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Notes to Accounts of United Credit Ltd.

Mar 31, 2015

1. Contingent liabilities not provided for in respect of:

a) Income tax demand for the Assessment Year 1996-97 amounting to Rs. 6,900,919/- (Previous year Rs. 6,900,919/-) including Interest of Rs. 1,031,539/- calculated upto July 2008 against which the Company had filed an appeal under Section 260A of the Income Tax Act, 1961, before the Hon'ble High Court at Calcutta. The Company had already paid a sum of Rs. 6,900,919/- (Previous year Rs. 6,900,919/-) under protest which has been shown under Long-Term Loans and Advances in NOTE 11. However, the case was heard and judgement was given in favour of Income tax department and appeal of the Company was dismissed. The Company, after having consultation with experts, has decided to file an appeal before the Hon'ble Supreme Court shortly.

b) Income tax demand pertaining to Assessment Year 2011-12 amounting to Rs. 88,330/- (Previous year Rs. 85,897/-) in respect of which a rectification petition u/s 154 of the Income tax Act has been filed against Assessment Order u/s 143(3) dated 04/03/2014.

c) Income tax demand pertaining to Assessment Years 2012-13 and 2013-14 amounting to Rs. 171,890/- (Previous Year Rs. 169,750/-) and Rs. 100,740/- (Previous Year Rs. NIL) respectively, the Company has submitted response for outstanding demands to CPC.

2. General Reserve includes Revenue Reserve of Rs. 17,871,849/- (Previous Year Rs. 17,871,849/-) being difference between assets and liabilities taken over after adjustment of consideration money in terms of Scheme of Amalgamation of United Credit Financial Services Ltd.

3. The Company has followed the prudential norms prescribed by the Reserve Bank of India in respect of income recognition and provision for non-performing assets. The Company has made a provision of Rs. 856,800/- as on 31/03/2015 in respect of NPA assets under doubtful category. However, the Company has received an amount of Rs. 582,389/- (Previous year Rs. 582,389/-) towards Interest on Outstanding Principal from M/s The India Jute and Industries Ltd. The sum so received was as per the terms of settlement of our dues mentioned in the Draft Rehabilitation Scheme (DRS) filed with BIFR.

4. In compliance with the Notification No.DNBS/223/CGM(US)-2011 dated 17/01/2011 issued by Reserve Bank of India, the Company has made provision of Rs. 17,821/- (Previous year Rs. NIL) for Standard Assets @0.25% of outstanding loan amount. The Company has maintained a total provision of Rs. 225,399/- (Previous year Rs. 207,578/-) and the same has been separately shown as "Contingent Provisions against Standard Assets" under the head "Long-Term Provisions" under Non-Current Liabilities in NOTE 5.

5. Effective from 1st April 2014, the Company has charged depreciation based on the revised remaining useful life of the assets as per requirement of Schedule II of the Companies Act, 2013. Due to the above, depreciation charged for the year is higher by Rs. 234,328/-. Further based on transitional provision provided in Note 7(b) of the Schedule II, an amount of Rs. 65,541/- (Net of tax of Rs. 29,309/-) has been adjusted with retained earnings against carrying value of those assets whose remaining useful lives have been completed as on 31st March, 2014.

6. The Company is predominantly engaged in Non-Banking Financial activities and therefore Segment Reporting as envisaged in Accounting Standard (AS-17) on Segment Reporting is not applicable.

7. There are no reported micro, small and medium enterprises as defined in, "The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006" to which the Company owes dues and as such the disclosure requirements under Section 22 of the said Act does not arise.

8. The disclosures for "Employee Benefits" as defined in AS-15 (revised 2005) are given below:

Long Term Defined Benefit Plans in respect of Gratuity and Compensated Absences as on 31st March 2015 as per Actuarial Valuations using Projected Unit Credit Method and recognised in the financial statements in respect of Employee Benefit Schemes.

9.During the current year, the Company has computed tax as per normal provisions of the Income Tax Act, 1961 and is eligible to claim MAT Credit to the extent as specified under Section 115JAA (4) & (5) of the said Act.

10. Paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.

As required in terms of paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007, the Note to the Balance Sheet is appended hereunder:

Notes:-

1. As defined in paragraph 2(1)(xii) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998.

2. Provisioning norms are applicable as prescribed in Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.

3. Market value in respect of quoted investments and break up / fair value / NAV in respect of unquoted investments are disclosed.

