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Notes to Accounts of PNB Gilts Ltd.

Mar 31, 2018

NOTE : 2

NOTES TO ACCOUNTS FOR THE PERIOD ENDED 31st MARCH, 2018

As at 31 .03.2018

(Rs in lacs) As at 31 .03.2017

NOTE 2.1

SHARE CAPITAL

Authorised

50,00,00,000 Equity Shares of Rs. 107- each 50000.00 (Previous Year 50,00,00,000 Equity Shares of Rs.10/- each)

50000.00

Issued, Subscribed and Paid Up:

18,00,10,134 Equity Shares of Rs. 107- each fully paid up (Previous Year 18,00,10,134 Equity Shares of Rs.10/- each)

18001 .01

18001.01

To know the Equity history, please see Report on Corporate Governance in previous pages.

Promoter (Holding Company)

Punjab National Bank -1 3,33,33,333 shares of Rs. 10/- each. 13333.33 (Previous Year 13,33,33,333 shares of Rs.10/-each)

13333.33

(Shareholding %)

74.07%

74.07%

Shareholding more than 5% details

Punjab National Bank -1 3,33,33,333 shares of Rs. 10/- each. 1 333.33 (Previous Year 13,33,33,333 shares of Rs.10/-each)

13333.33

(Share holding %)

74.07%

74.07%

Reconciliation of the number of Shares:

—

Opening Number of shares (Face Value Rs 10 paid up)

180010134

180010134

Add: Additions During the Year

Nil

Nil

Less: Reduction During the Year

Nil

Nil

Closing Number of shares (Face Value Rs 10 paid up)

1800101 34

180010134

• Rights, preferences and restrictions attached to each class of shares including restrictions on the distribution of dividends and the repayment of capital:

The Company has only one class of equity shares having a par value of Rs 10 per share. Each holder of equity shares is entitled to one vote per share. Dividend distribution is for all equity shareholders who are eligible for dividend as on the record date. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive 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.

• Shares reserved for issue under options and contracts/commitments for the sale of shares/ disinvestment, including the terms and amounts: Nil (Previous Year: Nil)

• For the period of five years immediately preceding the date as at which the Balance Sheet is prepared:

(a) Aggregate number and class of shares allotted as fully paid-up pursuant to contract(s) without payment being received in cash: Nil (Previous Year: Nil)

(b) Aggregate number and class of shares allotted as fully paid-up by way of bonus shares: No. of Equity Shares 44992534 Current Year Nil (Previous Year: NIL)

(c) Aggregate number and class of shares bought back : Nil (Previous Year: Nil)

• Terms of any securities convertible into equity/preference shares issued along with the earliest date of conversion in descending order starting from the farthest such date : Nil (Previous Year: Nil)

• Calls unpaid (showing aggregate value of calls unpaid by Directors and Officers): Nil (Previous Year: Nil)

• Fnrfpitpri shares- Nil fPrpx/iniis Ypar Mih

As at 31.03.2018

(Rs in lacs) As at 31.03.2017

NOTE 2.2

RESERVES AND SURPLUS

General Reserves

Opening Balance

9776.54

9776.54

9776.54

9776.54

Statutory Reserves (Created pursuant to Section 45IC of Reserve Bank of India Act, 1934)

Opening Balance

23366.02

20022.54

Transfer from Statement of Profit and Loss

731 .52

24097.54

3343.48

23366.02

Share Premium Account

Opening Balance

2501.27

2501.27

2501.27

2501 .27

Market Fluctuation Reserve Account (Created pursuant to Board Resolution dated 9th January 2003)

6300.00

1

6300.00

Capital Reserve Account

Opening Balance

5988.96

3759.25

Transfer from Statement of Profit and Loss

331 .08

6320.04

2229.71

5988.96

Surplus

Opening Balance

23951 .20

12807.01

Add Current Year Profit

3657.58

16717.38

Amount Available for Appropriation

27608.78

29524.39

Appropriations:

-Capital Reserve

331 .08

2229.71

- Statutory Reserve Fund

731 .52

3343.48

- Dividend of FY 201 6-1 7

4500.25

-

- Dividend Distribution Tax of FY 2016-17

916.15

6479.00

-

5573.19

Balance Carried Forward to next year

21129.78

23951 .20

TOTAL

70125.17

71883.99

• A sum of Rs 731.52 lacs (P.Y. Rs 3343.48 lacs) (20 per cent of Profit After Tax) has been transferred to Statutory Reserve Fund as per RBI Guidelines.

• Net Profit (after tax) through sale of securities from HTM category amounting Rs 331.08 lacs (P.Y. Rs 2229.71 lacs) has been transferred to Capital Reserve Account as per RBI guidelines. The same will be utilized as per the regulatory guidelines.

• The Board of Directors, in its meeting held on January 9, 2003, had decided to build up Market Fluctuation Reserve over a period of time with the cap equal to paid up capital of the company. At the time of adoption of annual accounts each year, the Board may decide the quantum of amount to be transferred to this Reserve, if necessary. For the financial year 2017-18, Board of Directors had decided not to appropriate any amount to this reserve and the balance outstanding as on March 31, 2018 in this reserve is R 6300 lacs (P.Y. Rs 6300 lacs).

• Ministry of Corporate Affairs amended the Companies (Accounting Standards) Rules, 2006 on March 30, 2016 and vide its General Circular no. 4/2016 dated 27.04.2016 has clarified that the Companies (Accounting Standards) Amended Rules, 2016 would be applicable for preparation of accounts for accounting period commencing on or after the date of notification w.e.f. Financial Year 2016-17.

According to this amendment, the Proposed Dividend is not recognizable in the accounts as liability until it is approved.

Accordingly, the Proposed Final Dividend for FY 2016-17 of Rs 2.50 per equity share of Rs 10 each amounting to Rs 4500.25 lacs and Dividend Distribution Tax (DDT) amounting to Rs 916.15 lacs has been accounted for in the current financial year. The Board of Directors have recommended a Final Dividend of Rs 1 per equity share amounting to Rs 1800.10 lacs for FY 2017-18 after the balance sheet date. The same is subject to approval by the shareholders at the ensuing Annual General Meeting of the company and therefore Proposed Final Dividend of Rs 1800.10 lacs and DDT of Rs 370.02 lacs has not been recognized as a liability as at the balance sheet date.

• Net owned Funds (after deducting Deferred Tax and Intangible Assets) of the Company stands at Rs 88066.22 lacs (P.Y. Rs 89835.70 lacs) as against the minimum stipulated capital of Rs 25000.00 lacs. Return on Average Net Worth for the year 2017-18 stands at 4.11 per cent (P.Y. 20.51 per cent).

• Capital Adequacy Ratios as on June 30, 2017, September 30, 2017, December 31, 2017 and March 31, 2018 were 30.34 per cent (P.Y. 72.02 per cent), 31.94 per cent (P.Y. 82.14 per cent), 38.86 per cent (P.Y. 74.90 per cent) and 67.09 per cent (P.Y. 54.48 per cent) respectively as against RBI stipulation of 15 per cent.

(Rs in lacs)

As at 31.03.2018

As at 31.03.2017

NOTE 2.3

LONG TERM PROVISIONS

Provision for Employee Benefits

119.40

104.93

(Details of provision for employee benefits are given in note 2. 31)

(Rs in lacs)

NOTE 2.4

SHORT TERM BORROWINGS

LOAN REPAYABLE ON DEMAND

• From Banks

(a) Secured Loans (Secured by way of pledge of Govt Securities)

Borrowings from RBI

- LAF Borrowing

89000.00

I

40000.00

- Term Repo Borrowing

56500.00

-

Pledge of Security Face Value- Rs 154579.40 lacs and Book Value Rs 154913.71 lacs (Previous. Year Face Value ? 40589.90 lacs and Book Value Rs 40782.00 lacs)

Refinance from RBI

Pledge of Security Face Value- Rs 35109.00 lacs and Book Value Rs 35110.15 lacs (Previous Year Face Value - NIL and Book Value -NIL)

31831.00

177331.00

40000.00

(b) Unsecured Loans

Call and Notice Money Borrowing

97800.00

90750.00

(Rs in lacs)

As at 31.03.2018

As at1 31.03.2017

• From Others

(a) Secured Loans (Secured by way of pledge of Govt. Securities)

CBLO Borrowings from CCIL

Pledge of Security Face Value- Rs 92070.00 lacs and Book Value Rs 89833.95 lacs (Previous Year. Face Value Rs 25470.00 lacs and Book Value Rs 24965.94 lacs)

82798.19

22634.77

Repo Borrowing

Pledge of Security Face Value- Rs 72148.00 lacs and Book Value Rs 71689.02 lacs (Previous Year. Face Value Rs 89392.00 lacs and Book Value Rs 91204.69 lacs)

71336.21

154134.40

92584.47

115219.24

(b) Unsecured Loans

Inter Corporate Borrowing

7600.00

-

LOANS AND ADVANCES FROM RELATED PARTIES

(a) Unsecured Loans (Line of Credit)

From Punjab National Bank

-

105423.71

TOTAL LOANS REPAYABLE ON DEMAND

436865.40

351392.95

TOTAL SECURED LOAN

331465.40

155219.24

TOTAL UNSECURED LOAN

105400.00

196173.71

During the year, Net Average and Peak borrowings in Call money amounted to Rs 187601.04 lacs and Rs 302025.00 lacs respectively. (Previous Year Net Average and Peak borrowings - Rs 135748.22 lacs and Rs 303050.00 lacs respectively)

For the year, average and peak leverage ratio stands at 6.15 and 8.29 times respectively (Previous Year average and peak stands at 4.47 and 7.50 times respectively)

(Rs in lacs)

NOTE 2.5

TRADE PAYABLES

Stale Cheques

0.03

3.76

Brokerage Payable

0.69

0.51

Sundry General

4.47

4.47

Settlement Charges Payable

14.79

19.98 ''

33.54

42.28

(There are no dues outstanding to organizations covered under MSME)

TOTAL

19.98

42.28

(Rs in lacs)

As at 31.03.2018

As at 31.03.2017

NOTE 2.6

OTHER CURRENT LIABILITES

Unclaimed Dividend

67.89

49.08

IDS & GST Payable

56.34

12.75

Interest Accrued but not due on Short Term Borrowing

904.73

85.94

Stale Cheques

3.57

1.30

Accrual on Interest Rate Swaps

(2.66)

19.81

Unclaimed Bonus Fractional Entitlement Payable

0.32

0.32

TOTAL

(Rs in lacs)

NOTE 2.7

SHORT TERM PROVISIONS

Provisions - For Employee Benefits

29.67

27.06

-Other Provisions for expenses

70.47

60.48

Provision for Interest Rate Swaps

39.60

-

Provisions for Income Tax

12279.71

12419.45

14868.87

14956.41

TOTAL

12419.45

14956.41

Details of provision for employee benefits (leave liability) are given in the note 2.31

(Rs in lacs)

NOTE 2.8

PROPERTY, PLANT AND EQUIPMENT AND DEPRECIATION

Gross Block

Depreciation

Net Block

Description

As at 01-04-17

Additions during the year

Adjustment/ Deductions during the year

As at 31-03-18

As at 01-04-17

Dep. during the year

Accumulated Dep. On deductions

As at 31-03-18

As at 31-03-18

As at 31-03-17

A

Tangible

1

Buildings

589.44

-

-

589.44

338.26

12.19

-

350.45

238.99

251.18

2

Office Equipments

51.86

4.97

2.35

54.48

43.15

9.18

2.35

49.98

4.50

8.71

3

Computers

118.40

7.73

2.09

124.04

117.77

3.90

2.09

119.58

4.46

0.63

4

Furniture & Fixtures

132.53

3.91

0.92

135.52

112.65

14.24

0.92

125.97

9.55

19.88

5

Vehicles

33.34

10.41

5.01

38.74

14.63

7.00

4.57

17.06

21.68

18.71

B

Intangible

1

Computer Software

242.39

-

15.49

226.90

240.10

1.99

15.49

226.60

0.30

2.29

Total

1167.96

27.02

25.86

1169.12

866.56

48.50

25.42

889.64

279.48

301.40

Previous Year

1188.12

57.18

77.34

1167.96

907.81

33.55

74.81

866.55

301.40

280.31

Useful life of Intangible Assets is taken as 6 years.

