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Notes to Accounts of Maha Rashtra Apex Corporation Ltd.

Mar 31, 2015

1. Corporate Information:

Maha Rashtra Apex Corporation Ltd., is a public limited company domiciled in India registered under the provision of Companies Act 1913. Main object of the company is to carry on the business of hire purchase and leasing. Presently the company has discontinued the operation and concentrated the recovery of Hire purchase and Leasing Advances.

1.1. Basis of preparation of accounts

The Financial Statements of the company have been prepared in accordance with generally accepted accounting principles in India, including the Accounting standards notified under the relevant Provisions of the Companies Act 2013.These Financial Statement are been prepared under historical cost convention on accrual basis except in respect of revenue from hire purchase and leasing and finance activities.

2. SHARE CAPITAL

Rights, Preferences and restrictions attached to shares:

Equity Shares: The equity shares have a par value of Rs. 10 per share. Each shareholders is eligible for one vote per each share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in the case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company(after distribution of all preferential amounts including payment to the preference shareholders) in proportion to their shareholding.

Preference Shares:

Redeemable Cumulative Preference Shares shall be redeemable after expiry of 5 years from the date of allotment. The shares are entitled for preferential right over dividend (before the equity share holders) at the rate 14% which is to be proposed by the Board of Directors and subject to approval of shareholders in the ensuing annual general meeting. however the shares are Cumulative Preference Share and therefore the Shareholders are entitled to carry forward the dividend of a year to the forth coming year/s in case the same is not declared in a year. In the event of liquidation such shareholders are eligible to receive the face value along with cumulative dividend (after distribution of all preferential amount) before the distribution of assets to the equity share holders. In case the assets are not sufficient to cover up the face value, then the same will be distributed in proportion to their shareholding if the surplus available, after distribution of all preferential amount.

3. Scheme of Compromise and Arrangement:

The salient features of the scheme of Compromise and Arrangement sanctioned by the High Court of Karnataka under sections 391 to 394 of the Companies Act, 1956 vide its Order dated 8th October, 2004 and filed with the Registrar of Companies, Karnataka on 15th December 2004 with its effective date is as under:

a) No interest shall accrue or be payable on the bonds/deposits maturing on or after 1stApril, 2002 and remaining unpaid/outstanding as on 31.3.2002

b) Bonds/deposits matured prior to 31st March, 2002 and remaining unclaimed shall be repaid with interest upto the date of maturity and Bonds/deposits accepted/renewed in between 1st April, 2002 and 15th April, 2002 shall be repaid without any interest, on receipt of the claim from the holders thereof.

c) Any loans/advances granted to any bond/deposit holders shall be set off/adjusted against the deposits/ bonds and the outstanding debts payable by the Company shall be reduced accordingly.

d) All deposits and bonds of the face value of Rs. 5,000/- and less shall be paid within six months from the date of order in one installment with interest accrued upto 31st March, 2002

e) Deposits/ bondholders receiving interest at monthly/quarterly rests shall be paid the face value in 20 equal quarterly installments.

f) Outstanding deposits/bonds other than those stated in para d & e above shall be paid as follows:

i) 15% of the face value on or before the expiry of 6th month of the Effective date

ii) 20% of the face value on or before the expiry of the 18th month of the Effective date

iii) 25% of the face value on or before the expiry of the 30th month of the Effective date

iv) 20% of the face value on or before the expiry of the 42nd month of the Effective date

v) Balance 20% of the face value and interest payable upto 31st March 2002 on or before the expiry of the 54th month of the Effective date against the surrender of the bond/deposit certificates.

g) For delay in payment of installments interest shall be paid @ 6% p.a.

h) The Board of Directors shall constitute a Hardship Committee to consider hardship cases on the request made by deposit/bond holders and subject to availability of funds they shall be paid a maximum of 75% of the face value of the outstanding bond/deposit as on the appointed date according to the formula as may be laid down by the Committee.

i) Upon the Scheme becoming effective, all Trust Deeds executed between the Company and Trustees for Bond holders shall be and deemed to be cancelled.

j) Upon the Scheme becoming effective, the General Investment and Commercial Corporation Limited shall act as trustees for unpaid creditors in respect of outstanding bonds/deposits and such outstanding bonds/deposits shall be secured by first charge on company's financial assets, book debts and receivables.

k) The Company shall not carry on the business as a non-banking financial company without the prior permission of the RBI.

4. All the Installments as per the scheme in respect of Note 1 (e) and Note 1 (f) have fallen due on 15th Sept., 2009 and 15th June, 2009 respectively. The shortfall in repayment as per the scheme up-to 31st March, 2015 amounts to Rs. 5554.72 lakhs, (Up to Previous year Rs. 6732.43 lakhs.)

5. There are no deposits matured and remaining unpaid for a period of 7 years during the year ended 31.03.2015. The transfer of unclaimed matured deposits to Investor Protection Fund does not arise in view of the entire deposit liability being covered under the scheme of arrangement.

6. The difference between the face value of bonds/deposits and the amount paid in full and final settlement of the same as per Note 3.1(h) is credited to Profit & Loss Statement.

7. The Property at Jai Bharath Industrial Estate, Jalahalli Camp Road, Yashanthpur Bangalore was let out to Kurlon Ltd. This property was auctioned by the Karnataka High court on 20/04/2012. M/s Kurlon Ltd was the highest bidder and the Court permitted them to pay the auction price in installments. Vide letter dated 5/4/2013 M/s Kurlon Ltd requested the company for waiver of rent from 1/4/2013 in view of substantial payment of purchase price for which the company agreed. Only on full payment of auction money the court will issue the sale notice to M/s Kurlon Ltd,

8. Though the Company is incurring losses since 2001 and its funds are blocked in non-performing assets, it has prepared the accounts ongoing concern basis as the management is of the view that the company will be able to recover the dues from most of the borrowers/ debtors and monitor effectively the deficit in operations.

