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Notes to Accounts of Arman Financial Services Ltd.

Mar 31, 2015

1. Contingent liabilities not provided for: -

(a) Disputed Demand of Income Tax Rs,42.06 Lacs (Previous year Rs,17.12 Lacs) (Against which the Company has paid Rs, Nil [Previous year Rs,11.41 Lacs] under protest which are shown as advances).

(b) Guarantee given by company of Rs,3800 Lacs (P.Y. Rs,2200 Lacs) for Working Capital / Term Loan taken by its subsidiary company.

2. Related Party Disclosures : (contd.)

List of Transaction, out of the transaction reported in the above table, where the transaction entered in to with single party exceeds 10 % of the total related party transactions of similar nature are as under:

Unsecured Loan taken includes

Taken from Shri Jayendra Patel Rs,900000 (P.Y. Rs,5085000), from Smt. Rs,imani A. Manakiwala Rs,Nil (P.Y. Rs,1300000), from Smt. Ritaben J. Patel Rs,250000 (P.Y. Rs,1487500), from Shri Aalok J. Patel Rs,250000 (P.Y Rs,3050000), from Jayendra Patel (HUF) H Nil (P.Y. Rs,2675000) , from Namra Holdings & Consultancy Services Pvt. Limited Rs,120000 (P.Y. Rs,1965000), from Shri Aakash J. Patel ( HUF ) Rs,680000 (P.Y. Rs,2375000).

Unsecured Loan repayments includes

Paid to Shri Jayendra Patel Rs,9 33 904 (P.Y. Rs,5576248), to Smt. Himani A. Manakiwala H Nil (P.Y. Rs,1426409), to Smt. Ritaben J. Patel Rs,259493 (P.Y. Rs,1793825), to Shri Aalok Patel Rs,2 59 370 (P.Y. Rs,3443157), to Aakash Patel (HUF) Rs,2 98 623 (P.Y. Rs,2438618), to Amit Manakiwala(HUF) H Nil (P.Y. Rs,1512271), to Jayendra Patel (HUF) H Nil (P.Y. Rs,3000229), to Namra Holdings & Consultancy Services Pvt. Limited H124438 (P.Y. Rs,2206101), to Chinubhai R. Shah (HUF) Rs,923238 (P.Y. Rs,125310).

Unsecured Loan granted includes

Paid to Namra Finance Limited Rs,312537802 (P.Y. Rs,404042640).

Unsecured Loan received back includes

Received from Namra Finance Limited Rs,327914263 (P.Y. Rs,405794793).

Interest Income includes

Received from Namra Finance Limited Rs,10353560 (P.Y. Rs,13223711).

Interest Expenses includes

paid to Shri Jayendra Patel Rs,33904 (P.Y. Rs,491218), to Shri Aalok Patel H9370 (P.Y. Rs,393157), to Smt. Ritaben J Patel Rs,9493 (P.Y. Rs,306325), to J B Patel (HUF) Rs, Nil (P.Y. Rs,325229), to Aakash Patel (HUF) Rs,91777 (P.Y. Rs,263618), to Smt. Himani Manakiwala Rs, Nil (P.Y. Rs,126409), to Namra Holdings & Consultancy Services Pvt. Limited Rs,4438 (P.Y. Rs,241101) to C.R. Shah 123238 (125310).

Remuneration and perquisites includes

payment to Shri Jayendrabhai Patel Rs,1532600 (P.Y. Rs,1532600) and to Shri Amit Manakiwala Rs,950000 (P.Y. Rs,900000), to Shri Aalok Patel Rs,511100 (P.Y. Rs,549600)

Sitting Fees included

paid to Smt. Ritaben Patel Rs,37500 (P.Y. Rs,50000)

Rent includes

paid to J B Patel & Co. Rs,20224 (P.Y. Rs,20224) and to Smt. Ritaben Patel Rs,555660 (P.Y. Rs, Nil)

Dividend Paid includes

paid to Shri Aalok Patel Rs,247480 (Rs,197984), to Jayendrabhai Patel HUF Rs,1 96 000 (P.Y. Rs,156800), to Shri Aakash Patel Rs,247480 (P.Y. Rs,223064), to Shri Jayendrabhai Patel Rs,283908 (P.Y. Rs,226355), to Smt. Ritaben Patel Rs,278830 (P.Y. Rs,237339), to Namra Holdings & Cons. Services Pvt. Limited Rs,165400 (P.Y. Rs,132320), to SRs,ri Amitbhai Manakiwala Rs,194003. (P.Y. Rs,155202), to Smt. Himani Manakiwala Rs,50000 (P.Y. Rs,40000).