(Rs in lacs)

As at 31.03.2018

As at 31.03.2017

NOTE 2.9

NON CURRENT INVESTMENTS (at Book Value)

Quoted Investments

Government Securities- Held To Maturity(HTM) category

83507.01

44254.41

• Market value of the above stock as on March 31 , 2018 was Rs 79644.74 lacs (Previous Year Rs For basis of valuation, refer to note 1.4. The transactions during the year are given below:

4380 1.05 Lacs).

(Rs in lacs)

2017-18

2016-17

Face Value

Book Value

Face Value

Book Value

Opening Stock

43377.20

44254.41

63995.80

64046.51

Add: Subscription

87873.10

87126.73

167201.10

171460.03

Transfer to HTM -

131250.30

131381.14

231196.90

235506.54

Less: Sale and amortization

48700.00

47874.13

187819.70

191252.13

Transfer From HTM -

Closing Stock

82550.30

83507.01

43377.20

44254.41

• Securities amounting to Face Value Rs 48700.00 lacs were sold directly from the HTM category (Previous Year Rs 187819.70 lacs) and the company earned a gross profit of Rs 500.67 lacs (Previous Year Rs 3394.38 lacs). Balance profit after tax amounting to Rs 331.08 lacs has been transferred to Capital Reserve Account in accordance with RBI guidelines (Previous Year Rs 2229.71 lacs).

• Amortization on HTM category of Rs 114.34 lacs as on March 31, 2018 (Prev. Year Rs 79.33 lacs) has been separately provided (refer note no 2.23).

As at 31.03.2018

(Rs in lacs) As at 31.03.2017

Annexure to Note 2.9 -Details of Government Securities -HTM Category

SI. No. Nomenclature

(Book Value)

(Book Value)

A . State Government Securities

1 . 8.31 % UTTAR PRADESH SDL 29-07-2025

2096.43

2096.62

2. 7.97% TAMIL NADU SDL 14-10-2025

204.40

204.40

3. 7.98% KARNATAKA SDL 14-10-2025

1000.53

1000.60

4. 8.01 % PUNJAB SDL 14-10-2025

500.26

500.30

5. 8.22% KARNATAKA SDL 09-12-2025

158.00

158.00

6. 8.22% TAMIL NADU SDL 09-1 2-2025

210.10

210.10 ,

As at 31.03.2018

(Rs in lacs) As at 31.03.2017

7.

8.22% WEST BENGAL SDL 09-12-2025

8.60

8.60

8.

8.23% UTTAR PRADESH SDL 09-12-2025

500.27

500.30

9.

7.86% WEST BENGAL SDL 13-07-2026

2001.74

2001.95

10.

7.86% UTTAR PRADESH SDL 13-07-2026

3001 .74

3001 .96

11.

6.85% RAJASTHAN SDL 30-1 1-2026

1500.91

1501.01

12.

7.31% MEGHALAYA SDL 23-08-2027

2502.30

-

13.

7.42% PUNJAB SDL 13-09-2027

2506.62

-

14.

7.44% J&K SDL 13-09-2027

2509.92

Sub Total - (A)

18701.82

11183.84

B.

Central Government Securities

1.

6.79% GOI 15-05-2027

10653.23

-

2.

7.17% GOI 08-01 -2028

4488.90

-

3.

6.79% GOI 26-1 2-2029

7604.20

-

4.

7.61% GOI 09-05-2030

10827.21

-

5.

6.68% GOI 17-09-2031

7336.51

-

6.

7.73% GOI 19-12-2034

8144.61

-

7.

7.06% GOI 10-10-2046

965.97

-

8.

6.62% GOI 28-11-2051

898.12

-

9.

6.57% GOI 05-12-2033

9555.18

9323.53

10.

6.79% GOI 26-12-2029

-

5116.70

11.

6.84% GOI 19-12-2022

4331 .26

7734.83

12.

7.61% GOI 09-05-2030

10895.51

Sub Total - (B)

64805.19

33070.57

TOTAL (A B)

83507.01

44254.41

(Rs. in lacs)

As at 31.03.2018

As at 31.03.2017

NOTE 2.10

DEFERRED TAX ASSETS

For Provision against Leave Liability

52.09

45.68

For Provision against Fixed Assets

7.57

59.66

1.33

47.01

NET DEFERRED TAX ASSETS

59.66

47.01

Deferred Tax Adjustment

(12.65)

(2.62)

Rs in lacs)

As at 31.03.2018

As at 31.03.2017

NOTE 2.11

LONG TERM LOANS & ADVANCES

a) Secured and considered good

Loans to Staff

Consumer Loan to staff

0.93

3.69

Housing Loan to Staff #

126.53

7.11

# includes loan to Exec. Director & CFO - NIL (Previous Year Rs 1 .05 lacs)

Vehicle Loan to Staff

18.27

145.73

14.46

25.26

b) Unsecured and considered good

Security Deposit

Security Deposit with CCIL

1317.00

1089.00

F&O Margin Money Deposit

-

40.30

IRF Margin Money Deposit

-

347.00

Security Deposit with others

4.38

1321.38

4.84

1481.14

TOTAL

1467.11

1506.40

(Rs in lacs)

NOTE 2.12

INVENTORIES

STOCK-IN-TRADE (Book Value)

Quoted - Non - Hedged

Treasury Bills - 91 days

10.69

65.80

Treasury Bills - 182 days

-

11370.69

Treasury Bills - 364 days

87741.01

25152.82

Government Securities

192925.03

234457.67

Certificate of Deposits and Commercial Papers

4983.48

-

Corporate Bonds & Debentures

101338.60

78117.74

Equity Shares Investment

128.83

387127.64

209.48

349374.20

Unquoted - Non - Hedged

Mutual Fund Units

-

26762.76

Quoted - Hedged

Government Securities

34954.00

7399.94

Rs in lacs)

As at 31.03.2018

As at 31.03.2017

Corporate Bonds & Debentures

-

5001.15

422081 .64

388538.05

Less: Provision for Diminution of Stocks

(2047.04)

(2.85)

TOTAL

420034.60

388535.20

For basis of valuation, please refer accounting policy (note 1.4). Details of securities are given in Annexure to

Note 2.12.

Stock-in-Trade includes hedged securities {Book Value - Rs 34954.00 lacs (Previous Year Rs 12401.09 lacs) and the market value of the same is Rs 35145.83 lacs (Previous Year Rs 12737.90 lacs)} and there is a net provision of - NIL (Prev Year - NIL) for diminution after adjusting the appreciation in Swaps of Rs 6.56 lacs (Previous Year Rs 143.18 lacs diminution).

The company is providing custodian services to its constituents and total holdings of 77 (P.Y. 85) constituents in Govt. Securities as at 31.03.2018 in SQL II with RBI is Rs 3955859.03 lacs (Previous Year Rs 3575148.21 lacs)

Rs. in Lacks

As at 31.03.2018

As at 31.03.2017

Annexure to Note 2.12 Details of Stock-in-Trade

SI.

No. Nomenclature

(Book Value)

(Book Value)

I.

TREASURY BILLS

A.

91 Days (maturing on)

1.

1 1 -May-2017

-

30.91

2.

20-Apr-2017

-

34.89

3.

31 -May-201 8

10.69

-

TOTAL (A)

10.69

65.80

B.

182 Days (maturing on)

1.

06-Apr-2017

-

3197.27

2.

20-Apr-2017

-

8173.42

TOTAL (B)

-

11370.69

C.

364 Days (maturing on)

1.

04-Jan-201 8

16670.84

2.

08-Jun-2017

-

1086.76

3.

09-Nov-201 7

-

892.31

4.

12-Apr-2018

2695.26

-

5.

30-Aug-201 8

13536.44

-

(Rs in lacs)

As at 31.03.2018

As at 31.03.2017

6.

11-Oct-2018

18703.22

-

7.

17-Oct-2018

18785.03

-

8.

13-Dec-2018

16936.58

-

9.

20-Dec-2018

93.96

-

10.

24-Jan-2019

10449.18

-

11.

21-Mar-2019

6541 .34

-

12.

15-Feb-2018

-

2670.26

13.

21-Dec-2017

-

1244.18

14.

27-Apr-2017

-

2588.47

TOTAL (C)

87741.01

25152.82

TOTAL (A B C)

87751.70

36589.31

II. CERTIFICATE OF DEPOSITS

1.

UJJIVAN SMALL FINANCE BANK LTD CD 10-04-2018

2495.54

-

2.

SOUTH INDIAN BANK LTD 25-04-2018

2487.94

-

TOTAL

4983.48

-

III. GOVERNMENT DATED SECURITIES

A.

CENTRAL GOVERNMENT SECURITIES

1.

7.59% GOI 11-01-2026

-

11985.86

2.

10.03%GOI 09-08-2019

0.05

5.91

3.

8.79% GOI 08-1 1-2021

-

5.25

4.

8.35% GOI 14-05-2022

-

0.05

5.

7. 16% GOI 20-05-2023

7.21

1512.88

6.

8.40% GOI 28-07-2024

-

5381 .56

7.

7.68% GOI 15-12-2023

-

3128.73

8.

5.69% GOI 25-09-201 8

-

4962.98

9.

6.25% GOI 02-01 -201 8

-

1498.17

10.

6.62% GOI 28-1 1-2051

-

3165.62

11.

6.79% GOI 26-1 2-2029

-

15646.03

12.

6.97% GOI 06-09-2026

-

13260.33

13.

7.40% GOI 09-09-2035

-

1506.57

14.

7.50% GOI 10-08-2034

11546.88

(? in lacs)

As at | 31.03.2018

As at 31.03.2017

15.

7.72% GOI 25-05-2025

-

14022.33

16.

7.80% GOI 11-04-2021

25.39

8.16

17.

