construction had been carried forward as work in progress in the financial statement. During the current year, on account of certain delays from counterparty the company has cancelled the MOU and the amount incurred by the company on the said project and held as work in progress in financial statements has been recovered on cost basis from the counter party.

29.10 The Board of Directors at its meeting held on 28th May, 2024 proposed a dividend of Rs. 0.035 per equity share subject to the approval of the shareholders in the upcoming annual general meeting.

29.11 In the opinion of the Board, assets other than fixed assets do have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

29.12 All unutilised leaves of employees lapses at the end of the financial year so company has not provided for leave encashment.

29.13 The quarterly returns or statements filed by the company for the above facility are in agreement with the books of account of the company except for the statements filed for quarters during the year ended 31st March 2024, where difference were noted between the amounts as per books of account for respective quarter and amount as reported in the quarterly statements. The differences were in case of debtors amounting to Rs. 0.15 lakhs (amount reported Rs. 3081.78 lakhs vs amount as per books of accounts Rs. 3081.92 lakhs), Rs. 1.64 lakhs (amount reported Rs. 2983.60 lakhs vs amount as per books of accounts Rs. 2981.96 lakhs), Rs. 11.75 lakhs (amount reported Rs. 3487.71 lakhs vs amount as per books of accounts Rs. 3475.97 lakhs), Rs. 5.57 lakhs (amount reported Rs. 3482.95 lakhs vs amount as per books of accounts Rs. 3477.37) for the quarter ended 30th June, 2023, 30th September, 2023, 31st December 2023, 31st March 2024. Further the difference in case of inventory were amounting to Rs. 11.38 lakhs (amount reported Rs. 514.26 lakhs vs amount as per books of accounts Rs. 525.64 lakhs), Rs. 5.10 lakhs (amount reported Rs. 513.73 lakhs vs amount as per books of accounts Rs. 518.83 lakhs), Rs. 2.5 lakhs (amount reported Rs. 377.90 lakhs vs amount as per books of accounts Rs. 375.40 lakhs) for the quarter ended 30th September, 2023, 31st December 2023, 31st March 2024 The company has reconciled the differences and identified the reasons for differences.

29.14 Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current period''s classification/disclosure.

Notes : Financial assets and liabilities include cash and cash equivalents, trade receivables, eligible current and non-current assets, trade payables, borrowings, lease and eligible current liabilities and non-current liabilities. The fair value of cash and cash equivalents, trade receivables, trade payables, other current financial assets and liabilities approximate their carrying amount largely due to the short-term nature of these instruments.

Note 31 B - Fair value hierarchy for assets and liabilities Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions.

The Company categorizes assets and liabilities measured at fair value into one of three levels depending on the ability to observe inputs employed in their measurement which are described as follows:

i) Level 1

Quoted (unadjusted) prices in active markets for identical assets or liabilities.

ii) Level 2

Other techniques for which all inputs which have a significant effect on the recorded fair values are observable, either directly or indirectly.

iii) Level 3

Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

Financial instruments measure at amortised cost

The carrying amount of financial assets and financial liabilities measured at amortised cost in the Financial Statements are a reasonable approximation o their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventuall be received or settled

Note 32 Corporate Social Responsibility

(a) CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with schedule VII thereof by the company during the year is Rs.11.15 lakhs (Previous Year Rs. 7.59 lakhs)

(b) Expenditure related to Corporate Social Responsibility is Rs. 11.15 lakhs (Previous Year Rs. 7.60 lakhs)

(B) Defined benefit plan a) Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. This benefit is unfunded. The following tables summarise the components of net benefit expense recognised in the statement of profit or loss and the funded status and amounts recognised in the balance sheet for the respective plans :

(*) The company has recognised gratuity provision for the first time from current financial year, since the company was in process of obatining valuation report for the valuation till the time of closure of accounts for last financial year. As a result the entire amount of opening liability is accounted as current service cost for the current period. The amount of current service cost, thus includes, the actual current service cost for the current year plus the amount of gratuity liability existing as on 1.4.2023 as per valuation report

Methods and assumptions used in preparing sensitivity and their limitations: The liability was projected by changing certain assumptions and the total liability post the change in such assumptions have been captured in the table above. This sensitivities are based on change in one single assumption, other assumptions being constant. In practice, scenario may involve change in several assumptions where the stressed defined benefit obligation may be significantly impacted.

The company does not have any leave encashment policy

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Mar 31, 2018

Notes:

The Company’s operations are principally based in Ind ia only. Hence secon da ry segment reporting for gegraphic segm en t i s not applicable The Company is currently focused on two business groups: Infrastructure/Realty and Petroleum. However there is no revenue generated from the infrastructure/ realty segment during the year.

