| |
(Rs. in Lacs) |
| 1. |
| Contingent
Liabilities | 31.03.2008 |
31.03.2007 | |
| Demands
(including for interest and penalty) raised by Sales Tax Authorities on the company
not provided for being disputed and in appeal (from A.Y. 1992-1993 to A.Y. 2003-2004).
In terms of agreement with the parties, tax, if any, crystallized will be to their
account. | 117.98 |
117.98 | |
| |
| 2 | Going
Concern
The Accumulated losses as at the close of the year amount
to Rs.2228.82 lacs against the Paid Up Capital and free Reserves amounting to
Rs.2122.89 lacs, which has resulted in negative net worth, Since the Company's
efforts is to liquidate all liabilites including public deposits; no fresh exposure
of business has been undertaken by the Company.The Company has paid bank's dues.
In view of above, the management considers that the realization of the assets
will be sufficient to repay all the liabilites. The account, as such, have been
prepared on a going concern basis. |
| | |
| 3 | a)
The Company, in view of losses in excess of its Paid up Capital and Reserves,
will not be able to comply with the Reserve Bank of India's guidelines prescribed
for Non Banking Financial Companies Prudential Norms (Reserve Bank) Directions,
1998, Non Banking Financial Companies Acceptance of Public Deposits (Reserve Bank)
Directions, 1998 with regard to Maintenance of Minimum Capital Adequacy Ratio
as per Regulation 10; (ii) The credit/investment (including investment in real
estates) exposures had become in excess of prescribed limits.
In terms
of Reserve Bank of India's Notification No.RBI/2006-07/200/DNBS/PDCC No.85/03.02.089
dated December 6, 2006 for continuation of business of NBFI, the Company has to
apply for a fresh certificate of registration under section 45-1A of the Reserve
Bank of India Act, 1934. Subject to issuance of fresh certificate of registration,
the Company continues to correspond to the classification as per the existing
NBFCs norms. |
| | |
| 4. |
The Company has not received information from vendors regarding
their status under " The Micro Small and Medium Enterprises Development Act,
2006." and hence disclosure relating to amounts unpaid as at the year end
together with interest paid/payable under this Act have not been given. |
| | |
| 5. | Current
Taxation
(a) Provision for Income
Tax for the year has not been considered necessary in view of the loss for the
year and accumulated carried forward of losses and unabsorbed depreciation available
for set off under the Income Tax Act, 1961 and Rules made thereunder.
(b)
Income Tax assessments of the Company have been made up to and including the Assessment
Year 2004-05. The Company's appeals for certain years are pending in respect of
certain disallowances made. In view of the favourable appellate orders for earlier
years, the Company expects decisions in respect of the pending matters in its
favour and no provision has, therefore, been made considering the taxes already
paid are more than sufficient to meet the liability, if any, upon finalization
of assessment. |
| | |
| 6. | Deferred
Taxation
On a prudent and conservative
basis, Deferred Tax Asset, due to timing differences, arising from Unabsorbed
Depreciation, Business Loss and Provisions for Non Performing Assets have not
been recognised in the absence of any certainty that sufficient future taxable
income will be available in the foreseeable future against which the net Deferred
Tax Assets can be realised. |
| | |
| 7. | Keeping
in view accumulated losses, no transfer has been made to the Statutory Reserve
Fund, as required under section 45-1C of the Reserve Bank of India Act, 1934,
as amended by the Reserve Bank Of India (Amendment) Act, 1977. |
| | |
| 8. | Managerial
Remuneration to Whole time Director / Manager: |
| | |
| |
| |
31.03.2008 |
31.03.2007 | | Particulars |
Manager (Rs) |
Manager (Rs) | | -
Salary | 518400 |
533975 | | -
Contribution to Provident Fund | 34560 |
41340 | | -
Perquisites | 38388 |
39000 | | -
Gratuity | - |
350000 | | Total |
591348 |
964315 | |
| |
Note: Computation of net
profit under section 349 read with 309(5) and 198 of the Companies Act, 1956,
has not been given, in the absence of profits. |
| | |
| 9. |
Balance in parties accounts whether in debit or in credit
are subject to confirmation. |
| | |
| 10. |
Segment Reporting
The Company's business activities predominantly relate to providing finance
by way of Hire Purchase and Leasing Operations. Accordingly revenue from financing
activities comprises the primary basis of segmental reporting. Hence segmental
reporting as defined in Accounting Standard-17 is not applicable. |
| | |
| 11. | Related
Party Disclosures
|
| | |
| |
Disclosures of details pertaining to related party transactions
entered into during the year in terms of Acccounting Standard-18 "Related
Party Disclosures" issued by the Institute of Chartered Accountants of India: a)
List of Related Parties
(As identified and certified by
the management) (i) Under Common Control:
The Motor and General Finance Limited,
MGF Services Limited,
Jayabharat
Credit Limited. (ii) Key Managerial Personnel:
Shri Rajiv Gupta, Director,
Shri Arun Mitter, Director,
Shri Sharad
Agarwal, Director,
Shri M.K. Madan, Director,
(iii)
Enterprises over which the key management personnel is able to exercise significant
influence:
Compact Motors Limited,
MGF Automobile Limited,
Bahubali Services Limited,
Makro Lease Pvt. Ltd,
Oaykay Forgings Pvt.
