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Notes to Accounts of Choice International Ltd.

Mar 31, 2015

1. SHARE CAPITAL

Rights, preferences and restrictions attached to each class of shares -

The company has only one class of share capital, i.e. equity shares having face value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share.

2. OTHER NOTES FORMING PART OF FINANCIAL STATEMENTS A Nature of business :

A Nature of business

The company is a Non-Banking Financial Company registered with the Reserve Bank of India (RBI) under section 45-IA of the Reserve Bank of India Act, 1934 and primarily engaged in investment, lending and allied activities. The company received the certificate of registration from the RBI on February 26,1998, enabling the company to carry on business as a Non-Banking Finance Company.

B Statutory reserve:

The management has created a statutory reserve of Rs. 2,860,000/- { PY-Rs. 2,750,000/-) as per the provisions of section 45-1C of Reserve Bank of India Act, 1934.

C Corporate social responsibility:

Although the company does not fall within the purview of Corporate Social Responsibility as per section 135 of the Companies Act 2013,but the company has contributed towards various corporate social responsibility Initiatives like supporting under-privileged In education, medical treatments, etc. and various other charitable and noble aids, voluntarily.

D In the opinion of the Board, all the assets other than fixed assets and non-current investments have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated. The Provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

E Balances of the trade receivables, trade payables, advances and balances of deposits are subject to confirmation, reconciliation and adjustments, if any. The management does not expect any material difference affecting the current year's financial statements.

F Effective from 01.04.2014, the company has charged depreciation based on the revised remaining useful life of assets as per the requirements of Schedule II of the Companies Act,2013. Due to this, depreciation charge is higher by Rs. 23,54,251/ for the year ended on March 31, 2015.

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

H Contingent liabilities not provided for: 31/Mar/15 31/Mar/14

Corporate guarantees to banks for subsidiaries -

Choice Equity Broking Pvt. Ltd. 1,815,600,000 1,820,000,000

Choice Merchandise Broking Pvt. Ltd. 50,000,000 20,000,000

I Employee benefit plans :

Defined benefit plans

The Company offers the gratuity as employee benefit schemes to its employees:

J (i) Related Party Disclosure :

Details of Related Parties -

Description of Relationship Names of Related Parties

a. Subsidiary Companies Choice Capital Advisors Pvt. Ltd.

Choice Corporate Services Pvt. Ltd.

Choice Equity Broking Pvt. Ltd.

Choice Merchandise Broking Pvt. Ltd

Choice Business Services Pvt. Ltd.

Choice Wealth Management Pvt. Ltd.

Choice Insurance Brokers Pvt. Ltd.

b. Associate Companies Aqua Pumps Infra Ventures Limited (APIVL)

Choice Realty Pvt. Ltd. (Subsidiary of APIVL)

c. Key Management Personnel Kamal Poddar (Managing Director) (KMP) and their relatives Hemlata Poddar (Non-executive Director)

Manoj Singhania (CFO)

Mahavir Toshniwal (Company Secretary)

Savita Singhania (Relative of KMP)

Arun Poddar (Relative of KMP)

Sonu Poddar (Relative of KMP)

d. Individuals owning directly Sunil Patodia indirectly interest in voting power that gives them control Vinita Patodia & their relatives Anil Patodia

Archana Patodia

e. Enterprises over which (c) S. K. Patodia & Associates & (d) are able to exercise significant influence The Byke Hospitality Ltd.

Hotel Relax Pvt. Ltd.

Manbhari Biofuel Pvt. Ltd.

S. K. Patodia Advisory Services Pvt. Ltd.

Upton Infrastructure Pvt. Ltd.

Aqua Pumps Pvt. Ltd.

M/s. Shree Shakambhari Exim

Anil Patodia HUF

Sunil Patodia HUF

Arun Poddar HUF

Kamal Poddar HUF

J (ii) Details of Related Parties with whom transaction entered during the year:-

Description of Relationship Names of Related Parties

a. Subsidiary Companies Choice Capital Advisors Pvt. Ltd.

Choice Corporate Services Pvt. Ltd.

Choice Equity Broking Pvt. Ltd.

Choice Merchandise Broking Pvt.Ltd.

Choice Business Services Pvt. Ltd.

Choice Wealth Management Pvt. Ltd.

b. Associate Companies Aqua Pumps Infra Ventures Limited (APIVL)

Choice Realty Pvt. Ltd. (Subsidiary of APIVL)

c. Key Management Personnel Kamal Poddar (Managing Director) (KMP) Manoj Singhania ( CFO)

Savita Singhania (Relative of KMP)

e. Enterprises over which (c) & S. K. Patodia & Associates (d) are able to exercise significant influence The Byke Hospitality Ltd.

Aqua Pumps Pvt. Ltd.


Mar 31, 2014

1. Rights, preferences and restrictions attached to each class of shares -

The company has only one class of share capital, i.e. equity shares having face value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share.