8.28% GOI 21 -09-2027

-

4.15

18.

6.05% GOI 02-02-201 9

15919.90

-

19.

6.90% GOI 13-07-2019

12977.43

-

20.

8.35% GOI 14-05-2022

0.05

-

21.

6.30% GOI 09-04-2023

46.36

-

22.

6. 17% GOI 12-06-2023

421.69

-

23.

8.83% GOI 25-1 1-2023

2.04

-

24.

7.35% GOI 22-06-2024

4.81

-

25.

8.20% GOI 24-09-2025

1.98

-

26.

7.73% GOI 19-12-2034

149.99

-

TOTAL (A)

29556.90

87641.46

B.

FLOATING RATE NOTES

1.

GOI FRN 07-NOV-2024

3379.93

-

TOTAL (B)

3379.93

-

C.

STATE GOVERNMENT SECURITIES

1.

8.68% KARNATAKA 07-1 1 -201 7

-

5038.06

2.

8.50% MAHARASTRA 03-12-2017

-

2531.07

3.

8.43% GUJARAT 10-03-2018

-

1009.26

4.

8.46% MAHARASTRA 12-03-2019

1523.76

1012.30

5.

8.78% HARYANA SDL 23-07-2017

-

2532.71

6.

8.75% HIMACHAL PRADESH SDL 03-10-2017

-

5076.02

7.

8.44% PUNJAB SDL 12-11-2019

-

2500.87

8.

8.12% MAHARASHTRA SDL 13-1 1-2025

504.87

514.26

9.

6.83% PUNJAB SDL 11-11 -2020

5422.30

5422.30

10.

6.90% PUNJAB SDL 11-01-2021

6366.55

6366.55

11.

7.03% GUJARAT SDL 14-09-2018

2007.40

2007.40

12.

7.20% BIHAR SDL 25-01-2027

-

86.91

13.

7.45% GUJARAT SDL 18-02-2019

724.42

222.12

14.

7.55% WEST BENGAL SDL 17-04-2019

-

1010.11

15.

7.59% KARNATAKA SDL 29-03-2027

-

100.00

16.

7.62% ANDHRA PRADESH SDL 29-03-2027

-

2505.25

17.

7.62% TELANGANA SDL 07-03-2026 UDAY

"

5.01

(? in lacs)

As at | 31.03.2018

As at 31.03.2017

18.

7.64% UTTAR PRADESH SDL 29-03-2027

-

57.52

19.

7.64% WEST BENGAL SDL 29-03-2027

-

2948.16

20.

7.67% TAMIL NADU SDL 22-03-2023 UDAY

-

940.00

21.

7.68% MADHYA PRADESH SDL 22-03-2023 UDAY

-

3001.51

22.

7.68% TAMIL NADU SDL 22-03-2026 UDAY

-

940.00

23.

7.69% MADHYA PRADESH SDL 22-03-2026 UDAY

-

3001.81

24.

7.70% TELANGANA SDL 22-03-2023 UDAY

-

1001.41

25.

7.71 % TELANGANA SDL 22-03-2026 UDAY

-

1001.91

26.

7.75% RAJASTHAN SDL 23-06-2018 UDAY

-

20192.31

27.

7.78% BIHAR SDL 01-03-2027

-

2013.57

28.

7.78% UTTAR PRADESH SDL 01-03-2027

-

3016.32

29.

7.85% ANDHRA PRADESH SDL 22-07-2019

-

2026.62

30.

7.86% RAJASTHAN SDL 23-06-2019 SPL

-

10190.12

31.

7.90% TAMIL NADU SDL 22-03-2027 UDAY

-

940.00

32.

7.91% MADHYA PRADESH SDL 22-03-2027 UDAY

-

3002.11

33.

7.91% TAMIL NADU SDL 22-03-2024 UDAY

-

940.00

34.

7.92% MADHYA PRADESH SDL 22-03-2024 UDAY

-

3001.51

35.

7.92% TAMIL NADU SDL 22-03-2032 UDAY

-

1738.71

36.

7.92% WEST BENGAL SDL 15-03-2017

-

507.68

37.

7.93% MADHYA PRADESH SDL 22-03-2032 UDAY

-

3002.71

38.

7.93% TELANGANA SDL 22-03-2027 UDAY

-

1002.01

39.

7.94% TELANGANA SDL 22-03-2024 UDAY

-

1001.61

40.

7.95% TELANGANA SDL 22-03-2032 UDAY

-

1002.61

41.

8.01% TAMIL NADU SDL 22-03-2030 UDAY

-

940.00

42.

8.02% MADHYA PRADESH SDL 22-03-2030 UDAY

-

3002.41

43.

8.02% TAMIL NADU SDL 22-03-2025 UDAY

-

940.00

44.

8.03% MADHYA PRADESH SDL 22-03-2025 UDAY

-

3001.81

45.

8.04% TAMIL NADU SDL 22-03-2029 UDAY

-

940.00

46.

8.04% TELANGANA SDL 07-03-2031 UDAY

-

357.97

47.

8.04% TELANGANA SDL 22-03-2030 UDAY

-

1002.41

48.

8.05% GUJARAT SDL 15-06-2026

-

3613.79

49.

8.05% GUJARAT SDL 25-02-2025

-

511.66

50.

8.05% MADHYA PRADESH SDL 22-03-2029 UDAY

-

3002.41

51.

8.05% TAMIL NADU SDL 22-03-2031 UDAY

-

1232.60

(Rs. in lacs)

As at 31.03.2018

As at 31.03.2017

52.

8.05% TELANGANA SDL 22-03-2025 UDAY

-

1001.71

53.

8.06% MADHYA PRADESH SDL 22-03-2031 UDAY

-

3002.41

54.

8.07% TAMIL NADU SDL 15-06-2026

-

513.51

55.

8.07% TELANGANA SDL 22-03-2029 UDAY

-

1002.31

56.

8.08% TELANGANA SDL 07-03-2029 UDAY

-

9.08

57.

8.08% TELANGANA SDL 22-03-2031 UDAY

-

1002.51

58.

8.10% WEST BENGAL SDL 25-11-2019

817.53

462.66

59.

8.17% HIMACHAL PRADESH SDL 28-02-2028 UDAY

-

37.00

60.

8.24% TAMIL NADU SDL 22-03-2028 UDAY

-

940.00

61.

8.25% MADHYA PRADESH SDL 22-03-2028 UDAY

-

3002.11

62.

8.27% TELANGANA SDL 07-03-2028 UDAY

-

14.18

63.

8.27% TELANGANA SDL 22-03-2028 UDAY

-

1002.11

64.

8.31% UTTAR PRADESH SDL 04-10-2019 SPL

519.66

519.66

65.

8.36% MAHARASHTRA SDL 27-01-2026

-

3668.04

66.

8.38% GUJARAT SDL 22-09-2020

208.60

208.60

67.

8.39% TAMIL NADU SDL 08-09-2020

-

729.83

68.

8.39% WEST BENGAL SDL 08-09-2020

-

521.31

69.

8.40% PUNJAB SDL 08-09-2020

521 .47

521 .47

70.

8.41% UTTAR PRADESH SDL 08-09-2020

-

834.62

71.

8.42% KARNATAKA SDL 10-1 1-2020

313.63

313.63

72.

8.44% PUNJAB SDL 10-1 1-2020

313.84

313.84

73.

8.47% MAHARASHTRA SDL 10-02-2026

-

525.63

74.

8.51 % GUJARAT SDL 27-1 0-2020

52.43

52.43

75.

8.59% UTTAR PRADESH SDL 18-03-2019

517.31

517.31

76.

8.63% UTTAR PRADESH SDL 10-03-2029 UDAY

-

2122.07

77.

8.91% WEST BENGAL SDL 18-07-2022

-

105.40

78.

8.92% TAMIL NADU SDL 08-08-2022

-

211.00

79.

9.02% UTTARAKHAND SDL 21-03-2022

-

105.60

80.

9.25% UTTAR PRADESH SDL 09-11-2021

-

535.97

81.

9.39% KARNATAKA SDL 04-12-2023

-

64.74

82.

7.75% RAJASTHAN SDL 23-06-2018 UDAY

12214.67

-

83.

6.65% TAMIL NADU SDL 14-01-2019

3489.34

-

84.

7.13% ANDHRA PRADESH SDL 23-01-2019

11017.36

-

85.

7.45% ANDHRA PRADESH SDL 18-02-2019

502.16

-

Rs. in lacs

As at | 31.03.2018

As at 31.03.2017

86.

7.45% TAMIL NADU SDL 18-02-2019

501.76

-

87.

7.68% PUNJAB SDL 02-03-2019

5032.49

-

88.

7.83% MAHARASHTRA SDL 02-03-2019

504.81

-

89.

8.40% GUJARAT SDL 18-03-2019

508.21

-

90.

8.46% RAJASTHAN SDL 18-03-2019

511.56

-

91.

7.10% WEST BENGAL SDL 05-05-2019

7494.13

-

92.

7.83% ANDHRA PRADESH SDL 24-06-2019

148.99

-

93.

8.14% MAHARASHTRA SDL 23-09-2019

255.08

-

94.

8.27% MAHARASHTRA SDL 07-10-2019

512.51

-

95.

8.03% PUNJAB SDL 25-1 1 -201 9

152.81

-

96.

8.05% KARNATAKA SDL 25-1 1 -201 9

101.92

-

97.

8.27% GUJARAT SDL 09-12-2019

102.96

-

98.

8.37% PUNJAB SDL 23-12-2019

504.23

-

99.

8.51 % GOA SDL 1 0-03-2020

103.69

-

100.

8.53% MAHARASHTRA SDL 1 0-03-2020

513.21

-

101.

8.39% ANDHRA PRADESH SDL 25-03-2020

51.24

-

102.

8.57% ANDHRA PRADESH SDL 13-04-2020

152.40

-

103.

8.09% TAMIL NADU SDL 09-06-2020

201.50

-

104.

8.15% GUJARAT SDL 07-07-2020

144.36

-

105.

8.39% MAHARASHTRA SDL 08-09-2020

101.00

-

106.

8.35% GUJARAT SDL 06-10-2020

357.85

-

107.

6.81% MAHARASHTRA SDL 25-10-2020

8571.50

-

108.

6.81 % MAHARASHTRA SDL 08-1 1 -2020

21701.14

-

109.

8.40% GUJARAT SDL 24-11 -2020

104.21

-

110.

7.07% PUNJAB SDL 28-12-2020

12016.90

-

111.

8.39% TAMIL NADU SDL 05-01-2021

101.00

-

112.

7.78% HIMACHAL PRADESH SDL 07-03-2021

100.62

-

113.

8.39% RAJASTHAN SDL 15-03-2021 UDAY

5221.81

-

114.

8.36% GUJARAT SDL 16-03-2021

104.14

-

115.

7.55% MAHARASHTRA SDL 21-03-2021

1547.70

-

116.

7.75% PUNJAB SDL 13-07-2021

499.91

-

117.

6.94% ODISHA SDL 26-07-2021

12320.10

-

118.

