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Notes to Accounts of Shriram Asset Management Company Ltd.

Mar 31, 2015

1. Terms/rights attached to Equity Shares

The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share. Dividend, as and when recommended by the Board of Directors, is subject to approval of the shareholders in their Annual General Meeting. The Directors have not recommended any dividend for the year ended March 31, 2015.

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.

2. Terms/rights attached to Redeemable Non Convertible Preference Shares (RNCPS)

During the previous year ended March 31, 2014 the Company issued additional 300000 (Three lakh) (0.01%) RNCPS of Rs. 100/-each fully paid up, taking the total amount of RNCPS to Rs. 4,00,00,000/-. These RNCPS carry non cumulative dividend @ 0.01% p.a. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting. Each holder of RNCPS is entitled to one vote per share only on resolutions placed before the Company which directly affect the rights attached to RNCPS. The RNCPS shall be redeemed by the Company at par on expiry of five years from the date of allotment. The Company shall, however, has the right to redeem the RNCPS before the due date. Subject to the applicable laws, and the approvals/consents as may be necessary or required, the date of redemption of RNCPS can be extended for such further term as may be mutually agreed to between the Company and the holder of RNCPS.

During the period no provision has been made for dividend on Preference Share.

4. RESERVES AND SURPLUS

(*) Note: To fall in line with the requirements of Schedule II of Companies Act, 2013, necessary adjustments have been made in the life of the asset as required either through retained earnings account where remaining useful life is Nil or through Profit and Loss Account in other cases. No depreciation provision is considered necessary where WDV is less than adjusted residual value. Such change has no material effect on the Financial Results of the Company under review.

5. LONG TERM LIABILITIES

An amount of Rs. 22,785,000/- representing disputed redemption money on 35,00,000 units of "Risk Guardian 95" is held by the Company in trust to be paid to the rightful owner when the dispute is settled by the appropriate court/forum. This amount has been deployed in subordinated bond and along with interest accrued thereon, the present value of which is Rs. 85,309,871/- (inclusive of tax of Rs. 11,122,842/- for the period from 2001-02 to 2010-11).The disputed amount of Rs. 22,785,000/- along with interest accrued thereon has been recognised in the accounts as payable to the rightful owner. In view of the loss incurred during the period, no provision for Income Tax is considered necessary.

Notes: Gratuity is payable as per Company's scheme as detailed in the report. Actuarial gain/loss is accounted for in the period of occurrence. Salary escalation and attrition rate are considered as advised by the Company, they appear to be in line with the industry practice considering promotion and demand and supply of the employees.

# Receivable from broker

The Company's claim for the recovery from a broker for a principal amount of Rs. 72.10 lakhs, together with interest thereon has been upheld by the Arbitration Tribunal of the BSE Limited. However, the Income Tax Department had issued prohibitory orders/attachment notices, against the Exchange in respect of properties of the broker. In response, the Exchange has filed a Writ Petition, before the Hon'ble High Court, Bombay against the Income Tax Department, challenging the prohibitory order/attachment notices. The Hon'ble Court has passed an Interim Order, inter alia directing the Exchange not to disburse the amount till further orders. The said Writ Petition is pending before the Hon'ble High Court, Bombay. In view of the uncertainty pending finality of the proceedings, the Company has not recognised the interest on principal amount of Rs. 72.10 lakhs. In 2010-11, the Company received Rs. 3 lakhs from the Exchange, as a part payment against the award.

Interest income on subordinate bond

** Interest of Rs. 8,502,688/- (net of tax, if any) for the period from April 01, 2014 to March 31,2015 has been recognised as interest received in the accounts for the year ended March 31,2015.

