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Notes to Accounts of SRS Finance Ltd.

Mar 31, 2015

1. Equity Shares

The equity shares have a par value of Rs. 10/- per share. Each shareholder is entitled to one vote per share

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by the shareholders

2. Contingent Liabilities

Contingent liability not provided for in respect of :-

(Amount in

Particulars As at 31.3.2015 As at 31.3.2014

Outstanding Bank Guarantee 1,00,000 1,00,000

3. Unadmitted Claims

There has been a demand of Rs. 23,77,572/- raised by the Income Tax Department for the financial year 1996-97. The company is contesting the same at Income Tax Appellate Tribunal, New Delhi and the management understands that there exists a very strong case in its favour and, therefore, no provision had been made against it. In the meanwhile the company has paid Rs.12,00,000/- under protest to the department and for balance amount, stay has been obtained from the department.

The Income-Tax Assessments of the Company related to Search Cases have been completed during the year. The assessed tax liability was Rs.16,73,634 and the Company has not filed any appeal against the assessment order. The Company has made the provision of Rs.16,73,634 in the financial statement for the year ended 31st March, 2015.

In addition to the above, the Company is a party to other few legal proceedings in the normal course of business. The Company does not expect the outcome of these proceedings to have a material adverse effect on the Company's financial conditions, results of operations or cash flows.

4. The management is of the opinion that none of the assets of the company has suffered from impairment during the period.

5. Company has not incurred any expenses in foreign currency during the period.

The Company has a defined benefit gratuity plan which is unfunded. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The Company has also provided for Leave Encashment which is unfunded.

The following tables summarize the components of net benefit expense recognized in the profit and loss account and amounts recognized in the balance sheet for the respective plans (as per Actuarial Valuation as on March 31, 2015).

6. Related Party Transactions

As per Accounting Standard (AS)-18 "Related Party Disclosures", the Company's related parties and transactions are disclosed below:

(a) List of related parties & relationships, where control exists: Nil

(b) Associate Company:

i. SRS Modern Sales Limited.

ii. SRS E-Retail Limited

iii. SRS Talkies Limited

(c) Key Management Personnel (KMP)

i. Mr. Dinesh Khatri - Whole Time Director (upto 12.05.2014)

ii. Mr. Raju Gupta: - Managing Director (upto 17.06.2014)

iii. Mr. Ankit Sachdeva - Managing Director & CEO (Whole Time Director upto 16.06.2014)

iv. Mr. Naveen Kumar Tayal - Whole Time Director & CFO (from 12.05.2014)

(d) Related Parties owned or controlled by Key Management Personnel (KMP)

i. SRS Limited

ii. SRS Real Infrastructure Limited

7. Management considers that all the Current Assets, Loans & Advances are fully recoverable at the value at least equal to the value disclosed in the books and there is no other than temporary diminution in the value of long term Investments.


Mar 31, 2013

1.1 Unadmitted Claims

There has been a demand of Rs. 23,77,572/- raised by the Income Tax Department for the financial year 1996-97. The company is contesting the same at Income Tax Appellate Tribunal, New Delhi and the management understands that there exists a very strong case in its favour and, therefore, no provision had been made against it. In the meanwhile the company has paid Rs.12,00,000/- under protest to the department and for balance amount, stay has been obtained from the department.

There has been a demand of Rs. 23,15,157/- raised by the Income Tax Department for the financial year 2008-09. The company is contesting the same at Income Tax Commissioner (Appeal). No provision had been made against it. In the meanwhile the company has paid Rs.11,57,600/- under protest to the department and for balance amount, stay has been obtained from the department.

b) No interest payments have been made during the year.

c) The above information and that given in "Trade Payables" shown in Balance sheet regarding dues to Micro Enterprises and Small Enterprises has been determined to the extent such parties have been identified on the basis of information available with the company.

1.2 The management is of the opinion that none of the assets of the company has suffered from impairment during the period.

1.3 Company has not incurred any expenses in foreign currency during the year.

1.4 Employee''s Benefits

The Company has a defined benefit gratuity plan which is unfunded. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The Company has also provided for Leave Encashment which is unfunded.

The following tables summarize the components of net benefit expense recognized in the profit and loss account and amounts recognized in the balance sheet for the respective plans (as per Actuarial Valuation as on March 31, 2013).

1.5 Management considers that all the Current Assets, Loans & Advances are fully recoverable at the value at least equal to the value disclosed in the books and there is no other than temporary diminution in the value of long term Investments.