LTD b) Details of transaction entered into with
related parties
|
| |
(Rs in Lacs) |
| |
| Particulars |
Under Common Control |
Key Managerial Personnel |
Enterprises over which the Key management personnel is able
to exercise significant influence |
Relative of Director | | Commission
Paid | - |
- | 1.27 |
- | | Interest
received on ICD's | - |
- | 11.93 |
- | | ICD's
given | 305 |
- | - |
- | | Purchase
of Fixed Assets | - |
- | 12.68 |
- | | Interest
paid on Fixed deposits | - |
- | - |
0.21 | | Remuneration
Paid to Manager | - |
5.91 | - |
- | | Deposits
accepted / Renewal | - |
0.61 | - |
3.44 | | Closing
balances: | | |
| |
| Deposits | - |
0.61 | - |
3.44 | | Interest
Payable | - |
0.05 | - |
0.28 | |
| | |
| 12. |
Assets given under Finance Lease from 1st April, 2001 in
accordance with the Accounting standard 19 (AS-19), "Leases", issued
by the Institute of Chartered Accountants of India, with contractual maturities
in lease financing activities (including hire purchase agreements with an option
to the hirer to acquire the assets) are set out below: |
| |
(Rs in Lacs) |
| |
| Gross
Investment in finance lease
(1) |
Unearned finance Income
(2) |
Present value of Future lease/ Hire Purchase receivables
(3)=(1)-(2) | a) Lease
Receivables (In respect of transactions after 1.4.2001)
- Not later
than one year | 48.36 |
- | 48.36 |
| - Later than one year but not later than five
years | - |
- | - |
| - Later than five years |
- | - |
- | | Total |
48.36 | - |
48.36 | | Less:
Provision for uncollectible | 47.18 |
- | 47.18 |
| Lease receivables |
| |
| | Total |
1.18 |
- |
1.18 | | b)
Hire Purchase Receivables | |
| |
| - Not later than one year |
13.44 | 0.62 |
12.82 | | -
Later than one year but not later than five years |
866.27 | - |
866.27 | | -
Later than five years | - |
- | - |
| Total |
879.72 | 0.62 |
879.09 | | Less:
provision for uncollectible | 800.24 |
- | 800.24 |
| Net | 79.48 |
0.62 | 78.85 |
| Grand Total |
79.48 |
0.62 |
78.85 | |
| | |
| 13. |
Lease rental in respect of office premises taken on operating
lease are charged to the Profit and Loss account on a straight-line basis over
the lease term. The rentals charged during the year aggregate to Rs 3.34 Lacs
(Previous Year Rs 6.98 Lacs). |
| | |
| 14. |
| Earnings Per Share (E.P.S) |
31.03.2008 |
31.03.2007 | | Calculation
of Basic / Diluted E.P.S | |
| | a) Net Loss
for the year attributable to Equity Shareholders |
Rs 5,30,00,840 |
Rs 4,24,66,454 | | b)
Weighted Average Number Of Equity Shares | 10,200,300 |
10,200,300 | | c)
Basic Earnings per share | Rs
(5.20) | Rs
(4.16) | | d) Diluted Earnings per
share | Rs (5.20) |
Rs (4.16) | | e)
Nominal Value per share | Rs
10/- | Rs 10/- |
|
| | |
| 15. |
Contingent Liabilities & Provisions
Details of 'Contingent Liabilities & Provisions' in term of Accounting
Standard 29 "Contingent Liabilities & Provisions" issued by the
Institute of Chartered Accountants of India are as under. |
| | |
| |
| Particulars |
Opening Balance 01.04.2007 |
Additions/ Movement (Net of Adjustments) |
Closing Balance 31.03.2008 |
| Provisions for Gratuity |
13.78 | (1.91) |
11.87 | | Provisions
for Non Performing Assets as per RBI guidelines |
1319.96 | 377.93 |
1697.89 | | Provisions
for Income Tax | 31.65 |
- | 31.65 |
