Mar 31, 2018
1. The Company has a process of identification of âsuppliersâ registered under the Micro, Small and Medium Enterprises Development (âMSMEDâ) Act, 2006, by obtaining confirmations from all suppliers. The Company has not received intimation from all the âsuppliersâ regarding their status under MSMED Act, 2006 and hence disclosures if any, relating to amounts unpaid as at the yearend together with interest paid/payable as required have not been furnished.
2. In accordance with Accounting Standard-17 âSegment Reportingâ, segment information has been given in the consolidated financial statements of Centrum Capital Limited, and therefore, no separate disclosure on segment information is given in these financial statements
3. Based on the financial estimates and business rationale provided by the management for its exposure in Centrum Infrastructure Advisory Limited (CIAL), Centrum Defence Systems Limited (CDSL) and Centrum Capital Holdings LLC (CCH LLC) confirming fair valuation higher than the cost of Investments of Rs, 5,00,00,000 (P.Y. Rs, 5,00,000) in CIAL, Rs, 3,00,00,000 (P.Y. Rs, 5,00,000) in CDSL and Rs, 1,94,28,125 (P.Y. Rs, 19,428,125) in CCH LLC the management believes that no impairment provision is required in respect of said Investments along with loans advanced amounting to Rs, 17,64,263 (P.Y.Rs, 2,89,64,263) to CIAL , Rs, Nil (P.Y. Rs, 1,83,12,831) to CDSL and Rs, 64,01,272 (P.Y. Rs, 63,91,455 ) to CCH LLC.
4. Other Income
A. During the previous year 2017, the company has sold 16,250 equity shares of its wholly owned subsidiary Buyforex India Limited (BIL) to its Step down subsidiary Centrum Direct Limited (CDL). During the current year, the company has sold the balance 33,750 equity shares of BIL and earned profit of Rs, 79,90,04,604 from this sale.
B. During the year the Companyâs subsidiary, Centrum Retail Services Limited (CRSL) has sold its stake in its subsidiary viz. Centrum Direct Limited (CDL) to NYLIM Jacob Ballas India Holdings IV and Jacob Ballas Capital India Private Limited. The Company has received Rs, 22,53,14,291 towards its share of gain/profit on sale of said shares held by CRSL as per terms of agreement dated October 29, 2014. In the previous year, the Company has received Rs, 90,12,55,879 towards its share of gain/profit on sale of said shares held by CRSL as per terms of agreement as stated above.
5. During the year, the Company had issued 2,01,07,260 (Two Crore One Lakh Seven Thousand Two Hundred Sixty only) Warrants Convertible into Equity Shares, to the Promoter of the Company on preferential basis. Each Warrant is convertible into one equity share at a conversion price of Rs, 74.60 per share, including a premium of Rs, 73.60 on each share of Face Value of Rs, 1/-. The rights vested shall be exercised not later than 18 months from the date of allotment in accordance with the SEBI (ICDR) Regulations, 2015. The prospective allottees had paid Rs, 37,50,00,399 towards 25% value of total consideration payable for the Warrants. In case of non exercise of warrants within the period of 18 months, the same shall stand forfeited and the money received against the same shall not be refunded by the Company.
The details of Allottees of Warrants convertible into Equity Shares are as follows: -BG Advisory Services LLP. Rs, 2,01,07,260
As at 31st March 2018, 2,01,07,260 Warrants (Previous Year NIL) were pending to be converted into Equity Shares of Rs, 1/- each. The warrants would be converted into equivalent number of shares on payment of balance amount.
6. Managerial Remuneration
The company has paid a managerial remuneration in excess of the limits as laid down in the Section 197 read with Schedule V to the Act of Rs, 3,39,77,526/- during the financial year 2017-18 to its Executive Chairman. Since the payment of the remuneration is in excess of the limits, the Company made an application to the Central Government. The Central Government has partially allowed the excess remuneration and the Company has made a representation for the balance. The outcome of the same is awaited, pending which the balance amount is held in trust by the executive chairman and hence no adjustment has been made in the accounts.
7. Disclosure relating to CSR expenditure
Gross amount required to be spent by company towards Corporate Social responsibility during the year is Nil. (PY Rs, 17,26,940/-)
8. Prior Year Comparatives
The Figures for the previous year have been regrouped/ rearranged wherever necessary to conform to current yearâs classification.
Mar 31, 2017
Equity Shares
The company has one class of equity shares having a par value of Rs.1/- each. Each holder of equity shares is entitled to one vote per share.
Share allotted as fully paid up pursuant to contract(s) without payment being received in cash(during 5 years immediately preceding March 31, 2017.)
In the year ended June 30, 2014, Company has allotted Bonus Shares in the proportion of 5 (Five) Equity Share of Rs.1/- each for every 1 (One) Equity Share of Rs.1/- each by capitalizing Rs.34,66,93,950/- out of its Securities Premium Reserve. In the year ended June 30, 2012 1,05,783 equity shares (further subdivided during the year 2014 into FV Rs.1 per share and bonus issuance in the ratio of 5:1,pursuant to which the equity shares as at the year ends stands at 63,46,980) were allotted to Capital First Limited (formerly known as Future Capital Holdings Limited) for consideration other than cash pursuant to Share Transfer agreement dated March 29, 2011.
1. Operating lease
i) The Company has entered into cancellable leasing arrangements for corporate and branch offices and residential premises. The lease rentals of Rs.2,98,28,441/-* (previous year Rs.4,91,45,334/-) have been included under the head Rent under Note 24 of Statement of Profit and Loss.
ii) The Company has also entered into non-cancellable leasing arrangement for corporate office and other offices.
*Net of Rent amounting to Rs.5,67,81,571/- (P.Y Rs.3,80,44,474/-) which company has in turn recovered from its group companies.
General description of Companyâs significant leasing arrangement:
Corporate Office premises in Mumbai are obtained on operating lease. The lease rent payable is Rs.77,60,400/- (P.Y. Rs.74,87,375/- period July 1, 2015 to March 31, 2016) per month for the period April 1, 2016 to March 31, 2017
2. Interest in joint venture
The Company have 50% interest in Commonwealth Centrum Advisors Limited Accordingly, the following disclosures include Balance Sheet as well as Statement of Profit and Loss numbers of Commonwealth Centrum Advisors Limited.
3. Gratuity and Post employment benefit plans
Short Term Employee Benefits
Liability in respect of short term compensated absences is accounted for at undiscounted amount likely to be paid as per entitlement.
Defined Contribution Plan
Retirement benefits in the nature of Provident Fund, Superannuation Scheme and others which are defined contribution schemes, are charged to the Statement of Profit and Loss of the year when contributions accrue.
Defined Benefit Plan
The liability for Gratuity, a defined benefit obligation, is accrued and provided for on the basis of actuarial valuation using the Projected Unit Credit method as at the Balance Sheet date
Other Long Term Benefits
Long term compensated absences are provided on the basis of an actuarial valuation using the Projected Unit Credit method as at the Balance Sheet date. Actuarial gains and losses comprising of experience adjustments and the effects of changes in actuarial assumptions are recognized in the Statement of Profit and Loss for the year as income or expense.
Disclosure Under AS - 15 (Revised 2005)
Company has adopted the Accounting Standard (AS - 15) (Revised 2005) âEmployee Benefitsâ effective April 01, 2007.