19. The Scheme Risk Guardian'95 has been wound up, effective July 7, 2000 and the three tax saving schemes Tax Guardian'95, Tax Guardian'96, Tax Guardian'97 have been wound up with effect from April 30, 2001 and Interval Fund 97 effective December 01, 2001, with the approval of SEBI. For the unclaimed redemption money of these schemes the company has been following the provisions laid down under Regulation 59 of SEBI (Mutual Funds) Regulations, 1996. Further, as the unclaimed redemption money being managed by the Company is very small amounting to Rs. 385,748/-, it has been decided not to charge asset management fees from April 01,2004 to Shriram Mutual Fund.

6. Contingent Liabilities

6.1 An appeal is pending before CIT (A) for the A.Y.2006-07, wherein the disallowance made under section 14A of the Income Tax Act, 1961, of Rs. 279,520/- calculated as per Rule 8D, is disputed by the Company.

6.2 As regards A.Y 2007-08, the Company has filed appeal before ITAT against disallowance of Rs. 2,710,000/- by CIT(A) written off as bad debts in respect of Ahmedabad Urban Co-operative Bank Ltd.

6.3 The Company received an Order dated March 10, 2013 U/S 143 (3) of the IT Act along with a demand notice of Rs. 2,159,460/- and paid Rs. 200,000/- on protest for A.Y 2010-11 for sundry disallowances. The Company has already filed an appeal with the appropriate authority against the order.

# Deferred tax asset has not been recognized in the accounts on the basis of prudence as per AS 22 for the financial year 2014-15.

7. The Company operates in only one segment. Hence segment reporting under AS17 is not applicable to the Company.

8. Related party disclosure as required by Accounting Standard (AS)-18 "Related Party Disclosure" as notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 2013.

Name Relationship

a) Shriram Credit Company Limited Holding Company

b) Shriram Transport Finance Co Ltd (STFC) Associate to Holding Co.

c) Ceylinco Shriram Capital Management Services Co. Pvt. Ltd. Associate Co.

d) Mr. Akhilesh Kumar Singh (M.D) Key Management personnel

e) Shriram Insight Share Brokers Ltd. Associate Co.

f) Shriram Fortune Solutions Ltd. Associate Co.

9. The Company does not have 'suppliers' registered under the Micro, Small and Medium Enterprises Development ("MSMED") Act, 2006. Accordingly, no disclosures relating to amounts unpaid as at the year end and together with interest paid / payable are required to be furnished.

10. Since the Company has incurred a loss in the current year, hence provision for dividend on 400000 (Four Lakh) (0.01%) RNCPS of Rs.100/- each fully paid up has not been provided in the accounts.

11. Previous year's figures have been re-grouped and re-arranged, wherever considered necessary.


Mar 31, 2014

1. The Scheme Risk Guardian''95 has been wound up, effective 7th July 2000 and the three tax saving schemes Tax Guardian''95, Tax Guardian''96, Tax Guardian''97 have been wound up with effect from 30th April 2001 and Interval Fund 97 effective 1st December 2001, with the approval of SEBI. For the unclaimed redemption money of these schemes the company has been following the provisions laid down under Regulation 59 of SEBI (Mutual Funds) Regulations 1996. Further, as the unclaimed redemption money being managed by the Company is very small amounting to Rs. 385,748/- it has been decided not to charge asset management fees from 01.04.2004 to Shriram Mutual Fund.

2. Contingent Liabilities

2.1 An appeal is pending before CIT (A) for the A.Y.2006-07, wherein the disallowance made under Section 14A of the Income Tax Act, 1961, of Rs. 2,79,520/- calculated as per Rule 8D,is disputed by the Company.

2.2 As regards A.Y 2007-08, the Company has filed appeal before ITAT against disallowance of Rs. 27,10,000/- by CIT(A) written off as bad debts in respect of Ahmedabad Urban Co-operative Bank Ltd.

2.3 The Company received an Order dated 10.03.2013 U/S 143(3) of the IT Act along with a demand notice of Rs.21,59,460/- and paid Rs. 2,00,000/- on protest for AY 2010-11 for sundry disallowances . The Company has already filed an appeal with the appropriate authority against the order.