The Company’s organisational structure and governance processes are designed to support effective management of multiple businesses while retaining focus on each one of them.

1.01 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

Micro, Small and Medium Enterprises in terms of section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 have been determined to the extent such parties have been identified on the basis of information available with the Company and relied upon by the auditors. Since the relevant information is not readily available, no disclosures have been made in the accounts. However, in the opinion of the management, the impact of interest, if any, that may be payable in accordance with the provision of this Act is not expected to be material.

1.02 The balances appearing under long term borrowings, trade payables, loans and advances, and banks are subject to confirmation and reconciliation and consequential adjustment, if any, will be accounted for in the year of confirmation and/or reconciliation.

1.03 The company has entered into an Memorandum of Understanding dated 16th November, 2016 with M/s Sanjay Builders (a partnership firm in which directors of the company are interested as partners) wherein the company is awarded the contract of construction of the property at 48, Mia Mohamad Chotani Road, Mahim (West), Mumbai - 400 016. Expenses incurred during the year on account of the said construction has been carried forward as work in progress in the financial statement.

1.04 In the opinion of the Board, assets other than fixed assets do have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

1.05 Since the Company recognises gratuity and leave salary expense on payment basis no liability for the same has been ascertained and provided in the accounts. Hence, the company has not complied with the provisions of AS-15 “Accounting for Retirement Benefit”.

1.06 Previous year’s figures have been regrouped/reclassified wherever necessary to correspond with the current period’s classification/disclosure.

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Mar 31, 2015

1.1 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

Micro, Small and Medium Enterprises in terms of section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 have been determined to the extent such parties have been identified on the basis of information available with the Company and relied upon by the auditors. Since the relevant information is not readily available, no disclosures have been made in the accounts. However, in the opinion of the management, the impact of interest, if any, that may be payable in accordance with the provision of this Act is not expected to be material.

1.2 The balances appearing under short term borrowings, sundry creditors, loans and advances, and banks are subject to confirmation and reconciliation and consequential adjustment, if any, will be accounted for in the year of confirmation and/or reconciliation

1.3 The company has w/off an amount of Rs. 5,23,08,500/- (receivable on account of sale of software in financial year 2011-12) during the year ended 31st March, 2015 since the company was unable to recover the dues inspite of repeated follow up with the purchaser.

1.4 During the year, the company is engaged in only one line of activity viz infrastructure and realty and this being the only reportable segment, no separate segment reporting is applicable as per the Accounting Standard 17.

1.5 In the opinion of the Board, assets other than fixed assets do have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

1.6 Since the Company recognises gratuity and leave salary expense on payment basis no liability for the same has been ascertained and provided in the accounts. Hence, the company has not complied with the provisions of AS–15 "Accounting for Retirement Benefit".

1.7 Pursuant to the enactment of the Companies Act, 2013 (the Act), the Company has, effective from 1 April, 2014, reassessed the useful life of its fixed assets and has computed depreciation with reference to the useful life of assets as recommended in Schedule II to the Act. Consequently Depreciation for the year ended 31 March 2015 is higher by Rs.17,507 and net loss is higher by Rs.17,507. Further, based on the transitional provision provided in Schedule II, an amount of Rs.42,294 has been adjusted with the opening reserves. The current and remaining useful lives of assets are as below:

1.8 Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification/disclosure.

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Mar 31, 2014

31st March. 31st March. 2014 2013 (Rs. ) (Rs.)

1. Contingent liabilities and commitments (to the extent not provided for)

(i) Contingent liabilities

(a) Claims against the Company not acknowledged as debt Nil Nil

(b) Guarantees Nil Nil

2. Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

Micro, Small and Medium Enterprises in terms of section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 have been determined to the extent such parties have been identified on the basis of information available with the Company and relied upon by the auditors. Since the relevant information is not readily available, no disclosures have been made in the accounts. However, in the opinion of the management, the impact of interest, if any, that may be payable in accordance with the provision of this Act is not expected to be material.

4. The balances appearing under short term borrowings, sundry creditors, loans and advances, and banks are subject to confirmation and reconciliation and consequential adjustment, if any, will be accounted for in the year of confirmation and/or reconciliation

5. Advance recoverable in cash or in kind for value to be received is on account of sale during the previous year of the eHRD Campus and Document Management System (DMS) software under research and development (coding) stage.

6. During the year, the company is engaged in one line of activity viz infrastructure and realty and this being the only reportable segment, no separate segment reporting is applicable as per the Accounting Standard 17.