I. Defined Contribution Plans
The Company has classified the various benefits provided to employees as under:
a. Provident Fund
b. Employersâ Contribution to Employeesâ State Insurance
The provident fund and the state defined contribution plan are operated by the Regional Provident Fund Commissioner and the Superannuation Fund is administered by the Trustee of the Life Insurance Corporation. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits. These funds are recognized by the Income Tax authorities.
II. Defined Benefit Plans
(a) Contribution to Gratuity Fund (Funded Scheme):
In accordance with the Accounting Standard (AS - 15) (Revised 2005), actuarial valuation was performed by independent actuaries in respect of the aforesaid defined benefit plan based on the following assumptions:
4. Derivative Instruments and Un-hedged Foreign Currency Exposure
i. There were no contracts outstanding as at balance sheet date.
ii. Particulars of Unhedged Foreign Currency Exposure are detailed below at the exchange rate prevailing as at balance sheet date
5. Deferred Tax Asset / Liability
In accordance with the Accounting Standard 22 on Accounting for Taxes on Income, the Company has made adjustments in its accounts for deferred tax liabilities / assets.
6. The Company has a process of identification of âsuppliersâ registered under the Micro, Small and Medium Enterprises Development (âMSMEDâ) Act, 2006, by obtaining confirmations from all suppliers. The Company has not received intimation from all the âsuppliersâ regarding their status under MSMED Act, 2006 and hence disclosures if any, relating to amounts unpaid as at the year end together with interest paid/payable as required have not been furnished.
7. In accordance with Accounting Standard-17 âSegment Reportingâ, segment information has been given in the consolidated financial statements of Centrum Capital Limited, and therefore , no separate disclosure on segment information is given in these financial statements
8. Based on the financial estimates and business rationale provided by the management for its exposure in Centrum Infrastructure Advisory Limited (CIAL), Centrum Defence Systems Limited (CDSL) and Centrum Capital Holdings LLC (CCH LLC) confirming fair valuation higher than the cost of Investments of Rs.5,00,000 (P.Y. Rs.5,00,000) in CIAL, Rs.5,00,000 (P.Y. Rs.5,00,000) in CDSL and Rs.1,94,28,125 (P.Y. Rs.1,94,28,125) in CCH LLC the management believes that no impairment provision is required in respect of said Investments along with loans advanced amounting to Rs.2,89,64,263 (P.Y. Rs.67,14,263) to CIAL Rs.1,83,12,831 (P.Y. Rs.89,12,831) to CDSL and Rs.63,91,455 (P.Y. Rs.65,27,267) to CCH LLC.
9. Other Income
(a) During the previous year, the Company had entered into an arrangement for sale of 76% stake in its wholly owned subsidiary Buyforex India Limited (BIL) to its step-down subsidiary CentrumDirect Limited (CDL) in a staggered manner over a period of 5 years and received Rs.90,00,00,000 as advance purchase consideration from CDL for the same which was reflected under the head âOther non-current liabilitiesâ. During the current year company divested 32.50% of its stake in its subsidiary BIL, pursuant to receipt of a notice from CentrumDirect Limited exercising its option to buy equity share to the tune of 32.50% of BIL, in accordance with clause 4.1 of the share purchase agreement. To date, the company earned a profit of Rs.38,47,05,922 from this sale.
(b) During the year the Companyâs subsidiary, Centrum Retail Services Limited (CRSL) has sold a minority stake in its wholly owned subsidiary viz. CentrumDirect Limited (CDL) to NYLIM Jacob Ballas India Holdings IV and Jacob Ballas Capital India Private Limited. The Company has received Rs.90,12,55,879 towards its share of gain/ profit on sale of said shares held by CRSL as per terms of agreement dated October 29th, 2014.
10. During the year, the Company has issued and allotted Rs.9,30,00,000 worth of secured, unlisted, unrated, redeemable, non-convertible, Principal Protected Market Linked Debentures by way of private placement. During the year, the Company had redeemed its existing secured, unlisted, unrated, redeemable NCDs of amount aggregating Rs.50,74,97,876 during the financial period ended.
1. Managerial Remuneration
The company has paid a managerial remuneration in excess of the limits as laid down in the Section 197 read with Schedule V to the Act of Rs.2,46,01,055 during the financial year 2016-17 to its Executive Chairman. Since the payment of the remuneration is in excess of the limits, the Company made an application to the Central Government. The Central Government has partially allowed the excess remuneration and the Company has made a representation for the balance. The outcome of the same is awaited, pending which the balance amount is held in trust by the executive chairman and hence no adjustment has been made in the accounts.
12. During the previous year, the company had made provision for interest payable of Rs.6,65,93,096 on certain loans availed in earlier years. These provisions were determined to be in excess and hence the Company has reversed these excess provisions in the previous year. This amount is shown as exceptional item.
13. Disclosure relating to CSR expenditure
Gross amount required to be spent by company towards Corporate Social responsibility during the year is Rs.17,26,940.
14. Prior Year Comparatives
During the previous period, the Company has changed its financial year from June 30 to March 31 to comply with the provision of Section 2(41) of the Companies act, 2013. Accordingly, the figures for the previous period are for the nine monthâs period from July 1, 2015 to March 31, 2016 and are therefore not comparable with those of the current year.
The figures for the previous year have been regrouped/ rearranged wherever necessary to conform to current yearâs classification.
Mar 31, 2016
1. Operating lease
i) The Company has entered into cancellable leasing arrangements for corporate and branch offices and residential premises. The lease rentals of Rs. 49,145,334* (previous year Rs. 54,216,391) have been included under the head Rent under Note 24 of Statement of Profit and Loss.
*Net of Rent amounting to Rs. 38,044,474 (P.Y Rs. 60,562,090) which company has in turn recovered from its group companies.
General description of Companyâs significant leasing arrangement:
Corporate Office premises in Mumbai are obtained on operating lease. The lease rent payable is Rs. 7,487,375 per month for the period July 1, 2015 to March 31, 2016.
2. Interest in joint venture
The Company have 50% interest in Commonwealth Centrum Advisors Limited Accordingly, the following disclosures include Balance Sheet as well as Statement of Profit and Loss numbers of Commonwealth Centrum Advisors Limited.
(b) In view of assessment order received from income tax authorities demanding Rs. 2,696,060/- towards liability on account of disallowance under Section 14A of Income Tax Act, 1961 for assessment year 2008-2009, based on the facts / merits of the case under question, the Company has duly preferred an appeal and also paid Rs. 1,348,030/-(i.e. 50% of the IT demand vide challan no 56091 dated 28/03/2011) and Rs. 500,000/- (Paid on 07/09/2011) and no provision is considered necessary by the management of the Company.
(c) In view of assessment order received from income tax authorities demanding Rs. 11,310,700/- primarily on account of disallowance under Section 14A of Income Tax Act, 1961 for assessment year 2010-2011, based on the facts / merits of the case under question, the Company has duly preferred an appeal. In the CIT Appeal Company has received an order by partly allowing the disallowance u/s 14A of the I.T.Act, 1961 and for the balance disallowance u/s 14A the company has filed an appeal to ITAT. Hence on the basis of facts of the case, no provision is considered necessary by the management of the Company.
(d) In view of assessment order received from income tax authorities demanding Rs. 8,326,840/- primarily on account of disallowance under Section 14A of Income Tax Act, 1961 for assessment year 2011-2012, based on the facts / merits of the case under question, the Company has duly preferred an appeal. . In the CIT Appeal Company has received an order by partly allowing the disallowance u/s 14A of the I.T.Act,1961 and for the balance disallowance u/s 14A the company has filed an appeal to ITAT. Hence on the basis of facts of the case, no provision is considered necessary by the management of the Company.