# Deferred tax asset has not been recognized in the accounts on the basis of prudence as per AS 22 for the financial year 2013-14.

3. The Company operates in only one segment. Hence segment reporting under AS17 is not applicable to the Company.

4. Related party disclosure as required by Accounting Standard (AS)-18 "Related Party Disclosure" as notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956.

Name Relationship

a) Shriram Credit Company Limited Holding Company

b) Shriram Transport Finance Co. Ltd. (STFC) Associate to Holding Co.

c) Ceylinco Shriram Capital Management Services Co. Pvt. Ltd. Associate Co.

d) Mr. Akhilesh Kumar Singh (M.D.) Key Management personnel

e) Shriram Insight Share Brokers Ltd. Associate Co.

f) Shriram Fortune Solutions Ltd. Associate Co.

5. The Company does not have ''suppliers'' registered under the "The Micro, Small and Medium Enterprises Development ("MSMED") Act, 2006. Accordingly, no disclosures relating to amounts unpaid as at the year end and together with interest paid / payable are required to be furnished.

6. Since the Company has incurred a loss in the current year, hence provision for dividend on 400000 (Four Lakh) 0.01% RNCPS of Rs. 100/-each fully paid up has not been provided in the accounts.

7. Previous year''s figures have been re-grouped and re-arranged, wherever considered necessary.


Mar 31, 2013

1. The Scheme Risk Guardian''95 has been wound up effective 7th July 2000 and the three tax saving schemes Tax Guardian''95, Tax Guardian''96, Tax Guardian''97 have been wound up effective 30th April 2001 and Interval Fund 97 effective 1st December 2001.

2. Currently Shriram Mutual Fund does not have any live schemes and no new schemes have been launched during the year, however, for all the five schemes launched previously the company has been following the provisions laid down under Regulations 59 of SEBI (Mutual Funds) Regulations, 1996. Further, the Company has continued to maintain its status as an Asset Management Company for Mutual Fund by complying with all the relevant provisions of SEBI (Mutual Funds) Regulations, 1996. Accordingly, the financial statements of the Company have been prepared on a going concern basis.

3. As the unclaimed redemption money being managed by the Company is very small, it has been decided not to charge asset management fees from 01.04.2004 to Shriram Mutual Fund.

4. Contingent Liabilities

4.1 An appeal is pending before CIT (A) for the A.Y.2006-07, wherein the disallowance made under Section 14A of the Income Tax Act, 1961, of Rs. 279,520/- calculated as per Rule 8D, is disputed by the Company.

As regards A.Y 2007-08, the Company has filed appeal before ITAT against disallowance of Rs. 27,10,000/- by CIT(A) written off as bad debts in respect of Ahmedabad Urban Co-operative Bank Ltd.

4.2 The Company received an Order dated 10.03.2013 U/S 143 (3) of the IT Act along with a demand notice of Rs. 2,159,460/- for AY 2010-11 for sundry disallowances. The Company has already filed an appeal with the appropriate authority against the order.

5. The Company operates in only one segment. Hence segment reporting under AS17 is not applicable to the Company.

6. The Company does not have ''suppliers'' registered under the The Micro, Small and Medium Enterprises Development ("MSMED") Act, 2006. Accordingly, no disclosures relating to amounts unpaid as at the year end and together with interest paid / payable are required to be furnished.

7. Since the Company has incurred a loss in the current year, hence provision for dividend on 1,00,000 (One Lac) 0.01% Redeemable Non Covertible Preference Shares of Rs.100/- each fully paid up has not been provided in the accounts.

8. Previous year''s figures have been re-grouped and re-arranged, wherever considered necessary.


Mar 31, 2012

1.1) Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity share is entitled to one vote per share. Dividend, as and when recommended by the Board of Directors, is subject to approval of the shareholders in their Annual General Meeting.

For the financial year ended March 31, 2012, the Company has not declared any dividend.