Investments in Subsidiary Company includes

investment into Namra Finance limited Rs, Nil (P.Y. Rs,50000000).

Purchase of Receivables under Securitization included

transaction with Namra Finance limited of Rs,223150400/- (P.Y. 49500000)

3. Balances are subject to confirmation.

4. Borrowing costs attributable to the acquisition or construction of Qualifying Assets amounting to Rs, Nil (P. Y. Rs, Nil)

5. Share Application Money forfeited during the year and transferred to General Reserve of Rs, Nil (P.Y. Rs,14.99 Lacs).

6. Lease:

The Company has entered into certain rent agreements and amounts of Rs,15.92 Lacs (P.Y. Rs,22.99 Lacs) paid under such agreements have been charged to the Statement of Profit and Loss. These rents agreements are generally not non-cancellable and are renewable by mutual consent on mutually agreed terms. There are no restrictions imposed by such agreements.

7. During the year, the company has impaired the assets to the tune of Rs, Nil (P.Y. Rs, Nil).

- In the opinion of the Board, Current assets and loans and advances, are approximately of the value stated, if realized in ordinary course of business.

8. As per the prudential norms of the Reserve Bank of India, provision has been made in the accounts for the Non Performing Assets. Income is not recognized in respect of Non Performing Assets.

9. As required in terms of Paragraph 13 of Non-Financial Companies Prudential Norms (Reserve Bank) Directions, 2007, schedule to the Balance Sheet of a Non-Banking Financial Company are annexed hereto.

A) Details of non-performing assets purchase / sold.

The company has not purchased/sold non performing financial assets in the current and previous year.

B) Exposure

The company has no exposure to real estate sector and capital market directly or indirectly in the current and previous year.

C) Details of financing of parent company products:

This disclosure is not applicable as the company does not have any holding / parent company.

D) Registration obtained from other financial sector regulators.

The company is registered with following other financial sector regulators (financial regulators as described by Ministry of Finance):

(E) Ministry of Corporate Affairs (ii) Ministry of Finance

F) Disclosure of penalties imposed by RBI and Other regulators.

No penalties imposed by RBI and other regulator during current year and previous year.

Previous year's figures have been regrouped and rearranged wherever necessary, to make them comparable with those of current year.-


Mar 31, 2014

1. The Company has two classes of shares referred to as i) Ordinary Equity shares having face value of Rs. 10/-. Each Holder of Equity Share is entitled to 1 vote per share and ii) Class "A" Ordinary Shares having face value of Rs. 10/-. Each Holder of Class "A" Ordinary Shares is Entitle to one Vote for one lac Shares.

2. In the event of liquidation of the Company, the holders of both type of Equity shares will be entitled to receive any of the remaining assets of the company , after distribution of all preferential amounts. However, no such preferential amounts exist currently The distribution will be in proportion to the number of Equity shares held by shareholders.

3. The Company declares and pays dividends in Indian Rupees. The Dividend proposed by the Board of Director is subject to the approval of the shareholders in the ensuing Annual General Meeting.

4. During the year ended 31st March2014, the amount of per share dividend recognised as distribution to equity shareholders was Rs. 81,01,498/-(Rs.1.00). The Total dividend appropriation for the year ended 31st March,2014 amounted Rs. 69,24,653/-(PY Rs. 45,19,115/-) excluding corporate dividend tax of Rs. 11,76,845/- (P.Y. 7,68,023/-).

Interest:

Term Loan carries an interest rate ranging from @ 8.25 % to @ 16.25 % p.a. Vehicle Loan carries an interest rate @ 12 % .

Loans from relatives carries interest rate @ 15 to 18 %

5. Loans secured by hypothecation of Assets (Vehicles) are secured by hypothecation of the Assets (Vehicles) under finance. In the opinion of the Board, the market value of the hypothecated Assets (Vehicle) as on Balance Sheet date is more than the amount of Loan Outstanding.

6. Loans secured by Hypothecation of Vehicle includes Rs. 21,00,713/- (P.Y. 14,72,820/-) outstanding portfolio on which NPA provision of Rs. 2,10,345/- (P.Y. Rs. 1,47,280/-) has been made.