3. Gratuity and Post employment benefit plans
Short Term Employee Benefits
Liability in respect of short term compensated absences is accounted for at undiscounted amount likely to be paid as per entitlement.
Defined Contribution Plan
Retirement benefits in the nature of Provident Fund, Superannuation Scheme and others which are defined contribution schemes, are charged to the Statement of Profit and Loss of the year when contributions accrue.
Defined Benefit Plan
The liability for Gratuity, a defined benefit obligation, is accrued and provided for on the basis of actuarial valuation using the Projected Unit Credit method as at the Balance Sheet date
Other Long Term Benefits
Long term compensated absences are provided on the basis of an actuarial valuation using the Projected Unit Credit method as at the Balance Sheet date. Actuarial gains and losses comprising of experience adjustments and the effects of changes in actuarial assumptions are recognized in the Statement of Profit and Loss for the year as income or expense.
Disclosure Under AS - 15 (Revised 2005)
Company has adopted the Accounting Standard (AS - 15) (Revised 2005) âEmployee Benefitsâ effective April 01, 2007.
I. Defined Contribution Plans
The Company has classified the various benefits provided to employees as under:
a. Provident Fund
b. Employersâ Contribution to Employeesâ State Insurance
The provident fund and the state defined contribution plan are operated by the Regional Provident Fund Commissioner and the Superannuation Fund is administered by the Trustee of the Life Insurance Corporation. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits. These funds are recognized by the Income Tax authorities.
The Company has recognized the following amounts in the statement of Profit and Loss.
II. Defined Benefit Plans
(a) Contribution to Gratuity Fund (Funded Scheme):
In accordance with the Accounting Standard (AS - 15) (Revised 2005), actuarial valuation was performed by independent actuaries in respect of the aforesaid defined benefit plan based on the following assumptions:
4. Deferred Tax Asset / Liability
In accordance with the Accounting Standard 22 on Accounting for Taxes on Income, the Company has made adjustments in its accounts for deferred tax liabilities / assets.
The tax effects of significant temporary differences that resulted in deferred tax assets and liabilities are:
5. The Company has a process of identification of âsuppliersâ registered under the Micro, Small and Medium Enterprises Development (âMSMEDâ) Act, 2006, by obtaining confirmations from all suppliers. The Company has not received intimation from all the âsuppliersâ regarding their status under MSMED Act, 2006 and hence disclosures if any, relating to amounts unpaid as at the yearend together with interest paid/payable as required have not been furnished.
6. Trade Receivables are subject to confirmations, reconciliations and adjustments, if any, arising there from.
7. The Company has long outstanding trade receivable amounting to Rs. 45,832,632/-(P.Y. Rs. 45,832,632/-).Based on recent trends in collection and status of ongoing lawsuit; the above amount, in view of the management, is fully recoverable and accordingly the same need not be subject to any provisioning.
8. During the previous year, pursuant to enactment of Companies Act,2013 ( the Act), the Company has, effective July 1, 2014, charged depreciation as per useful lives of its tangible assets as specified in schedule II of the Act. In view of the notification no. G.S.R.627 (E) dated August 29, 2014, issued by the ministry of corporate Affairs (MCA), the Company till period ended March 31, 2015 had opted to charge the transitional impact (after retaining the residual value) whose remaining useful life is Nil as at July 1, 2014 to the Statement of Profit and Loss. However, the Company has as at the end of the year revisited the option and as permitted by the said notification, charged an amount of Rs. 10,582,546/- (Net of Deferred Tax Rs. 5,600,697/- to the retained earnings.
9. Based on the financial estimates and business rationale provided by the management for its exposure in Centrum Infrastructure Advisory Limited (CIAL), Centrum Defense Systems Limited (CDSL) and Centrum Capital Holdings LLC (CCH LLC) confirming fair valuation higher than the cost of Investments of Rs. 5.00 Lacs in CIAL, Rs. 5.00 Lacs in CDSL and Rs. 194.28 Lacs in CCH LLC the management believes that no impairment provision is required in respect of said Investments along with loans advanced amounting to Rs. 67.14 Lacs to CIAL , Rs. 89.13 Lacs to CDSL and Rs. 65.27 Lacs to CCH LLC..
10. During the year, the Company has entered into an arrangement for sale of 76% stake in its wholly owned subsidiary Buyforex India Limited to its step-down subsidiary Centrum Direct Limited (CDL) in a staggered manner over a period of 5 years and has received Rs. 9,000 lacs as advance purchase consideration from CDL for the same which is reflected under the head âOther non-current liabilitiesâ.
11. Company had made provision for interest payable of Rs. 665.93 lacs on certain loans availed in earlier years. These provisions were determined to be in excess and hence the Company has reversed these excess provisions in the current year. This amount is shown as exceptional item.
12. During the year, the Company has issued and allotted Rs.4,998.00 Lacs worth of secured, unlisted, unrated, redeemable, non convertible debentures (NCDs) of Rs. 1.00 Lac each by way of private placement. Further the Company had redeemed its existing secured, unlisted, unrated, redeemable NCDs of amount aggregating Rs. 5,654.50 Lacs during and after the financial period ended.
13. (a) During the previous year, The Company, for strategic reasons and to better align its various businesses, has reorganized the Centrum Group Structure by transferring its entire equity investments in its subsidiaries viz. Centrum Wealth Management Limited, Centrum Financial Services Limited and Centrum Direct Limited to a newly formed subsidiary viz. Centrum Retail Services Limited (Formerly known as Centrum Retail Financial Services Limited) and has also incorporated two new subsidiaries viz. Centrum Infrastructure Advisory Limited and Centrum Defense Systems Limited.
(b) During the previous year, the company has sold its investments of Rs. 500,000/- in Centrum Infrastructure & Realty Limited (CIRL) at book value. Consequent upon which, CIRL is no longer a subsidiary of the company as on the balance sheet date.
14. During the previous year, pursuant to divestment by the company of its 10% stake in subsidiary Centrum Retail Services Limited (CRSL)(formerly known as Centrum Retail Financial Services Limited) to two strategic investors at an aggregate consideration of Rs. 184,419,034/-, an amount of Rs. 164,419,034/- (net after adjusting Rs. 20,000,000/received till year end) was receivable. During the year the company has received the said amount of Rs. 164,419,034/45. Amount required to be spent by company towards Corporate Social responsibility during the year is Rs. 13,93,248. Amount actually spent by Company Nil.
15. PARTICULARS OF LOANS, GUARANTEES, INVESTMENTS GIVEN/MADE
16. Prior Year Comparatives
Section 2(41) of the Companies Act, 2013 requires all the companies to have their financial year ending on 31st March 2016.The Company has adopted this change from current financial year and accordingly, the current financial year is for 9 months period from 1st July, 2015 to 31st March, 2016. Hence the figures of current financial year are not comparable to those of previous year. The Figures for the previous year have been regrouped/ rearranged wherever necessary to conform to current yearâs classification.
Jun 30, 2015
1. Nature of Operations
Centrum Capital Limited (the 'Company') is an Investment Banking
Company and a SEBI Registered Category-I Merchant Banker. The Company
offers a complete gamut of financial services in the areas of equity
capital market, private equity, corporate finance, project finance,
stressed asset resolution. The Company is also engaged in trading of
bonds.
