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Notes to Accounts of HB Portfolio Ltd.

Mar 31, 2015

1. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR) Contingent Liabilities

(a) Guarantees given on behalf of Subsidiary Company, HB Securities Limited Rs. 15,00,00,000/- (Previous Year Rs. 15,00,00,000/-)

Commitments

(b) Rs. 1,25,00,000/- (Previous Year Rs. 1,25,00,000) on account of uncalled call money in respect of Partly Paid up Shares.

2. SEGMENT REPORTING

In the opinion of Management there are no separate reportable segments as per Accounting Standard Segment reporting (AS-17).

3. DISCLOSURE PURSUANT TO ACCOUNTING STANDARD AS-19 FOR LEASES

Operating Lease

a) Particulars of the minimum lease payments under Operating Lease:-

Not Later than One year Rs. 9,67,692/- (Previous Year Rs. 9,67,692/-)

Later than one year but not Rs. NIL (Previous Year Rs. NIL)

Later than five years

Later than five years Rs. NIL (Previous Year Rs. NIL)

b) Minimum lease payments recognised in the statement of profit & loss account during the year ended 31st March 2015 is Rs. 9,67,692/- (Previous Year Rs. 9,67,692/-).

c) General description of the lease arrangement.

* The Lessee shall not sublet or otherwise part with possession of a part or whole of the premise without the previous consent in writing of the lessor.

* The Lessee shall use the premises for commercial purposes only.

4. DUE TO MICRO, SMALL AND MEDIUM ENTERPRISES

To the extent information available with the Company, it has no dues to the Micro, Small and Medium enterprises as at 31st March, 2015 and 31st March, 2014.

5. The Company made an application for issue of Certificate of Registration with Reserve Bank of India (RBI) under Section 45IA of the Reserve Bank of India Act, 1934. The application of the Company was, however, returned by RBI vide its letter dated December 24, 2004 with an advice to resubmit the application on the completion of SEBI's enquiry against the group companies. In an Appeal filed by the Company before the Appellate Authority (in the Ministry of Finance) against the aforesaid decision of RBI, the Appellate Authority vide its Order dated September 25, 2006, directed the Company to resubmit the application along with the latest balance sheets and other relevant details within 30 days to RBI and RBI to thereafter decide the case by obtaining necessary response from SEBI within 3 months from the date of receipt of the Order. The Company resubmitted its application to RBI's Regional Office at New Delhi on 23rd October, 2006 as per the aforesaid directions of the Appellate Authority. Additional details / documents / clarifications as required by RBI from time to time were submitted.

The Company vide its letters dated 11th October, 2010 and 29th January, 2011 intimated the RBI about the disposal of pending proceeding by the SEBI and also furnished copy of SEBI orders. The RBI vide its letter dated 29th March, 2011 advised the Company to make a fresh application for issue of Certificate of Registration. As directed by RBI, the Company filed a fresh application on 20th June, 2011.The necessary queries / information raised / sought by RBI from time to time were filed.

Thereafter, the Company was advised by the Reserve Bank of India vide its letter dated 30th January, 2013 to file fresh application for registration as NBFC and accordingly the Company submitted the fresh application along with required documents / information on 29th July, 2013. The Reserve Bank of India again returned the application for submission of additional documents / information vide its letter dated 16th August, 2013 and accordingly the Company submitted the fresh application along with required documents / information on 19th March, 2014. The information / clarifications sought thereafter by RBI have also been submitted by the Company.

6. In view of the above facts, the provisions of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directors, 2007) as Superseded by "Non-Systemically Important Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 201 5 are yet to be applicable to the Company. However, as a matter of prudent and proper practice, disclosure of details as required by Para 13 of aforesaid directions is being given. Similarly the transfer of profit to Reserve Fund as required by Reserve Bank of India (Amendment) Act, 1997 is also being made.

7. During the year, the Company has revised depreciation rates on fixed assets as per the useful life specified in Schedule II to the Companies Act, 2013. Based on the Current estimates, depreciation of Rs. 52,706/- on account of assets whose useful life has already exhaushed as on April 1, 2014 has been added to the depreciation for the year ended March 31,2015.

Due to aforesaid revision in depreciation rates, depreciation for the year as charged in the Profit & Loss account is higher by Rs. 85,719/-.

8. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.