2. Nature of business:

The company is a Non-Banking Financial Company registered with the Reserve Bank of India (RBI) under section 45-IA of the Reserve Bank of India Act, 1934 and primarily engaged in investment, lending and allied activities. The company received the certificate of registration from the RBI on February 26, 1998, enabling the company to carry on business as a Non- Banking Finance Company.

3. Statutory reserve:

The management has created a statutory reserve of Rs. 2,750,000/- (PY - Rs. 2,250,000/-) as per the provisions of section 45-IC of Reserve Bank of India Act, 1934.

4. Corporate social responsibility:

Recognising the responsibilities towards society, as a part of ongoing activities, the company has contributed towards various corporate social responsibility initiatives like supporting under-privileged in education, medical treatments, etc. and various other charitable and noble aids.

5. In the opinion of the Board, all the assets other than fixed assets and non-current investments have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated. The Provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

6. Balances of the trade receivables, trade payables, advances and balances of deposits are subject to confirmation, reconciliation and adjustments, if any. The management does not expect any material difference affecting the current year''s financial statements.

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

8. Contingent liabilities not provided for: 31/Mar/14 31/Mar/13

Corporate guarantees to banks for subsidiaries -

Choice Equity Broking Pvt. Ltd 1,820,000,000 590,000,000

Choice Merchandise Broking Pvt. Ltd. 20,000,000 20,000,000

H. Employee benefit plans:

Defined benefit plans

The Company offers the gratuity as employee benefit schemes to its employees:


Mar 31, 2013

A. Nature of business :

The company is a Non-Banking Financial Company registered with the Reserve Bank of India (RBI) under section 45-IA of the Reserve Bank of India Act, 1934 and primarily engaged in investment, lending and allied activities. The company received the certificate of registration from the RBI on February 26, 1998, enabling the company to carry on business as a Non-Banking Finance Company.

B. Statutory reserve :

The management has created a statutory reserve of Rs 22,50,000/- (PY - Rs 20,00,000/-) as per the provisions of section 45-IC of Reserve Bank of India Act, 1934.

C. Corporate social responsibility :

Recognising the responsibilities towards society, as a part of ongoing activities, the company has contributed towards various corporate social responsibility initiatives like supporting under-privileged in education, medical treatments, etc. and various other charitable and noble aids.

In the opinion of the Board, all the assets other than fixed assets and non-current investments have a value

D. on realisation in the ordinary course of business at least equal to the amount at which they are stated. The Provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

E. Balances of the trade receivables, trade payables, advances and balances of deposits are subject to confirmation, reconciliation and adjustments, if any. The management does not expect any material difference affecting the current year''s financial statements.

Previous year''s figures have been regrCouped / reclassified wherev r necessary to correspond with the current

F. hoice International Limited year''s classification / disclosure.

Choice International Limited Accompanying notes to the financial statements as at March 31, 2013

G. Employee benefit plans :

Defined benefit plans

The Company offers the gratuity as employee benefit schemes to its employees:


Mar 31, 2012

A. Monies received against Share Warrants

The Board of Directors of the Company at their meeting held on August 12, 2011 and as approved at its Annual General Meeting held on September 30, 2011 have resolved to create, offer, issue and allot up to 25,00,000 warrants, convertible into 25,00,000 equity shares of Rs.10/- each on a preferential allotment basis, pursuant to Section 81(1 A) of the Companies Act, 1956, at a conversion price of Rs.81/- per equity share of the Company, arrived at in accordance with the SEBI Guidelines in this regard and subsequently these warrants were allotted on December 21,2011 to the promoters and non-promoters, and the company has received the amount of Rs.6,02,47,500 as application money which is more than the minimum limit prescribed as per SEBI guidelines. The warrants may be converted into equivalent number of shares on payment of the balance amount at any time on or before June 20, 2013. In the event the warrants are not converted into shares within the said period, the Company is eligible to forfeit the amounts received towards the warrants.

B. In the opinion of the Board, all the assets other than fixed assets and non-current investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated. The Provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

C. Balances of the trade receivables, trade payables, advances and balances of deposits are subject to confirmation, reconciliation and adjustments, if any. The management does not expect any material difference affecting the current year's financial statements.

D. Segment Information

The Company has identified operating segments as its primary segment. Operating segments are primarily NBFC operations and Investment Banking services. Revenues and expenses directly attributable to segments are reported under each reportable segment. All other expenses which are not attributable or allocable to segments have been disclosed as unallowable expenses. Fixed assets used in the company's business or Liabilities have not been identified to any reportable segment, as the fixed assets are used interchangeably between segments. It is not possible to furnish segment disclosure relating to total assets and liabilities of the company.

E. Statutory Reserve

The management has created a Statutory Reserve of Rs.20,00,000/- (PY Rs.67,00,000/-) as per the provisions of Section 45-IC of Reserve Bank of India Act, 1934.