2. Operating lease
i) The Company has entered into cancellable leasing arrangements for
corporate and branch Offices and residential premises. The lease
rentals of Rs. 54,216,391/-* (previous year Rs. 46,913,171/-) have been
included under the head Rent under Note 23 of Statement of Profit and
Loss.
*Includes Net of Rent amounting to Rs. 60,562,090/- (P.Y Rs.
50,457,013/-) which company has in turn recovered from its group
companies.
3. Interest in joint venture
The Company has 50% interest in Commonwealth Centrum Advisors Limited
Accordingly, the following disclosures include Balance Sheet as well as
Statement of Profit and Loss numbers of Commonwealth Centrum Advisors
Limited.
4. Gratuity and Post employment benefit plans
Short Term Employee Benefits
Liability in respect of short term compensated absences is accounted
for at undiscounted amount likely to be paid as per entitlement.
Defend Contribution Plan 7 Retirement benefits in the nature of
Provident Fund, Superannuation Scheme and others which are defined
contribution schemes, are charged to the Statement of Profit and Loss
of the year when contributions accrue.
Defined Benefit Plan
The liability for Gratuity, a defined benefit obligation, is accrued
and provided for on the basis of actuarial valuation using the
Projected Unit Credit method as at the Balance Sheet date
Other Long Term Benefits
Long term compensated absences are provided on the basis of an
actuarial valuation using the Projected Unit Credit method as at the
Balance Sheet date. Actuarial gains and losses comprising of experience
adjustments and the effects of changes in actuarial assumptions are
recognised in the Statement of Profit and Loss for the year as income
or expense.
Disclosure Under AS Â 15 (Revised 2005)
Company has adopted the Accounting Standard (AS Â 15) (Revised 2005)
"Employee Benefits" effective April 01, 2007.
I. Defined Contribution Plans: The Company has classified the various
benefits provided to employees as under:
a. Provident Fund
b. Employers' Contribution to Employees' State Insurance
The provident fund and the state defined contribution plan are operated
by the Regional Provident Fund Commissioner and the Superannuation Fund
is administered by the Trustee of the Life Insurance Corporation.
Under the schemes, the Company is required to contribute a specified
percentage of payroll cost to the retirement benefit schemes to fund
the benefits. These funds are recognized by the Income Tax authorities.
5. Derivative Instruments and Un-hedged Foreign Currency Exposure
i. There were no contracts outstanding as at balance sheet date.
ii. Particulars of Unhedged Foreign Currency Exposure are detailed
below at the exchange rate prevailing as at balance sheet date
6. Deferred Tax Asset / Liability
In accordance with the Accounting Standard 22 on Accounting for Taxes
on Income, the Company has made adjustments in its accounts for
deferred tax liabilities / assets.
The tax effects of significant temporary differences that resulted in
deferred tax assets and liabilities are:
7. The Company has a process of identification of 'suppliers'
registered under the Micro, Small and Medium Enterprises Development
('MSMED') Act, 2006, by obtaining confirmations from all suppliers. The
Company has not received intimation from all the 'suppliers' regarding
their status under MSMED Act, 2006 and hence disclosures if any,
relating to amounts unpaid as at the year end together with interest
paid/payable as required have not been furnished.
8. Trade Receivables are subject to confirmations, reconciliations
and adjustments, if any, arising there from.
9. The Company has long outstanding trade receivable amounting to Rs.
45,832,632/-(P.Y. Rs. 45,832,632/-).Based on recent trends in
collection and status of ongoing lawsuit; the above amount, in view of
the management, is fully recoverable and accordingly the same need not
be subject to any provisioning.
10. Pursuant to enactment of Companies Act,2013 ( the Act), the
Company has, effective July 1, 2014, charged depreciation as per useful
lives of its tangible assets as specified in Schedule II of the Act. In
view of the notification no. G.S.R.627 (E) dated August 29, 2014,
issued by the ministry of corporate Affairs (MCA), the Company till
period ended March 31, 2015 had opted to charge the transitional impact
(after retaining the residual value) whose remaining useful life is Nil
as at July 1, 2014 to the Statement of Profit and Loss. However, the
Company has as at the end of the year revisited the option and as
permitted by the said notification, charged an amount of Rs.
10,582,546/- (Net of Deferred Tax Rs. 5,600,697/- to the retained
earnings.
11. Based on the audited financial statements of Centrum Capital
Holdings LLC ('CCHLLC' - audited by a firm of Chartered Accountants
other than Haribhakti & Co. LLP) for year ended June 30, 2015, it has
incurred losses of Rs. 270,683/- (P.Y Rs. 28,066/-). Accordingly, on
the basis of financial estimates provided by the management of CCHLLC
confirming fair valuation higher than the cost of Investments in CCHLLC
in the books of the Company and which is duly approved by the Audit
Committee of the Board of Directors of the Company, the management of
the Company believes that no impairment is necessitated in respect of
said Investments.
12. (a) During the period, The Company, for strategic reasons and to
better align its various businesses, has reorganized the Centrum Group
Structure by transferring its entire equity investments in its
subsidiaries viz. Centrum Wealth Management Limited, Centrum Financial
Services Limited and Centrum Direct Limited to a newly formed
subsidiary viz. Centrum Retail Services Limited (Formerly known as
Centrum Retail Financial Services Limited) and has also incorporated
two new subsidiaries viz. Centrum Infrastructure Advisory Limited and
Centrum Defence Systems Limited.
(b) During the year, the company has sold its investments of Rs.
500,000/- in Centrum Infrastructure & Realty Limited (CIRL) at book
value. Consequent upon which, CIRL is no longer a subsidiary of the
company as on the balance sheet date.
13. Pursuant to divestment by the company of its 10% stake in
subsidiary Centrum Retail Services Limited (CRSL) (formerly known as
Centrum Retail Financial Services Limited) to two strategic investors
at an aggregate consideration of Rs. 184,419,034/-, an amount of Rs.
164,419,034/- (net after adjusting Rs. 20,000,000/- received till year
end) is receivable, which is reflected in Note No. 18 "Other Current
Assets" under head "Other Receivable". Against the said outstanding,
the company has since realized an amount of Rs. 46,104,730/- and
expects to receive the balance consideration in due course.
14. Prior Year Comparatives
The Figures for the previous year have been regrouped/ rearranged
wherever necessary to conform to current year's classification.
Jun 30, 2014
1. Segment Information
Business Segment
The Company has for the purpose of segment reporting identified two
major businesses i.e. Investment Banking and Trading in Bonds. Segments
have been identified and reported based on the nature of operation
involved, the risks and returns, the organization structure and the
internal financial reporting systems.
Segment information for secondary segment reporting (by geographical
segment). CompanyÂs operations are mainly conducted in India. Company
has a representative ofce at Dubai. Consequently the commercial risks
and returns involved the basis of geographic segmentation is relatively
insignificant. Accordingly, secondary segment disclosures based on
geographic segments have not been reported.
Segment wise information for the year ended 30th June 2014 (i)
Information about Primary business Segments.
(i) All of the CompanyÂs operations are conducted in India.
Consequently the commercial risks and returns involved on the basis of
geographic segmentation are relatively insignificant.Accordingly,
secondary segment disclosures based on geographic segments have not
been reported.
(ii) The Company is organised into two main business segments namely:
- Investments Banking - Comprising financial services and merchant
banking activities.