9. The Company does not have any pending litigation which would impact its financial position.

10. The Previous year figures have been regrouped/reclassified,wherever necessary to conform to the Current Year's presentation.


Mar 31, 2014

1. SHARE CAPITAL

- Issued Share capital of the Company has only one class of shares referred to as equity shares having Par value of Rs. 10/. Each holder of Equity Shares is entitled to One vote per share.

- Reconcilation of the number of shares outstanding and Amount of Share Capital as on 31st March, 2014 & 31st March, 2013 is as under:

- Particulars of Shares in the company held by each shareholder holding more than 5% shares:

- In the event of the Liquidation of the company, the holder of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all Preferential amounts.The distribution will be in proportion to the number of equity shares held by the shareholders.

2. RESERVES AND SURPLUS

(*) Created by way of transfer of specified percentage of profits as per section 45IC of Reserve Bank of India (Amendment) Act,1997. Appropriation from Reserves shall be for the purposes as may be specified by Reserve Bank of India.

* The Loan taken is at Interest rate of 9.5%

- Maturity Profile of Secured Term Loan from banks are as under:

3.INVESTMENTS

1. Aggregate Amount of Quoted Investments 150010674 25903528/

2. Market Value of Quoted Investments 209864961 454393197

3. Aggregate Amount of Unquoted Investments 668819586 535270275

4. Investment Costing Rs. 13,67,54,711/- (Previous Year Rs. 7,82,66,119/-) were lying Pledged/given as Margin as at the year end

5. In the opinion of the management no provision is required for Diminution amounting to Rs. 1,02,88,370/- (Previous Year Rs. 98,54,719/-) in the value of some of the Long term/Non curren investment, as the same is considered to be temporary.

6. Market Value of Shares listed but not Quoted have been taken at cost.

4. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR) Contingent Liabilities

(a) Guarantees given on behalf of Subsidiary Company HB Securities Limited Rs. 15,00,00,000/- (Previous Year Rs. 15,00,00,000/-)

Commitments

(a) Rs. 1,25,00,000/- (Previous Year Rs. 1,25,00,000) on account of uncalled call money in respect of Partly Paid up Shares.

5. RELATED PARTY TRANSACTIONS

A. List of related parties with whom transactions have taken place and relationship:

a) Subsidiaries.

1. HB Securities Limited 2. HB Corporate Services Limited

b) Key Managerial Personnel

1. Shri Anil Goyal, Managing Director

c) Person having control/significant influence /major shareholders

1. Shri Lalit Bhasin

d) Enterprises over which control/significant influence exist of the relatives of persons mentioned in (c) above :-

1. RRB Master Securities Delhi Ltd.

e) Companies under direct or indirect common control/significant influence:

1. HB Stockholdings Ltd. 2. HB Estate Developers Ltd. 3. RRB Masterholdings Ltd. 4. RRB Securities Ltd.

f) Associates

1. Merwanjee Securities Ltd. 2. Taurus Asset Management Co.Ltd 3. Pisces Portfolios Private Limited

B. Figures in brackets related to previous year.

c. Disclosure in respect of outstanding closing balance of related party transactions.

i) Security Deposit given includes Rs. 3,45,00,000/- (Previous year Rs. 3,45,00,000/-) to HB Estate Developers Ltd.

ii) Loan and advances includes loan of Rs. 9,00,00,000/- (Previous year Rs. 9,00,00,000/-) to HB Estate Developers Ltd, Margin Money of Rs. Nil (Previous Year Rs. 1,82,50,000) to RRB Master Securities (Delhi) Ltd. and advances against Share Application Money of Rs. 3,72,50,000/- (Previous year Rs. 4,06,50,000/- ) to HB Securities Ltd.; Rs. 2,00,00,000/- (Previous year Rs. 2,00,00,000/-) to HB Corporate Services Ltd. and Rs. 1,00,00,000/- (Previous year 1,00,00,000/-) to Merwanjee Securities Ltd.

iii) Expenses recoverable includes Rs. 86,386/- (Previous year Rs. 76,268/) from HB Corporate Services Ltd.

iv) Interest receivable includes Rs. 48,46,685/- (Previous year Rs. 48,46,685/--) from HB Estate Developers Ltd.

v) Guarantee given in respect of HB Securities Ltd. Rs. 15,00,00,000/- (Previous year Rs. 15,00,00,000/- ) vi) Trade Receivables includes Rs. 98,49,004/- (Previous Year Rs. 3,61,13,388/-) due from RRB Master securities (Delhi) Ltd.