9. The company has not made the provisions as required under the RBI Prudential Norms after 1st April, 2000.When compared to the previous year, the reduction in total provision required at the end of the year is: Rs. in lakhs

Provision for Non-Performing Assets (-)113.75

Provision for Diminution in the value of Investments ( )65.70

De-recognition of Income on Non-Performing Assets ...(-)39.32

Total Short Provision .(-)2729.53

10. Land includes agricultural land of the book value of Rs. 0.10 lakhs acquired in 1963 in satisfaction of debt. The Company has claimed compensation in respect of the said property. But as the compensation is not yet determined, the profit or loss is not adjusted in the accounts.

Buildings include Rs. 109.14 lakhs (Previous Year Rs. 109.14 lakhs) being the value of shares in Co- Operative Housing Societies.

Investment includes Land acquired in satisfaction of debt of Rs. 5.01 lakhs. (previous year Rs. 5.01 Lakhs).

Investments include; NSC of Rs. 0.14 lakhs given as security for Sales Tax.

Term Deposits with Banks include Rs. 2.20 lakhs given as security for Bank Guarantee in favour of Sales Tax Authorities.

750000 equity shares of Rs. 10 each in Bhooma Automobiles Ltd., sent for transfer in June 2012 is still pending for transfer in the name of the company. These shares were initially held by the company shown under investment and included in the list submitted to Honorable High Court of Karnataka in CP/37/2003. Subsequently these shares were sold, but ROC Karnataka objected for sale of these shares for not obtaining prior permission from Honorable High Court of Karnataka. Therefore the company repurchased these shares during 2012 and sent for transfer in the companies name.

11. Depreciation on Fixed Asset

Pursuant to the enactment of companies act 2013, the company has applied the estimated useful lives as specified in schedule II, Except in respect of leased asset as disclosed in the Accounting policy on depreciation, The written down value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted in the opening balance of Profit and Loss account amounting to Rs. 4.53 Lakhs under the head Reserves and Surplus and Excess depreciation charged is reversed for those assets, where Written down value is lesser than the salvage value amounting to Rs. 2.90 Lakhs.

12. Impairment of Assets

As per estimation of management impairment losses on fixed asset were recognized in the current year which is charged to the Profit and loss account under exceptional items as given below:

a. Own Asset -- Rs. 8.93 Lakhs

b. Leased Asset -- Rs. 31.28 Lakhs

13. Current Assets and Loans & Advances :

The Loans and Advances and Sundry Debtors are subject to confirmation.

a) Loans and Advance include;

(I) Due from the Officers of the Company Rs. 0.54 lakhs (P.Y. Rs. 0.52 lakhs),

14. Current Liability

ii) Other Current Liabilities includes Rs. 460.38 lakhs, being un-en-cashed DD/multi-city cheques issued for repayment of deposits/bonds in terms of the scheme.

iii) Un en-cashed DDs amounting to Rs. 3,59,000/- issued for repayment of Non-Convertible Supreme Bond Application Money.

15. Disclosures of Related Party Transaction:

1) Name of the related parties with whom transactions were carried out during the year and description of relationship:

i) Subsidiary:

a. Maharashtra Apex Asset Management Co. Ltd.

b. Crimson Estates & Properties Pvt. Ltd.

c. El'Dorado Investments Pvt. Ltd.

ii) Associates

a. Kurlon Ltd.

b. Manipal Home finance Ltd.,

c. Mangala Investment Ltd.,

d. Rajmahal Hotels Ltd.,

e. Manipal Springs Ltd.

iii) Other Related Party

a. Associates - Kurlon Ltd.

b. Companies in which director is Interested - Manipal Chit Fund Pvt. Ltd.,

16. Contingent Liabilities

a) Suits against the Company for damages not acknowledged as debt Rs. 0.28 lakhs.

b) No Provision is made in the books for disputed Income Tax Liability for the Assessment years 1998-99,1999-2000 and 2000-01aggregating Rs. 264.82 lakhs as the appeals filed by the company are pending disposal before the CIT(A). The disputed tax has been adjusted by the Department out of refund due. The company is of view that No provision is considered necessary in view of the appeals are pending before are Higher Appellate authorities and confident of winning the appeals successfully in favour of the company. From the Income tax returns filed by the company for the past years Tax deducted at source is due for refund to the company by Income tax department the company is making efforts to get the refund.

c) No provision is made in the books for the disputed Sales tax liability amounting to Rs. 17.54 lakhs for the Assessment years 1995-96 to 1996-97 as the appeals filed by the company are pending disposal.

d) Arrears of Cumulative Fixed Dividend from 31.03.2001 to maturity date for redemption amounts to Rs. 17.14 lakhs.

17. Employee Benefits: AS 15

a) Overview of Employees Benefits:

The compensation to employees for services rendered are as follows:

(i) Salaries and Wages including compensated absences. Compensated absences such as eligibility towards earned leave are allowed to be accumulated as per company's rules. Such earned leave can be encashed.

(ii) Bonus as per the Bonus Act, 1965 and ex-gratia in lieu of bonus to those employees who are not covered under the Bonus Act.

(iii) Contributions under defined contribution plans such as Provident Fund as per Employees Provident and Miscellaneous Provisions Act, etc.

(iv) Defined Benefit Plans such as Gratuity on cessation of employment. The Company has taken a Master Policy from LIC to fund this defined benefit obligation.