- Trading in Bonds - Comprising of purchase and sale of bonds.
(iii) Items that relate to the enterprise as a whole or at corporate
level not attributable to a particular segment are included under ÂUnallocatedÂ. (iv) There are no Intersegment
transfers.
2. Related Party Disclosures
(i) Names of Related Parties
In terms of Accounting Standard 18 (AS-18) ÂRelated Party DisclosuresÂ,
notifed in the Companies (Accounting Standards) Rules, 2006, the
disclosures of transactions with the related parties as Defined in AS-18
are given below :
Subsidiary Companies :
- CentrumDirect Limited
- Centrum Financial Services Limited
- Centrum Wealth Management Limited
- Centrum Broking Limited
- Centrum Infrastructure & Realty Limited
- Centrum Capital Holdings LLC
- Accounts Receivable Management Services (India) Limited
(Upto May 15, 2014)
Stepdown Subsidiaries :
- Club 7 Holidays Limited (Subsidiary of CentrumDirect Limited)
- Centrum Securities LLC (Subsidiary of Centrum Capital Holdings LLC)
Joint Ventures : - Commonwealth Centrum Advisors Limited
Names of other related parties with whom transactions have taken
place during the year
Enterprise controlled by Key Management Personnel:
- Businessmatch Services (India) Private Limited
- Sonchajyo Investments & Finance Private Limited
Associates / entities where company has significant infuence
- Centrum Securities Private Limited
- Essel Centrum Holdings Limited
Key Management Personnel
- Mr. P. R. Kalyanaraman, Managing Director
- Mr. Chandir Gidwani, Non Executive Chairman
- Mr. Alpesh Shah, Company Secretary
3. Operating lease
i) The Company has entered into cancellable leasing arrangements for
corporate and branch ofces and residential premises. The lease rentals
of Rs. 46,913,171/- (previous year Rs. 2,250,358/-) have been included
under the head Rent under Note 23 of Statement of profit and Loss.
ii) The Company has also entered into non-cancellable leasing
arrangement for corporate ofce.
* Includes Rent amounting to Rs. 60,029,730/- (P.Y Rs. 50,457,013/-) which
company has inturn recovered from its group companies.
General description of CompanyÂs significant leasing arrangement:
Corporate Ofce premises in Mumbai are obtained on operating lease. The
lease rent payable is Rs. 85,84,800/- per month for the period July 1,
2013 to November, 2013.The lease rent was revised in December 2013 and
consequently the lease rent payable is Rs. 90,14,040/- per month for the
period December 01, 2013 to June 30, 2014.
The lease term is for a period of 4 years with a lock in period of 12
months and thereafter as per the mutual agreement between the lessor
and the Company. There is an escalation clause in the lease agreement @
5 % every year which will be reviewed mutually every year by the
Company and the lessor hence efect of escalation is not taken in the
above disclosure.
4. Interest in joint venture
The Company have 50% interest in Commonwealth Centrum Advisors Limited
Accordingly, the following disclosures include Balance Sheet as well as
profit & Loss numbers of Commonwealth Centrum Advisors Limited.
5. (a) Contingent Liabilities not provided for
(Rs)
Particulars 30th June, 2014 30th June, 2013
Corporate Guarantees given by
the company :
- Subsidiary 977,500,000 967,500,000
Partly paid equity shares of Essel-
Centrum Holdings Limited 4,000,000 4,000,000
Income Tax in respect of Assessment
Year 2008-2009 in respect of 848,030 848,030
which the Company has gone on appeal
Income Tax in respect of Assessment
Year 2010-2011 in respect of 11,310,700 11,310,700
which the Company has gone on appeal
Income Tax in respect of Assessment
Year 2011-2012 in respect of 8,326,840 NIL
which the Company has gone on appeal
(b) In view of assessment order received from income tax authorities
demanding Rs. 2,696,060/- towards liability on account of disallowance
under Section 14A of Income Tax Act, 1961 for assessment year
2008-2009, based on the facts / merits of the case under question, the
Company has duly preferred an appeal and also paid Rs 1,348,030/- (i.e.
50% of the IT demand vide challan no 56091 dated 28/03/2011) and Rs
500,000/- (Paid on 07/09/2011) and no provision is considered necessary
by the management of the Company.
(c) In view of assessment order received from income tax authorities
demanding Rs. 11,310,700/- primarily on account of disallowance under
Section 14A of Income Tax Act, 1961 for assessment year 2010-2011,
based on the facts / merits of the case under question, the Company has
duly preferred an appeal. Hence on the basis of facts of the case, no
provision is considered necessary by the management of the Company.
(d) In view of assessment order received from income tax authorities
demanding Rs. 8,326,840/- primarily on account of disallowance under
Section 14A of Income Tax Act, 1961 for assessment year 2011-2012,
based on the facts / merits of the case under question, the Company has
duly preferred an appeal. Hence on the basis of facts of the case, no
provision is considered necessary by the management of the Company.
6. Gratuity and Post employment benefit plans
Short Term Employee benefits
Liability in respect of short term compensated absences is accounted
for at undiscounted amount likely to be paid as per entitlement.
Defined Contribution Plan
Retirement benefits in the nature of Provident Fund, Superannuation
Scheme and others which are Defined contribution schemes, are charged
to the Statement of profit and Loss of the year when contributions accrue.
Defined benefit Plan
The liability for Gratuity, a Defined benefit obligation, is accrued and
provided for on the basis of actuarial valuation using the Projected Unit Credit method as at the Balance Sheet date
Other Long Term benefits
Long term compensated absences are provided on the basis of an
actuarial valuation using the Projected Unit Credit method as at the
Balance Sheet date. Actuarial gains and losses comprising of experience
adjustments and the efects of changes in actuarial assumptions are
recognised in the Statement of profit and Loss for the year as income or
expense.
Disclosure Under AS Â 15 (Revised 2005)
Company has adopted the Accounting Standard (AS Â 15) (Revised 2005)
ÂEmployee benefits efective April 01, 2007.
I. Defined Contribution Plans: The Company has classified the various
benefits provided to employees as under:
a. Provident Fund
b. Employers Contribution to Employees State Insurance
The provident fund and the state Defined contribution plan are operated
by the Regional Provident Fund Commissioner and the Superannuation Fund
is administered by the Trustee of the Life Insurance Corporation.
Under the schemes, the Company is required to contribute a specified
percentage of payroll cost to the retirement benefit schemes to fund the
benefits. These funds are recognized by the Income Tax authorities.
II. Defined benefit Plans
(a) Contribution to Gratuity Fund (Funded Scheme):
In accordance with the Accounting Standard (AS - 15) (Revised 2005),
actuarial valuation was performed by independent actuaries in respect
of the aforesaid Defined benefit plan based on the following assumptions:
7. Derivative Instruments and Un-hedged Foreign Currency Exposure
i. There were no contracts outstanding as at balance sheet date.
ii. Particulars of Unhedged Foreign Currency Exposure are detailed
below at the exchange rate prevailing as at balance sheet date
8. Deferred Tax Asset / Liability
In accordance with the Accounting Standard 22 on Accounting for Taxes
on Income, the Company has made adjustments in its accounts for
deferred tax liabilities / assets.
The tax efects of significant temporary diferences that resulted in
deferred tax assets and liabilities are:
9. During the previous year, the Company had held Extraordinary
general meeting on June 13, 2013, wherein members have approved
increase in authorized capital from Rs. 100,000,000 (Rupees Ten Crores)
divided into 1,00,00,000 equity shares of Rs. 10/- each to Rs. 420,000,000
(Rupees Forty Two Crores) divided into 4,20,00,000 equity shares of Rs.