8.69% KERALA SDL 08-02-2022

76.69

-

119.

6.93% MAHARASHTRA SDL 09-08-2022

16423.80

-

As at 31.03.2018

As at 31.03.2017

120.

9.29% PUNJAB SDL 09-10-2023

230.73

-

121.

9.33% UTTAR PRADESH SDL 09-10-2023

1099.66

-

122.

7.70% TAMIL NADU SDL 22-02-2024 UDAY

497.54

-

123.

9.84% ANDHRA PRADESH SDL 26-02-2024

5.37

-

124.

8.19% UTTARAKHAND SDL 09-12-2025

1774.67

-

125.

7.15% MAHARASHTRA SDL 13-10-2026

46.87

-

126.

7.23% TAMIL NADU SDL 14-06-2027

479.61

-

127.

7.18% TAMIL NADU SDL 26-07-2027

478.15

-

128.

8.07% RAJASTHAN SDL 31-01-2028

1009.63

-

129.

8.13% RAJASTHAN SDL 27-03-2028

1502.68

-

130.

8.14% H ARYAN A SDL 27-03-2028

2373.96

-

131.

7.18% MAHARASHTRA SDL 28-06-2029

6705.81

-

TOTAL (C)

159988.20

146816.21

TOTAL (A B C)

192925.03

234457.67

IV.

CORPORATE BONDS & DEBENTURES

A.

PSU - TAXABLE BONDS

1.

9.81 %PFC 07-1 0-201 8

1033.00

-

2.

7.11%NHAI 05-11-2022

2500.00

-

3.

7.47% PFC 16-09-2021

2561.81

2561.81

4.

7.63% PFC 14-08-2026

-

2484.59

5.

8.39% PFC 19-04-2025

-

332.91

6.

9.30% PFC 26-08-201 7

-

2555.08

7.

9.81% PFC 07-1 0-201 8

-

1038.94

TOTAL (A)

6094.81

8973.33

B.

PSU -TAX FREE

1.

6.32% IRFC 20-12-2017 Tax Free

-

1000.00

2.

6.72% IRFC 20-12-2020 Tax Free

1500.00

1500.00

TOTAL (B)

1500.00

2500.00

C.

DEBENTURES & OTHERS

1.

9.75% MAHESH HYDRA POWER CORPN 2022

181.82

227.27

2.

7.35% LIC HSG FIN LTD 16-02-2018

-

5003.16

3.

7.50% HDFC LTD 12-10-2018

-

7500.16

4.

7.51% LIC HSG. FIN LTD 14-08-2018

2504.99

NOTE 2.24 - SEGMENT INFORMATION

Reportable Segments in respect of business operations of the company have been identified on the basis of varied risk and return profile attached to each business segment which is the primary reporting format, and which are in terms of Accounting Standard - 17 on Segment Reporting. The company does not have any geographical segments, as such there is no secondary reporting format.

FY 201 7-1 8

(Rs in lacs)

T-Bills/ CP/CD

Corp. Bonds & Debentures

Govt. Securities

Derivatives

Fixed Deposits

Mutual F


Mar 31, 2017

NOTE - 1- ISSUER COMPOSITIONS OF INVESTMENTS IN NON-GOVERNMENT SECURITIES

As on March 31, 2017, the total stock of Rs, 388535.20 lacs (Prev. Year : Rs, 496058.15 lacs) (Book Value) comprises of

- Govt. Securities (including T. Bills) - Rs, 278446.92 lacs (Prev. Year : Rs, 325384.63 lacs ),

- Equity Instruments - Rs, 206.63 lacs (Prev. Year : Rs, NIL lacs),

- Money Market instruments - Rs, NIL lacs (Prev. Year : Rs, 130630.12 lacs),

- Corporate Bonds and Debentures - Rs, 83118.89 lacs (Prev. Year : Rs, 40043.40 lacs) and

- Mutual Fund Units - Rs, 26762.76 lacs (Prev. Year : Rs, NIL lacs).

NOTE - 2. - OTHERS

a. Tax deducted at source on the interest, miscellaneous income and commission and fees during the financial year 2016-17, amounted to Rs, 8.60 lacs (Prev. Year Rs, 302.21 lacs).

b. The Company does not have any foreign currency transactions whether by way of imports, exports or any expenditure. Therefore, no expenditure has been incurred in foreign currency in the current year as well as in the previous year.

c. Being a Level-1 enterprise, all the accounting standards are applicable to the company. However on the basis of operations carried out by the Company, AS-2, AS-7, AS-11, AS-12, AS-14, aS-19, AS-21, AS-23, AS-24, AS-25 and AS-27 are not applicable.

d. In the opinion of the management there are no impairment losses (P.Y. NIL). Therefore, impairment losses have not been provided in the current financial statements.

e. No expenditure on research and development has been incurred by the company (P.Y NIL).

f. Provisions to the extent known and reasonable have been provided in the books of accounts.

g. There are no trade receivables as on March 31, 2017 and also as on March 31, 2016.

h. Figures for the previous year have been regrouped and rearranged wherever considered necessary, in order to make them comparable with those of the current period.

*No cash in hand account is maintained in the books of accounts of the company on a regular manner. All cash payments/receipts are routed through an imprest maintained with an officer of the company which is paid/settled through cheque. The above mentioned deposit of SBN represent the balance of imprest in cash by the officer concerned in SBN.


Mar 31, 2016

- Rights, preferences and restrictions attached to each class of shares including restrictions on the distribution of dividends and the repayment of capital:

The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. Dividend distribution is for all equity shareholders who are eligible for dividend as on record date. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive 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.

- Shares reserved for issue under options and contracts/commitments for the sale of shares/disinvestment, including the terms and amounts: Nil (Prev. Year: Nil)

- For the period of five years immediately preceding the date as at which the Balance Sheet is prepared:

(a) Aggregate number and class of shares allotted as fully paid-up pursuant to contract(s) without payment being received in cash: Nil (Prev. Year: Nil)

(b) Aggregate number and class of shares allotted as fully paid-up by way of bonus shares: Nil (Prev. Year: NIL)

(c) Aggregate number and class of shares bought back : Nil (Prev. Year: Nil)

- Terms of any securities convertible into equity/preference shares issued along with the earliest date of conversion in descending order starting from the farthest such date : Nil (Prev. Year: Nil)

- Calls unpaid (showing aggregate value of calls unpaid by Directors and Officers): Nil (Prev. Year: Nil)

- Forfeited Shares: Nil (Prev. Year: Nil)

- A sum of Rs. 689.93 lacs (Prev. Year Rs. 1792.28 lacs) (20 per cent of Profit After Tax) has been transferred to Statutory Reserve Fund as per RBI Guidelines.

- Net Profit (after tax) through sale of securities from HTM category amounting to Rs. 356.56 lacs (Prev. Year Rs. 1072.52 lacs) has been transferred to Capital Reserve Account as per RBI guidelines. The same will be utilized as per the provisions of the Companies Act, 2013 (refer Note 2.9 for details).

- The Board of Directors, in its meeting held on January 9, 2003, had decided to build up Market Fluctuation Reserve over a period of time with the cap equal to paid up capital of the company. At the time of adoption of annual accounts each year, the Board may decide the quantum of amount to be transferred to this Reserve, if necessary. For the financial year 2015-16, Board of Directors had decided not to appropriate any amount to this reserve and the balance outstanding as on March 31, 2016 in this reserve is Rs. 6300 lacs (Prev. Year Rs. 6300 lacs)

- The Company has proposed a final dividend of Rs. 1.10 per share for FY 2015-16 (Prev. Year Rs. 1.50 per share), subject to the approval of shareholders in Annual General Meeting, amounting to Rs. 1980.11 lacs (Prev. Year Rs. 2700.15 lacs). Accordingly, a provision of Dividend Distribution Tax of Rs. 403.10 lacs (Prev. Year Rs. 552.85 lacs) has been made.

- Net owned Funds (after deducting Deferred Tax and Intangible Assets) of the Company stands at Rs. 73122.23 lacs (Prev. Year Rs. 71805.84 lacs) as against the minimum stipulated capital of Rs. 25000.00 lacs. Return on Net Worth for the year 2015-16 stands at 5.10 per cent (Prev. Year 12.98 per cent).

- Capital Adequacy Ratios as on June 30, 2015, September 30, 2015, December 31, 2015 and March 31, 2016 were 66.41 per cent (Prev. Year 36.21 per cent), 69.50 per cent (Prev. Year 39.36 per cent), 71.39 per cent (Prev. Year 54.72 per cent) and 68.07 per cent (Prev. Year 65.07 per cent) respectively as against RBI stipulation of 15 per cent.

- Securities amounting to Face Value Rs. 111781.50 lacs were sold directly from the HTM category (Prev. Year Rs. 278379.00 lacs) and the company earned a gross profit of Rs. 545.26 lacs (Prev. Year Rs. 1624.78 lacs). Balance profit after tax amounting to Rs. 356.56 lacs has been transferred to Capital Reserve Account in accordance with RBI guidelines (Prev. Year Rs. 1072.52 lacs).

- Amortization of Rs. 42.47 lacs on the HTM category as on March 31, 2016 has been separately provided in note no 2.23 relating to other expenses (Prev. Year figures of amortization in HTM category as on March 31, 2015 is Rs. 99.48 lacs)

An amount of Rs. 1000 lacs was lent in Call Money to Madhavpura Mercantile Co-operative Bank Ltd. (MMCBL) in March 2001, which became overdue as on March 31, 2001. The Company was informed by MMCBL that the Government of India (Ministry of Agriculture, Department of Agriculture and Co-operation, New Delhi), in consultation with RBI, has formed Reconstruction Scheme and the amount would be paid accordingly. However, the repayment was not done by them as per the scheme and vide Government’s notifications instructed that all payments by bank including installment of repayment due in August 2007, August 2008 and August 2009 (totaling to Rs. 761.88 lacs against which Rs. 761.88 lacs provision was outstanding) and payments of interest and the deposit amount were deferred till August 2011. RBI cancelled the license of MMCBL to carry on banking business in India and Liquidator was appointed. The Company has already lodged the claim with the Liquidator as per the format advertised by them in the news papers, and awaiting response from them. The provision for diminution in investment has been written off in the current financial year.

Reportable Segments in respect of business operations of the company have been identified on the basis of varied risk and return profile attached to each business segment which is the primary reporting format, and which are in terms of Accounting Standard - 17 on Segment Reporting. The company does not have any geographical segments, as such there is no secondary reporting format.

- Provision for Diminution of Rs. 107.83 lacs on Government Securities(including hedged securities), Rs. 54.59 lacs on Treasury Bills, Rs. NIL lacs on Equity Investments and Rs. NIL lacs on Corporate Bonds as on March 31, 2016 has been provided for and included in segment liabilities (Prev. Year Rs. 74.63 lacs on Government Securities, Rs. NIL lacs on Treasury Bills, Rs. NIL lacs on Equity Investments and Rs. NIL lacs on Corporate Bonds and Debentures)

- Fixed Deposits placed by the company are funded out of the Net Owned Funds and thus have not been apportioned any costs. Consequently, the total allocable expenses have been allocated to all other segments. Figures of the previous year have been regrouped and rearranged accordingly.

