Twamev Construction and Infrastructure Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2023

1.The financial results have been reviewed by the Statutory Auditor of the Company. The statement has been prepared in accordance with Indian Accounting Standards (Ind AS) as notified by the Ministry of Corporate Affairs pursuant to Section 133 of Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standard) Rules, 2015, Companies (Indian Accounting Standards) Amendment Rules, 2016 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and amendments thereof.
2.The figures for the corresponding previous period have been regrouped/ reclassified wherever necessary, to make them comparable.
3.The Company is in business of infrastructure activities and hence has only one reportable operating segment as per IND AS 108 - Operating Segment.
4.For the purposes of consolidation, unaudited accounts of the Company's subsidiary, Tantia Infrastructure Private Limited,Step Down Subsidiary company , Tantia Raxaultollway Private Limited and audited accounts of its Joint Venture drawn for the financial year 2022-2023, have been taken into consideration. With respect to its associate company, Tantia Sanjauliparkings Private Limited unaduited accounts for nine months ended 31st December,2022 have been taken into consideration.
5.Attention is invited to the following:
Amount receivables and payables including certain balances under cash & cash equivalents, trade receivables/payables, loans, other financial assets, other assets/ liabilities are subject to balance confirmations and reconciliations thereof, if any required.
Non-ascertainment and provision for slow/non/obsolete inventory and as such consequent impact thereof on the financial statement of the company, if any, cannot be commented upon by us.
6.Statutory auditors have drawn emphasis on their report regarding-
A Corporate Insolvency Resolution Process (“CIR Process”) had been initiated against Tantia Constructions Limited (hereinafter referred to as ‘Company’) vide an order passed by Hon’ble National Company Law Tribunal, Kolkata Bench (Hon'ble NCLT) dated 13th March 2019, under the provisions of the Insolvency and Bankruptcy Code, 2016. Pursuant to the order, the power of the Board of Directors stands suspended and exercisable by Mr. Kshitiz Chhawchharia, who was appointed as the Interim Resolution Professional and consecutively confirmed as the Resolution Professional by the Committee of Creditors of the Company. Further, during the CIR Process, Expression of Interest was sought against which application was received. Subsequently, the proposal shared by a consortium of EDCL Infrastructure Limited and Upendra Singh Construction Private Limited was selected and the Consortium declared as the successful Resolution Applicant. The final order was passed by the Hon'ble NCLT on 24th February 2020 which is considered as the “effective date” for implementation of the Resolution Plan.
Post the Hon'ble NCLT's approval, the Company is continuing to operate as a going concern in terms of the approved Resolution Plan
A Monitoring committee has been formed for the management of going concern and supervision of implementation of the Approved Resolution Plan. During the course of implementation of the Approved Resolution Plan difference of 99,19,032 equity shares between the issued and listed share capital, on account of preferential allotment of Equity Shares to the erstwhile promoters of the Company, were identified.
A meeting of the monitoring Committee was held vide an order of the Hon’ble NCLT dated 14th November 2022, wherein decisions were made to resolve the issues being faced in the implementation of the approved resolution plan. The monitoring Committee has apprised the Hon’ble NCLT of the outcome of the meeting vide an application filed on 28th December 2022. which inter alia included prayers for resolving the anomaly of the Equity shares as stated in para above. The adjudicating authority duly allowed the prayers sought by the MC vide its order dated 1st day of May 2023 read with the Corrigendum order dated 18th day of May 2023.The MC is currently in the process of implementing the Resolution Plan as per the above directions issued by Adjudicating Authority.
Tantia Sanjauliparkings Private Limited(hereinafter referred to as the ‘TSPL’) an Associate company of the Corporate Debtor has been admitted into CIR Process by the Adjudicating Authority vide its order dated 23rd day of March, 2023. The said order has appointed an IRP who is in the process of finalising the Annual accounts for year ended 31st day of March,2023. In view of the above, TSPL has been consolidated based on the Financials available till 31st day of December, 2022.
Trade receivables, and Loans and Advance(Current assets) includes INR 1763 Lakhs(PY - INR 2060 Lakhs) lakhs, and INR 253 Lakhs(PY - INR 707 lakhs), respectively lying outstanding for more than three years. As receivable mainly from government agencies, subsidiary and associate company or pending under arbitration, the same has been considered good and as such no provision has been made there against by the Management.
Fixed deposit of INR 1000 lakhs given as performance security to “Committee Of Creditors” by Resolution Applicant as per the Approved Resolution Plan, treated as amount received by the Company from the Successful Resolution Applicant and the same has been included in “Other banks balances” by creating corresponding liability to them and shown under “Other Current Liabilities”.
Further, interest income of INR 29 lakhs accrued thereon accounted for under other income and corresponding liability accounted as “other financial liabilities”.
INR 350 lakhs received from Resolution Applicant as per approved resolution for payment to employees and other operational creditors. Pending implementation of Resolution Plan, the same has been deposited with bank as short-term deposit and interest accrued thereon of INR 15 lakhs has been accounted for as interest income.
Advance made to suppliers, of INR 232 Lakh to different parties during the period of Corporate Insolvency Resolution Process, due to be recovered or adjusted has been considered as good.
Original title deeds with respect to land in Domjur,Howrah is not readily available with the Company .
In terms of the Hon’ble NCLT order dated 15.07.2021 & 12.08.2021 the erstwhile RP has re-verified and admitted the claims of two operational creditors. The Monitoring Committee has taken note of such revision and the relevant entries have been made in the books of accounts of the company.
Other Income of INR 1492 Lakh, includes INR 21 Lakh on account of profit on Sale of fixed assets out of which INR 20 Lakh fixed assets sold as scrap, INR 143 Lakh on account re imbursement of insurance premium relating to earlier years under other non operating revenue, INR 76 Lakh on account settlement amount received from WB HIDCO for cancellation of leasehold land rights under interest income and INR 907 Lakh on account liability written back under non operating income others.
Other Expenses of INR 1469 Lakh includes INR 312 Lakh on account of sundry balance written off Tantia Gondwana JV and INR 70 Lakh on account of Sundry Balance written off of receivable from Employee .
The company had restructured its books of accounts in terms of the approved Resolution Plan and thereby the amount payable to different class of creditors have been disclosed under a)Short Term Borrowings - Rs. 6697 lakhs, b)Trade Payable - Rs. 145 lakhs,
c) Other Financial Liabilities - Rs. 603 lakhs and d) Other Current Liabilities - Rs. 55 lakhs