11. The previous year's figures have been regrouped, recast and rearranged wherever necessary to make it comparable with the current year figures.


Mar 31, 2014

Note 1

a) Rights, preferences and restrictions attached to shares :

i) The Company has one class of Equity Shares having par value of Rs. 10/- per share at the end of the year. These Shares rank pari passu in all respects including voting rights and entitlement of dividend.

ii) 12.5% Redeemable Cumulative Preference Shares :

Pursuant to Order of the Hon''ble High Court at Calcutta on 2nd July 2008, 1,055,086 12.5% Redeemable Cumulative Preference Shares of Rs. 10/- each were issued and allotted on 4th September 2008 by way of conversion of equal number of Equity Shares of Rs. 10/- each without payment being received in cash. These Preference Shares are redeemable at a premium of 50% at the end of five years from the date of issue i.e. 03/09/2013 or earlier at the option of the Company which since been redeemed on 03/09/2013.

2. Contingent liabilities not provided for in respect of:

a) Income tax demand for the Assessment Year 1996-97 amounting to Rs. 6,900,919/- (Previous Year Rs. 6,900,919/-) including Interest of Rs. 1,031,539/- calculated upto July 2008 against which the Company had filed an application under Section 260A of the Income Tax Act, 1961 (the ''Act'') before the Hon''ble High Court at Calcutta. However a sum of Rs. 6,900,919/- (Previous Year Rs. 6,900,919/-) had been paid under protest which has been shown under Long-Term Loans and Advances in NOTE 11.

b) Income tax demand pertaining to Assessment Year 2011-12 amounts to Rs. 85,897/- (Previous year Rs. 75,767/-) against which a rectification petition u/s 154 of The Income Tax Act, 1961 has been filed.

c) Income tax demand pertaining to Assessment year 2012-13 amounts to Rs. 169,750/- (Previous Year Rs. NIL) against which a rectification petition u/s 154 of The Income Tax Act, 1961 has been filed.

3. General Reserve includes Revenue Reserve of Rs. 17,871,849/- (Previous year Rs. 17,871,849/-) being difference between assets and liabilities taken over after adjustment of consideration money in terms of Scheme of Amalgamation of United Credit Financial Services Ltd.

4. The Company has redeemed 1,055,086 12.5% Redeemable Cumulative Preference Shares of Rs. 10/- each at a premium of Rs. 5/- per share on 3rd September, 2013. In view of Redemption of Preference Shares, the Company has obtained legal opinion and as advised, made necessary transfers and adjustments in the books, details of which have been shown under "Reserves & Surplus" in NOTE 2.

5. The Company has followed the prudential norms prescribed by the Reserve Bank of India in respect of income recognition and provision for non performing assets and accordingly during the current year provision of Rs. 285,600/- (Previous Year Rs. 285,600/-) has been made making a total provision of Rs. 856,800/- (Previous Year Rs. 571,200/-) as at the end of the year.

6. In compliance with the Notification No.DNBS/223/CGM(US)-2011 dated 17/01/2011 issued by Reserve Bank of India, no provisions @0.25% on Standard Assets is required to be made during the year. Excess provision amounting to Rs. 6,933/- (Previous Year Rs. 226,280/-) has been written back during the year and shown under the head "Other Income" in NOTE 17. Total provision of Rs. 207,578/- (Previous year Rs. 214,511/-) has been separately shown as "Contingent Provisions against Standard Assets" under the head "Long-Term Provisions" under Non- Current Liabilities in NOTE 5.

7. The Company is predominantly engaged in Non-Banking Financial activities and therefore Segment Reporting as envisaged in Accounting Standard (AS-17) on Segment Reporting is not applicable.

8. There are no reported micro, small and medium enterprises as defined in, "The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006" to which the Company owes dues and as such the disclosure requirements under Section 22 of the said Act does not arise.

9. The disclosures for "Employee Benefits" as defined in AS-15 (revised 2005) are given below:

Long Term Defined Benefit Plans in respect of Gratuity and Compensated Absences as on 31st March 2014 as per Actuarial Valuations using Projected Unit Credit Method and recognised in the financial statements in respect of Employee Benefit Schemes.

10 During the current year, the Company has computed tax as per normal provisions of the Income Tax Act, 1961 and is eligible to claim MAT Credit to the extent as specified under Section 115JAA (4) & (5) of the same Act.