7. Loans to Companies, Firms & Individuals includes Rs. Nil (P.Y. 57,457/-) outstanding portfolio on which NPA provision of Rs. Nil (P.Y. Rs. 5,748/-) has been made

8. Bad debts & Irrecoverable W/off are shown net off bad debts recovery during the year amounting to Rs. 7,42,973/- (P.Y. 5,00,941/-).

9. NPA provisions are shown net off NPA Provision written back during the year amounting to Rs. 3,72,539/- (P.Y. Rs. 2,12,144/-)

10. Contingent liabilities not provided for: -

(a) Disputed Demand of Income Tax Rs. 17.12 Lacs (Previous year Rs. 19.27 Lacs) (Against which the Company has paid Rs. 11.41 Lacs [Previous year Rs. 19.27 Lacs] under protest which are shown as advances).

(b) Guarantee given by company of Rs. 2200 Lacs (P.Y. Rs. Nil) for Working Capital Loan taken by its subsidiary company.

11. Related Party Disclosures :

List of Related Parties with whom transactions have taken place during the year:

A) Subsidiary Namra Finance Ltd.

B) Key Management Personnel

Mr. Jayendrabhai Patel

Mr. Aalokbhai Patel

Mr. Amitbhai Manakiwala

C) Relatives of Key Management Personnel

Name of Party Related party Relationship

Mrs. Ritaben J. Patel Relative of Key Management Personnel

Mr. Aakash J. Patel Relative of Key Management Personnel

J.B.Patel HUF Key Management personnel is Karta

Raj Enterprise Key Management personnel is Proprietor

Mrs. Himani Manakiwala Relative of Key Management Personnel

J B Patel & Co. Key Management personnel is co-owner

Mrs. Sachi Patel Relative of Key Management Personnel

Aalok Patel (HUF) Key Management personnel is Karta

Amit Manakiwala (HUF) Key Management personnel is Karta

Aakash Patel (HUF) Relative of Key Management Personnel

Namra Holdings & Cons. Relative of Key Management Personnel

Services Pvt. Limited Is Director

List of Transaction, out of the transaction reported in the above table, where the transaction entered in to with single party exceeds 10 % of the total related party transactions of similar nature are as under:

Unsecured Loan taken includes

taken from Shri Jayendra Patel Rs. 5085000 (P.Y. Rs. 7615000), from Smt. Himani A. Manakiwala Rs. 1300000 (PY Rs. 800000), from Smt. Ritaben J. Patel Rs. 1487500 (P.Y. Rs 3275000), from Shri Aakash J. Patel Rs. Nil (PY. 5.180.000) , from Shri Aalok J. Patel Rs. 3050000(P.Y Rs. 2880000), from Jayendra Patel (HUF) Rs. 2675000 (PY. Rs.1630000), from Smt. Sachi Patel Nil (P.Y. Rs. 1193000), from Amit Manakiwala (HUF) Rs.Nil (PY. Rs. 1120000), from Namra Holdings & Consultancy Servises Pvt. Limited Rs.1965000 (P.Y. Rs. 790000), from Shri Aakash J. Patel ( HUF ) Rs. 2375000 (P.Y. 150000). Unsecured Loan repayments includes paid to Shri Jayendra Patel Rs. 5576248(P.Y. Rs. 8267416), to Smt. Himani A. Manakiwala Rs. 1426409 (P.Y. Rs. 941239), to Smt. Ritaben J. Patel Rs. 1793825 (PY Rs. 3517351), to Shri Aakash Patel Rs. Nil (P.Y. Rs. 5908718 ), to Shri Aalok Patel Rs. 3443157 (PY Rs. 3250328), to Aaksh Patel (HUF) Rs.2438618 (P.Y. Rs. 174991), to Smt. Sachi Patel Rs. Nil (P.Y. Rs. 1395145), to Amit Manakiwala(HUF) Rs.1512271 (P.Y. Rs. 1308714), to Jayendra Patel (HUF) Rs.3000229 (PY Rs. 18,19,361), to Namra Holdings & Consultancy Services Pvt. Limited Rs.2206101 (P.Y. Rs. 904016).

Unsecured Loan granted includes paid to Namra Finance Limited Rs. 404042640(P.Y. Nil).

Unsecured Loan received back includes Received from Namra Finance Limited Rs. 405794793(P.Y. Nil).

Interest Income includes Received from Namra Finance Limited Rs. 13223711 (P.Y. Nil).