| Provision for Diminution in value of Investment
as per RBI norms. | 1.20 |
9.01 | 10.21 |
|
| | |
| 16. |
Schedules to the Balance Sheet containing additional particulars
as prescribed by the Reserve Bank of India (RBI) in terms of DNBS(PD)CC.No.25/02-02/2002-03
dated 29.3.2003. |
| |
(Rs. In lacs) |
|
1. |
| Loans and advances availed by the
NBFC's inclusive of interest accrued thereon but not paid: |
Amount Outstanding |
Amount Overdue | | a)
Debentures : |
|
| | :Secured |
- | - |
| Unsecured (other than falling within the meaning
of public deposits) | - |
- | | b)
Deferred Credits | - |
- | | c)
Term Loans | - |
- | | d)
Inter -Corporate loans and Borrowings | - |
- | | e)
Commercial Paper | - |
- | | f)
Public Deposits including accrued interest (includes unclaimed deposits Rs
38.97 lacs. (Previous Year Rs 135.27 lacs) |
537.48 | - |
| g) Other Loans (specify nature) from Banks |
- | - |
|
| | |
| 2. |
| Break-up of (1)(f) above
(Outstanding public deposits inclusive of interest accrued thereon but not paid)
: | |
| | a) In the
form of Unsecured debentures | - |
- | | b) In
the form of partly secured debentures i.e. debentures where there is a shortfall
in the value of security | - |
- | | c) Other
public deposits (includes unclaimed deposits of Rs 38.97 lacs.
(Previous Year Rs 135.27 lacs) | 537.48 |
- | |
| | |
| | Assets
side |
| | |
| 3. |
Breakup of Loans and
Advances including bills receivables
[other than those included in (4) below]: |
Amount outstanding | | a)
Secured | 1 |
| b) Unsecured |
359 | |
| | |
| 4. |
| Break
up of Leased Assets and stock on hire and hypothecation loans counting towards
EL/HP activities | | (i)
Lease assets including lease rentals under sundry debtors after reducing net book
value of leased assets. | | a)
Financial lease | 225 |
| b) Operating
lease | - |
| (ii) Stock on hire including hire
charges under sundry debtors: | | a)
Assets on hire | 880 |
| b) Repossessed
Assets | 38 |
| (iii) Hypothecation loans counting
towards EL/HP activities | | a)
Loans where assets have been repossessed |
- | | b)
Loans other than (a) above | 617 |
|
| | |
| 5. |
| Breakup of Investments
: (Net of Provisions) | | Current
Investments : | | 1.
Quoted : | | (i)
Shares : | | | (a)
Equity | 164 |
| (a)
Preference | - |
| (ii) Debentures and
Bonds | - |
| (iii) Units of mutual
funds | - |
| (iv) Government Securities |
- | | (v)
Others (Share Application money) | - |
| 2. Unquoted : |
| (i) Shares : | |
| (a)
Equity | - |
| (a)
Preference | - |
| (ii) Debentures and
Bonds | - |
| (iii) Units of mutual
funds | - |
| (iv) Government Securities |
- | | (v)
Others (please specify) | - |
| Long Term Investments : |
| 1. Quoted : |
| (i) Shares : | |
| (a)
Equity | 62 |
| (a)
Preference | - |
| (ii) Debentures and
Bonds | - |
| (iii) Units of mutual
funds | - |
| (iv) Government Securities |
241 | | (v)
Others (please specify) | - |
| 2. Unquoted : |
| (i) Shares : | |
| (a)
Equity | 28 |
| (a)
Preference | - |
| (ii) Debentures and
Bonds | - |
| (iii) Units of mutual
funds | - |
| (iv) Government Securities |
- | | (v)
Others (please specify) | - |
|
| | |
| 6. | Borrower
group-wise classification of all leased assets, stock-on-hire and loans and advances
:
(Rs in Lacs)
| Category |
Secured |
Amount Unsecured |
Total | 1.