(v) Other employee benefits such as leave travel allowance.

(vi) The company has valued the liability in respect of Leave encashment as per actuarial valuation.

The above benefits are subject to eligibility and other criteria as per company's rules.

b) Recognition and Measurement:

i. Employee benefits are recognised on accrual basis. Liability to compensated absence such as leave encashment are determined by multiplying the actual leave accumulated at the end of the year by the applicable component of salary.

ii. Liability to defined benefit plan viz. Gratuity are valued on actuarial basis under Projected Unit Credit Method. by LIC.

iii. Liability under defined contribution schemes such as contribution to Provident Fund ESI etc are measured based on the contribution due for the year.

iv. Leave Travel Allowance is recognized based on claim. The un-availed allowance is not recognized as in the opinion of the management; the same will not be material.

v. Leave Encashment is recognized as per actuarial valuation.

(c) Disclosures pursuant to AS-15 (Revised 2005):

i) Defined Benefit Schemes :(Based)

18. Deferred Tax :

Deferred Tax Assets as per AS 22 - No 'Deferred Tax Assets' are recognized in the financial statements in the absence of virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which deferred tax assets can be realized.

19. Segment Reporting:

The Company is primarily engaged in the business of financial activities and managed as one entity for its various activities. There is only one 'business segment' and 'geographical segment' and, therefore, the segment information as required by AS - 17 'Segment Reporting' is not provided by the Company.

20. Preference share Not redeemed

Cumulative Preference Shares amounting to Rs. 31.62 lakhs are not redeemed and no redemption reserve is created as the Company is incurring losses since 2001.

21. Earnings Per Share

Basic and Diluted Earnings per Share (EPS) computed in accordance with Accounting Standard (AS) 20 "Earnings per Share".

22. There are no dues to Micro, Small and Medium Enterprises as of 31.03.2015.

23. The corresponding figures for the previous year have been regrouped/ rearranged wherever necessary.




Mar 31, 2013

1. Scheme of Compromise and Arrangement:

The salient features of the scheme of Compromise and Arrangement sanctioned by the High Court of Karnataka under sections 391 to 394 of the Companies Act, 1956 vide its Order dated 8th October, 2004 and filed with the Registrar of Companies, Karnataka on 15th December 2004 with its effective date is as under:

a) No interest shall accrue or be payable on the bonds/deposits maturing on or after 1 stApril, 2002 and remaining unpaid/outstanding as on 31.3.2002

b) Bonds/deposits matured prior to 31st March, 2002 and remaining unclaimed shall be repaid with interest up to the date of maturity and Bonds/deposits accepted/renewed in between 1 stApril, 2002 and 15th April, 2002 shall be repaid without any interest, on receipt of the claim from the holders thereof.

c) Any loans/advances granted to any bond/deposit holders shall be set off/adjusted against the deposits/ bonds and the outstanding debts payable by the Company shall be reduced accordingly.

d) All deposits and bonds of the face value of Rs. 5,000/- and less shall be paid within six months from the date of order in one instalment with interest accrued upto 31 st March, 2002

e) Deposits/ bondholders receiving interest at monthly/quarterly rests shall be paid the face value in 20 equal quarterly instalments.

f) Outstanding deposits/bonds otherthan those stated in para d & e above shall be paid as follows: i) 15% of the face value on or before the expiry of 6th month ofthe Effective date

ii) 20%" of the face value on or before the expiry of the 18th month ofthe Effective date

iii) 25% of the face value on or before the expiry of the30th month ofthe Effective date

iv) 20% of the face value on or before the expiry of the 42nd month ofthe Effective date

v) Balance 20% of the face value and interest payable upto 31st March 2002 on or before the expiry ofthe 54th month of the Effective date against the surrender of the bond/deposit certificates

g) For delay in payment of installments interest shall be paid @ 6% p.a.

h) The Board of Directors shall constitute a Hardship Committee to consider hardship cases on the request made by deposit/bond holders and subject to availability of funds they shall be paid a maximum of 75% of the face value of the outstanding bond/deposit as on the appointed date according to the formula as may be laid down by the Committee.

i) Upon the Scheme becoming effective, all Trust Deeds executed between the Company and Trustees for Bond holders shall be and deemed to be cancelled.

j) Upon the Scheme becoming effective, the General Investment and Commercial Corporation Limited shall act as trustees for unpaid creditors in respect of outstanding bonds/deposits and such outstanding bonds/deposits shall be secured by first charge on company''s financial assets, book debts and receivables.

k) The Company shall not carry on the business as a non-banking financial company without the prior permission ofthe RBI.

2. All the Instalments as per the scheme in.respect of Note 1 (e) and Note 1 (f) have fallen due on 15th Sept., 2009 and 15th June, 2009 respectively. The shortfall in repayment as per the scheme upto 31 st March, 2013 amounts to Rs. 8240.41 lakhs.

3. There are no deposits matured and remaining unpaid for a period of 7 years during the year ended 31.03.2013. The transfer of unclaimed matured deposits to Investor Protection Fund does not arise in view of the entire deposit liability being covered under the scheme of arrangement.

A. The difference between the face value of bonds/deposits and the amount paid in full and final settlement of the same as per Note 1 (h) is credited to Profit & Loss Account.

4. Though the Company is incurring losses since 2001 and its funds are blocked in non-performing assets, it has prepared the accounts on going concern basis as the management is of the view that the company will be able to recover the dues from most of the borrowers/ debtors and monitor effectively the deficit in operations.