Interest Expenses includes paid to Shri Jayendra Patel Rs. 491218 (PY Rs. 587175), to Shri Aakash Patel Rs. Nil (P.Y. Rs. 582973), to Shri Aalok Patel Rs. 393157 (P.Y. Rs. 333293), to Smt. Ritaben J Patel Rs. 306325 (PY Rs. 218115), to J B Patel (HUF) Rs. 325229 (P.Y. Rs. 170424), to Aakash Patel (HUF) Rs.263618 (P.Y. Rs. 22,491), to Smt. Sachi Patel Rs. Nil (P.Y. Rs. 161716), to Amit Manakiwala(HUF) Rs. Nil (P.Y. Rs. 169843), to Smt. Himani Manakiwala Rs. 126409 (PY Rs. 127114), to Namra Holdings & Consultancy Services Pvt. Limited Rs.241101 (PY Rs. 102614).

Remuneration and perquisites includes payment to Shri Jayendrabhai Patel Rs. 1532600 (PY Rs. 1535536) and to Shri Amit Manakiwala Rs. 900000 (P.Y. Rs. 390000), to Shri Aalok Patel Rs. 549600 (P.Y. 550000)

Professional Fees includes payment to Shri Amit Manakiwala Rs. Nil (P.Y. Rs. 390000),

Sitting Fees included paid to Smt. Ritaben Patel Rs. 50000 (P.Y. Rs. 62500) and Shri Amitbhai R. Manakiwala Rs. Nil (PYRs. 22500),

Rent includes paid to J B Patel & Co. Rs. 20224 (P.Y. 20224),

Dividend Paid includes paid to Shri Aalok Patel Rs. 197984 (Rs. 161432), to Jayendrabhai Patel HUF Rs.156800 (P.Y. Rs. 156800), to Shri Aakash Patel Rs. 223064 (P.Y. Rs. 186512), to Shri Jayendrabhai Patel Rs. 226355(PY Rs. 188952.80), to Smt. Ritaben Patel Rs. 237339 (P.Y. Rs. 200248), to Namra Holdings & Cons. Services Pvt. Limited Rs. 132320 (P.Y. Rs. 132320), to Shri Amitbhai Manakiwala Rs. 155202 (P.Y. Rs. 130080), to Smt. Himani Manakiwala Rs. 40000 (PY Rs. 40000).

Investments in Subsidiary Company includes investment into Namra Finance limited Rs. 50000000/- (P.Y. Rs. 30110000/-).

Transfer of Receivables under Securitization included transaction with Namra Finance limited of Rs. 11791300/ - (PY 49500000)

Purchase of Shares of Subsidiary includes purchase made from Shri Jayendrabhai Patel Rs. Nil (PY 2,000) , to Shri Amit Manakiwala Rs. Nil (PY Rs. 2,000), to Shri Aalok Patel Rs. Nil (PY 2,000), Smt. Ritaben Patel Rs. Nil (PY 1.000) .

12. Balances are subject to confirmation.

13. Borrowing costs attributable to the acquisition or construction of Qualifying Assets amounting to Rs. Nil (P. Y. Rs. Nil)

14. Share Application Money forfeited during the year is transfer to General Reserve of Rs. 14.99 Lacs (P.Y. Rs. Nil).

15. Lease:

The Company has entered into certain rent agreements and amounts of Rs. 22.99 Lacs (P.Y. Rs. 25.82 Lacs) paid under such agreements have been charged to the Statement of profit and Loss. These rents agreements are generally not non-cancellable and are renewable by mutual consent on mutually agreed terms. There are no restrictions imposed by such agreements.

16. During the year, the company has impaired the assets to the tune of Rs. Nil (P.Y. Rs. Nil).

17. In the opinion of the Board, Current assets and loans and advances, are approximately of the value stated, if realized in ordinary course of business.

18. As per the prudential norms of the Reserve Bank of India, provision has been made in the accounts for the Non Performing Assets. Income is not recognised in respect of Non Performing Assets.

19. Previous year's figures have been regrouped and rearranged wherever necessary, to make them comparable with those of current year.


Mar 31, 2013

1. Contingent liabilities not provided for: -

(a) Disputed Demand of Income Tax Rs. 19.27 Lacs (Previous year Rs. 19.27 Lacs) (Against which the Company has paid Rs.19.27 Lacs [Previous year Rs. 19.27 Lacs] under protest which are shown as advances)

2. Related Party Disclosures :

List of Related Parties with whom transactions have taken place during the year:

A) Subsidiary Namra Finance Ltd.