F. The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.


Mar 31, 2011

1) Previous year's figures have been regrouped / reclassified / rearranged / recast wherever necessary. Amounts and other disclosures for the preceeding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

2) Balances of the Debtors, Creditors, Advances and balances of Deposits are subject to confirmation, reconciliation and adjustments, if any. The management does not expect any material difference affecting the current year's financial statements.

3) In the opinion of management, the Current Assets and Advances have the value as stated in the balance sheet, if realised in the ordinary course of business.

4) There is no outstanding dues of Micro and Small Enterprises suppliers as defined under The Micro, Small and Medium Enterprises Development Act, 2006.

5) Based on the guiding principles stated in Accounting Standard 17 "Segment Reporting", the management does not recognise any distinguishable component of the company that is engaged in providing an individual product or service or a group of related products or services. Hence the disclosure requirements of AS- 17 in this regard is not applicable.

6) Contingent Liabilities:

The company has given Corporate Guarantees of Rs. 3 crore to the Axis Bank for its subsidiary Choice Equity Broking Pvt. Ltd. and Rs.1 crore to the Axis Bank for its subsidiary Choice Merchandise Broking Pvt. Ltd. Since this is a contingent liability no provision has been made in the financial statements.

7) The Company has Unclaimed Dividend of Rs. 65,715/- as on 31st March 2011 (P.Y. Rs. 21,866/- representated by the demand drafts issued but not presented in bank.)

8) The management has created a Statutory Reserve of Rs. 6,700,000/-, (P.Y. Rs. 5,400,000/-) as per the provisions of Section 45-IC of Reserve Bank of India Act, 1934.

9) Related Party Disclosures:

List of Related Parties -

A. Key Management Personnel - Kamal Poddar (Managing Director) & their relatives Hemlata Poddar (Non-Executive Director)

Arun Poddar

B. Subsidiaries - Choice Equity Broking Private Limited

Choice Merchandise Broking Private Limited

Choice Insurance Brokers Private Limited

Choice Business Services Private Limited

Choice Capital Advisors Private Limited

Choice Wealth Management Private Limited Choice Realty Private Limited

C. Associates - Zenu Infotech Limited

D. Individuals owning Vinita Patodia directly or indirectly Sunil Patodia interest in voting power Anil Patodia that gives them control Archana Patodia & their relatives -

E. Enterprises over which Sunil C. Patodia HUF (A) & (D) are able to Anil C. Patodia HUF exercise Significant S. K. Patodia & Influence - Associates Hotel Relax Private Limited S. K. Patodia Advisory Services Pvt. Ltd. Manbhari Biofuel Private Limited Upton Infrastructure Private Limited M/s. Shree Shakambhari Exim Aqua Pumps Private Limited

V. Generic Names of Principle Products / Service of Company:

Name of the Product / Service Non-Banking Finance Company






Mar 31, 2010

1) Balances of the debtors, creditors, advances and balances of deposits are subject to confirmation, reconciliation and adjustments, if any. The management does not expect any material difference affecting the current years financial statements.

2) In the opinion of management, the current assets and advances have the value as stated in the balance sheet, if realised in the ordinary course of business.

3) The management has created a statutory reserve of RS. 5,400,000/- as per the provisions of section 45-IC of Reserve Bank of India Act, 1934.

4) Based on the guiding principles stated in accounting standard 17 "Segment reporting", the management does not recognise any distinguishable component of the company that is engaged in providing an individual product or service or a group of related products or services. Hence the disclosure requirements of AS-17 in this regard is not applicable.

5) In opinion of the management there is no contingent liabilities as on 31 st March 2010. (RY. Contingent liability not provided for in respect ofsebi compliances of Rs. 185,000/-)

6) The company has unclaimed dividend of Rs.22,478/- as on 31 st March 2010 and the same is represented by the demand drafts issued but not presented in bank. (RY. - NIL)

7) During the year the company has issued 2,500,000 preferential equity shares of Rs.10/- each at a premium of Rs.5/- vide special resolution passed at extra ordinary general meeting held on 18th May, 2009.

8) Related Party Disclosure List of Related Parties:-

A. Key Management Personnel & their relatives

Kamal Poddar (Managing Director) Hemlata Poddar (Non-Executive Director) Arun Poddar

B. Subsidiaries

Choice Equity Broking Private Limited Choice Merchandise Broking Private Limited Choice Insurance Brokers Private Limited Choice Business Services Private Limited Choice Capital Advisors Private Limited Choice Wealth Management Private Limited Choice Realty Private Limited

C. Associates Zenu Infotech Limited

D. Individuals owning directly or indirectly interest in voting power that gives them control & their relatives

Vinita Patodia Sunil Patodia Anil Patodia Archana Patodia

E. Enterprises over which (A) & (D) are able to exercise significant influence

Sunil C. Patodia HUF

Anil C. Patodia HUF

S. K. Patodia & Associates

Hotel Relax Private Limited

S. K. Patodia Advisory Services Private Limited

Manbhari Biofuel Private Limited

M/s. Shree Shakambhari Exim

Aqua Pumps Private Limited

 
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