5. i) Land includes agricultural land of the book value of Rs. 0.10 lakhs acquired in 1963 in satisfaction of debt. The Company has claimed compensation in respect of the said property. But as the compensation is not yet determined, the profit or loss is not adjusted in the accounts.

ii) Buildings include Rs. 109.14 lakhs (Previous Year Rs. 109.14 lakhs) being the value of shares in Co-Operative Housing Societies.

iii) Investment includes Land acquired in satisfaction of debt of Rs. 0.15 lakhs acquired during 2011-12

6. Investments include;

(i) NSCofRs.O.HIakhsgivenassecurityforSalesTax.

(ii) Term Deposits with Banks include Rs. 2.20 lakhs given as security for Bank Guarantee in favour of RTO and Sales Tax Authorities.

7. Current Assets and Loans & Advances:

The Loans and Advances and Sundry Debtors are subject to confirmation.

a) Loans and Advance include;

(i) Due from the Officers of the Company Rs. 0.89 lakhs (P.Y. Rs. 0.92 lakhs),

(ii) Due from Private Limited Companies in which Director is interested (Manipal Chit Fund Pvtitd. Rs. 0.32 lakhs (P.Y. Rs. 2.24 lakhs)

(iii) Due from Subsidiaries Rs. 0.24 lakhs (P.Y. Rs. 28.50 lakhs)

8. i. Trade Payable includes Rs. 215.20 lakhs, being un-en-cashed DD/multi-city cheques issued for repayment of deposits/bonds in terms of the scheme.

ii. Un encashed DDs amounting to Rs. 3,59,000/- issued for repayment of Non Convertible Supreme Bond Application Money.

11. Disclosures of Related Party Transaction:

i) Name of the related parties with whom transactions werecarriedoutduringtheyearanddescriptionofrelationship:

Maharashtra Apex Asset Management Co.Ltd. Subsidiary

Crimson Estates & Properties Pvt.Ltd. Subsidiary

EI''Dorado Investments Pvt.Ltd. Subsidiary

El''dorado Shares & Services Pvtitd. Fellow Subsidiary

Dagny Investments Pvt.Ltd. Fellow Subsidiary

KurlonLtd. Associate

9. Contingent Liabilities:

a) Suits against the Company for damages not acknowledged as debt Rs. 0.28 lakhs.

b) No Provision is made in the books for disputed Income Tax Liability for the Assessment years 1994-95 to 2009-10 as the appeals filed by the company are pending disposal. The disputed tax has been adjusted by the Department out of refund due. The company is of view that No provision is considered necessary in view of the appeals are pending before are Higher Appellate authorities and confident of winning the appeals in favour of the company.

c) No-provision is made in the books for the disputed Sales tax liability amounting to Rs. 17.54 lakhs for the Assessment years 1995-96 to 1996-97 as the appeals filed by the company are pending disposal.

d) Arrearsof Cumulative Fixed Dividend from 31.03.2001 to maturity date for redemption amounts to Rs. 17.14 lakhs.

10. Employee Benefits: AS 15

a) OverviewofEmployeesBenefits:

The compensation to employees for services rendered are as follows:

(i) Salaries and Wages including compensated absences. Compensated absences such as eligibility towards earned leave are allowed to be accumulated as per company''s rules. Such earned leave can be encashed.

(ii) Bonus as per the Bonus Act, 1965 and ex-gratia in lieu of bonus to those employees who are not covered under the BonusAct.

(iii) Contributions under defined contribution plans such as Provident Fund as per Employees Provident and Miscellaneous Provisions Act, etc.

(iv) Defined Benefit Plans such as Gratuity on cessation of employment. The Company has taken a Master Policy from LIC to fund this defined benefit obligation.

(v) Other employee benefits such as leave travel allowance. (vi) The company has valued the liability in respect of Leave encashment as per actuarial valuation.

The above benefits are subject to eligibility and other criteria as per company''s rules.

b) Recognition and Measurement:

i. Employee benefits are recognised on accrual basis. Liability to compensated absence such as leave encashment are determined by multiplying the actual leave accumulated at the end of the year by the applicable component of salary.

ii. Liability to defined benefit plan viz. Gratuity are valued on actuarial basis under Projected Unit Credit Method by LIC.

iii. Liability under defined contribution schemes such as contribution to Provident Fund ESI etc are measured based on the contribution due for the year.

iv. Leave Travel Allowance is recognized based on claim. The unavailed allowance is not recognized as in the opinion of the management, the same will not be material.

v. Leave Encashment is recognized as per actuarial valuation.

11. Deferred Tax:

Deferred Tax Assets as per AS 22 No ''Deferred Tax Assets'' are recognized in the financial statements in the absence of virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which deferred tax assets can be realized.

12. Cumulative Preference Shares amounting to Rs. 31.62 lakhs are not redeemed and no redemption reserve is created as the Company is incurring losses since 2001.

13. Segment Reporting:

The Company is primarily engaged in the business of financial activities and managed as one entity for its various activities. There is only one ''business segment'' and ''geographical segment'' and, therefore, the segment information as required by AS 17 ''Segment Reporting'' is not provided by the Company.

14. There are no dues to Micro, Small and Medium Enterprises as of 31.03.2013.

15. The corresponding figures for the previous year have been regrouped/ rearranged wherever necessary.


Mar 31, 2012

Rights, Preferfences and restrictions attached to shares Equity Shares:

The equity shares have a par value of Rs. 10 per share. Each shareholders is eligible for one vote per each share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in the case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the companyfafter dustribution of all preferential amounts including payment to the preference shareholders) in proportion to their shareholding.