1.6 Related Party Transactions

As per Accounting Standard (AS)-18 "Related Party Disclosures", the Company''s related parties and transactions are disclosed below:

(a) List of related parties & relationships, where control exists:

Subsidiary: SRS Modern Sales Ltd.

Associate Company: SRS Limited

(b) Related parties & relationships with whom transactions have taken place during the year:

Key Management Personnel (KMP)

i. Mr. Dinesh Khatri - Whole Time Director

ii. Mr. Raju Gupta - Managing Director


Mar 31, 2012

1.1 Unadmitted Claims

There has been a demand of Rs. 23,77,572/- raised by the Income Tax Department for the financial year 1996-97. The company is contesting the same at Income Tax Appellate Tribunal, New Delhi and the management understands that there exists a very strong case in its favour and, therefore, no provision had been made against it. In the meanwhile the company has paid Rs.12,00,000/- under protest to the department and for balance amount, stay has been obtained from the department.

There has been a demand of Rs. 23,15,157/- raised by the Income Tax Department for the financial year 2008-09. The company is contesting the same at Income Tax Commissioner (Appeal). No provision had been made against it. In the meanwhile the company has paid Rs.11,57,600/- under protest to the department and for balance amount, stay has been obtained from the department.

1.2 The management is of the opinion that none of the assets of the company has suffered from impairment during the period.

1.3 Company has not incurred any expenses in foreign currency during the year.

1.4 Employee''s Benefits

The Company has a defined benefit gratuity plan which is unfunded. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The Company has also provided for Leave Encashment which is unfunded.

The following tables summarize the components of net benefit expense recognized in the profit and loss account and amounts recognized in the balance sheet for the respective plans (as per Actuarial Valuation as on March 31, 2013).

1.5 Management considers that all the Current Assets, Loans & Advances are fully recoverable at the value at least equal to the value disclosed in the books and there is no other than temporary diminution in the value of long term Investments.

1.6 Related Party Transactions

As per Accounting Standard (AS)-18 "Related Party Disclosures", the Company''s related parties and transactions are disclosed below:

(a) List of related parties & relationships, where control exists:

Subsidiary: SRS Modern Sales Ltd.

Associate Company: SRS Limited

(b) Related parties & relationships with whom transactions have taken place during the year: Key Management Personnel (KMP)

i. Mr. Dinesh Khatri - Whole Time Director

ii. Mr. Raju Gupta - Managing Director


Mar 31, 2011

A.) Cash Credit Facility from Corporation Bank amounting Rs. 9,95,25,475 (Previous Year Rs. Nil) is secured against Hypothecation of Inventory cum book debts/current assets.The facility is further secured by Equitable Mortgage of certain properties of SRS Real Estate Limited and Personal Guarantee of Chairman of SRS Group - Dr. Anil Jindal.

b.) Vehicle loans were secured by hypothecation of respective vehicles.

c.) Loan against Securities Facility is secured against stock of securities.

1. Contingent Liabilities Not Provided for in respect of:

As at 31.03.2011 As at 31.03.2010 (Rs.) (Rs.)

Corporate Guarantees 30,00,00,000 30,00,00,000

Outstanding Bank Guarantee 1,00,000 1,00,000

2. Unadmitted Claims

There has been a demand of Rs.23,77,572/- raised by the Income Tax Department for the financial year 1996-97. The company is contesting the same at Income Tax Appellate Tribunal, New Delhi and the management understands that there exists a very strong case in its favour and, therefore, no provision had been made against it. In the meanwhile the company has paid Rs.12,00,000/- under protest to the department and for balance amount a stay has been obtained from the department.

3. Management considers that all the Current Assets, Loans & Advances are fully recoverable atthe value at least equal to the value disclosed in the books and there is no other than temporary diminution in the value of long term Investments.

b) No interest payments have been made during the year.

c) The above information and that given in "Current Liabilities" in Schedule No.12 regarding dues to Micro Enterprises and Small Enterprises has been determined to the extent such parties have been identified on the basis of information available with the company.

4. The management is of the opinion that none of the assets of the company has suffered from impairment during the period.

5. Company has not incurred any expenses in foreign currency during the year.

The following tables summarize the components of net benefit expense recognized in the profit and loss account and amounts recognized in the balance sheet for the respective plans (as per Actuarial Valuation as on March 31,2011).

6. Related Party Transactions

As per Accounting Standard-18, the Company''s related partiesand transactions are disclosed below:

a. List of related partiesand relationships, where control exists: i. SRS Modern Sales Ltd. (upto 30.04.2010)

b. Related parties and relationships with whom transactions have taken place during the year:

i. Associate Company: SRS Limited

ii. Investing Company: NIL

iii. Key Management Personnel (KMP)

Mr. Dinesh Kumar Khatri-Whole-Time Director&CFO

7. Previous year figures have been given in brackets.

8. The figures of previous period''s/years'' have been regrouped/reclassified, wherever necessary to conform to the current period''s/years'' presentation.