NOTE - 2.25 - RELATED PARTY INFORMATION

As per Para 9 of the Accounting Standard 18 on Related Party Disclosures, the Company, being a state controlled enterprise, is not required to make disclosures of related party relationships with other state controlled enterprises and transactions with such enterprises. Other information as per the Standard is as under:

- The overall supervision and control of the company vests with the Board of Directors. The Managing Director and Executive Director and CFO of the company, appointed by the Board of Directors, are working full time with the Company.

- Out of the total Eight Directors on the Board of the company as at March 31, 2016, four are Independent Directors. Only the Non-Executive Directors are being paid sitting fees for the Board / Committee Meetings. W.e.f March 22, 2016 sitting fee paid to non-executive Directors was increased from Rs. 10000/- to Rs. 25000/- for attending each meeting of the Board and from Rs. 5000/- to Rs. 10000/- for attending each meeting of Audit Committee/CSR Committee/ Nomination and Remuneration Committee/Only Independent Directors’ Meeting. Sitting fee for attending each meeting of (a) Share Transfer and Issue of Duplicate Shares Committee; and (b) Stakeholders’ Relationship Committee is same at Rs. 5000/-. During the year, the Company has paid a sum of Rs. 12.21 lacs towards sitting fee, including service tax (Prev. Year Rs. 11.52 lacs).

- Other information in this regard is available in Corporate Governance Report and Board’s report.

a. Tax deducted at source on the interest, miscellaneous income and commission and fees during the financial year 2015-16, amounted to Rs. 302.21 lacs (Prev. Year Rs. 322.42 lacs).

b. The Company does not have any foreign currency transactions whether by way of imports, exports or any expenditure. Therefore, no expenditure has been incurred in foreign currency in the current year as well as in the previous year.

c. Being a Level-1 enterprise, all the accounting standards are applicable to the Company. However, on the basis of operations carried out by the Company, AS-7, AS-11, AS-12, AS-14, AS-16, AS-19, AS-23, AS-24, AS-25 and AS-27 are not applicable.

d. In the opinion of the management there are no impairment losses (Prev.Year NIL). Therefore, impairment losses have not been provided in the current financial statements.

e. No expenditure on research and development has been incurred by the company (Prev.Year NIL).

f. Provisions to the extent known and reasonable have been provided in the books of accounts.

g. There are no trade receivables as on March 31, 2016 and also as on March 31, 2015.

h. Figures for the previous year have been regrouped and rearranged wherever considered necessary, in order to make them comparable with those of the current period.


Mar 31, 2015

1. SHARE CAPITAL

* Rights, preferences and restrictions attaching to each class of shares including restrictions on the distribution of dividends and the repayment of capital:

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. Dividend distribution is for all equity shareholders who are eligible for dividend as on record date. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive 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.

* Shares reserved for issue under options and contracts/commitments for the sale of shares/disinvestment, including the terms and amounts: Nil (Prev. Year: Nil)

* For the period of five years immediately preceding the date as at which the Balance Sheet is prepared:

(a) Aggregate number and class of shares allotted as fully paid-up pursuant to contract(s) without payment being received in cash: Nil (Prev. Year: Nil)

(b) Aggregate number and class of shares allotted as fully paid-up by way of bonus shares: Nil

(Prev. Year: 45002534 equity shares of Rs. 10 each)

(c) Aggregate number and class of shares bought back : Nil (Prev. Year: Nil)

* Terms of any securities convertible into equity/preference shares issued along with the earliest date of conversion in descending order starting from the farthest such date : Nil (Prev. Year: Nil)

* Calls unpaid (showing aggregate value of calls unpaid by Directors and Officers): Nil (Prev. Year: Nil)

* Forfeited shares: Nil (Prev. Year: Nil)

Reportable Segments in respect of business operations of the company have been identified on the basis of varied risk and return profile attached to each business segment which is the primary reporting format, and which are in terms of Accounting Standard - 17 on Segment Reporting. The company does not have any geographical segments, as such there is no secondary reporting format.

2. RELATED PARTY INFORMATION

As per Para 9 of the Accounting Standard 18 on Related Party Disclosures, the Company, being a state controlled enterprise, is not required to make disclosures of related party relationships with other state controlled enterprises and transactions with such enterprises. Other information as per the Standard is as under:

* The overall supervision and control of the company vests with the Board of Directors.The Managing Director and Executive Director and CFO of the company, appointed by the Board of Directors, are working full time with the company.

* Out of the total Eight Directors on the Board of the company as at March 31, 2015, four are independent Directors. Only the Non-Executive Directors are being paid sitting fees for the Board / Committee Meetings. The sitting fees for attending the Board Meeting is Rs. 10000/- per meeting and for Committee Meeting sitting fee payable is Rs. 5000/- per meeting. During the year the Company has paid a sum of Rs. 11.52 lacs towards sitting fee, including service tax (Prev. Year Rs. 8.96 lacs).

* Other information in this regard is available in Corporate Governance Report and Board's report.

3. REAL ESTATE EXPOSURES

Exposure to Real Estate Sector (direct and indirect) is NIL both in current and Prev. Year (as it is not applicable to the company)

4. OTHERS

* Tax deducted at source on the interest, miscellaneous income and commission and fees during the financial year 2014-15, amounted to Rs. 322.42 lacs (Prev. Year Rs. 287.23 lacs).

* The Company does not have any foreign currency transactions whether by way of imports, exports or any expenditure. Therefore, no expenditure has been incurred in foreign currency in the current year as well as in the Prev. Year.

* Being a Level-1 enterprise, all the accounting standards are applicable to the company. However on the basis of operations carried out by the Company, AS-7, AS-11, AS-12, AS-14, AS-16, AS-19, AS-23, AS-24, AS-25 and AS-27 do not apply.

* There are no impairment losses. Therefore, the company has not accounted for any impairment losses.

* No expenditure on research and development has been incurred by the company.

* Provisions to the extent known and reasonable have been provided in the books of accounts.

* There are no contingent liabilities.

* There are no trade receivables as on March 31, 2015and also as on March 31,2014.

* Figures for the Prev. Year have been regrouped and rearranged wherever considered necessary, in order to make them comparable with those of the current period.


Mar 31, 2014

1. A sum of Rs. 1227.64 lacs (20% of Profit After Tax) has been transferred to Statutory Reserve Fund as per RBI Guidelines.

2. Net Profit (after tax) through sale of securities from HTM category amounting Rs. 1183.62 lacs has been transferred to Capital Reserve Account as per RBI guidelines. The same will be utilized as per the provisions of the Companies Act, 1956

3. The Board of Directors, in its meeting held on January 9, 2003, had decided to build up Market Fluctuation Reserve over a period of time with the cap equal to paid up capital of the company. At the time of approval of annual accounts each year, the Board may decide the quantum of amount to be transferred to this Reserve, if necessary. For the financial year 2013-14, Board of Directors had decided not to appropriate any amount to this reserve and the balance outstanding as on March 31, 2014 in this reserve is Rs. 6300 lacs

4. The Company has proposed a final dividend of Rs. 0.90 per share, subject to approval of shareholders in Annual General Meeting amounting to Rs. 1620.09 lacs. Accordingly, a provision of Dividend Distribution Tax of Rs. 275.33 lacs has been made @ 15 per cent plus surcharge @ 10 per cent plus Education Cess @ 2 per cent and Secondary and Higher Education Cess @ 1 per cent.

5. Net Owned Funds (after deducting Deferred Tax and Intangible Assets) of the company stands at Rs. 66253.18 lacs as against the minimum stipulated capital of Rs. 25000.00 lacs. Return on Net Worth for the year 2013-14 stands at 9.57 per cent.

6. Capital Adequacy Ratios as on June 30, 2013, September 30, 2013, December 31, 2013 and March 31, 2014 were 46.47 per cent, 53.84 per cent, 39.89 per cent and 49.14 per cent respectively as against RBI stipulation of 15 percent.

7. During the year, Net Average and Peak borrowings in Call Money amounted to Rs. 84573.97 lacs and Rs. 179914.00 lacs respectively. (Prev. Year Net Average and Peak borrowings – Rs. 72192.00 lacs and Rs.161505.00 lacs respectively)

8. For the year, average and peak leverage ratio stands at 2.60 and 6.54 times respectively (Prev. Year average and peak stands at 3.87 and 5.56 times respectively)

9. Govt. Securities pledged for availing LAF/Term Repo : Face Value Rs. 90480.00 lacs, Book Value Rs. 89661.82 lacs (Prev. Year : Face Value Rs. 68300.00 and Book value Rs. 67051.51 lacs).

10. Govt. Securities pledged for availing CBLO borrowing : Face Value Rs. 54900.00 lacs, Book Value Rs. 54369.66 lacs (Prev. Year : Face Value Rs. 43200.00 lacs and Book Value Rs. 42204.39 lacs).

11. Govt. Securities pledged for availing RBI Refinance : Face Value Rs. 33007.00 lacs, Book Value Rs. 32604.43 lacs (Prev. Year : Face Value Rs. 35440.00 and Book Value Rs. 34394.06 lacs).

The securities mentioned in (i) ,(ii) and (iii) above were not available for trading as on March 31, 2014.

12 - RELATED PARTY INFORMATION

As per Para 9 of the accounting Standard 18 on Related Party Disclosures, the company, being a state controlled enterprise, is not required to make disclosures of related party relationships with other state controlled enterprises and transactions with such enterprises. Other information as per the Standard is as under:

The overall supervision and control of the company vests with the Board of Directors. The Managing Director of the company, appointed by the Board of Directors, is working full time with the company.

Out of the total Seven Directors on the Board of the company as at March 31, 2014, four are independent Directors. Only the Non-Executive Directors are being paid sitting fees for the Board / Committee Meetings. The sitting fees for attending the Board Meeting is Rs. 10000/- per meeting and for Committee Meeting sitting fee payable is Rs. 5000/- per meeting. During the year the company has paid a sum of Rs. 8.96 lacs towards sitting fee, including service tax (Prev. Year Rs. 9.93 lacs)


Mar 31, 2013

- A sum of Rs. 1224.92 lacs (20% of Profit After Tax) has been transferred to Statutory Reserve Fund as per RBI Guidelines.

- Net Profit (after tax) through sale of securities from HTM category amounting Rs. 1106.09 lacs has been transferred to Capital Reserve Account as per RBI guidelines. The same will be utilized as per the provisions of the Companies Act, 1956.

- The Board of Directors, in its meeting held on January 9, 2003, had decided to build up Market Fluctuation Reserve over a period of time with the cap equal to paid up capital of the Company. At the time of adoption of annual accounts each year, the Board may decide the quantum of amount to be transferred to this Reserve, if necessary. For the FY 2012-13, Board of Directors had decided not to appropriate any amount to this reserve and the balance outstanding as on March 31, 2013 in this reserve is Rs. 6300 lacs.