7. In the opinion of the Board, assets other than fixed assets do have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

8. Since the Company recognises gratuity and leave salary expense on payment basis no liability for the same has been ascertained and provided in the accounts. Hence, the company has not complied with the provisions of AS-15 "Accounting for Retirement Benefit".

9. The company had at its Board meeting held on 15th September, 2012 approved the scheme of arrangement envisaging the following:

a) Reduction of capital of the company to the extent of 30%

b) Issue of 60 Lakhs (Sixty lakhs only) equity shares of Rs. 10/- each on preferential basis to Promoters, Promoter''s friends, relatives & Associates and other strategic investors

c) Change in management of the company

The same was filed with the Mumbai Stock Exchange (BSE) on the 8th November, 2012 to obtain the in-principle approval under clause 24f of the Listing Agreement. However since the formalities for forfeiture of 1,01,600 shares were pending with BSE, there was a capital mismatch and hence the scheme could not be processed by BSE. In the meantime, SEBI issued a circular dated 4th February, 2013 for all listed companies envisaging all scheme of arrangement to follow certain additional requirements. Hence above scheme of arrangement filed with BSE was revised taking cognizance of the said circular and filed with the BSE on the 10th September 2013. However BSE (on direction of SEBI) has rejected this application of the company vide its letter dated 2nd April 2014. The company has not yet acted on this letter and to that extent the above scheme of arrangment stands redundant.

10. The previous year accounts were audited by a firm of chartered accountants other than M/s K M Tapuriah and Co.

11. Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/disclosure.

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Mar 31, 2013

Particulars 31st Match. 2013 31st March. 2012

1.1 Contingent liabilities and commitments (to the extent not provided for)

(i) Contingent liabilities

(a) Claims against the Company not acknowledged as debt Nil Nil

(b) Guarantees Nil Nil

1.2 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

Micro, Small and Medium Enterprises in terms of section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 have been determined to the extent such parties have been identified on the basis of information available with the Company and relied upon by the auditors. Since the relevant information is not readily available, no disclosures have been made in the accounts. However, in the opinion of the management, the impact of interest, if any, that may be payable in accordance with the provision of this Act is not expected to be material.

1.3 During the year, the company has at its Board meeting held on 15th September, 2012 approved the scheme of arrangement envisaging the following:

a) Reduction of capital of the company to the extent of 30%

b) Issue of 60 Lakhs (Sixty lakhs only) equity shares of'' 10/- each on preferential basis to Promoters, Promoter''s friends, relatives & Associates and other strategic investors

c) Change in management of the company

The same was filed with the Mumbai Stock Exchange (BSE) on the 8th November, 2012 to obtain the in-principle approval under clause 24f of the Listing Agreement. However since the formalities for forfeiture of 1,01,600 shares were pending with BSE, there was a capital mismatch and hence the scheme could not be processed by BSE. In the meantime, SEBI has issued a recent circular dated 4th February, 2013 for all listed companies envisaging any scheme of arrangement to follow certain additional requirements. Hence above scheme of arrangement filed with BSE needs to be re-filed to obtain the in-pimple approval from BSE under clause 24f of the Listing Agreement. The company shall be re-filing the revised scheme of arrangement with the BSE with the above three objectives, on the basis of the audited annual accounts for the financial year 2012-13.

1.4 Advance recoverable in cash or in kind for value to be received is on account of sale during the year of the eHRD Campus ar.d Document Management System (DMS) software under research and development (coding) stage, as on where on basis since the management of the company has ventured into a new line of business i.e infrastructure and realty . Further, the said sale of the software shall not affect the going concern assumption.

1.5 The balances appearing under short term borrowings, sundry creditors, loans and advances, and banks are subject to confirmation and reconciliation and consequential adjustment, if any, will be accounted for in the year of confirmation and/or recondliation

1.6 During the year, the company is engaged in a new line of activity viz infrastructure and realty and this being the only reportable segment, no separate segment reporting is applicable as per the Accounting Standard 17.

1.7 In the opinion of the Board, assets other than fixed assets do have a value on realisation in the ordinary course of business at least equal to the amount at they are stated.

1.8 Since the Company recognises gratuity and leave salary expense on payment basis no liability for the same has been ascertained and provided in the accounts. Hence, the company has not complied with the provisions of AS-15 "Accounting for Retirement Benefit".

1.9 The previous year accounts were audited by a firm of chartered accountants other than M/s Tushar Parekh & Assonates.

1.10 Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/ disclosure.