Related Parties
(a) Subsidiaries
(b)
Companies in the same group
(c) Other related parties
2. Other than related parties |
-
-
-
1721
|
-
-
-
359
|
-
-
-
2080
|
| Total |
1721 |
359 |
2080 | |
| | |
| 7.) | Investor
group-wise classification of all investments (current and long term) in shares
and securities (both quoted and unquoted):
(Rs
in lacs |
| |
| Category |
Market Value / Break up or Fair Value or Net Asset
Value (NAV) | Book
Value (Net of Provisions) | 1.
Related Parties
(a) Subsidiaries |
- | - |
| (b) Companies in the
same group | 109 |
88 | | (c)
Other related parties | - |
- | | 2.
Other than related parties | 522 |
407 | | Total |
631 | 495 |
|
| | |
| 8. | Other
information |
| | |
| |
| Particulars |
Amount | | (i)
Gross Non-Performing Assets |
|
| (a) Related Parties |
- | | (b)
Other than related parties | 1884 |
| (ii) Net Non-Performing Assets |
|
| (a) Related parties |
- | | (b)
Other than related parties | 186 |
| (iii) Assets acquired in satisfaction of debt |
8 | |
| | |
| 17 | Disclosures
as required under Accounting Standard - 15 (Revised) on " Employees Benifits"
for Gratuity. |
| |
|
| |
| A. Assumption |
Gratuity | | Particulars |
31.03.08 | 31.03.07 |
| Discount Rate | 8.00% |
8.30% | | Rate of Return of
Plan Assets | 0.00% |
0.00% | | Salary Escalation
| 10.00% |
10.00% | | | | |
| B. Changes in Benifit Obligations |
Gratuity | | Particulars
| 31.03.08 | |
| Liability at beginning of the year | 13,77,911 | |
| Interest Cost | 1,14,367 | |
| Current Service Cost | 1,28,642 | |
| Benifit Paid | 4,09,097 | |
| Actuarial(gain)/Loss on obligation | (25,195) | |
| Liability at the end of the year | 11,86,628 | |
| | | |
| C. Fair Value of Plan Assets |
Gratuity | | Particulars |
31.03.08 | |
| Fair Value of Plan Assets at beginning of the year |
Nil | | | Expected
Return of Plan Assets | Nil | |
| Contributions | Nil | |
| Benifits Paid | Nil | |
| Actuarial Gain / (Loss) on Plan Assets |
Nil | | | Fair
value of Plan Assets at the end of the year | Nil | |
| Funded Status | Unfunded | |
| | | |
| D. Expenses recognised in the Profit & Loss Account |
Gratuity | | Particulars | 31.03.08 | |
| Current Service Cost | 1,28,642 | |
| Interest Cost | 1,14,367 | |
| Net Actuarial(gain)/Loss for the period | (25,195) | |
| Expenses Recognised in Profit & Loss Account | 2,17,814 | |
| | | |
| E. Balance Sheet Reconciliation | Gratuity |
| Particulars | 31.03.08 | |
| Opening Net Liability | 13,77,911 | |
| Expenses charged to Profit & Loss account |
2,17,814 | | | Benifit
Paid | 4,09,097 | |
| Closing Liability as at 31.03.08 | 11,86,628 | |
| | | | |
| . | |
| 18 | Transactions
in Foreign Currency |
| |
| (Amount in RS) |
| | Year
Ending 31.03.2008 Rs. | Year
Ending 31.03.2007 Rs. | | a)
Expenditure in Foreign Currency Traveling Expenses |
Nil | Nil |
| b) Shares held by nonresident
Shareholders | 5128 |
15674 | | No.
of Shareholders | 13 |
13 | | Dividend
paid during the year | Nil |
Nil | |
| | |
| 19. |
Figures of the previous years have been regrouped/rearranged
wherever considered necessary to make them comparable with Current year's figures. |
| | |