Notes:-

1. As defined in paragraph 2(1 )(xii) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998.

2. Provisioning norms are applicable as prescribed in Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.

3. Market value in respect of quoted investments and break up / fair value / NAV in respect of unquoted investments are disclosed.

11 The previous year''s figures have been regrouped, recast and rearranged wherever necessary to make it comparable with the current year figures.


Mar 31, 2013

1.1 Contingent liabilities not provided for in respect of:

a) Income tax demand for the Assessment Year 1996-97 amounting to Rs. 6,900,919/- (Previous Year Rs. 6,900,919/-) including Interest ofRs. 1,031,539/- calculated upto July 2008 against which the Company had filed an application under Section 260A of the Income Tax Act, 1961 before the Hon''ble High Court at Calcutta. However a sum of Rs. 6,900,919/- (Previous Year Rs. 6,900,919/-) had been paid under protest which has been shown under Long-Term Loans and Advances in NOTE 11.

b) Income tax demand pertaining to Assessment Year 2011-12 of Rs. 75,767/- pending hearing with Dy. Commissioner of Income Tax.

c) Dividend on 12.5% Redeemable Cumulative Preference Shares ofRs. 1,318,858/- (Previous YearRs. NIL).

1.2 in respect of certain parties where suits have been filed and settlements made, interest has been calculated up to the date of filing suits / settlements. Amount so received taken into account on cash basis.

1.3 The Company has followed the prudential norms prescribed by the Reserve Bank of India in respect of income recognition and provision for non performing assets and accordingly during the current year provision of Rs. 285,600/- (Previous Year Rs. 285,600/-) has been made making a total provision of Rs. 571,200/- (Previous Year Rs. 285,600/-) as at the end of the year.

1.4 In compliance with the Notification No.DNBS/223/CGM(US)-2011 dated 17/01/2011 issued by Reserve Bank of India, the Company has made provision of Rs. NIL (Previous Year t 13,857/-) for Standard Assets @0.25% of the outstanding loan amount. During the year an amount of Rs.226,280/- towards excess provision has been written back and shown under the head "Other Income" in NOTE 17. The Company has maintained a total provision of t 214,511/- (Previous Year Rs. 440,791/-) and the same has been separately shown as "Contingent Provisions against Standard Assets" under the head "Long-Term Provisions" under Non-Current Liabilities in NOTE 5.

1.5 The Company is predominantly engaged in Non-Banking Financial activities and therefore Segment Reporting as envisaged in Accounting Standard (AS-17) on Segment Reporting is not applicable.

1.6 There are no reported micro, small and medium enterprises as defined in "The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006" to which the Company owes dues and as such the disclosure requirements under Section 22 of the said Act does not arise.

1.7 The disclosures for "Employee Benefits" as defined in AS-15 (revised 2005) are given below:

Long Term Defined Benefit Plans in respect of Gratuity and Compensated Absences as on 31st March 2013 as per Actuarial Valuations using Projected Unit Credit Method and recognised in the financial statements in respect of Employee Benefit Schemes.

1.8 During the current year, the Company has computed tax as per normal provisions of the Income Tax Act, 1961 and is eligible to claim MAT Credit to the extent as specified under Section 115JAA (4) & (5).

1.9 Paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.

As required in terms of paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007, the Note to the Balance Sheet is appended hereunder:

Notes:-

1. As defined in paragraph 2(1 )(xii) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998.

2. Provisioning norms are applicable as prescribed in Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007

3. Market value in respect of quoted investments and break up / fair value / NAV in respect of unquoted investments are disclosed.

1.10 The previous year''s figures have been regrouped, recast and rearranged wherever necessary to make it comparable with the current year figures.


Mar 31, 2012

1. The above Cash Flow Statement has been compiled from and is based on the Balance Sheet as at 31st March, 2012 and the related Statement of Profit and Loss for the year ended on that date.

2. The above Cash Flow Statement has been prepared under "Indirect Method" as set out in the Accounting Standard (AS-3) on "Cash Flow Statement", issued by The Institute of Chartered Accountants of India and reallocations required for this purpose are made by the Company.

3. In the above Cash Flow Statement, Cash and Cash Equivalents do not include bank balances of unpaid dividend account which are not available for use by the Company.