10 each.
Members have also approved sub division of Equity shares of Face Value
of Rs. 10/- each into Equity shares of Rs. 1/- each and Issue of Bonus
Equity Shares in the ratio of 5:1 after subdivision of shares. The
subdivision was efective and simultaneous with the allotment of Bonus
shares by the Board or as per the advice of the Stock Exchange. BSE
has issued a notice vide Notice Number 20130619-23 dated June 19, 2013
informing the Trading Members that record date for sub division and
bonus issue will be on July 04, 2013.
Consequent upon which, subsequent to balance sheet date the Company has
sub divided equity share of Rs.10 /- each to 10 shares of Rs. 1/- each.
Further vide board resolution dated July 08, 2013, Company has allotted
Bonus Shares in the proportion of 5 (Five) Equity Share of Rs. 1/- each
for every 1 (One) Equity Share of Rs. 1/- each by capitalizing Rs.
346,693,950/- out of its Securities Premium Account.
10. During the previous year, BrihanMumbai Municipal Corporation (BMC)
had made downward revision in property tax rate with retrospective
efect from April 2010 and company being a benefciary had recognized the
refund of Rs. 27,442,679/- against the property taxes paid for period
April 2010 to March 2012 and reversal of Rs. 2,762,780/- for excess
property tax provided for period April 2012 to June 2012. The Company
had recognized the same as income amounting to Rs. 30,205,459/- as shown
in Statement of profit and loss under the head exceptional items.
11. During the year, the company has repaid Rs. 240,000,000/- out of the
loan of Rs. 620,000,000/- availed from its than JV partner, for the
purpose of buying out the stake of its JV partner in CentrumDirect
Limited. In light of the above both parties have reached an
in-principle understanding that interest on the said loan will not be
payable with efect from April 01, 2013.
12. The Company has a process of identifcation of ÂsuppliersÂ
registered under the Micro, Small and Medium Enterprises Development
(ÂMSMEDÂ) Act, 2006, by obtaining confirmations from all suppliers. The
Company has not received intimation from all the Âsuppliers regarding
their status under MSMED Act, 2006 and hence disclosures if any,
relating to amounts unpaid as at the year end together with interest
paid/payable as required have not been furnished.
13. Trade Receivables are subject to confirmations, reconciliations and
adjustments, if any, arising there from.
14. The Company has long outstanding trade receivable amounting to Rs.
45,832,632/-(P.Y. Rs. 45,832,632/-).Based on recent trends in collection
and status of ongoing lawsuit; the above amount, in view of the
management, is fully recoverable and accordingly the same need not be
subject to any provisioning.
15. a) Based on the audited financial statements of Centrum Broking
Limited (ÂCBLÂ - audited by a firm of Chartered Accountants other than
Haribhakti & Co. LLP) for year ended June 30, 2014, it has incurred
losses of Rs. 28,635,539/- (P.Y Rs. 44,948,659 /-). Accordingly, on the
basis of financial estimates provided by the management of CBL confirming
fair valuation higher than the cost of Investments in CBL in the books
of the Company and which is duly approved by the Audit Committee of the
Board of Directors of the Company, the management of the Company
believes that no impairment is necessitated in respect of said
Investments.
b) Based on the audited financial statements of Centrum Capital Holdings
LLC (ÂCCHLLCÂ - audited by a firm of Chartered Accountants other than
Haribhakti & Co. LLP) for year ended June 30, 2014, it has incurred
losses of Rs. 28,066/- (P.Y Rs. 132,692/-). Accordingly, on the basis of
financial estimates provided by the management of CCHLLC confirming fair
valuation higher than the cost of Investments in CCHLLC in the books of
the Company and which is duly approved by the Audit Committee of the
Board of Directors of the Company, the management of the Company
believes that no impairment is necessitated in respect of said
Investments.
c) Based on the audited financial statements of Centrum Wealth
Management Limited (ÂCWMLÂ - audited by a firm of Chartered Accountants
other than Haribhakti & Co. LLP) for year ended June 30, 2014, it has
incurred losses of Rs. 59,945,030/- (P.Y Rs. 42,126,272 /-). Accordingly,
on the basis of financial estimates provided by the management of CWML
confirming fair valuation higher than the cost of Investments in CWML in
the books of the Company and which is duly approved by the Audit
Committee of the Board of Directors of the Company, the management of
the Company believes that no impairment is necessitated in respect of
said Investments.
16. During the year, the Company has paid in full, service tax dues
under the Service Tax Voluntary Compliance Encouragement Scheme (VCES),
towards short payment of service tax for the period April 2012 to
December 2012 amounting to Rs. 74,557,031/- wherein the above service tax
liability can be paid in future years without any Interest and penalty
thereon.
17. During the year, the company has sold its investments of Rs.
400,000/- in Accounts Receivables Management Services (India) Limited
(ARMS) at book value. Consequent upon which, ARMS is no longer a
subsidiary of the company as on the balance sheet date.
18. Prior Year Comparatives
The Figures for the previous year have been regrouped/ rearranged
wherever necessary to conform to current yearÂs classification.
Jun 30, 2013
1. Nature of Operations
Centrum Capital Limited (the ''Company'') is an Investment Banking
Company and a SEBI Registered Category-I Merchant Banker. The Company
ofers a complete gamut of fnancial services in the areas of equity
capital market, private equity, corporate fnance, project fnance,
stressed asset resolution. The Company is also engaged in trading of
bonds.
2. Segment Information
Business Segment
The Company has for the purpose of segment reporting identifed two
major businesses i.e. Investment Banking and Trading in Bonds. Segments
have been identifed and reported based on the nature of operation
involved, the risks and returns, the organization structure and the
internal fnancial reporting systems.
Segment information for secondary segment reporting (by geographical
segment). Company''s operations are mainly conducted in India. Company
has a representative ofce at Dubai. Consequently the commercial risks
and returns involved the basis of geographic segmentation is relatively
insignifcant. Accordingly, secondary segment disclosures based on
geographic segments have not been reported.
3. Operating lease
i) The Company has entered into cancellable leasing arrangements for
corporate and branch ofces and residential premises. The lease rentals
of Rs. 2,250,358/- (previous year Rs. 8,294,230/-) have been included under
the head Rent under Note 14 of Statement of Proft and Loss.
ii) The Company has also entered into non-cancellable leasing
arrangement for corporate ofce.
General description of Company''s signifcant leasing arrangement:
Corporate Ofce premises in Mumbai are obtained on operating lease. The
lease rent payable (including amenities) is Rs. 9,977,527/- per month for
the period July, 2012 to November, 2012. The lease rent was revised in
December 2012 and consequently the lease rent payable(excluding
amenities) is Rs. 8,584,800/- per month for the period 1st December, 2012
to 30th June, 2013.
The lease term is for a period of 4 years with a lock in period of 12
months and thereafter as per the mutual agreement between the lessor
and the Company, there is an escalation clause in the lease agreement @
5 % every year which will be reviewed mutually every year by the
Company and the lessor hence efect of escalation is not taken in the
above disclosure.
4. Interest in joint venture
The Company have 50% interest in Commonwealth Centrum Advisors Limited
Accordingly, the following disclosures include Balance Sheet as well as
Proft & Loss numbers of Commonwealth Centrum Advisors Limited.