- The Company has proposed a final dividend of Re 1.00 per share, subject to approval of shareholders in Annual General Meeting amounting to Rs. 1350.08 lacs. Accordingly, a provision of Dividend Distribution Tax of Rs. 229.44 lacs has been made @ 15 per cent plus surcharge @ 10 per cent plus Education Cess @ 2 per cent and Secondary and Higher Education Cess @ 1 per cent.

- Net Owned Funds (after deducting Deferred Tax and Intangible Assets) of the Company stands at Rs. 62008.28 lacs as against the minimum stipulated capital of Rs. 25000.00 lacs. Return on networth for the year 2012-13 stands at 10.25 per cent.

- Capital Adequacy Ratios as on June 30, 2012, September 30, 2012, December 31, 2012 and March 31, 2013 were 52.32 per cent, 41.61 per cent, 35.88 per cent and 42.34 per cent respectively as against RBI stipulation of 15 percent.

- Market Value of the above stock as on March 31, 2013 was Rs.18259.36 lacs (Prev. Year: Rs. 16769.22 Lacs). For basis of valuation, refer to note 1.5b.

- As per the RBI Circular, the Company had Govt. securities of Rs. 17367.10 lacs Face Value (Book Value - Rs. 17453.68 lacs) in Held to Maturity (HTM) category as on March 31, 2012. During the current year, amount of Rs.121755.62 (Face Value) was classified to HTM category, by subscribing from the primary market (Prev. Year: Rs. 12119.10 lacs) and an amount of Rs. 10452.90 lacs (Face Value) has been transferred to HTM category (Prev. Year: Rs. 8905.30 lacs). Securities amounting to Rs. 118977.80 lacs (Face Value) were sold directly from the HTM category (Prev. Year: Rs. 16486.60 lacs) and the Company earned a gross profit of Rs. 1637.33 lacs (Prev. Year: Rs. 59.89 lacs). Balance after tax amounting to Rs. 1106.09 lacs has been transferred to Capital Reserve Account in accordance with RBI guidelines (Prev. Year: Rs. 40.46 lacs). An amount of Rs. 12842.20 lacs (Face Value) has been transferred from HTM category to trading category (Prev. Year: Rs. NIL). Further, an amount of Rs. 41.85 lacs is amortised by Straight line basis on the securities (Prev. Year: Rs. 12.20 lacs). The outstanding under HTM category as on March 31, 2013 is Rs. 17755.62 lacs Face Value (Book Value Rs. 18229.58 lacs).

- An amount of Rs. 1000 lacs was lent in Call Money to Mahavpura Mercantile Co-operative Bank Ltd. (MMCBL) in March 2001, which became over due as on March 31, 2001. We have been informed by MMCBL that the Government of India (Ministry of Agriculture, Department of Agriculture and Co-operation, New Delhi), in consultation with RBI, has formed Reconstruction Scheme and the amount would be paid accordingly. However, the repayment was not done by them as per the scheme and vide Government''s notifications instructed that all payments by bank including installment of repayment due in August 2007, August 2008 and August 2009 (totaling to Rs. 761.88 lacs against which Rs. 761.88 lacs provision was outstanding) and payments of interest and the deposit amount are deferred till August 2011. Now, RBI has cancelled the license of MMCBL to carry on banking business in India and Liquidator has been appointed. We have lodged the Claim with the Liquidator as per the format advertised by them in the news papers, and awaiting response from them.

* The aggregate carrying value and market value as at March 31, 2013 is Rs. 325175.92 lacs and Rs. 325175.92 lacs (Prev. Year: Rs. 248694.67 lacs and Rs. 248694.67 lacs) respectively.

(i) Govt. Securities pledged for availing LAF : Face Value - Rs. 68300.00 lacs, Book Value - Rs.67051.51 lacs (Prev. Year: Face Value - Rs. 45852.90 and Book Value - Rs. 46024.21 lacs).

(ii) Govt. Securities pledged for availing CBLO borrowing : Face Value - Rs. 43200.00 lacs, Book Value - Rs. 42204.39 lacs (Prev. Year: Face Value - Rs. 29600.00 lacs and Book value - Rs. 28644.04 lacs) .

(iii) Govt. Securities pledged for availing RBI Refinance : Face Value Rs - 35440.00 lacs, Book Value - Rs.34394.06 lacs (Prev. Year: Face Value - Rs. 36269.60 and Book Value - Rs. 36567.19 lacs).

The securities mentioned in (i) ,(ii) and (iii) above were not available for trading as on March 31, 2013.

NOTE - 1.1 - SEGMENT INFORMATION

Reportable Segments in respect of business operations of the Company have been identified on the basis of varied risk and return profile attached to each business segment which is the primary reporting format, and which are in terms of Accounting Standard - 17 on Segment Reporting. The Company does not have any geographical segments, as such there is no secondary reporting format.

NOTE - 1.2 RELATED PARTY INFORMATION

As per Para 9 of the accounting Standard 18 on Related Party Disclosures, the Company, being a state controlled enterprise, is not required to make disclosures of related party relationships with other state controlled enterprises and transactions with such enterprises. Other information as per the Standard is as under:

- The overall supervision and control of the Company vests with the Board of Directors. The Managing Director of the Company, appointed by the Board of Directors, is working full time with the Company.

- Out of the total Seven Directors on the Board of the Company as at March 31, 2013, four are independent Directors. Only the Non-Executive Directors are being paid sitting fees for the Board / Committee Meetings. The sitting fees for attending the Board Meeting is Rs. 10000/- per meeting and for Committee Meeting sitting fee payable is Rs. 5000/- per meeting. During the year, the Company has paid a sum of Rs. 9.93 lacs towards sitting fee, including applicable service tax (Prev. Year : Rs. 8.35 lacs)

NOTE - 1.3 ISSUER COMPOSITION OF INVESTEMENTS IN NON-GOVERNMENT SECURITIES

As on March 31, 2013, the total stock of Rs. 325175.92 lacs comprises of Government Securities (including Treasury Bills) of Rs. 239819.40 lacs (Prev. Year : Rs. 248694.67 lacs ), Equity Instruments Rs. 19.97 lacs (Prev. Year : Rs. 623.98 lacs), Money Market instruments Rs. 59055.97 lacs (Prev. Year : Rs. 4547.23 lacs) and Corporate Bonds and Debentures Rs. 26280.58 lacs (Prev. Year : Rs. 15249.72 lacs). The portfolio of Non-Government Securities comprises of Rs. 25901.38 lacs (Book value) of AAA rated), Rs. 379.20 lacs (Book Value) of AA rated bonds and Rs. 59055.97 lacs (Book Value) of A1 rated Bank CDs. (Prev. Year : Rs. 14466.90 lacs of AAA rated, Rs. 829.20 lacs of AA rated and Rs. 4547.23 lacs of A1 rated Bank CDs).

NOTE - 1.4 REAL ESTATE EXPOSURES

Exposure to Real Estate Sector (direct and indirect) is NIL both in current and previous year (as it is not applicable to the Company).

NOTE - 1.5 CESS PROVISION

In the absence of any government notification, the Company has not provided for cess envisaged in terms with the Section 441A (1) of the Companies Act 1956.

NOTE - 1.6 OTHERS

Tax deducted at source on the interest, miscellaneous income and commission and fees during the financial year 2012-13, amounted to Rs. 142.23 lacs (Prev. Year : Rs. 88.36 lacs).

Figures for the previous year have been regrouped and rearranged wherever considered necessary, in order to make them comparable with those of the current period.


Mar 31, 2012

- A sum of Rs. 421.05 lacs (20% of Profit After Tax) has been transferred to Statutory Reserve Fund as per RBI Guidelines.

- Net Profit (after tax) through sale of securities from HTM amounting to Rs. 40.46 lacs has been transferred to Capital Reserve Account as per RBI guidelines. The same will be utilised as per the provisions of the Companies Act, 1956.

- The Board of Directors, in its meeting held on January 9, 2003, had decided to build up Market Fluctuation Reserve over a period of time with the cap equal to paid up capital of the company. At the time of adoption of annual accounts each year, the Board may decide the quantum of amount to be transferred to this Reserve, if necessary. For the FY 2011-12, Board of Directors had decided not to appropriate any amount to this reserve and the balance outstanding as on March 31, 2012 in this reserve is Rs. 6300 lacs.

- The company has proposed a final dividend of Re. 1.00 per share, subject to approval of shareholders in Annual General Meeting, amounting to Rs. 1350.08 lacs. Accordingly, a provision of Dividend Distribution Tax of Rs. 219.01 lacs has been made @ 15 per cent plus surcharge @ 5.00 per cent plus Education Cess @ 2 per cent and Secondary Higher Education Cess @ 1 per cent.

- Net Owned Funds (after deducting Deferred Tax Assets and Intangible Assets) of the company stands at Rs. 57469.10 lacs as against the minimum stipulated capital of Rs. 25000.00 lacs. Return on net worth for the year 2011-12 stands at 3.68 per cent.

- Capital Adequacy Ratios as on June 30, 2011, September 30, 2011, December 31, 2011 and March 31, 2012 were 95.84 per cent, 79.76 per cent, 73.96 per cent and 74.72 per cent respectively as against RBI stipulation of 15 per cent.

- Market Value of the above stock as on March 31, 2012 is Rs.16769.22 lacs. As such, the above asset is overstated by Rs. 684.46 lacs. For basis of valuation, refer note 1.5 b.

- The company had categorized an amount of Rs. 12829.30 lacs (Book Value - Rs. 12898.88 lacs) of Government Securities in Held To Maturity (HTM) category as on March 31, 2011. During the current year, an amount of Rs. 21024.40 lacs (Book value - Rs. 20369.69 lacs) was transferred to HTM category, by subscribing from the primary market. Securities amounting to Rs. 16486.60 lacs (Book Value - Rs. 15802.69 lacs) were sold directly from the HTM category and the company earned a gross profit of Rs. 59.89 lacs. Balance after tax amounting to Rs. 40.46 lacs was transferred to Capital Reserve Account in accordance with the RBI guidelines. Further, an amount of Rs.12.20 lacs was amortized by Straight- line basis on the securities. The outstanding under HTM category as on March 31, 2012 is Rs. 17453.68 lacs (Face value - Rs. 17367.10 lacs).

- An amount of Rs. 1000 lacs was lent in Call Money to Madhavpura Mercantile Co-operative Bank Ltd. (MMCBL) in March 2001, which became overdue as on March 31, 2001. We have been informed by MMCBL that the Govt. of India (Ministry of Agriculture, Department of Agriculture & Co-operation, New Delhi) in consultation with RBI, has formed Reconstruction Scheme and the amount would be repaid accordingly. However, the repayment was not made by them as per the scheme and vide Government's notifications instructed that all payments by bank including installment of repayment due in August 2007, August 2008, and August 2009 (totalling to Rs. 761.88 lacs against which Rs. 761.88 lacs provision was outstanding) and payments of interest to banks on their deposits are deferred till August 2011.