4. Figures in parenthesis represent outflow.

5. Previous year's figures have been regrouped, recast, wherever necessary, to conform current year's presentation.

a) Rights, preferences and restrictions attached to shares :

i) The Company has two types of share capital i.e. equity and preference. These shares carry the same right as mentioned in Sections 85 and 87 of the Companies Act, 1956. Pursuant to the Scheme of Arrangement approved by the Hon'ble High Court at Calcutta by an Order dated 2nd July 2008, preference shares also carry a right to be paid a fixed premium of 50% at the time of redemption.

ii) 12.5% Redeemable Cumulative Preference Shares :

Pursuant to Order of the Hon'ble High Court at Calcutta on 2nd July 2008, 1,055,086 12.5% Redeemable Cumulative Preference Shares of Rs. 10/- each were issued and allotted on 4th September 2008 by way of conversion of equal number of Equity Shares of Rs. 10/- each without payment being received in cash. These Preference Shares are redeemable at a premium of 50% at the end of five years from the date of issue i.e. 03/09/2013 or earlier at the option of the Company.

Note :

i) General Reserve includes Revenue Reserve of Rs. 17,871,849/- being difference between assets and liabilities taken over after adjustment of consideration money in terms of Scheme of Amalgamation of United Credit Financial Services Ltd.

Note :

(a) Other payables represent amount payable on account of liabilities for expenses and statutory dues.

(**) 250,000 Shares of United Nanotech Products Ltd. have been pledged on Collateral Security with Technology Development Board, New Delhi.

1.1 Contingent liabilities not provided for in respect of:

Income tax demand for the Assessment Year 1996-97 amounting to Rs. 6,900,919/- (Previous year Rs. 6,900,919/-) including Interest of Rs. 1,031,539/- calculated upto July 2008 against which the Company had filed an application under Section 260A of the Income Tax Act before the Hon'ble High Court at Calcutta. However a sum of Rs. 6,900,919/- (Previous year Rs. 6,900,919/-) had been paid under protest which has been shown under Long- Term Loans and Advances in NOTE 11.

1.2 In respect of certain parties where suits have been filed and settlements made, interest has been calculated upto the date of filing suits/settlements. Amount so received taken into accounts on Cash Basis.

1.3 The Company has followed the prudential norms prescribed by the Reserve Bank of India in respect of income recognition and provision for non performing assets and accordingly during the current year provision of Rs. 285,600/- (Previous year Rs. NIL) has been made and a sum of Rs. NIL (Previous year Rs. 1,038,389/-) has been written off.

1.4 In order to comply with the Notification No.DNBS/223/CGM(US)-2011 dated 17/01/2011 issued by Reserve Bank of India, the Company has made balance provision of Rs. 13,857/- (previous year Rs. 426,934/-) for Standard Assets at 0.25% of outstanding loan amount, making thereby a total provision of Rs. 440,791/- for the year ended 31.03.2012. The said provision has been separately shown as "Contingent Provisions against Standard Assets" under the head "Long-Term Provisions" under Non-Current Liabilities in Note 5 of Balance Sheet.

1.5 The Company had submitted its bid during the financial year 2010-11 to Industrial Investment Bank of India Ltd (IIBI) for purchase of Non-performing Assets (NPA) pertaining to India Jute and Industries Ltd. The Company had been declared the successful bidder for the same by IIBI vide its letter no. IIBI/HO/275/2011 dated 3rd February 2011. As per norms of Tender Document, Company has paid full bid money of Rs. 2,856,000/- to IIBI Ltd. towards such purchase. The Deed of Assignment of Debt, in this regard was executed on 1st July 2011, before the Additional Registrar of Assurance III, Kolkata.

Pursuant to Section 135 of the Companies Act, 1956 modification of charge in favour of the Company, being assignee, has been filed with the Registrar of Companies, West Bengal.

The above NPA (Loan Assets) so purchased has been shown as Long-term Loans & Advances under Non- Current Assets in Note 11 of Balance Sheet.

As required under the prudential norms prescribed by the Reserve Bank of India, a provision of Rs. 285,600/- has been made on purchase of Non-performing Assets. The said provision has been shown as Long-term Provisions under Non-Current Liabilities in Note 5 of Balance Sheet.

1.6 The Company is predominantly engaged in Non-banking Financial Activities and therefore Segment Reporting as envisaged in Accounting Standard (AS-17) on Segment Reporting is not applicable.

1.7 There are no reported micro, small and medium enterprises as defined in "The Micro, Small and Medium Enterprise Development Act, 2006" to which the Company owes dues and as such the disclosure requirements under Section 22 of the said Act does not arise.