5. Allotment to Centrum ESPS Trust as per Securities and Exchange
Board of India (Employee Stock Option Scheme and Employee Stock
Purchase Scheme) Guidelines, 1999
The Company had allotted 409,686 Equity Shares of Rs. 10/- each at a
premium of Rs. 740.05 per share aggregating to Rs. 750.05 per share to
Centrum ESPS Trust during the fnancial year 2010-2011. The face value
of Rs. 10/- per share payable on the said shares was received during year
ended 2011. During the year ended June 2012 the company has received
the premium amount payable on the said shares by using the proceeds of
loan taken from the Company. The Trust will allocate the said shares
as per the resolutions passed in the meeting of the shareholders of the
Company and in accordance with the terms and conditions mentioned in
the Employee Stock Purchase Scheme 2008 approved by the
Remuneration/Compensation Committee of the Board of the Company.
6. (a) Contingent Liabilities not provided for
(Rs.)
Particulars 30th June,
2013 30th June,
2012
Corporate Guarantees given by
the company :
- Subsidiary 967,500,000 967,500,000
Partly paid equity shares of
Essel-Centrum Holdings Limited 4,000,000 4,000,000
Income Tax in respect of Assessment
Year 2008-2009 in respect of 2,696,060 2,696,060
which the Company has gone on appeal
Income Tax in respect of Assessment
Year 2010-2011 in respect of 11,310,700
which the Company has gone on appeal
7. (b) In view of assessment order received from income tax
authorities demanding Rs. 2,696,060/- towards liability on account of
disallowance under section 14A of Income Tax Act, 1961 for assessment
year 2008-2009, based on the facts / merits of the case under question,
the Company has duly preferred an appeal and also paid Rs. 1,348,030/-
(i.e. 50% of the IT demand vide challan no 56091 dated 28th March 2011)
and Rs. 500,000/- (Paid on 7th September 2011) and no provision is
considered necessary by the management of the Company.
8. (c) In view of assessment order received from income tax
authorities demanding Rs. 11,310,700/- primarily on account of
disallowance under section 14A of Income Tax Act, 1961 for assessment
year 2010-2011, based on the facts / merits of the case under question,
the Company has duly preferred an appeal. Hence on the basis of facts
of the case, no provision is considered necessary by the management of
the Company.
9. Gratuity and Post employment beneft plans
The Company has a defned beneft gratuity plan. Every employee who has
completed 5 years or more of service gets a gratuity on leaving the
services of the Company, at 15 days salary (last drawn basic salary)
for each completed year of service. The Company makes contribution to
an approved gratuity fund which is covered under the group gratuity
scheme of the Life Insurance Corporation of India.
The following table summarizes the components of net beneft expense
recognized in the Statement of Proft and Loss and funded status and
amount recognized in the balance sheet for gratuity.
10. During the year, company had held Extraordinary general meeting on
13th June 2013, wherein members have approved increase in authorized
capital from Rs. 100,000,000 (Rupees Ten Crores) divided into 10,000,000
equity shares of Rs. 10/- each to Rs. 420,000,000 (Rupees Forty Two Crores)
divided into 42,000,000 equity shares of Rs. 10 each.
Members have also approved sub division of Equity shares of Face Value
of Rs. 10/- each into Equity shares of Rs. 1/- each and Issue of Bonus
Equity Shares in the ratio of 5:1 after subdivision of shares. The
subdivision was efective and simultaneous with the allotment of Bonus
shares by the Board or as per the advice of the Stock Exchange.BSE has
issued a notice vide Notice Number 20130619-23 dated 19th June, 2013
informing the Trading Members that record date for sub division and
bonus issue will be on 4th July 2013.
Consequent upon which, subsequent to balance sheet date the company has
sub divided equity share of Rs.10 /- each to 10 shares of Rs. 1/- each.
Further vide board resolution dated 8th July 2013, company has allotted
Bonus Shares in the proportion of 5 (Five) Equity Share of Rs. 1/- each
for every 1 (One) Equity Share of Rs. 1/- each by capitalizing Rs.
346,693,950/- out of its Securities Premium Account.
Basic and diluted earning per Share (for current year and previous
year) has been restated on the basis of new number of equity shares.
11. During the year, BrihanMumbai Municipal Corporation (BMC) has made
downward revision in property tax rate with retrospective efect from
April 2010 and company being a benefciary recognized the refund of Rs.
27,442,679/- against the property taxes paid for period April 2010 to
March 2012 and reversal of Rs. 2,762,780/- for excess property tax
provided for period April 2012 to June 2012.
The Company has recognized the same as income amounting to Rs.
30,205,459/- as shown in Statement of Proft and loss under the head
exceptional items.
12. The Company has a process of identifcation of ''suppliers''
registered under the Micro, Small and Medium Enterprises Development
(''MSMED'') Act, 2006, by obtaining confrmations from all suppliers. The
Company has not received intimation from all the ''suppliers'' regarding
their status under MSMED Act, 2006 and hence disclosures if any,
relating to amounts unpaid as at the year end together with interest
paid/payable as required have not been furnished.
13. Trade Receivables are subject to confrmations, reconciliations
and adjustments, if any, arising there from.
14. The Company has long outstanding trade receivable amounting to Rs.
45,832,632/-(P.Y. Rs. 64,953,975/-).Based on recent trends in collection,
sale of pledge shares and status of ongoing lawsuit; the above amount,
in view of the management, is fully recoverable and accordingly the
same need not be subject to any provisioning.
15. (a) Based on the audited fnancial statements of Centrum Broking
Limited (''CBL'' - audited by a frm of Chartered Accountants other than
Haribhakti & Co.) for year ended 30th June, 2013, it has incurred
losses of Rs. 44,948,659 (P.Y Rs. 157,374,186/-). Accordingly, on the basis
of fnancial estimates provided by the management of CBL confrming fair
valuation higher than the cost of Investments in CBL in the books of
the Company and which is duly approved by the Audit Committee of the
Board of Directors of the Company, the management of the Company
believes that no impairment is necessitated in respect of said
Investments.
15. (b) Based on the audited fnancial statements of Centrum
Infrastructure & Reality Limited (''CIRL'' - audited by a frm of
Chartered Accountants other than Haribhakti & Co.) for year ended 30th
June, 2013, it has incurred losses of Rs. 13,092,746 (P.Y Rs.14,615,068/-).
Accordingly, on the basis of fnancial estimates provided by the
management of CIRL confrming fair valuation higher than the cost of
Investments in CIRL in the books of the Company and which is duly
approved by the Audit Committee of the Board of Directors of the
Company, the management of the Company believes that no impairment is
necessitated in respect of said Investments.
15. (c) Based on the audited fnancial statements of Centrum Wealth
Management Limited (''CWML'' - audited by a frm of Chartered Accountants
other than Haribhakti & Co.) for year ended 30th June, 2013, it has
incurred losses of Rs. 42,126,272 (P.Y Rs.169,142,445/-). Accordingly, on
the basis of fnancial estimates provided by the management of CWML
confrming fair valuation higher than the cost of Investments in CWML in
the books of the Company and which is duly approved by the Audit
Committee of the Board of Directors of the Company, the management of
the Company believes that no impairment is necessitated in respect of
said Investments.