Preference Shares:

Redeemable Cumulative Preference Shares shall be redeemable after expiry of 5 years from the date of allotment. The shares are entitled for preferential right over dividend (before the equity share holders) at the rate 14% which is to be proposed by the Board of Directors and subject to approval of shareholders in the ensuing annual general meeting, however the shares are Cumulative Preference Share and therefore the Shareholders are entitled to carry forward the dividend of a year to the forth coming year/s in case the same is not declared in a year. In the event of liquidation such shareholders are eligible to receive the face value along with cumulative dividend (after distribution of all preferential amount) before the distribution of assets to the equity share holders. In case the assets are not sufficient to cover up the face value, then the same will be distributed in proportion to their shareholding if the surplus available, after distribution of all preferential amount.

The company has discontinued hire purchase and Leasing Business and concentrating mainly on recovery of dues and repayment of debts. The income of the company depends on recoveries made during the year varies from year to year. The Surplus from one time Settlement of deposits/Bonds under Hardship repayment scheme is shown under Extraordinary items

1. Scheme of Compromise and Arrangement:

The salient features of the scheme of Compromise and Arrangement sanctioned by the High Court of Karnataka under sections 391 to 394 of the Companies Act, 1956 vide its Order dated 8th October, 2004 and filed with the Registrar of Companies, Karnataka on 15th December 2004 with its effective date is as under:

a) No interest shall accrue or be payable on the bonds/deposits maturing on or after IstApril, 2002 and remaining unpaid/outstanding as on 31.3.2002

b) Bonds/deposits matured prior to 31 st March, 2002 and remaining unclaimed shall be repaid with interest uptothe date of maturity and Bonds/deposits accepted/renewed in between IstApril, 2002 and 15th April, 2002 shall be repaid without any interest, on receipt of the claim from the holders thereof.

c) Any loans/advances granted to any bond/deposit holders shall be set off/adjusted against the deposits/ bonds and the outstanding debts payable by the Company shall be reduced accordingly.

d) All deposits and bonds of the face value of Rs. 5,000/- and less shall be paid within six months from the date of order in one instalment with interest accrued upto 31 st March, 2002

e) Deposits/ bondholders receiving interest at monthly/quarterly rests shall be paid the face value in 20 equal quarterly instalments.

f) Outstanding deposits/bonds other than those stated in para d & e above shall be paid as follows:

i) 15% of the face value on or before the expiry of 6th month of the Effective date

ii) 20% of the face value on or before the expiry of the 18th month ofthe Effective date

iii) 25% of the face value on or before the expiry of the 30th month ofthe Effective date

iv) 20% of the face value on or before the expiry of the 42nd month ofthe Effective date

v) Balance 20% ofthe face value and interest payable upto 31stMarch 2002 on or before the expiry ofthe 54th month of the Effective date against the surrender of the bond/deposit certificates.

g) For delay in payment of installments interest shall be paid @ 6% p.a.

h) The Board of Directors shall constitute a Hardship Committee to consider hardship cases on the request made by deposit/bond holders and subject to availability offundsthey shall be paid a maximum of 75% of the face value ofthe outstanding bond/deposit as on the appointed date according to the formula as may be laid down by the Committee.

i) Upon the Scheme becoming effective, all Trust Deeds executed between the Company and Trustees for Bond holders shall be and deemed to be cancelled.

j) Upon the Scheme becoming effective, the General Investment and Commercial Corporation Limited shall act as trustees for unpaid creditors in respect of outstanding bonds/deposits and such outstanding bonds/deposits shall be secured by first charge on company's financial assets, book debts and receivables.

k) The Company shall not carry on the business as a non-banking financial company without the prior permission of the RBI.

2. All the Instalments as per the scheme in respect of Note 1 (e) and Note 1 (f) have fallen due on 15th Sept., 2009 and 15th June, 2009 respectively. The shortfall in repayment as per the scheme upto 31st March, 2012 amounts to Rs. 9,999.93 lakhs.

3. There are no deposits matured and remaining unpaid for a period of 7 years during the year ended 31.03.2012. The transfer of unclaimed matured deposits to Investor Protection Fund does not arise in view of the entire deposit liability being covered under the scheme of arrangement.

4. The difference between the face value of bonds/deposits and the amount paid in full and final settlement of the same as per Note 1 (h) is credited to Profit& LossAccount.

5. Though the Company is incurring losses since 2001 and its funds are blocked in non-performing assets, it has prepared the accounts on going concern basis as the management is of the view that the company will be able to recover the dues from most of the borrowers/ debtors and monitor effectively the deficit in operations.

6. The company has not made the provisions as required under the RBI Prudential Norms after 1 st April, 2000.When compared to the previous year, the reduction in total provision required at the end of the year is:

(Rs. in Lakhs)

Provision for Non Performing Assets (-) 955.79

ProvisionforDiminutioninthevalueoflnvestments 6.40

De-recognition of Income on Non-Performing Assets (-)86.29

Total Short Provision 4194.57

7. i) Land includes agricultural land of the book value of Rs. 0.10 lakhs acquired in 1963 in satisfaction of debt. The Company has claimed compensation in respect of the said property. But as the compensation is not yet determined, the profit or loss is not adjusted in the accounts.

ii) Buildings include Rs. 109.14 lakhs (Previous Year Rs. 109.14 lakhs) being the value of shares in Co-Operative Housing Societies.

iii) Investment includes Land acquired in satisfaction of debt of Rs. 0.14 lakhs acquired during 2011 -12

8. Investments include;

(i) NSC of Rs. 0.14 lakhs given as security for Sales Tax.

(ii) Term Deposits with Banks include Rs. 2.20 lakhs given as security for Bank Guarantee in favour of RTO and Sales Tax Authorities.