1.8 Employee Benefits

Long Term Defined Benefit Plans in respect of Gratuity and Compensated Absences as on 31st March 2012 as per Actuarial Valuations using Projected Unit Credit Method and recognised in the financial statements in respect of Employee Benefit Schemes.

The above MAT Credit entitlement is eligible for set off in subsequent years.

1.9 The Company has been informed by United Nanotech Products Ltd. (UNTPL) that there has been substantial increase in revenue during the financial years 2010-2011 and 2011-2012. Going by this trend, the management of UNTPL is confident that in a span of five years, they will be able to liquidate accumulated loss.

Considering the facts as stated by UNTPL, there is no permanent diminution in the value of investments made by United Credit Ltd. and hence the question of provision for shortfall in the value of investment does not arise.

1.10 Paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.

As required in terms of paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank Directions, 2007, the Note to the Balance Sheet is appended hereunder.

Notes:-

1. As defined in paragraph 2(1)(xii) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998.

2. Provisioning norms shall be applicable as prescribed in Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.

3. Market value in respect of quoted investments and break up / fair value / NAV in respect of unquoted investments are disclosed except investments in unquoted equity shares & preference shares of United Nanotech Products Limited for which break up value could not be ascertained, hence disclosed at book value.

1.11 Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended March 31, 2012 are prepared as per the Revised Schedule VI. Accordingly, previous year figures have also been reclassified to conform to this year's classification and also have been regrouped, recast and rearranged wherever necessary to make it comparable with the current year figures. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.


Mar 31, 2011

1. Accounting of Assets given on finance lease upto 31st March 2001 has been made as per earlier Guidance Note on Accounting for leases issued by The Institute of Chartered Accountants of India.

2. General Reserve Includes Revenue Reserve of Rs.17,871,849/- being difference between assets and liabilities - taken over after adjustment of consideration money in terms of Scheme of Amalgamation of United Credit Financial Services Limited.

3. Contingent liabilities not provided for in respect of:

Income tax demand for the Assessment Year 1996-97 amounting to Rs. 6,900,919/- (Previous year Rs. 6,900,919/-) including Interest of X1,031,539/- calculated upto July 2008 against which the Company had filed an application under Section 260A of the Income Tax Act before the Hon'ble High Court at Kolkata. However a sum of Rs. 6,900,919/- (Previous.year Rs. 6,900,919/-) had been paid under protest which has been shown under Loans and Advances.

4. In respect of certain parties where suits have been filed and settlements made, interest has been calculated upto the date of filing suits/settlements. Amount so received taken into accounts on Cash Basis.

5. The Company has followed the prudential norms prescribed by the Reserve Bank of India in respect of income recognition and provision for non performing assets and accordingly during the year provision of Rs. NIL (Previous year Rs. NIL) has been made and a sum of Rs. 1,038,389/- (Previous year Rs. 3,078,202/-) has been written off.

6. In order to comply with the Notification No.DNBS/223/CGM(US)-2011 dated 17/01/2011 issued by Reserve Bank of India, the Company has made provision of Rs. 426,934/- for Standard Assets at 0.25% of outstanding amount. The said provision has been separately shown as "Contingent Provisions against Standard Assets" under the head "Provisions" in the Balance Sheet.

7. Pursuant to Section 205C(2)(d) of the Companies Act, 1956, the Company has transferred an amount of Rs. 4,538,055/- (Previous year
8. The Company had submitted its bid during the current financial year to Industrial Investment Bank of India Ltd (IIBI) for purchase of non performing assets pertaining to India Jute and Industries Ltd. The Company had been declared the successful bidder for the same by IIBI vide its letter no.HBI/HO/275/2011 dated 3rd February 2011. Out of total approved bid money of Rs. 2,856,000/-, Rs. 2,142,000/- has been paid by the Company to IIBI as advance towards such purchase. The execution of assignment agreement in respect of this purchase is in process,pending completion of execution of assignment agreement. The amount paid to IIBI has been shown under Loans and Advances in Schedule 9.

12. The Company is predominantly engaged in Non-banking Financial Activities and trading/dealing in shares and therefore Segment Reporting as envisaged in Accounting Standard (AS-17) on Segment Reporting is not applicable.

15. As required in terms of paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies

Prudential Norms (Reserve Bank) Directions, 2007, the schedule to the Balance Street is appended.

17. There are no reported micro, small and medium enterprises as defined in "The Micro Small and Medium Enterprise Development Act, 2006" to which the Company owes dues and as such the disclosure requirements under Section 22 of the said Act have not been made.

