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Notes to Accounts of VCK Capital Market Services Ltd.

Mar 31, 2015

NOTE 1 : LONG TERM LOANS AND ADVANCES

(1) Presently, the Company is involved in Marketing of Mutual Funds. It is not involved in any NBFC Activity. Therefore, in the opinion of the Management, relevant provision involving NBFC activity is not applicable.

(2) Other Loans includes 40,00,000/- [P.Y. 40,00,000/-] which is sub-judice and pending final outcome of the claim preferred by the Company, no additional write off/provisioning is considered necessary. Further, the Company has been allotted fully paid equity shares at par against other loans of 66,90,001/- outstanding as at April 01, 2014, which was a related subject matter of the aforesaid sub-judice loan. Since the Company plans to dispose off the shares allotted against the loan amount in the near future, the same has been classified as Stock-in-Trade.

(3) Advances to related parties have been duly confirmed by the concerned related parties.

(4) In the opinion of the Management, the Long Term Loans and Advances are stated at amounts which are fully recoverable.

NOTE 2 : OTHER NON-CURRENT ASSETS

- Against the Long Term Trade Receivables of Rs 64,82,240/ - due from a party outstanding as at April 01, 2014 [which was a related subject matter of an advance amount of 40,00,000/- against which the Company has preferred a claim and the matter is sub-judice], the Company has been allotted fully paid equity shares at par. Since the Company plans to dispose off the shares allotted in the near future, the same has been classified as Stock-in-Trade.

NOTE 3 : INVENTORIES

(1) Stock-in-Trade is valued at lower of cost or net realizable value. The net realizable value has been taken as the Fair Market Value, determined on the basis of Rule 11U and 11UA of the Income Tax Rules. However, where the Fair Market Value of unquoted shares is not readily available, the same has been taken at the cost price. In the opinion of the Management, there would be no diminution in the value of such shares held as Stock-in-Trade and the amount realizable would not be lower than the cost price.

(2) M/s. Innovative Capital Strategies Private Limited is classified as an Associate Company as per Section 2(6) of the Companies Act, 2013, since more than 20% of the Equity Share Capital of the Entity is held by the Company. However, in the opinion of the Management, since the same are held as Stock-in-Trade and would be disposed off in the near future, consolidation of the accounts of the said Entity would not be required as per Clause 7 of Accounting Standard 23.

NOTE 4 : CASH AND CASH EQUIVALENTS

- Certain balance lying in Dormant Banking Accounts aggregating to 2,48,569/- [P.Y. 2,48,569] has not been adjusted/ written off, pending final outcome of the appeal preferred by the Company against the erstwhile Bank of Rajasthan Limited [since taken over by ICICI Bank Limited]

(5) CONTINGENT LIABILITIES

(Rs/000s)

SI. Particulars As On As On No. March 31, 2015 March 31, 2014

1. Contingent Liabilities [not -- -- provided for] in respect of claims against the Company not acknowledged as debts

2. Estimated amount of contracts -- -- remaining to be executed on Capital Account [Net of Advances]

(6) Pursuant to the orders of the Hon'ble High Court dated June 14, 1999 and the Debts Recovery Tribunal-I, Kolkata dated December 06, 1999, no further amounts are payable by the Company to ICICI Bank Limited [formerly Bank of Rajasthan Limited]. The Hon'ble High Court vide its order dated June 14, 1999 directed the Company to collect all balance lease rentals. ICICI Bank Limited [formerly Bank of Rajasthan Limited] has filed an Appeal on February 21, 2000 challenging the order dated June 14, 1999. No stay has yet been obtained although the final result of the Appeal is awaited. Therefore, in the opinion of the Management no provision is considered necessary, since no further amounts are payable by the Company to ICICI Bank Limited [formerly Bank of Rajasthan Limited].

(7) Balances of Sundry Creditors, Deposits, certain Bank Accounts and Advances are subject to confirmation and reconciliation. However, in the opinion of the Management, all the Loans and Advances are considered good and recoverable.

(8) No provision for Current Income Tax [including Minimum Alternate Tax] has been made in view of the Carried Forward Losses, including unabsorbed Depreciation.

(9) Based on the information/ documents available with the Company, there are no dues to Micro, Small and Medium Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006 as at March 31, 2015.

(10) Impairment/Loss of Assets ~ Since the Company does not have any significant Assets, the provisions of AS 28 relating to impairment of Assets is not applicable for the relevant year. Also, in the opinion of the Management, the Current Assets, Loans and Advances are fully recoverable and no Losses are anticipated.

(11) There have been no Earnings or Expenses in Foreign Currency during the relevant year.


Mar 31, 2014

1) Presently, the company is involved in Marketing of Mutual Fund .It is not involved in any NBFC activity. Therefore, in the opinion of the management, relevant provision involving NBFC activity is not applicable.

2) Other loans includes Rs.40,00,000/- (Previous Year Rs.40,00,000/-) which is sub-judice, and pending the final outcome of the claim preferred by the Company. No additional write off/provisioning is considered necessary at present. Other loan also includes an amount of Rs.66,90,001/- (Previous Year Rs.66,90,001) due from another party, which is a related subject matter of the aforesaid sub-judice loan against which the Company has preferred a claim. Pending outcome of the sub-judice claim, no additional write off/provisioning is considered necessary at present for this loan amount also. Against the said two loan amounts an aggregate amount of Rs.46,70,000/- has already been provided in the books

3) Advances to related parties have been duly confirmed by the concerened related parties.