6. SEGMENT REPORTING

In the opinion of Management there are no separate reportable segments as per Accounting Standard Segment reporting (AS-17).

7. DISCLOSURE PURSUANT TO ACCOUNTING STANDARD-15

8. DISCLOSURE PURSUANT TO ACCOUNTING STANDARD AS-19 FOR LEASES: - Operating Lease

a) Particulars of the minimum lease payments under Operating Lease:-

Later than One year Rs. 9,67,692/- (Previous Year Rs. 9,67,692/-)

Later than one year Rs. NIL (Previous Year Rs. NIL) but not

Later than five years

Later than five years Rs. NIL (Previous Year Rs. NIL)

b) Minimum lease payments recognised in the statement of profit & loss account during the year ended 31st March 2014 is Rs. 9,67,692/- (Previous Year Rs. 9,67,692/-).

c) General description of the lease arrangement.

- The Lessee shall not sublet or otherwise part with possession of a part or whole of the premise without the previous consent in writing of the lessor.

- The lessee shall use the premises for commercial purposes only.

9. Due to Micro, Small and Medium Enterprises

To the extent information available with the company, it has no dues to the Micro, Small and medium enterprises as at 31st March, 2014 and 31st March, 2013.

ii) Year to which dividend relates 2012-13 2011-12

10. The company made an application for issue of Certificate of Registration with Reserve Bank of India (RBI) under Section 45IA of the Reserve Bank of India Act, 1934. The application of the company was, however, returned by RBI vide its letter dated December 24, 2004 with an advice to resubmit the application on the completion of SEBI''s enquiry against the group companies. In an Appeal filed by the company before the Appellate Authority (in the Ministry of Finance) against the aforesaid decision of RBI, the Appellate Authority vide its Order dated September 25, 2006, directed the company to resubmit the application along with the latest balance sheets and other relevant details within 30 days to RBI and RBI to thereafter decide the case by obtaining necessary response from SEBI within 3 months from the date of receipt of the Order. The company resubmitted its application to RBI''s Regional Office at New Delhi on 23rd October 2006 as per the aforesaid directions of the Appellate Authority. Additional details / documents / clarifications as required by RBI from time to time were submitted.

The company vide its letters dated 11th October, 2010 and 29th January, 2011 intimated the RBI about the disposal of pending proceeding by the SEBI and also furnished copy of SEBI orders. The RBI vide its letter dated 29th March, 2011 advised the company to make a fresh application for issue of Certificate of Registration. As directed by RBI, the company filed a fresh application on 20th June 2011. The necessary queries/information raised/sought by RBI from time to time were filed.

Thereafter, the company was advised by the Reserve Bank of India vide its letter dated 30th January, 2013 to file fresh application for registration as NBFC and accordingly the company submitted the fresh application along with required documents/information on 29th July, 2013. The Reserve Bank of India again returned the application for submission of additional documents/information vide its letter dated 16th August, 2013 and accordingly the company submitted the fresh application along with required documents/information on 19th March, 2014. The information/clarifications sought thereafter by RBI have also been submitted by the company.

1. In view of the above facts, the provisions of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007) are yet to be applicable to the company. However, as a matter of prudent and proper practice, disclosure of details as required by Para 13 of aforesaid directions is being given. Similarly the transfer of profit to Reserve Fund as required by Reserve Bank of India (Amendment) Act, 1997 is also being made.

11. Schedule as required in terms of Paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.

Additional Disclosure as per Para 10 of aforesaid Directions

* The company has made certain investments in equity shares of the companies which are in the real estate sector. The same are reflected in the Balance Sheet. However, since these investments are not Mortgage backed securities/other securitized exposures, the same are not mentioned here.


Mar 31, 2013

1. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

Contingent Liabilities

(a) Guarantees given on behalf of Subsidiary Company HB Securities Limited Rs. 15,00,00,000/- (Previous Year Rs. 15,00,00,000/-)

(b) Income Tax demand Rs. Nil/-(Previous year Rs. 36,23,154/-) against which the company has preferred appeal before the appropriate authorities.