18. Provision for Minimum Alternative Tax for the current year has been made in view of Inadequate Tax under other provisions of the Income Tax Act, 1961.

19. The Previous year's figures have been regrouped, recast and rearranged wherever necessary to make it comparable with the current year figures.


Mar 31, 2010

1. Accounting of Assets given on finance lease upto 31st March 2001 has been made as per earlier Guidance Note on Accounting for leases issued by The Institute of Chartered Accountants of India.

2. General Reserve includes Revenue Reserve of Rs.17,871,849/- being difference between assets and liabilities taken over after adjustment of consideration money in terms of Scheme of Amalgamation of United Credit Financial Services Limited.

3. Contingent liabilities not provided for in respect of:

Income tax demand for the Assessment Year 1996-97 amounting to Rs.6,900,919/- (Previous year Rs.6,900,919/-) including Interest of Rs.1,031,539/- calculated upto July 2008 against which the Company has filed an application under Section 260A of the Income Tax Act before the Honble High Court at Kolkata. However a sum of Rs.6,900,919/- (Previous year Rs.6,900,919/-) has been paid under protest which has been shown under Loans and Advances.

4. In respect of certain parties where suits have been filed and settlements made, interest has been calculated upto the date of filing suits/settlements. Amount received taken into accounts on Cash Basis.

5. The Company has followed the prudential norms prescribed by the Reserve Bank of India in respect of income recognition and provision for non performing assets and accordingly during the year provision of Rs.NIL (Previous year Rs.1,423,594/-) has been made and a sum of Rs.3,078,202/- (Previous year Rs.177,056/-) has been written off.

6. a) The debentures issued by the Company had been redeemed on 1st April 2003 and accordingly the unclaimed debentures have been transferred to current liabilities. b) Pursuant to legal opinion obtained by the Company, that Section 205C (2) (e) of the Companies Act, 1956 dealing with transfer to Investor Education and Protection Fund, of interest accrued on the amounts referred to in clauses (a) to (d) of Section 205C (2), is not applicable in respect of debentures not matured, as Section 205C (2) (d) refers to "Matured Debentures with Companies", the Board of Directors decided at the meeting held on 25th January, 2010 to write back to the credit of Other Income, the unclaimed interest amounting to Rs.1,363,719/- on unmatured debentures for the years commencing from 2000-2001 to 2002-2003, which remained unclaimed for more than seven years as at 31st March 2010.

7. As at Balance Sheet date, there were no amounts due on account of unpaid dividends, which are required to be transferred to Investor Education and Protection Fund (IEPF), as required under Section 205C of the Companies Act, 1956 of India.

8. The Company is predominantly engaged in Non-banking Financial Activities and trading/dealing in shares and therefore Segment Reporting as envisaged in Accounting Standard (AS-17) on Segment Reporting is not applicable.

9. As required in terms of paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007, the schedule to the Balance Sheet is appended.

10. Based on the legal opinion, all the acquisition of shares and transactions thereof have been reckoned as long-term investments for the purpose of these accounts.

11. Debts (considered good) aggregating to Rs.98,521/- include other than Standard accounts amounting to Rs.68,000/- as defined under Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 2007 as amended, against which appropriate provisions have been made in these financial statements pursuant to the said Directions.

12. There are no reported micro, small and medium enterprises as defined in "The Micro Small and Medium Enterprise Development Act, 2006" to which the Company owes dues and as such the disclosure requirements under Section 22 of the said Act have not been made.

13. The Service tax amounts of Rs.36,788/-, Rs.70,707/- & Rs.88,385/- relating to October 2008 to March 2009, April 2009 to September 2009 and October 2009 to March 2010 remaining unpaid as on 31st March 2010 respectively, have been paid on 22/04/2010 after adjusting input tax credit of Rs.58,658/- and an amount of Rs.8,784/- paid towards interest. The amount related to rent on Immovable Property situated at 225C, A.J.C. Bose Road, Kolkata - 700 020 which was in arrear because of stay order granted by various High Courts and subsequent judgements pronounced in favour of tenants. However, after the amendment in the Finance Bill, 2010 this year, the same has been paid with interest as mentioned above and all necessary disclosures have been made retrospectively to the concerned Authorities.

14. Provision for Minimum Alternative Tax has been made in view of absence of normal tax this year.

15. The Previous years figures have been regrouped, recast and rearranged wherever necessary to make it comparable with the current year figures.

 
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