Mar 31, 2010

1. Contingent Liabilities

As per the assessment of the management, bank guarantee of Rs.1,00,000 is the only outstanding contingent liabilities for the year ending 31st March, 2010.

2. Unedited Claims

There has been a demand of Rs. 23,77,572/- raised by the Income Tax Department for the Financial year 1996-97. The company is contesting the same at Income Tax Appellate Tribunal, New Delhi and the management understands that there exists a very strong case in its favors and, therefore, no provision had been made against it. In the meanwhile the company has paid Rs.12,00,000/- under protest to the department and for balance amount a stay has been obtained from the department.

3. Management considers that all the Current Assets, Loans & Advances are fully recoverable at the value at least equal to value disclosed in the books and there is no other than temporary diminution in the value of long term Investments.

b) No interest payments have been made during the year.

c) The above information and that given in "Current Liabilities" in Schedule No.12 regarding dues to Micro Enterprises and Small Enterprises has been determined to the extent such parties have been identified on the basis of information available with the company.

4. The management is of the considered opinion that none of the assets of the company has suffered from impairment during the period.

5. Company has not incurred any expenses in foreign currency during the year.

6. Employee''s Benefits I

The Company has a defined benefit gratuity plan which is unfunded. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The Company has also provided for Leave Encashment which is unfunded.

The following tables summarize the components of net benefit expense recognized in the profit and loss account and amounts recognized in the balance sheet for the respective plans (as per Actuarial Valuation as on March 31,2010).

7. Segment Reporting

Company''s business activities mainly comprise of three segments namely "Restaurants", "Finance and investment" and "Wholesale Trading".

8. Related Party Transactions

As per Accounting Standard-18 issued by the Institute of Chartered Accountants of India, the Company''s related parties and transactions are disclosed below:

a. List of related parties and relationships, where control exists:

i. SRS Modern Sales Ltd.

b. Related parties and relationships with whom transactions have taken place during the year:

i. Associate Company: SRS Limited

ii. Investing Company: NIL

iii. Key Management Personnel (KMP)

Mr. Dinesh Kumar Khatri-Whole-Time Director & CFO

Mr. Raju Bansal - Whole-Time Director (From 01.11.2009 to 09.02.2010)

Note:

1. Previous year figures have been given in brackets.

2. Quantitative information is not possible for restaurant items due to dealing in numerous items and different units of measurement.

3. Quantitative information is not given for foreign currency since it is a monetary item.

9. The previous period''s/year''s have been regrouped/reclassified, wherever necessary to conform to the current period''s/year''s presentation.


Mar 31, 2009

1. Scheme of Amalgamation of "BTL Investments Limited and S.B.S Finance Limited with the Company "

- Subsequent to the amalgamation of BTL Investments Limited and S.B.S Finance Limited with the Company, all the assets and liabilities of the amalgamating companies have been transferred to and vested in the Company, through the Scheme of Amalgamation ("Scheme") under section 39l to section 394 of the Companies Act, l956 approved by Honorable High Court of Delhi vide its order dated l0th February 2009, becoming effective on 9th March 2009 on filing of the certified copies of the aforesaid order with the Registrar of Companies, Delhi & Haryana w.e.f. 7th July, 2008 (the Appointed date of the Scheme) and accordingly:

- All assets and liabilities of BTL Investments Limited and S.B.S Finance Limited have been transferred and stand vested with the Company with effect from the appointed date at their respective book values on that date. Both the Companies carried on all their businesses and activities for the benefit of and in trust for, the Company from the appointed date. Thus, the assets, profit or income accruing or arising to BTL Investments Limited and

S.B.S Finance Limited, and liabilities, expenditure or losses arising or incurred by them from the appointed date are treated as the profit or income or expenditure or loss as the case may be, of the Company. The Scheme has accordingly been given effect to in these accounts & all transactions amongst Amalgamated and Amalgamating companies have been netted off.

- The amalgamation have been accounted for under the "Pooling of Interests Method" as prescribed by Accounting Standard l4 - Accounting for Amalgamations (AS l4) issued by the Institute of Chartered Accountants of India (ICAI). Accordingly, the assets, liabilities and reserves of BTL Investment Limited and SBS Finance Limited have been taken over at their book values on the Appointed Date, subject to adjustments, if any specified in the respective Scheme.