(iii) 116 Shares allotted by Kurlon ltd in respect of 116102 shares of Manipal Control Data Electro Commerce Ltd., on account of Merger.

The company has sold investment aggregating 15,99,800 unquoted equity shares of a company (which have been acquired during the financial year 2009-10 and earlier years) without the prior approval of the High Court of Karnataka as per the Scheme of Compromise and Arrangement sanctioned by the High Court of Karnataka vide its order dated 8th October, 2004. The Management is of the opinion that being the unquoted equity shares the price at which these shares were sold was the best price considering, its marketability and realisable value. Besides the company also repurchased 350000 equity shares of Manipal Home Finance Ltd.,

during the currentfinancial yearwhich has been sold during the financial years 2009-10 and 2010-11.

9. Current Assets and Loans & Advances:

The Loans and Advances and Sundry Debtors are subject to confirmation.

a) Loans and Advance include;

(i) Due from the Officers ofthe Company Rs. 0.92 lakhs (P.Y. Rs. 0.94 lakhs),

(ii) Due from Private Limited Companies in which Director is interested (Manipal Chit Fund Pvt.Ltd. Rs. 2.08 lakhs (P.Y. Rs. 2.08 lakhs)

(iii)Duefrom Subsidiaries Rs. 28.50 lakhs (P.Y. Rs. 43.38 lakhs)

b) Trade Receivable includes an amount of Rs. 143.98 lakhs receivable on Sale of Investments.

10. Trade Payable includes Rs. 242.85 lakhs, being un-en-cashed DD/multi-city cheques issued for repayment of deposits/bonds in terms ofthe scheme.

11. Contingent Liabilities:

a) Suits against the Company for damages not acknowledged as debt Rs. 0.28 lakhs.

b) No Provision is made in the books for disputed Income Tax Liability for the Assessment years 1994-95 to 2009-10 as the

appeals filed by the company are pending disposal. The disputed tax has been adjusted by the Department out of refund due.

The company is of view that No provision is considered necessary in view of the appeals are pending before are Higher

Appellate authorities and confident ofwinning the appeals in favourof the company.

c) No provision is made in the books for the disputed Sales tax liability amounting to Rs. 17.54 lakhs for the Assessment years

1995-96 to 1996-97 as the appeals filed by the company are pending disposal.

d) Arrears of Cumulative Fixed Dividend from 31.03.2001 to maturity date for redemption amounts to Rs. 17.14 lakhs.

12. Employee Benefits: AS 15

a) Overviewof Employees Benefits:

The compensation to employees for services rendered are as follows:

(i) Salaries and Wages including compensated absences. Compensated absences such as eligibility towards earned leave are allowed to be accumulated as per company's rules. Such earned leave can be encashed.

(ii) Bonus as per the Bonus Act, 1965 and ex-gratia in lieu of bonus to those employees who are not covered under the Bonus Act.

(iii) Contributions under defined contribution plans such as Provident Fund as per Employees Provident and Miscellaneous Provisions Act, etc.

(iv) Defined Benefit Plans such as Gratuity on cessation of employment. The Company has taken a Master Policy from LIC to fund this defined benefit obligation.

(v) Other employee benefits such as leave travel allowance.

The above benefits are subject to eligibility and other criteria as per company's rules.

b) Recognition and Measurement:

i. Employee benefits are recognised on accrual basis. Liability to compensated absence such as leave encashment are determined by multiplying the actual leave accumulated at the end ofthe year by the applicable component of salary.

ii. Liability to defined benefit plan viz. Gratuity are valued on actuarial basis under Projected Unit Credit Method by LIC.

iii. Liability under defined contribution schemes such as contribution to Provident Fund ESI etc are measured based on the contribution due for the year.

iv. Leave Travel Allowance is recognized based on claim. The unavailed allowance is not recognized as in the opinion of the management, the same will not be material.

13. Deferred Tax:

Deferred Tax Assets as per AS 22 No 'Deferred Tax Assets' are recognized in the financial statements in the absence of virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which deferred tax assets can be realized.

14. Cumulative Preference Shares amounting to Rs.31.62 lakhs are not redeemed and no redemption reserve is created as the Company is incurring losses since 2001.

15. Segment Reporting:

The Company is primarily engaged in the business of financial activities and managed as one entity for its various activities. There is only one 'business segment' and 'geographical segment' and, therefore, the segment information as required by AS 17 'Segment Reporting' is not provided by the Company.

16. The corresponding figures for the previous year have been regrouped/rearranged wherever necessary.

17. There are no dues to Micro, Small and Medium Enterprises as of31.03.2012.

18. The financial statements for the year ended March 31 2011 had been prepared as pr the pre-revised Schedule VI to the companies Act 1956. Consequent to the notification of revised schedule VI under the companiesAct 1956, the financial statements for the year ended March 31 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.