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.

2.1) An amount of Rs.22,785,000/- representing disputed redemption money on 35,00,000 units of "Risk Guardian 95" is held by the Company in trust to be paid to the rightful owner when the dispute is settled by the appropriate court/forum. This amount has been deployed in subordinate bond and along with interest accrued thereon, the present value of which is Rs.61,179,768/- (inclusive of tax of Rs.11,122,842/- for the period from 2001-02 to 2010-11).

The disputed amount of Rs.22,785,000/- along with interest accrued thereon has been recognised in the accounts as payable to the rightful owner.

# Receivable from broker

The Company's claim for the recovery from a broker for a principal amount of Rs.72.10 lakhs, together with interest thereon has been upheld by the Arbitration Tribunal of the Bombay Stock Exchange Ltd. However, the Income Tax Department had issued prohibitory orders /attachment notices, against the Exchange in respect of properties of the broker. In response, the Exchange has filed a Writ Petition, before the Hon'ble High Court, Bombay against the Income Tax Department, challenging the prohibitory order/ attachment notices. The Hon'ble Court has passed an Interim Order, interalia directing the Exchange not to disburse the amount till further orders. The said Writ Petition is pending before the Hon'ble High Court, Bombay.

In view of the uncertainty pending finality of the proceedings, the Company has not recognised the interest on principal amount of Rs.72.10 lakhs. In the previous year, the Company received Rupees Three lakhs from the Exchange, as a part payment against the award.

3.1) Interest income on subordinate bond

Interest on the subordinate bond of Rs.22,388,702/- (net of tax) for the period from financial year 2001-02 to financial year 2010- 11 has been recognised as prior period item. Interest of Rs.4,883,224/- (net of tax) for the period from 01.04.2011 to 31.03.2012 has been recognised as interest received in the accounts for the financial year ended 31.03.2012.

Prior period item of Rs.33,511,544/- (gross) represents interest received against subordinate bond for the priod from financial year 2001-02 to financial year 2010-11 and had offered for tax during the respective years.

4. The Scheme Risk Guardian'95 has been wound up effective 7th July 2000 and the three tax saving schemes Tax Guardian'95, Tax Guardian'96, Tax Guardian'97 have been wound up effective 30th April 2001 and Interval Fund 97 effective 1st December 2001.

5. Though all the schemes of Shriram Mutual Fund have been wound up and no new schemes have been launched during the year, the Company has continued to maintain its status as an Asset Management Company for Mutual Fund. Accordingly, the financial statements of the Company have been prepared on going concern basis.

6. As the unclaimed redemption money being managed by the Company is very small, it has been decided not to charge asset management fees from 01.04.2004 to Shriram Mutual Fund.

7. Contingent Liabilities

7.1 An appeal is pending before CIT (A) for the A.Y.2006-07, wherein the disallowance made under section 14A of the Income Tax Act, 1961, of Rs. 2,79,520/- calculated as per Rule 8D, is disputed by the Company.

7.2 As regards A.Y 2007-08, the Company has filed appeal before CIT (A) against disallowance of Rs.2,96,560/- under the provisions of Section 14A of the Income Tax Act, 1961 and also against disallowance of Rs.27,10,000/- written off as bad debts in respect of Ahmedabad Urban Co-operative Bank Ltd.

8. Income Tax assessment has been completed up to and including the Assessment Year 2007-08

9. The Company operates in only one segment. Hence segment reporting under AS17 is not applicable to the Company.

10. Earning per share (EPS) computed in accordance with Accounting Standard 20 " Earning per Share"

11. The Company does not have 'suppliers' registered under the "The Micro, Small and Medium Enterprises Development ("MSMED") Act, 2006. Accordingly, no disclosures relating to amounts unpaid as at the year end and together with interest paid / payable are required to be furnished.