The Govt. of India made a reference to RBI for extending the validity of the Reconstruction Scheme. RBI has not extended

- For basis of valuation, please refer accounting policy (note 1.5.a). Details of securities are given in Annexure 2.

- Stock in trade include hedged securities (Book Value - Rs. 33640.80 lacs and the market value of the same is Rs. 33556.20 lacs).

- Provision for Diminution of securities includes Rs. 84.60 lacs for Hedged stock securities and Rs. 50.30 lacs MTM gain on the designated Swap contracts.

- The aggregate carrying value and market value as at March 31, 2012 is Rs. 248694.67 lacs and Rs. 248694.67 lacs respectively (Prev Year- Rs. 118131.15 lacs and Rs.118131.15 lacs).

*(i) Govt. Securities pledged for availing LAF - Face Value Rs. 45852.90 lacs - Book Value Rs.46024.21 lacs.

(ii) Govt. Securities pledged for availing CBLO borrowing - Face Value Rs. 29600 lacs - Book Value Rs. 28644.04 lacs.

(iii) Govt. Securities pledged for availing RBI Refinance - Face Value Rs. 36269.60 lacs - Book Value Rs. 36567.19 lacs.

The securities mentioned in (i), (ii) and (iii) above were not available for trading as on March 31, 2012.

- Provision for Diminution of Rs 1584.35 lacs on Government Securities (including the hedging securities), Rs.52.28 lacs on Treasury Bills, Rs.14.81 lacs on Equity investments and Rs. 46.37 lacs on Corporate Bonds as on 31.03.2012 has been provided for and shown in segment liabilities (Prev Year Rs. 1014.02 lacs on Government Securities, Rs. 9.42 lacs on Treasury Bills, Rs. 7.19 lacs on Equity Investments and Rs. NIL on Corporate Bonds and Debentures).

- Fixed deposits placed by the company are funded out of the net owned funds and thus have not been apportioned any costs. Consequently, the total allocable expenses have been allocated to all other segments. Figures for the previous year have been regrouped and rearranged accordingly.

NOTE -1 RELATED PARTY INFORMATION

As per Para 9 of the Accounting Standard 18 on Related Party Disclosures, the company, being a state controlled enterprise, is not required to make disclosures of related party relationships with other state controlled enterprises and transactions with such enterprises. Other information as per the Standard is as under:

- The overall supervision and control of the company vests with the Board of Directors. The Managing Director of the company, appointed by the Board of Directors, is working full time with the company.

- Out of a total of eight Directors on the Board of the company as at March 31, 2012, four are Independent Directors. Only the Non-Executive Directors are being paid sitting fees for the Board / Committee Meetings. The Sitting fees for attending the Board Meeting was raised from Rs. 5000/- to Rs. 10000/- per meeting w.e.f. June 25, 2011 and for Committee Meeting sitting fee payable is Rs. 5000/- per meeting. During the year the company has paid a sum of Rs. 8.35 lacs towards sitting fee.

NOTE - 2.ISSUER COMPOSITION OF INVESTMENTS IN NON-GOVERNMENT SECURITIES

As on March 31, 2012, the total stock of Rs. 248694.67 lacs comprise of Government securities (including Treasury Bills) of Rs. 228273.74 lacs, Rs. 623.98 lacs of Equity instruments, Rs. 4547.23 lacs of money market instruments and Rs. 15249.72 lacs of Corporate Bonds & Debentures. The portfolio of Corporate Bonds & Debentures comprises Rs.14466.90 lacs (Book value) of AAA rated, Rs. 829.20 lacs (Book value) of AA rated bonds and Rs. 4547.23 lacs (Book value) of A1 rated Bank CDs.

NOTE - 3. OTHERS

Tax deducted at source on interest, miscellaneous income and commission and fees during the FY 2011-12 amounted to Rs. 88.36 lacs (Prev. Year : Rs 98.07 lacs)

Figures for the previous year have been regrouped and rearranged wherever considered necessary, in order to make them comparable with those of the current period.


Mar 31, 2011

1. The company has adopted the rates provided by FIMMDA for determining market value of securities in terms of Accounting Policy no. 5(ii) and net diminution in the value of securities as on March 31, 2011 amounting to Rs. 1030.63 lacs has been provided for in the valuation of closing stock.

2. Securities against Repo transactions outstanding are as under:

The above book value of securities under REPO is included under stock in trade in accordance with new REPO guidelines as mentioned in Accounting Policy no. 6. Due to change in Accounting Policy, the profit was over stated by Rs. 1.08 lacs.

3. Managerial Remuneration paid to the Managing Director during the year 2010-11:

(Mr. S. Ranganathan was Managing Director till April 3, 2010 and thereafter, Mr. D.V.S.S.V. Prasad joined the organization with immediate effect and later on appointed by the Board as Managing Director w.e.f. May 3, 2010)

Includes salary arrears of Rs.4.02 lacs paid by parent bank - Punjab National Bank)

Computation of Net Profits under Section 349 of the Companies Act, 1956 has not been made, as commission by way of percentage of profits is not payable to the Managing Director.

4. An amount of Rs.1000 lacs was lent in Call money to Madhavpura Mercantile Cooperative Bank Limited (MMCBL) in March 2001, which became overdue as on March 31, 2001. We have been informed by MMCBL that the Government of India (Ministry of Agriculture, Department of Agriculture & Cooperation, New Delhi) has formed a reconstruction scheme and the amount would be repaid accordingly. However, the repayment was not made by them as per the scheme and vide Government’s notifications instructed that all payments by the bank including installment of repayment due in August 2007, August 2008 and August 2009 (totalling to Rs. 761.88 lacs against which Rs. 380 lacs provision was outstanding) and payments of interest to banks on their deposits are deferred till August, 2010. However, during September, 2010, as per RBI’s prudential norms on “Income Recognition and Asset Classification and Provisioning” the Board of Directors decided to make 100% provision for the concerned asset, by making additional provision of Rs. 381.88 lacs. As on March 31, 2011, the total principal outstanding was Rs. 761.88 lacs (previous year Rs.761.88 lacs) against which provision of Rs.761.88 lacs is outstanding. In view of the modification in the Reconstruction Scheme, and notification by the government, no further amount was due, till August 2011.

5. Appropriation of the Profits:

. The Company has proposed a final dividend Rs. 1.20 per share, subject to approval of shareholders in Annual General Meeting amounting to Rs. 1620.09 lacs. Accordingly, a provision of Dividend Distribution Tax of Rs. 269.08 lacs has been made @ 15 per cent plus surcharge @ 7.50 per cent plus Education Cess @ 2 per cent and Secondary Higher Education Cess @ 1 per cent.

. A sum of Rs. 77 lacs has been transferred to General Reserve. Further, a sum of Rs. 612 lacs has been transferred to Statutory Reserve Fund.

. The Board of Directors, in its meeting held on 09th January 2003, had decided to build up Market Fluctuation Reserve over a period of time with the cap equal to paid up capital of the company. At the time of adoption of annual accounts each year, Board may decide the quantum of amount to be transferred to this Reserve, if necessary. For the FY 2010- 11, Board of Directors had decided not to appropriate any amount to this reserve and the balance outstanding in this reserve is Rs. 6300 lacs.

6. Reportable segments in respect of business operations of the company have been identified on the basis of varied risk and return profile attached to each business segment which is the primary reporting format, and which are in terms of Accounting Standard - 17 on Segment Reporting. The company does not have any geographical segments, as such there is no secondary reporting format.

The Segment information is as under:

Note: Diminution of Rs. 1014.02 lacs on Government Securities, Rs.9.42 lacs on Treasury Bills, Rs.7.19 lacs on Equity investments and Rs. NIL on Corporate Bonds (as there is net appreciation) as on March 31, 2011 has been provided for (Prev. Year Rs.958.45 lacs on Government Securities, Rs. 11.05 lacs on Treasury Bills and Rs. NIL on Corporate Bonds and Debentures).

Fixed deposits placed by the company are funded out of the net owned funds and thus have not been apportioned any costs. Consequently, the total allocable expenses have been allocated to all other segments. Figures for the previous year have been regrouped and rearranged accordingly.

7. Related Party Transactions

As per Para 9 of the Accounting Standard 18 on Related Party Disclosures, the company being a state controlled enterprise is not required to make disclosures of related party relationships with other state controlled enterprises and transactions with such enterprises. Other information as per the Standard is as under:

a. The overall supervision and control of company vests with Board of Directors. The Managing Director of the company is on deputation from Punjab National Bank and is working full time with the company. Details of managerial remuneration are disclosed vide Note No. 3 above in the Notes to Accounts.

b. Out of a total of nine Directors on the Board of the company as at March 31, 2011, six are Independent directors. Only the Non-Executive Directors are being paid sitting fees for the Board / Committee meetings at the rate of Rs. 5000/- per meeting. During the year the company has paid a sum of Rs. 8.05 lacs (Prev. Year Rs.5.50 lacs) towards sitting fee.

8. Earnings per share (EPS)/Diluted Earnings per share (DEPS)

There has been no change in the share capital during the year. There are no potential equity shares outstanding. Hence there is no dilution of the Basic EPS.

9. Deferred Tax

An adjustment for the current year amounting to Rs 20.20 lacs {Prev. Year Rs. (126.16) lacs} has been made out of the profits for the current year.

10. Disclosure on Interest Rate Swaps

Market risk : In the event of 100 basis points adverse movement in interest rates there will be a negative impact of Rs. 0.06246 lacs (Prev. Year Rs 38.04 lacs) on Trading Swaps in the swap book.

The losses, which would be incurred if, counter parties failed to fulfill their obligations works out to Rs.10.72 lacs (Prev. Year Rs. 789.97 lacs)

Company’s exposure with regard to outstanding swap transactions is limited to Banks and Primary Dealers.

Collateral : No Collateral is insisted upon from counterparty

Credit Risk Concentr ation : State Bank of India. - Rs.5.36 lacs. (Previous year Rs. 251.62 lacs)

11. As on March 31, 2011, Secured loans (including market repo) of Rs. 64354.97 lacs comprise of Rs. 24500.00 lacs under RBI’s refinance facility, Rs. 16500.00 lacs under RBIs LAF repo facility, Rs. 1733.10 lacs under CBLO and Rs. 21621.87 lacs under REPO facility. Unsecured loans of Rs. 21110.00 lacs comprise of Call Money Borrowings of Rs. 21110.00 lacs. During the year 2010-11, average and peak net borrowings in Call Money amounted to Rs. 41262.83 lacs and Rs.103590.00 lacs respectively. For the year, the average and peak leverage ratio stands at 1.59 and 3.06 times respectively.

12. (a) As on March 31, 2011, the total stock of Rs. 118131.15 lacs comprise of Government securities (including Treasury Bills) of Rs. 100194.19 lacs, Rs.55.57 lacs of Equity instruments, Rs.3403.12 lacs of Money Market Instruments and Rs. 14478.27 lacs of Corporate Bonds & Debentures. The portfolio of Corporate Bonds & Debentures comprises Rs.13649.07 lacs of AAA rated and Rs.829.20lacs of AA+ rated bonds.