16. The Company intends to opt for Service Tax Voluntary Compliance
Encouragement Scheme (VCES), for short payment of service tax for the
period from April 2012 to December 2012 amounting to Rs. 74,557,031/-
wherein the above service tax liability can be paid in future years
without any Interest and penalty thereon.
17. During the previous year, the Company had initiated the process of
liquidation of Centrum Securities (Europe) Limited, London, a Wholly
Owned Subsidiary of the Company. Further as per the Statement of
accounts from liquidator, the Company has written of Rs. 5,067,371/- in
previous year and Euro 7136.45 (Rs. 532,879/-) is recoverable against the
balance of investments.
Further amount receivable of Rs. 532,879/-from Centrum Securities
(Europe) Limited is shown under the head Investment in the previous
year have been reclassifed under the head Short Term Loans and
Advances.
18. Prior Year Comparatives
The Figures for the previous year have been regrouped/ rearranged
wherever necessary to conform to current year''s classifcation
Jun 30, 2009
1. Nature of Operations
Centrum Capital Limited (the Company) is an Investment banking
Company and a Category-I Merchant Banker. The Company is engaged in
equity capital market, private equity, corporate finance, project
finance, stressed asset resolution and offers a complete gamut of
financial services. The Company is also engaged in trading of bonds.
2. Sundry debtors includes Rs. 226,985,560 (Previous year Rs.
219,987,974), amount overdue for more than 6 months Rs. 208,609,862
(Previous year Rs. 183,527,154) receivable from certain parties. These
parties have confirmed the balance outstanding, as at June 30, 2009 and
in view of the management no provision is considered necessary.
3. Segment Information
Business Segment:
As of June 30, 2009, the Company has for the purpose of segment
reporting identified two major businesses i.e. Investment Banking and
Trading in bonds. Segments have been identified and reported based on
the nature of operation involved, the risks and returns, the
organization structure and the internal financial reporting systems.
Segment information for secondary segment reporting (by geographical
segment):
Companys operations are mainly conducted in India. Company has a
representative office at Dubai.
Consequently the commercial risks and returns involved the basis of
geographic segmentation are relatively insignificant. Accordingly,
secondary segment disclosures based on geographic segments have not
been reported.
Segment wise details are given in Annexure -1.
4. Related Party Disclosures
In terms of Accounting Standard 18 (AS-18) Related Party Disclosures,
notified in the Companies (Accounting Standards) Rules, 2006, the
disclosures of transactions with the related parties as defined in
AS-18 are given below:
Subsidiary Companies (Refer note 19 of schedule 16)
Centrum Infrastructure & Realty Limited
Centrum Financial Services Limited (Formerly known as Shri Santram
Finance
Limited) w.e.f. March 2, 2009
Centrum Investments Limited
Accounts Receivables Management Services (I) Limited w.e.f. August 8,
2008
Centrum Capital Holdings LLC w.e.f. August 5, 2008
Centrum Securities LLC (Subsidiary of Centrum Capital Holdings LLC)
Joint Ventures
(Refer note 19 of schedule 16)
FCH CentrumDirect Limited) formerly known as CentrumDirect Limited) FCH
Centrum Wealth Managers Limited(formerly known as Centrum Wealth
Managers Limited)
i Names of other related parties with whom transactions have taken
place during the year:
Enterprise controlled by Key Management Personnel
Businessmatch Services (India) Private Limited
P & M Infrastructure Limited
Centrum Fiscal Private Limited
Sonchajyo Investments & Finance Private Limited
Associates / entities where company has significant influence
Centrum Broking Private Limited
Centrum Securities Private Limited
Club 7 Holidays Limited! formerly known as Club 7 Holidays Private
Limited)
(Subsidiary of FCH CentrumDirect Limited, w.e.f.December 12, 2008)
Centrum ESPS Trust
Key Management Personnel
Mr. Chandir Gidwani, Chairman
Mr. T. R. Madhavan, Managing Director
Ms. Sonia Gidwani, Whole Time Director
5. Interest in joint venture
The Company has a 50% interest in the assets, liabilities, expenses and
income of FCH CentrumDirect Limited engaged in money changing business
and FCH Centrum Wealth Managers Limited engaged in the business of
wealth management and distribution of investment products.
6. Allotment to Centrum ESPS Trust as per Securities and Exchange
Board of India (Employee Stock Option Scheme and Employee Stock
Purchase Scheme) Guidelines, 1999
In the previous year, the Company had allotted 409,686 Equity Shares of
Rs.10/- each at a premium of Rs.740.05 per share aggregating to
Rs.750.05 per share to Centrum ESPS Trust. The face value of Rs.10/-
per share payable on the said shares has been received by the Company
by using the proceeds of loan taken from the Company. The premium
amount shall be accounted as and when received. The Trust will allocate
the said shares as per the resolutions passed in the meeting of the
shareholders of the Company and in accordance with the terms and
conditions mentioned in the Employee Stock Purchase Scheme 2008
approved by the Remuneration/ Compensation Committee of the Board of
the Company.
7. Contingent Liabilities not provided for Rupees
Particulars As at June 30, 09 As at June 30, 08
Corporate Guarantees given by the Company:
(i) Associate 660,100,000 310,100,000
(ii) Joint Ventures
Limit 390,000,000 310,000,000
Outstanding 287,541,695 198,467,891
Partly paid equity shares
of Essel Centrum Holdings
Limited 4,000,000 4,000,000
8. Gratuity and Post employment benefit plans
The Company has a defined benefit gratuity plan. Every employee who has
completed 5 years or more of service gets a gratuity on leaving the
services of the Company, at 15 days salary (last drawn basic salary)
for each completed year of service. The Company makes contribution to
an approved gratuity fund which is covered under the group gratuity
scheme of the Life Insurance Corporation of India.
The following table summaries the components of net benefit expense
recognized in the Profit and Loss account and funded status and amount
recognized in the balance sheet for gratuity.
9. Derivative Instruments and Un-hedged Foreign Currency Exposure
i. There were no contracts outstanding as at balance sheet date.
ii. Particulars of Unhedged Foreign Currency Exposure are detailed
below at the exchange rate prevailing as at balance sheet date
10. Deferred Tax Asset / Liability
In accordance with the Accounting Standard 22 on Accounting for Taxes
on Income, the Company has made adjustments in its accounts for
deferred tax liabilities / assets.
11. The Company has initiated the process of identification of
suppliers registered under the Micro, Small and Medium Enterprises
Development (MSMED) Act, 2006, by obtaining confirmations from all
suppliers. The Company has not received intimation from all the
suppliers regarding their status under MSMED Act, 2006 and hence
disclosures if any, relating to amounts unpaid as at the year end
together with interest paid/payable as required have not been
furnished.
12. During the year, 0.1% share holding of FCH Centrum Wealth Managers
Limited and FCH CentrumDirect Limited was transferred from Future
Capital Holdings Limited (FCH) to Centrum Capital Limited (CCL), in
accordance with the Joint Venture Agreement executed on 11th March 2008
between CCL and FCH, the same are now 50:50 joint venture partners
effective June 12, 2009 and June 16, 2009 respectively. This has
resulted in a change in the status of FCH CentrumDirect Limited and FCH
Centrum Wealth Managers Limited from subsidiaries of CCL (by virtue of
control till previous year) to Joint Ventures between CCL and FCH.
13. Previous year comparatives
Previous years figures have been regrouped / rearranged wherever
necessary to conform to current years classification.
The figures of previous year were audited by a firm of Chartered
Accountants other than S.R.Batliboi & Co.
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