- The difference between the consideration of Rs.l,55,l0,892 (being face value of Equity Shares of the Company issued) for amalgamation and the Net Book Value, after adjusting reserves of BTL Investments Ltd. and S.B.S. Finance Ltd., is transferred to Goodwill account, in accordance with AS-l4 "Accounting on Amalgamations" issued by the Institute of Chartered Accountants of India and the respective Scheme, as detailed hereunder:

2. Pursuant to the Scheme and approved share exchange ratio, on l0th February,2009, SRS Finance Limited has allotted 4,99,88,85l and 2,84,83,842 Equity Shares of Rs.l0/- each to the shareholders of BTL Investment Ltd. And S.B.S. Finance Ltd. respectively in the ratio of 5.028375 and 3.l28l8 fully paid-up Equity Share of Rs.l0/- each of the Company for every l fully paid-up Equity Shares of Rs.l0/- each held in BTL Investments Ltd. and S.B.S. Finance Ltd respectively.

3. The necessary steps and formalities in respect of transfer of properties from BTL Investment Limited and S.B.S Finance Limited in favour of company, modification of charges etc., are under implementation. Documentation relating to transfer of titles, rights, obligations, liabilities, etc., in favour of the company is in progress. However, these vest in SRS Finance Limited by operations of Statute viz. section 39l to 392 of the Companies Act, l956.

4. In terms of the Scheme, the New Equity Shares shall rank pari-passu in all respects with the existing Equity Shares of the Company. Accordingly, the appropriation for the proposed dividend includes the dividend amount on entire restructured Share Capital.

5. In view of the aforesaid Schemes of Arrangement with effect from July 7, 2008, the figures for the current year are not comparable to those of the previous year.

6. Contingent Liabilities

As per the assessment of the management, bank guarantee of Rs.l,00,000 is the only outstanding contingent liabilities for the year ending 3lst March, 2009.

7. Unedited Claims

There has been a demand of Rs. 23,77,572/- raised by the Income Tax Department with respect to periods till A/Y l997 - 98. The company is contesting the same at Income Tax Appellate Tribunal, New Delhi and the management understands that there exists a very strong case in its favour and, therefore, no provision had been made against it. In the meanwhile the company has paid Rs.l2,00,000/- under protest to the department and for balance amount a stay has been obtained from the department.

8. Management considers that all the current assets, Loans & Advances are fully recoverable at the value at least equal to value disclosed in the books and there is no other than temporary diminution in the value of long term investments.

9. The management is of the considered opinion that none of the assets of the company has suffered from impairment during the period.

10. Company has capitalized borrowing costs of Rs. Nil (Previous year 5,06,432/-) relating to the period of the construction of the project during the year.

11. Expenditure in Foreign Currency: NIL

12. Directors Remuneration

During the year ended on 3lst March 2009, remuneration of Rs. 4,33,380/-(Previous Year Nil) has been paid to the directors of the company.

13. Employee''s Benefits

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at l5 days salary (last drawn salary) for each completed year of service. The Company has also provided for Leave Encashment which is unfunded.

The following tables summarize the components of net benefit expense recognized in the profit and loss account and amounts recognized in the balance sheet for the respective plans (as per Actuarial Valuation as on March 3l, 2009).

Note:- Deferred Tax Asset tfd from Merged Entities Rs. 8,0l,069.00 18. Related Party Transactions

As per Accounting Standard-l8 issued by the Institute of Chartered Accountants of India, the Company''s related parties and transactions are disclosed below:

a. List of related parties and relationships. where control exists: NIL

b. Related parties and relationships with whom transactions have taken place during the year:

i. Associate Company: SRS Entertainment & Retail Ltd.

ii. Investing Company: NIL

iii. Key Management Personnel (KMP)

Raju Gupta Dinesh Khatri

iv. Enterprises owned or significantly influenced by KMP and/or their Relatives

SRS Real Estate Ltd.*

BTL Investments Ltd. *

BTL Industries Ltd. *

SRS Housing Finance Ltd. (Formerly known as BTL Commercial Ltd.) *

S.B.S Finance Ltd.*

Three -D food & Beverages Pvt. Ltd.

Fortune Portfolio Pvt. Ltd.

* Related party relationship with these companies has ceased to exist during the financial year.

Note: Figures in brackets are for previous year.

1. Quantitative information is not possible for restaurant items due to dealing in numerous items and different units of measurement.

2. Quantitative information is not given for foreign currency since it is a monetary item.

3. Previous year figures are given in brackets.

14. The previous period''s/year''s have been regrouped/reclassified, wherever necessary to conform to the current period''s/year''s presentation