(b) As per the RBI circular dated 31st August 2009, the company had categorized an amount of Rs. 13269.55 lacs of Government Securities in Held To Maturity (HTM) category. During the current year, an amount of Rs. 358.52 lacs was transferred from HTM to trading category by booking depreciation of Rs.0.64 lacs. Further, an amount of Rs. 12.15 lacs was amortized by Straight-line basis on the securities. The outstanding under HTM category as on March 31, 2011 stood at Rs. 12898.88 lacs, the details of which is given in the Annexure to Schedule 8 (b.1).

13. Capital Adequacy Ratios as on June 30, 2010, September 30, 2010, December 31, 2010 and March 31, 2011 were 57.60 per cent, 70.67 per cent, 56.18 per cent and 94.42 per cent respectively as against RBI stipulation of 15 per cent. Net Owned Funds of the company stands at Rs. 56891.59 lacs as against the minimum stipulated capital of Rs. 25000.00 lacs. Return on net worth for the year 2010-11 stands at 5.43 per cent.

14. Tax deducted at source on interest, miscellaneous income and commission and fees during the FY 2010-11 amounted to Rs 98.07 lacs (Prev. Year : Rs 312.18 lacs).

15. Provision for leave encashment has been done in accordance with the requirement of AS - 15 (revised) as per actuarial valuation for the year 2010-11 on April 1, 2011 and as per Projected Unit Credit Method, details for which are given hereunder:

16. During the year 2010-11, the carrying amount of assets were reviewed and none of the assets of the company were found to be impaired, for which the procedure prescribed as per Accounting Standard 28 needs to be applied.

17. The Mutual Fund Commission accrued (Rs. 82.04 lacs) as on March 31, 2011, has been taken to income on an estimated basis and to the extent that the commission on reinvestment of dividend, in case of reinvestment plan, cannot be calculated accurately.

18. During the year, refund from the Income Tax Department, related to eight years from FY 2001-02 to 2008-09, amounting to Rs.1818.16 lacs have been received. Interest to the tune of Rs. 183.88 lacs received on the refund is included in the miscellaneous income.

19. During the year, an amount of Rs.1.13 lacs on account of non- receipt of TDS certificate and Rs. 0.04 lacs on account of excess accrual in Mutual Fund income receivable have been written off.

20. Figures for the previous year have been regrouped and rearranged wherever considered necessary, in order to make them comparable with those of the current period.


Mar 31, 2010

1. The company has adopted the rates provided by FIMMDA for determining market value of securities in terms of Accounting Policy no. 5(ii) and net diminution in the value of securities as on March 31, 2010 amounting to Rs. 969.50 lacs has been provided for in the valuation of closing stock.

2. An amount of Rs.1000 lacs was lent in Call Money to Madhavpura Mercantile Cooperative Bank Limited (MMCBL) in March, 2001 which became overdue as on March 31, 2001. Therefore a provision of Rs. 500 lacs was made against the same. Thereafter, during the year 2001-02, a reconstruction scheme was formulated under the aegis of Government of India and the lending inclusive of interest upto the date of implementation was converted into term deposit of Rs.1036.58 lacs carrying interest @ 7.50 per cent p.a (payable semi-annually) and the principal repayable in five equal instalments starting from 5th year. Further in the year 2004-05, the rate of interest was revised to 3 per cent p.a. w.e.f. August 24, 2004 in terms of the notification issued by the Central Registrar of Cooperative Societies. The interest and principal on the term deposit with Madhavpura Mercantile Cooperative Bank Limited was serviced regularly after its last restructuring in August, 2004 upto March 31, 2007. In view of the regular servicing of the principal and the interest amount, as a conservative approach the management decided to reverse the provision in proportion to the original provision made vis a vis the original principal amount and recovery of the principal amount till March 31, 2007. Accordingly an amount of Rs.120 lacs was reversed during the year 2006-07 from the original provision of Rs. 500 lacs made in the year 2000-01. The provision thus stood at Rs. 380 lacs as on March 31, 2007.

During the year 2007-08, an amount of Rs. 25.91 lacs only was received from MMCBL on May 3, 2007. Government of India (Ministry of Agriculture, Department of Agriculture & Cooperation, New Delhi) vide its notifications instructed that all payments by the bank including next installment of repayment due in August, 2007, August, 2008 and August, 2009 (totalling to Rs. 554.57 lacs) and payments of interest to banks on their deposits are deferred till August, 2010. In view of the modification in the Reconstruction Scheme, no further amount was due, till August, 2010. However, as per RBIs prudential norms on "Income Recognition and Asset classification and Provisioning" the Board of Directors has decided to make 100% provision for the concerned investment.

Therefore, an additional provision of Rs. 381.88 lacs was made during the year 2009-10. As on March 31, 2010, the total principal outstanding was Rs. 761.88 lacs (previous year Rs.761.88 lacs) against which provision of Rs. 761.88 lacs (previous year Rs. 380 lacs) is outstanding.

3. Appropriation of Profits

• The Company has proposed a final dividend of Re. 1 per share subject to approval of shareholders in Annual General Meeting amounting to Rs. 1350.08 lacs. Accordingly, a provision of Dividend Distribution Tax of Rs. 229.44 lacs has been made @ 15 per cent plus surcharge @ 10 per cent plus Education Cess @ 2 per cent and Secondary Higher Education Cess @ 1 per cent.

• A sum of Rs. 735 lacs has been transferred to Statutory Reserve Fund.

• Board of Directors, in its meeting held on January 9, 2003, had decided to build up Market Fluctuation Reserve over a period of time with the cap equal to paid up capital of the company, with the condition that at time of approval of annual accounts each year, Board may decide the quantum of amount to be transferred to this Reserve, if necessary. At the time of approval of accounts relating to FY 2002-03 - a sum of Rs. 2700 lacs and FY 2003-04 - a sum of Rs. 3600 lacs respectively, had been transferred to this Reserve. For FY 2009-10, the Board of Directors had decided not to appropriate any amount to this reserve.

4. Reportable segments in respect of business operations of the company have been identified on the basis of varied risk and return profile attached to each business segment which is the primary reporting format and which are in terms of Accounting Standard - 17 on Segment Reporting. The company does not have any geographical segments, as such there is no secondary reporting format.

5. Related Party Transactions

As per Para 9 of the Accounting Standard 18 on Related Party Disclosures, the company being a state controlled enterprise is not required to make disclosures of related party relationships with other state controlled enterprises and transactions with such enterprises. Other information as per the Standard is as under:

a. The overall supervision and control of company vests with Board of Directors. The Managing Director of the company is on deputation from Punjab National Bank and is working full time with the company. Details of managerial remuneration are disclosed vide Note No. 3 above in the Notes to Accounts.

b. Out of a total of ten Directors on the Board of the company as at March 31, 2010, six are Independent Directors. Only the Independent Directors are paid sitting fees for the Board / Committee meetings at the rate of Rs. 5,000/- per meeting. During the year the company has paid a sum of Rs. 5.50 lacs (Prev. Year Rs. 3.65 lacs) towards sitting fee.

6. As on March 31, 2010, Secured loans (excluding market repo) of Rs. 28194.02 lacs comprise of Rs. 19000 lacs under RBIs LAF repo facility and Rs. 9194.02 lacs under CBLO. Unsecured loans of Rs. 46500.00 lacs comprise of Call Money Borrowings of Rs. 21500 lacs & Inter Corporate Borrowings of Rs. 25000 lacs. During the year 2009-10, average and peak net borrowings in call money amounted to Rs. 66538.01 lacs and Rs. 118200.00 lacs respectively. For the year, the average and peak leverage ratio stands at 1.99 and 2.99 times respectively.

7. As on March 31, 2010, the total stock of Rs. 93535.39 lacs comprise of Government Securities (including Treasury Bills) of Rs. 86505.96 lacs and Rs. 7029.43 lacs of Corporate Bonds & Debentures. The portfolio of Corporate Bonds & Debentures comprises Rs. 6200.23 lacs of AAA rated and Rs. 829.20 lacs of AA+ rated bonds.

As per the RBI circular dated August 31, 2009, the company has categorized a portion of Government Securities portfolio in the Held To Maturity (HTM) category (an amount of Rs. 13269.55 lacs). The details of securities so transferred to this category have been given in the Annexure to Schedule 8 (b.1). As per the said circular, such transfers should be done with the approval of the Board, at the acquisition cost/ book value/ market value on the date of transfer, whichever is the least, and the diminution, if any, on such transfer shall be fully provided for. Accordingly, diminution has been charged to trading income in the Profit & Loss Account to the extent of Rs. 64.51 lacs on the date of transfer. Securities (HTM) have not been marked to market and diminution not provided as on March 31, 2010. Initially this categorization was available up to March 31, 2010, but RBI vide circular IDMD.PDRD No. 3483/03.64.00/2009-10 dated March 9, 2010 extended the same until further advice. Due to change in the policy (as permitted by RBI) these securities were not marked to market as on March 31, 2010 and further diminution in market values of these securities of Rs. 213.04 lacs not provided in the books. As a consequence, the profit as per Profit & Loss Account has increased by Rs. 213.04 lacs and stock in trade increased by Rs. 213.04 lacs, on account of change in accounting policy (permitted by RBI). These securities have been shown under Current Assets, as these securities have been permitted to be considered for retransfer to trading category once in every quarter, if necessary.

8. In the absence of any government notification the company has not provided for cess envisaged in terms with the Section 441A (1) of the Companies Act, 1956.

9. As per Schedule VI of the Companies Act, 1956, total outstanding dues of Small and Micro Enterprises (SME) should be disclosed separately. The total sundry creditors are of Rs. 84.61 lacs, which include Rs. 13.72 lacs kept in sundry operations. The actual recipients of this amount are not known, as claims are not received by the Company. Therefore, it is not possible to give information of outstanding dues of SME.

10. Tax deducted at source on interest, miscellaneous income and commission & fees during the FY 2009-10 amounted to Rs. 312.18 lacs. (Prev. Year : Rs. 505.67 lacs).

11. During the year 2009-10, the carrying amount of assets were reviewed and none of the assets of the company are found to be impaired for which the procedure prescribed as per Accounting Standard 28 needs to be applied.

12. The company has discontinued its Merchant Banking activities w.e.f. March 15, 2010. The company has also closed its Kolkatta & Bangalore branches w.e.f. March 30, 2010 and the public / clients of these regions will be served from HO at Delhi.

13. The Mutual Fund Commission accrued (Rs. 67.29 lacs) as on March 31, 2010, has been taken to income on an estimated basis to the extent that the commission on reinvestment of dividend (in case of reinvestment plan) cannot be calculated accurately.

14. Amount of Rs. 2.16 lacs receivable as Income from Project Appraisal pertaining to previous years could not be received, in spite of tremendous follow up, due to the reasons that the parties were not available at their registered address. It was decided to write off this amount of Rs. 2.16 lacs as bad debts written off.

15. Figures for the previous year have been regrouped and rearranged wherever considered necessary, in order to make them comparable with those of the current period

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