Commitments

(a) Rs. 1,25,00,000 (Previous Year Rs. Nil) on Account of Uncalled Money in Respect of Partly Paid up shares.

2 QUANTITATIVE DETAILS

Quantitative information in respect of Investments in securities:''

3. RELATED PARTY TRANSACTIONS

3.1 List of related parties with whom transactions have taken place and relationship:

a) Subsidiaries.

1. HB Securities Limited

2. HB Corporate Services Limited

b) Key Managerial Personnel

1 Shri Anil Goyal, Managing Director

c) Person having control/significant influence /major shareholders 1. Shri Lalit Bhasin

d) Enterprises over which control/significant influence exist of the relatives of persons mentioned in(c ) above :- 1 RRB Master Securities Delhi Ltd.

e) Companies under direct or indirect common control/significant influence:

1. HB Stockholdings Ltd.

2. HB Estate Developers Ltd.

3. RRB Master Holdings Ltd.

4. RRB Securities Ltd.

f) Associates

1. Merwanjee Securities Ltd.

2. Taurus Asset Management Co. Ltd.

3.2 Disclosure in respect of outstanding closing balance of related party transactions.

i) Trade payable includes Rs. Nil (Previous year 1,00,12,022/-) to RRB Master Securities (Delhi) Ltd.

ii) Security Deposit given includes Rs. 3,45,00,000/- (Previous year Rs. 3,45,00,000/- ) to HB Estate Developers Ltd.

iii) Loan and advances includes loan of Rs. 9,00,00,000/- (Previous year Rs. 9,00,00,000/-) to HB Estate Developers Ltd,Margin Money of Rs. 1,82,50,000 (Previous Year Rs. Nil) to RRB Master Securities (Delhi) Ltd. and advances against Share Application Money of Rs. 4,06,50,000/- (Previous year Rs. 4,95,00,000/- ) to HB Securities Ltd.; Rs. 2,00,00,000/- (Previous year Rs. 2,00,00,000/-) to HB Corporate Services Ltd. and Rs.1,00,00,000/- (Previous year Rs. 1,00,00,000/-) to Merwanjee Securities Ltd.

iv) Expenses recoverable includes Rs. 76,268/- (Previous year Rs. 60,350/-/) from HB Corporate Services Ltd.

v) Interest receivable includes Rs. 48,46,685/- (Previous year Rs. 24,23,343/--) from HB Estate Developers Ltd.

vi) Guarantee given in respect of HB Securities Ltd. Rs. 15,00,00,000/- (Previous year Rs. 15,00,00,000/- )

vii) Trade Receivables includes Rs. 3,61,13,388/- (Previous Year Rs. Nil/-) due from RRB Master securities (Delhi) Ltd.

4 SEGMENT REPORTING

In the opinion of Management there are no separate reportable segments as per Accounting Standard Segment reporting (AS-17).

5 DISCLOSURE PURSUANT TO ACCOUNTING STANDARD AS-19 FOR LEASES:- Operating Lease

a) Particulars of the minimum lease payments under Operating Lease:- Not Later than One year Rs. 9,67,692/- (Previous Year Rs. 9,49,944/-) Later than one year but not Rs. NIL (Previous Year Rs. NIL)

Later than five years

Later than five years Rs. NIL (Previous Year Rs. NIL)

b) Minimum lease payments recognised in the statement of profit & loss account during the year ended 31st March 2013 is Rs. 9,67,692/- (Previous Year Rs. 9,49,944/-).

c) General description of the lease arrangement.

– The Lessee shall not sublet or otherwise part with possession of a part or whole of the premise without the previous consent in writing of the lessor. The lessee shall use the premises for commercial purposes only.

6 Due to Micro,Small and Medium Enterprises

To the extent information available with the company,it has no dues to the Micro,Small and medium enterprises as at 31st March, 2013 and 31st March, 2012.