B) Key Management Personnel Mr. Jayendrabhai Patel

Mr. Aalokbhai Patel

Mr. Amitbhai Manakiwala

3. Balances are subject to confirmation.

4. Borrowing costs attributable to the acquisition or construction of Qualifying Assets amounting to Rs. Nil (P. Y. Rs. Nil)

5. Lease:

The Company has entered into certain operating lease agreements and amounts of Rs.25.82 Lacs (P.Y. Rs. 18.60 Lacs) paid under such agreements has been charged to the Statement of rofit and Loss. These lease are generally not non cancellable and are renewable by mutual consent on mutually agreed terms. There are no restrictions imposed by such agreements.

6. During the year, the company has impaired the assets to the tune of Rs. Nil (P.Y. Rs. Nil).

7. In the opinion of the Board, Current assets and loans and advances, are approximately of the value stated, if realized in ordinary course of business.

8. As per the prudential norms of the Reserve Bank of India, provision has been made in the accounts for the Non Performing Assets. Income is not recognised in respect of Non Performing Assets.

9. Previous year''s figures have been regrouped and rearranged wherever necessary, to make them comparable with those of current year.


Mar 31, 2012

1.1 The company has only one class of shares referred to as Equity shares having face value of Rs. 10/-. Each Holder of Equity Share is entitled to 1 vote per share.

1.2 In the event of liquidation of the Company, the holders of Equity shares will be entitled to receive any of the remaining assets of the company , after distribution of all preferential amounts.However, no such preferential amounts exist currently.The distribution will be in proportion to the number of Equity shares held by the shareholder.

1.3 The Company declares and pays dividends in Indian Ruppes. The Dividend proposed by the Board of Director is subject to the approval of the shareholders in the ensuing Annual General Meeting.

1.4 During the year ended 31st March, 2012, the amount of per share dividend recognised as distribution to equity shareholders was Rs. 32,61,280/- (Rs. 0.80).The Total dividend appropriation for the year ended 31st March,2012 amounted Rs. 32,61,280/-(P.Y.32,61,280/-) excluding corporate dividend tax Tax of Rs.5,28,980/- (P.Y. 5,41,666/-).

2.1 Loan from related party carry interest rate 18 %.

2.2 Loan from Corporates carry interest rate 18 %.

3.1 Current Account with Banks includes Rs. 5,58,852/- (Prev. Year Rs. 2,49,508/-) in Unpaid Dividend Account.

4.1 Bad debts & Irrecoverable W/off are shown net off bad debts recovery during the year amounting to Rs. 11,69,860/- (P.Y. 3,91,570/-).

5. Contingent liabilities not provided for: -

(a) Disputed Demand of Income Tax Rs. 19.27 Lacs (Previous year Rs. 38.69 Lacs) (Against which the Company has paid Rs. 19.27 Lacs [Previous year Rs. 29.73 Lacs] under protest which are shown as advances)

6. Segment Reporting:

In the opinion of the management, the Company is mainly engaged in the business of providing commercial finance. All other activities of the Company revolve around the main business, and as such, there are no separate reportable segments.

7. Related Party Disclosures :

List of Related Parties with whom transactions have taken place during the year.

A) Subsidiary

Namra Finance Ltd.

B) Key Management Personnel

Mr. Jayendrabhai Patel

Mr. Aalokbhai Patel

Mr. Amitbhai Manakiwala

C) Relatives of Key Management Personnel

Name of Party Related party Relationship

Mrs. Ritaben J. Patel Relative of Key Management Personnel

Mr. Aakash J. Patel Relative of Key Management Personnel

J.B.Patel HUF Key Management personnel is Karta

Raj Enterprise Key Management personnel is Proprietor

Mrs. Himani Manakiwala Relative of Key Management Personnel

Mr. Maulik Manakiwala Relative of Key Management Personnel

J B Patel & Co. Key Management personnel is co-owner

Mrs. Sachi Patel Relative of Key Management Personnel

Amit Manakiwala (HUF) Key Management personnel is Karta

Aakash Patel (HUF) Relative of Key Management Personnel

Namra Holdings & Cons. Relative of Key Management Personnel

Services Pvt. Limited is Director

List of Transaction, out of the transaction reported in the above table, where the transaction entered in to with single party exceeds 10 % of the total related party transactions of similar nature are as under:

Unsecured Loan taken includes taken from Shri Jayendra Patel Rs. 47,65,000 (P.Y. Rs. 20,10,000), from Smt. Himani A. Manakiwala Rs. 7,25,000 (P.Y. Rs. 1,50,000), from Smt. Ritaben J. Patel Rs. 37,75,000 (P.Y. Rs21,00,000), from Shri Aakash J. Patel Rs. 37,00,000 (P.Y. 5,95,000), from Shri Aalok J. Patel Rs. 17,55,000 (P.Y Rs.15,45,000), from Jayendra Patel (HUF) Rs.13,30,000 (P.Y. Rs.2,05,000), from Smt. Sachi Patel 10,78,000 (P.Y. Rs. 6,58,000), from Amit Manakiwala (HUF) Rs.7,25,000 (P.Y. Rs. 7,00,000), from Namra Holdings & Consultancy Servises Pvt. Limited Rs.13,50,000 (P.Y. Rs. 15,00,000) , from Shri Aakash J. Patel – (HUF) Rs. 1,25,000 (P.Y. Nil) Unsecured Loan repayments includes paid to Shri Jayendra Patel Rs. 54,96,878 (P.Y. Rs. 31,24,114), to Smt. Himani A. Manakiwala Rs. 8,51,567 (P.Y. Rs. 7,91,839), to Smt. Ritaben J. Patel Rs. 40,52,448 (P.Y. Rs. 35,40,297), to Shri Aakash Patel Rs.44,76,016 (P.Y. Rs. 33,58,848), to Shri Aalok Patel Rs. 20,52,496 (P.Y. Rs. 39,39,204), to Aaksh Patel (HUF) Rs.1,46,417 (P.Y. Rs. 1,19,530), to Smt. Sachi Patel Rs,12,08,575 (P.Y. Rs. 7,17,287), to Amit Manakiwala(HUF) Rs.8,51,567 (P.Y. Rs. 7,89,088), to Shri Maulik Manakiwala Rs,Nil (P.Y. Rs. 4,96,551), to Jayendra Patel (HUF) Rs.15,59,853 (P.Y. Rs. 14,97,208), to Namra Holdings & Consultancy Servises Pvt. Limited Rs.14,84,877 (P.Y. Rs. 15,53,013), Acquisition of shares includes investments made in Namra Finance Limited Rs. 1,99,90,000 (P.Y. Nil)

Interest paid includes to Shri Jayendra Patel Rs. 6,58,689 (P.Y. Rs. 3,80,108), to Shri Aakash Patel Rs. 4,76,939 (P.Y. Rs. 4,42,612), to Shri Aalok Patel Rs. 2,67,744 (P.Y. Rs. 5,08,432), to Smt. Ritaben J Patel Rs. 2,49,703 (P.Y. Rs. 4,49,126), to J B Patel (HUF) Rs. 2,06,867 (P.Y. Rs. 2,17,683), to Aakash Patel (HUF) Rs.19,276 (P.Y. Rs. 17,754), to Smt. Sachi Patel Rs. 1,04,460 (P.Y. Rs. 53,359), to Amit Manakiwala(HUF), Rs. 1,13,911 (P.Y. Rs. 80,179), to Smt. Himani Manakiwala Rs.1,13,911 (P.Y. Rs. 1,07,252), to Shri Maulik Manakiwala Rs. Nil (P.Y. Rs. 21,551), to Namra Holdings & Consultancy Services Pvt. Limited Rs.1,21,390 (P.Y. Rs. 53,013) Balance Outstanding includes of Aakash Patel Rs. Nil (P.Y. Rs. 1,80,639) Remuneration includes payment to Shri Jayendrabhai Patel Rs. 15,32,603 (P.Y. Rs. 15,32,603) and to Shri Amit Manakiwala Rs. Nil (P.Y. Rs. 44,625), to Shri Aalok Patel Rs.5,50,000 (P.Y. 4,62,436) Sitting Fees included paid to Smt. Ritaben Patel Rs. 57,500 (P.Y. Rs. 30,000) and Shri Amitbhai R. Manakiwala Rs.37,500 (P.Y.Rs.20,000), Rent includes paid to J B Patel & Co. Rs. 19,856 (P.Y. 19,856), Professional Fees includes paid to Shri Amitbhai R. Manakiwala Rs. 7,80,000 (P.Y.Rs.6,88,000), Dividend Paid includes paid to Sh. Aalok Patel Rs. 1,61,432 (Rs. 1,21,074), to Jayendrabhai Patel HUF Rs.1,56,800 (P.Y. Rs. 1,17,600), to Sh. Aakash Patel Rs. 1,86,512 (P.Y. Rs. 1,39,881), to Sh. Jayendrabhai Patel Rs. 1,70,458 (P.Y. Rs. 1,27,843), to Smt. Ritaben Patel Rs. 1,83,848 (P.Y. Rs. 1,37,886), to Namra Holdings & Cons. Services Pvt. Limited Rs. 1,32,320 (P.Y. Rs. 99,240), to Sh. Amitbhai Manakiwala Rs. 1,30,080 (P.Y. Rs. 97,560)