12. Previous year's figures have been re-grouped and re-arranged, wherever considered necessary.


Mar 31, 2010

1. The Scheme Risk Guardian95 has been wound up effective 07.07.2000 and the three tax saving schemes Tax Guardian95, Tax Guardian96, Tax Guardian97 have been wound up effective 30.04.2001 and Interval Fund 97 effective 01.12.2001. The assets appearing in Schedule F (A) to the accounts represents assets taken over from / relating to the schemes which have been wound up.

2. Though all the schemes of Shriram Mutual Fund have been wound up and no new schemes have been launched during the year, the Company has continued to maintain its status as an Asset Management Company for Mutual Fund. Accordingly, the financial statements of the Company have been prepared on going concern basis.

3. As the unclaimed redemption money being managed by the Company is very small, it has been decided not to charge asset management fees from 01.04.2004 to Shriram Mutual Fund.

4. Contingent Liabilities

a) An appeal is pending before CIT (A) for the A.Y.2006-07, wherein the disallowance made under Section 14A of the Income Tax Act, 1961, of Rs.2,79,520/- calculated as per Rule 8D, is disputed by the Company.

b) As regards A.Y. 2007-08, the Company has filed appeal before CIT (A) against disallowance of Rs. 2,96,560/- under the provisions of Section 14A of the Income Tax Act, 1961 and also against disallowance of Rs. 27,10,000/- written off as bad debts in respect of Ahmedabad Urban Co-operative Bank Ltd.

5. A sum of Rs. 41,340,000/- as on 01.04.2009 (P.Y. Rs. 41,340,000/-) represents disputed redemption amount which is held by the Company in trust which is to be paid to the rightful owner when the dispute is settled by an appropriate court / forum. An equivalent amount is invested in subordinate debt certificate. Accordingly, this amount and interest earned thereon of Rs. 54,22,948/- (TDS Rs. 5,42,294/-) during the year ended 31.03.2010 are not reflected in the Balance Sheet and Profit and Loss account of the Company.

6. Provision for tax has been worked out after considering interest income on subordinated bonds.

The tax payments on this account will be claimed at the time of interest payments to the rightful owner in the event of settlement of dispute as stated in Note No.7 above.

7. Other Current Assets includes:

Rs. 7,210,351/- (P.Y. Rs. 7,061,349/-) is receivable from a broker and taken over by the Company from mutual fund. In the arbitral reference filed by the Company, the broker has entered into consent terms with the Company and consequently, the High Court of Judicature at Mumbai allowed the parties to re-agitate the issues freshly before the Arbitration Panel of stock exchange. On reference to the Arbitration panel of Bombay Stock Exchange, Companys claim for principal amount of Rs. 72.10 lakhs has been allowed. Company has preferred further appeal for interest on delayed payments which is pending before the Honble Appeal Bench of the Bombay Stock Exchange Ltd.

8. Income Tax assessment has been completed up to and including the Assessment Year 2007-08

9. The Deferred Ta x Assets & Liabilities arising on account of timing difference are recognized in the Profit & Loss account. Deferred tax assets have been recognized only to the extent there is virtual certainty that the assets would be realized in future.

10. The Company operates in only one segment.

11. Related party disclosure as required by Accounting Standard (AS)-18 "Related Party Disclosure" issued by the Institute of Chartered Accountants of India



Name Relationship

a) Shriram Transport Finance Co. Ltd. (STFC) Associate Co.

b) Ceylinco Shriram Capital Management Services Co. Pvt. Ltd. Associate Co.

c) Shriram Capital Ltd. Associate Co.

d) Mr.R.Sundara Rajan (M.D) Key Managerial personnel



12. The Company does not have suppliers registered under the "The Micro, Small and Medium Enterprises Development ("MSMED") Act, 2006. Accordingly, no disclosures relating to amounts unpaid as at the year end and together with interest paid / payable are required to be furnished.

13. Previous years figures have been re-grouped and re-arranged, wherever considered necessary.

 
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