7 Dividend paid to Non-Resident Shareholders:-

The Company has not remitted any dividend in foreign currency and does not have information as to the extent to which remirrance,if any,in foreing currency on account of dividends have been made by/on behalf of non-resident shareholders. The Particulars of dividend Paid to non-resident shareholders are as under:-

8 The company made an application for issue of Certificate of Registration with Reserve Bank of India (RBI) under Section 45IA of the Reserve Bank of India Act, 1934. The application of the company was, however, returned by RBI vide its letter dated December 24, 2004 with an advice to resubmit the application on the completion of SEBI''s enquiry against the group companies. In an Appeal filed by the company before the Appellate Authority (in the Ministry of Finance) against the aforesaid decision of RBI, the Appellate Authority vide its Order dated September 25, 2006, directed the company to resubmit the application along with the latest balance sheets and other relevant details within 30 days to RBI and RBI to thereafter decide the case by obtaining necessary response from SEBI within 3 months from the date of receipt of the Order. The company resubmitted its application to RBI''s Regional Office at New Delhi on 23rd October 2006 as per the aforesaid directions of the Appellate Authority. Additional details / documents / clarifications as required by RBI from time to time were submitted.

The company vide its letters dated 11th October, 2010 and 29th January, 2011 intimated the RBI about the disposal of pending proceeding by the SEBI and also furnished copy of SEBI orders. The RBI vide its letter dated 29th March , 2011 advised the company to make a fresh application for issue of Certificate of Registration. As directed by RBI, the company filed a fresh application on 20th June 2011.The necessary queries/information raised/sought by RBI from time to time were filed.

The Company has now been advised by RBI to resubmit application with updated data and in accordance with Circular No. RBI/2012-13/319 DNBS.CC.PD.NO. 312/03.10.01/ 2012-13 dated December 7,2012. As advised by RBI,the company is in process of updating the data and resubmitting the same.

9.1 In view of the above facts, the provisions of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directors, 2007) are yet to be applicable to the company. However, as a matter of prudent and proper practice, disclosure of details as required by Para 13 of aforesaid directions is being given. Similarly the transfer of profit to Reserve Fund as required by Reserve Bank of India (Amendment) Act, 1997 is also being made.

10 Schedule as required in terms of Paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions,2007


Mar 31, 2012

(*) Created by way of transfer of specified percentage of profits as per section 45IC of Reserve Bank of India (Amendment) Act,1997.Appropriation from Reserves shall be for the purposes as may be specified by Reserve Bank of India.

1. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

(a) Guarantees given on behalf of Subsidiary Company HB Securities Limited Rs. 15,00,00,000/- (Previous Year Rs. 15,00,00,000/-)

(b) Income Tax demand Rs. 36,23,154/-(Previous year Rs. 36,23,154/-) against which the company has preferred appeal before the appropriate authorities.

2. RELATED PARTY TRANSACTIONS

2.1 List of related parties with whom transactions have taken place and relationship:

a) Subsidiaries.

1. HB Securities Limited

2. HB Corporate Services Limited

b) Key Managerial Personnel

1 Shri Anil Goyal ,Managing Director

c) Person having control/significant influence /major shareholders

1. Shri H.C. Bhasin (Expired on 07.12.2010)

2. Shri Lalit Bhasin

d) Enterprises over which control/significant influence exist of the relatives of persons mentioned in(c ) above :-

1 RRB Master Securities Delhi Ltd.

e) Companies under direct or indirect common control/significant influence:

1. HB Stockholdings Ltd.

2. HB Estate Developers Ltd.

3. RRB Masterholdings Ltd.

4. RRB Securities Ltd.

f) Associates

1. Merwanjee Securities Ltd.

2.2 Disclosure in respect of outstanding closing balance of related party transactions.

i) Trade payable includes Rs. 1,04,58,552/- (Previous year Nil) to RRB Master Securities (Delhi) Ltd.

ii) Security Deposit given includes Rs. 3,45,00,000/- (Previous year Rs. 3,45,00,000/

- ) to HB Estate Developers Ltd.

iii) Loan and advances includes loan of Rs. 9,00,00,000/- (Previous year Rs. 9,00,00,000/-) to HB Estate Developers Ltd.; Rs. Nil (Previous year Rs. 9,00,00,000/ - ) to HB Stockholdings Ltd. and advances against Share Application Money of Rs. 4,95,00,000/- (Previous year Nil) to HB Securities Ltd.; Rs. 2,00,00,000/- (Previous year Nil) to HB Corporate Services Ltd. and Rs. 1,00,00,000/- (Previous year Rs. 1,00,00,000/-) to Merwanjee Securities Ltd.

iv) Expenses recoverable includes Rs. 60,350/- (Previous year Rs. 36,135/-) from HB Corporate Services Ltd.

v) Interest receivable includes Rs. 24,23,343/- (Previous year Rs. 23,96,712/-) from HB Estate Developers Ltd. and Rs. Nil (Previous year Rs. 25,96,439/- from HB Stockholdings Ltd.

vi) Guarantee given in respect of HB Securities Ltd. Rs. 15,00,00,000/- (Previous year Rs. 15,00,00,000/- )

3 SEGMENT REPORTING

In the opinion of Management there are no separate reportable segments as per Accounting Standard Segment reporting (AS-17).