8. Balances are subject to confirmation.

9. In the opinion of the Board, Current assets and loans and advances, are approximately of the value stated, if realized in ordinary course of business.

10. As per the prudential norms of the Reserve Bank of India, provision has been made in the accounts for the Non Performing Assets. Income is not recognised in respect of Non Performing Assets.

11. As required in terms of Paragraph 13 of Non-Financial Companies Prudential Norms (Reserve Bank) Directions, 2007, schedule to the Balance Sheet of a Non-Banking Financial Company are annexed hereto.

12. Previous year's figures have been regrouped and rearranged wherever necessary, to make them comparable with those of current year. Till the year ended 31st March 2011, the company was using pre-revised Schedule VI to the Companies Act, 1956, for preparation and presentation of its financial statements. During the year ended 31st March, 2012, the revised schedule VI notified under the Companies Act, 1956, has become applicable to the company. The Company has reclassified previous year figures to conform to this classification. The adoption of revised schedule VI does not impact recognition and measurement principles followed for preparation of financial statement. However, it significantly impacts presentation and disclosures made in the financial statements, particularly presentation of Balance Sheet.


Mar 31, 2010

1. Contingent liabilities not provided for: -

(a) Disputed Demand of Income Tax Rs. 58.70 Lacs (Previous year Rs.58.70 Lacs) (Against which the Company has paid Rs. 11.00 Lacs [Previous year Rs.11.00 Lacs] under protest which are shown as advances)

2. Segment Reporting:

In the opinion of the management, the Company is mainly engaged in the business of providing commercial finance. All other activities of the Company revolve around the main business, and as such, there are no separate reportable segments.

3. Related Party Disclosures :

List of Related Parties with whom transactions have taken place during the year:

A) Key Management Personnel

Mr. Jayendrabhai Patel Mr. Amitbhai Manakiwala

B) Relatives of Key Management Personnels

Name of Party Related party Relationship

Mrs. Ritaben J. Patel Relative of Key Management Personnel

Mr. Aakash J. Patel Relative of Key Management Personnel

Mr. Alok J. Patel Relative of Key Management Personnel

J.B.Patel HUF Key Management personnel is Karta

Raj Enterprise Key Management personnel is Proprietor

Himani Manakiwala Relative of Key Management Personnel

Maulik Manakiwala Relative of Key Management Personnel

J B Patel & Co. Key Management personnel is co-owner

List of Transaction, out of the transaction reported in the above table, where the transaction entered in to with single party exceeds 10 % of the total related party transactions of similar nature are as under:

Unsecured Loan taken includes taken from Sh.Jayendra Patel Rs. 21,70,000 (P.Y. Rs. 16,91,484), from Smt. Himani A. Manakiwala Rs. 5,25,000 (P.Y. Rs. 10,00,000), from Smt. Ritaben J. Patel Rs. 25,50,000 (P.Y. Rs. 2,00,000), from Aakash J. Patel Rs. 15,00,000 (P.Y. Nil), from Aalok J. Patel Rs. 13,65,000 (P.Y. Nil), from Jayendra Patel (HUF) Rs.80,000 (P.Y. Rs.Nil), Unsecured Loan repayments includes paid to Sh.Jayendra Patel Rs. 24,84,664 (P.Y. Rs. 24,35,692), to Smt. Himani A. Manakiwala Rs. NIL (P.Y. Rs. 19,75,000), to Smt. Ritaben J. Patel Rs. 23,20,709 (P.Y. Rs. 21,32,800), to Aakash Patel Rs. Nil (P.Y. Rs. 13,65,543), to Aalok Patel Rs. 2,41,277 (P.Y. Rs. 13,29,436), Interest paid includes to Sh. Jayendra Patel Rs. 2,58,740 (P.Y. Rs. 2,42,682), to Sh. Aakash Patel Rs. 3,86,585 (P.Y. Rs. 3,19,219), To Sh. Aalok Patel Rs. 3,07,798 (P.Y. Rs. 2,86,622), to Smt. Ritaben J Patel Rs. 3,49,312 (P.Y. Rs.3,54,304), to J B Patel (HUF) Rs. 1,82,789 (P.Y. Rs. 1,75,501), Balance Outstanding includes of Sh.Jayendra Patel Rs. 7,74,076 (P.Y. Rs. 8,30,000), of sh. Aakash Patel Rs. 25,32,165 (P.Y. Rs. 9,60,000), Sh.Aalok Patel Rs.18,86,535 (P.Y. Rs. 6,20,000), of Smt Ritaben Patel Rs. 10,28,603 (P.Y. Rs. 4,50,000), of J B Patel (HUF) Rs. 10,96,964 (P.Y. Rs. 9,75,000), Remuneration includes payment to Sh. Jayendra Patel Rs. 6,39,749 (P.Y. Rs. 5,54,255) and to Sh. Amit Manakiwala Rs. 2,50,231 (P.Y. Rs. 3,10,409), Sitting Fees included paid to Smt. Ritaben Patel Rs. 40000 (P.Y. Rs. 40000) and Sh.Amitbhai R. Manakiwala Rs. 5,000 (PYRs.Nil), Rent includes paid to Sh. J B Patel & Co. Rs. 19,856 (P.Y. Nil), Professional Fees includes paid to Sh.Amitbhai R. Manakiwala Rs. 2,10,000 (PYRs.Nil)

4. Balances are subject to confirmation.

5. In the opinion of the Board, Current assets and loans and advances, are approximately of the value stated, if realised in ordinary course of business.

6. As per the prudential norms of the Reserve Bank of India, provision has been made in the accounts for the Non Performing Assets. Income is not recognised in respect of Non Performing Assets.

7. Share Trading Income includes Rs. 1,16,507/- (P.Y. Rs. 1,22,271/-) on account of (diminution)/ increase in the market value of closing stock. There is no an actual sale or purchase of shares during the year.

8. Loans Secured by Hypothecation includes Rs. 8,39,176/- (P.Y. Rs. 14,29,202/--) out standing portfolio on which NPA provisions of Rs. 83,918/- (P.Y. Rs. 1,42,920/-) has been made.

9. Loans to Companies, Firms & Individual includes Rs. 5,04,100 /- (P.Y. Rs. 9,63,907/-) out standing portfolio on which NPA provisions of Rs. 50,410/- (P.Y. Rs. 96,391/-) has been made.

10. Sundry Debtors includes Rs. 32,73,426/- (P.Y. Rs. 24,09,816/-) principal out standing on which NPA provisions of Rs. 3,51,650/- (P.Y. Rs. 2,43,654/-) has been made.

11. Bad debts & Irrecoverable W/off are shown net off bad debts recovery during the year amounting to Rs.1,40,077/-(P.Y. Rs. 1,79,641/-).

12. NPA Provision are shown net off NPA Provision written back during the year amounting to Rs. 4,08,258/-. (P.Y. 3,53,131/-).

13. Current Account with Banks includes Rs. 74,590/- (Prev. Year Rs. 74,590/-) in Unpaid Dividend Account.

14. Loans secured by hypothecation of Assets (Vehicles) are secured by hypothecation of the Assets (Vehicles) under finance. In opinion of the Board, the market value of the hypothecated Assets (Vehicle) as on Balance Sheet date is more then the amount of Loan Outstanding.

15. To the extent of available information, at the year-end, there were no outstanding amounts due to S.S.I Units in excess of Rs. 1,00,000/-.

16. As required in terms of Paragraph 13 of Non-Financial Companies Prudential Norms (Reserve Bank) Directions, 2007, schedule to the Balance Sheet of a Non-Banking Financial Company are annexed hereto.

(Amount in Rs.)

17. Earning in foreign currency - Nil (Nil)

18. Expenditure in foreign Currency Nil (Nil)

19. Previous years figure have been regrouped / rearranged wherever necessary so as to make them comparable with those of the current year.