Mar 31, 2010

1. Scheme of Compromise and Arrangement:

The salient features of the scheme of Compromise and Arrangement sanctioned by the High Court of Karnataka under sections 391 to 394 of the Companies Act 1956 vide its Order dated 8th October, 2004 and filed with the Registrar of Companies, Karnataka on 15th December 2004 with its effective date is as under:

a) No interest shall accrue or be payable on the bonds/deposits maturing on or after IstApril, 2002 and remaining unpaid/outstanding ason31.3.2002

b) Bonds/deposits matured prior to 31st March,2002 and remaining unclaimed shall be repaid with interest upto the date of maturity and Bonds/deposits accepted/renewed in between IstApril, 2002 and 15th April, 2002 shall be repaid without any interest,onreceipt of the claim from the holders there of.

c) Any loans/advances granted to any bond/deposit holders shall be set off/adjusted against the deposits/ bonds and the outstanding debts payable by the Company shall be reduced accordingly

d) All deposits and bonds of the face value of Rs.5,000/- and less shall be paid within six months from the date of orderin oneinstalmentwithinterestaccruedupto31stMarch,2002

e) Deposits/ bondholders receiving interest at monthly/quarterly rests shall be paid the face value in 20 equal quarterly instalments.

f) Outstanding deposits/ bonds other than those stated in parad&e above shall be paid as follows:

i) 15% of the face value on or before the expiry of 6th month ofthe Effective date

i)i 20% of the face value on or before the expiry of the 18th month of the Effective date

iii) 25% ofthe face valu on or before the expiry of the SOth month ofthe Effective date

iv 20% of theface value on or before the expiry of the4 2nd month ofthe Effective date

v) Balance 20% ofthe face value and interest payable upto 31st March 2002 on or before the expiry ofthe 54th month of the Effective date against the surrender of the bond/de posit certificates.

g) For delay in payment of instalments interests hall be paid@6%p.a.

h) The Board of Directors shall constitute a Hardship Committee to consider hardship cases on the request made by deposit/bond holders and subject to availability offundsthey shall be paid a maximum of 75% of the facevalue ofthe outstanding bond/deposit as on theappointed date according to the formula as may be laid down by the Committee.

i) Upon the Scheme becoming effective, all Trust Deeds executed between the Company and Trustees for Bond holders shallbe and deemed to be cancelled.

j) Upon the Scheme becoming effective, the General Investment and Commercial Corporation Limited shall act as trustees for unpaid creditors in respect of outstanding bonds/deposits and such outstanding bonds/deposits shall be secured by first charge on companys financial assets,book debts and receivables.

k) The Company shall not carry on the business as a non-banking financial company without the prior permission of theRBI.

2. The Final Instalment as per the scheme in respect of Note 1 (e) and Note 1 (f) (v) falls due on 15th Sept., 2009 and 15th June, 2009 respectively Though the Company is repaying the deposits/bonds as per the terms of the Scheme sanctioned by the High Court of Karnataka by DD/multi-city cheques, the shortfall in repayment as per the scheme upto31stMarch,2010amountstoRs.13,590.51lakhs.

3. There are no deposits matured and remaining unpaid for a period of 7 years during the year ended 31.03.2010. The transfer of unclaimed matured deposits to Investor Protection Fund doe not arise in view of the entire deposit liability being covered under the scheme of arrangement.

4. The company has changed the accounting policy with respect to treatment of the difference between the face value of bonds/deposits and the amount paid in full and final settlement of the same as per Note 1 (h). The same which was earlier transferred to Capital Reserve is now transferred to Profit and Loss Account. An amount of Rs. 1134.58 lakhs is transferred from Capital Reserve to Profit and Loss Account in respect of financial year 31.3.2006to31.3.2009.

On account of such change in policy;

i) An amount of Rs.645.26 lakhs is credited to Interest remission under Miscellaneous Receipts in respect of the current year.

ii)The current year profit results inoverstatement to the extent of Rs.645.26 lakhs (Rs.535.59 lakhs net oftax).

iii) Reduction in Capital Reserve amounts to Rs. 1134.58 lakhs in respect of prior period adjustment.

5. Though the Company is incurring losses since 2001 and its funds are blocked in non-performing assets, it has prepared the accounts on going concern basis as the management is of the view that the company will be able to recover the dues from most of the borrowers/debtors and monitor effectively the deficit in operations.

6. The company has not made the provisions as required under the RBI Prudential Norms after 1st April,2000. Then compared to thepreviousyear,thereductionintotal provision required at the end of the year is:

Provision for Non Performing Assets Rs.(-) 638.63 lakhs

Provision for Diminution in the value of lnvestments Rs. - 90.43lakhs

De-recognition of Income on Non-Performing Assets Rs. - 67.08 lakhs

Total Short Provision Rs.66.15crores

7. i) Land includes agricultural land of the book value of Rs.0.10 lakhs acquired in 1963 in satisfaction of debt. The Company has claimed compensation in respect ofthe said property. But as the compensation is not yet determined, the profit or loss is not adjusted in the accounts.

ii) Buildings include Rs.109.14 lakhs (Previous Year Rs.109.14 lakhs) being the value of shares in Co-Operative Housing Societies.

8. Investments include;

(i) NSC of Rs.0.14 lakhs given as security for Sales Tax.

(ii) 5,00,000 equity shares of Kurlon Limited pledged as security for Inter-Corporate Deposit (the shares pledged are subject to confirmation).

(iii) Term Deposits with Banks include Rs.2.20 lakhs given as security for Bank Guarantee in favour of RTO and Sales TaxAuthorities.

The company has sold investment aggregating 17,99,800 unquoted equity shares of two companies (except 8,49,800 shares whichfhave been acquired and sold during the year) wLut the prior approval of the High Court of Karnataka as per the Scheme of Compromise and Arrangement sanctioned by the High Court of Karnataka vide its order dated 8th October, 2004. (Also refer Note 9 (b)). The Management is ofthe opinion that being the unquoted equity shares the price at which these shares were sold was the best price considering jts marketability and realisable value

9. Current Assets and Loans &Advances:

The Loans and Advances and Sundry Debtors are subject to confirmation.

a)Loans and Advance include; i) Due from the Officers of the Company Rs.1.30 lakhs (P.Y. Rs.1.25 lakhs),Maximum balance at any time during the yearRs.1.70lakhs(P.YRs.2.36lakh)

ii) Due from Private Limited Companies in which Director is interested (MRAC Chit Fund Pvt.Ltd.) Rs.2.08 lakhs (P.YRs.2.08) iii) Duefrom Subsidiaries Rs.Nil (P.Y. Nil)

b) Sundry Debtors include an amount of Rs. 156.78 lakhs receivable on Sale of investments.