4 DISCLOSURE PURSUANT TO ACCOUNTING STANDARD AS-19 FOR LEASES:- Operating Lease

a) Particulars of the minimum lease payments under Operating Lease:-

Not Later than One year Rs. 9,49,944/- (Previous Year Rs. 9,49,944/-)

Later than one year but not Rs. NIL (Previous Year Rs. NIL)

Later than five years

Later than five years Rs. NIL (Previous Year Rs. NIL)

b) Minimum lease payments recognised in the statement of profit & loss account during the year ended 31st March 2012 is Rs.9,49,944/- (Previous Year Rs. 9,49,944/-).

c) General description of the lease arrangement.

- The Lessee shall not sublet or otherwise part with possession of a part or whole of the premise without the previous consent in writing of the lessor.

- The lessee shall use the premises for commercial purposes only.

5 Due to Micro,Small and Medium Enterprises

To the extent information available with the company,it has no dues to the Micro,Small and medium enterprises as at 31st March,2012 and 31st March,2011.

6 The company made an application for issue of Certificate of Registration with Reserve Bank of India (RBI) under Section 45IA of the Reserve Bank of India Act, 1934 so as to carry on the business of Non-Banking Financial Institution. The application of the company was, however, returned by RBI vide its letter dated December 24, 2004 with an advice to resubmit the application on the completion of SEBI's enquiry against the group companies. In an Appeal filed by the company before the Appellate Authority (in the Ministry of Finance) against the aforesaid decision of RBI, the Appellate Authority vide its Order dated September 25, 2006, directed the company to resubmit the application along with the latest balance sheets and other relevant details within 30 days to RBI and RBI to thereafter decide the case by obtaining necessary response from SEBI within 3 months from the date of receipt of the Order. The company resubmitted its application to RBI's Regional Office at New Delhi on 23rd October 2006 as per the aforesaid directions of the Appellate Authority. Additional details / documents / clarifications as required by RBI from time to time were submitted. The company vide its letters dated 11th October, 2010 and 29th January, 2011 intimated the RBI about the disposal of pending proceeding by the SEBI and also furnished copy of SEBI orders. The RBI vide its letter dated 29th March , 2011 advised the company to make a fresh application for issue of Certificate of Registration. As directed by RBI, the company filed a fresh application on 20th June 2011. The necessary queries/information raised/sought by RBI were filed by the company. The RBI has advised that the company should pass a specific Board Resolution to the effect that it shall not conduct the business of a non-banking financial institution till the grant of Certificate of Registration from Reserve Bank of India. The RBI vide its letter dated March 20, 2012 has returned the company's application with the advice to resubmit the application afresh at a later date based on the outcome of the board meeting. The management is in the process of taking necessary steps including seeking legal advice in the matter to arrive at an amicable solution.

7.1 In view of the above facts, the provisions of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directors, 2007) are yet to be applicable to the company. However, as a matter of prudent and proper practice, disclosure of details as required by Para 13 of aforesaid directions is being given. Similarly the transfer of profit to Reserve Fund as required by Reserve Bank of India (Amendment) Act, 1997 is also being made.

8 The Board of directors in their meeting held on 1st Febuary, 2012 has increased the remuneration of managing director w.e.f 20th Feruary, 2012 The increase in remuneration is subject to approval of members in annual general meeting.

9 Schedule as required in terms of Paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007

* Break up Value in the case of unquoted companies has been taken on the basis of last available Balance Sheet. Where the balance sheet is not available, the break up value/fair value/NAV has been taken at cost.

* The company has made certain investments in equity shares of the companies which are in the real estate sector. The same are reflected in the Balance Sheet. However, since these investments are not Mortgage backed securities / other securitized exposures, the same are not mentioned here.

 
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