10. Sundry Creditors include Rs.185.61 lakhs, being unencashed DD/multi-city cheques issued for repayment of deposits/bonds in terms ofthe scheme.

11. Disclosuresof Related Party Transaction:

i) Name of the related parties with whom transactions were carried out during the year and description of relationship:

Maharashtra ApexAsset Management Coitd. : Subsidiary

Crimson Estates & Properties Pvt.Ltd. : Subsidiary

EIDorado InvestmentsPvt.Ltd. : Subsidiary

Riviera Steels Pvt.Ltd. : Subsidiary

EIdoradoShares&ServicesPvt.Ltd. : Fellow Subsidiary Dagny Investments Pvt.Ltd. : Fellow Subsidiary

KurlonLtd. : Associate

Millicent Rego : Relative of Key Mngt Personnel

Vijay Rego : Relative of Key Mngt Personnel

12.VAT paid includes penalty paid for delay

in payment of VAT from 2005 to 2009 : Rs.1,08,430 (P.Y. Nil)

Interest on delay in payment of VAT

from 2005 to 2009 : Rs.2,32,175(P.Y. Nil)

11. Out of matured deposits remaining unpaid for a period of seven years as on 01.04.2002, an amount of Rs.3.19 lakhs which was paid to depositors during financial year 2002-2003 has been remitted to Investor Education and Protection Fund under the directions of ROC during the current financial year. The same has been debited to General Charges during the current year.

12.Contingent Liabilities

a)Suits against the Company for damages not ac knowledge das debtRs.1.29 lakhs.

b No Provision is made in the books for disputed Income Tax Liability aggregating to Rs.80.02 lakhs for the Assessment years 1992-93 to 2007-08 as the appeals filed by the company are pending disposal. The same has been adjusted by the Department from refund due

c) No provision is made in the books for the disputed Sales taxability amounting to Rs.17.54 lakhs for the Assessment year s1995-96 to1996-97as the appeals filed by the company are pending disposal.

d) Arrears of Cumulative Fixed Dividend from 31.03.2001 to maturity dateforredemptionamountstoRs.17.14lakhs.

13. Employee Benefits:AS 15

a) Overview of Employees Benefits: The compensation to employees fo rservices rendered are as follows:

(i) Salaries and Wages including compensated absences. Compensated absences such as eligibility towards earned leave are allowed to be accumulated as per companys rules.Suche arned leave can be encashed.

(ii) Bonus as per the Bonus Act; 1965 and ex- gratiain lieu of bonus to those employees who are not covered under the Bonus Act.

(iii) Contributions under defined contribution plans such as Provident Fund as per Employees Provident and Miscellaneous Provisions Act, etc.

(iv) Defined Benefit Plans such as Gratuity on cessation of employment. The Company has taken a Master Policy from LIC to fund this defined benefit obligation.

(v) Other employee benefits such as leave travel allowance. The above benefits are subject to eligibility and other criteria as per companys rules.

b) Recognition and Measurement:

i. Employee benefits are recognised on accrual basis. Liability to compensated absence such as leave encashment are determined by multiplying the actual leave accumulated at the end of the year by the applicable component of salary.

ii. Liability to defined benefit plan viz. Gratuity are valued on actuarial basis under Projected Unit Credit Method by LIC.

iii. Liability under defined contribution schemes such as contribution to Provident Fund ESIetc are measured based on the contribution due for the year.

iv. Leave Travel Allowance is recognized based on claim. The unavailed allowance is not recognized as in the opinion of the management, the same will not be material.

d) Change in Accounting Policy: Expenditure on gratuity was hitherto being accounted as equal to the premium payable to LIC under the policy taken under the Group Gratuity Scheme. The company could not report the employee benefits as per AS-15 (Revised) applicable for accounting periods commencing on or after 01.04.2006 in the absence of required information from LIC. The Company has now received the information required for accounting (including disclosures) as per AS-15 (Revised) from LIC relevant to the financial year ended 31.03.2010 and has accordingly made the transition during the year.

Consequent thereto the differential liability on transition ascertained at Rs.7,91,138 has been adjusted against the opening balance of General Reserve.The charge to the profit and loss account for the year is lower by Rs.1,27,541.

The impact on the opening balance of General Reserve from the transition made in the current financial year vis-a- vis amount required to be adjusted against the opening balance as on 01.04.2006 had the transition been made during the financial year ended 31.03.2007 in the opinion of the management would not be material

14.DeferredTax:

No Deferred Tax Assets as per AS 22 - Deferred Tax Assets are recognized in the financial statements in the absence of virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which deferred tax assets can be realized.

15. Cumulative Preference Shares amounting to Rs.31.62 lakhs are not redeemed and no redemption reserve is created as the Company is incurring losses since 2001.

16. Segment Reporting:

The Company is primarily engaged in the business of financial activities and managed as one entity for its various activities There is only one business segment and geographical segment and, therefore, the segment information as required by AS-17Segment Reporting"s not provided by the Company.

17. The corresponding figures for the previous year have been regrouped/ rearranged wherever necessary.

18. There are nodues to Micro,Small and Medium Enterprises asof31.03.2010.

19. The Company does not carry on manufacturing activities. Hence paragraph 4C of Part-ll of Schedule VI of the Companies Act,1956 is not applicable.

 
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