4) In the opinion of the Management, the long term loans and advances are stated at amounts which are fully recoverable.

NOTE 5 : CONTINGENT LIABILITIES (Amount in Rupees)

Sl. No. Particulars As On As On March 31, 2014 March 31, 2013

1. Contingent Liabilities (not provided for) in respect of Claims against the Company not acknowledged as Debts NIL NIL

The Company is contingently liable along with VCK Investments Private Limited for the Corporate Guaran- tee given to J.M. Financial Products Limited for the Term Loan Facility of Rs.10,00,00,000/- (Rupees Ten Crores Only) (Previous Year Rs.10,00,000,00/-) taken by VCK Share & Stock Broking Services Ltd.

2. Estimated Amount of Contracts remaining to be executed on NIL NIL Capital Account (Net of Advances)

6. Pursuant to the orders of the Hon''ble High Court dated June14,1999 and the Debts Recovery Tribunal -I Kolkata dated December 06,1999 no further amounts are payable by the Com- pany to ICICI Bank Ltd (Formerly known as The Bank of Rajasthan Ltd ) The Hon''ble High Court vide its Order dated June 14, 1999 directed the Company to collect all balance lease rentals. The ICICI Bank Ltd (Formerly Bank of Rajasthan Ltd) has filed an Ap- peal on February 21, 2000 challenging the Order dated June 14, 1999. No stay has yet been obtained although the final result of the appeal is awaited. Therefore, in the opinion of the Manage- ment no Provision is considered necessary since no further amounts are payable by the Company to The Bank of Rajasthan Limited.

7. Balances of Sundry Creditors, Deposits, certain Bank accounts and Advances are subject to confirmation and reconciliation. However, in the opinion of the Management, all the loans and advances are considered good and recoverable.

8. No provision for current income tax (including Minimum Alter- nate Tax) has been made in view of the carried forward losses, including unabsorbed depreciation.

9. Based on the information/documents available with the com- pany, there are no dues to Micro, Small and Medium Enterprises as defined in the Micro, Small and Medium Enterprises Develop- ment Act, 2006 as at March 31, 2014.

10. Impairment/loss of Assets – Since the Company does not have any significant assets other than freehold Land, the provisions of AS 28 relating to impairment Assets is not applicable for the rele- vant year. Also, in the opinion of the Management, the current assets, loans and advances are fully recoverable and no losses are anticipated.

11. Since investments in shares are securities are not considered as goods, quantitative information thereof are not given.

12. There have been no earnings or expenses in foreign currency during the relevant year.

13. Previous year''s figures have been regrouped and rearranged wherever necessary.

14. Figures have been rounded off to the nearest thousand rupees.


Mar 31, 2013

NOTE 1 : CONTINGENT LIABILITIES

(Amount in Rupees)

Sl. No. Particulars As On As On March 31, 2013 March 31, 2012

1. Contingent Liabilities (not provided for) in respect of Claims gainst the Com- pany not acknowledged as Debts NIL NIL

The Company is contingently liable along with VCK Investments Private Limited for the Corporate Guarantee given to J.M. Financial Prod- ucts Limited for the Term Loan Facility of Rs.10,00,00,000/- (Rupees Ten Crores Only) (Previous Year Rs.10,00,000,00/-) taken by VCK Share & Stock Broking Services Ltd.

2. Estimated Amount of Contracts remaining to be executed on Capital Account NIL NIL (Net of Advances)

2. Pursuant to the orders of the Hon''ble High Court dated June14,1999 and the Debts Recovery Tribunal -I Kolkata dated December 06,1999 no further amounts are payable by the Company to ICICI Bank Ltd (Formerly known as The Bank of Rajasthan Ltd) The Hon''ble High Court vide its Order dated June 14, 1999 directed the Company to collect all balance lease rentals. The ICICI Bank Ltd (Formerly Bank of Rajasthan Ltd) has filed an Appeal on February 21, 2000 challenging the Order dated June 14, 1999. No stay has yet been obtained although the final result of the appeal is awaited. Therefore, in the opinion of the Management no Provision is con- sidered necessary since no further amounts are payable by the Company to The Bank of Rajasthan Limited.

3. Balance of Sundry Debtors, Sundry Creditors, Deposits, certain Bank accounts and Advances are subject to confirmation and recon- ciliation. However, in the opinion of the Management, the sundry debtors and loans and advances are considered good and recoverable.

4. No provision for current income tax (including Minimum Alternate Tax) has been made in view of the carried forward losses, including unabsorbed depreciation.

5. Based on the information/documents available with the company, there are no dues to Micro, Small and Medium Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006 as at March 31, 2013.

6. Impairment/loss of Assets – Since the Company does not have any significant assets other than freehold Land, the provisions of AS 28 relating to impairment Assets is not applicable for the relevant year. Also, in the opinion of the Management, the current assets, loans and advances are fully recoverable and no losses are anticipated.

7. Since investments in shares are securities are not considered as goods, quantitative information thereof are not given.

8. There have been no earnings or expenses in Foreign Currency during the relevant year.

NOTE 9 : RELATED PARTY DISCLOSURE

Details of Transactions with Related Parties as per AS 18 :

1. Individuals Exercising Significant Influence : Mr. Madhukar V. Kampani, Chairman

Mr. Samir Kothari, Managing Director Mr. Hemal Kampani, Director

2. Relatives of the above : None Associated with the Company.

Mr. Hemal Kampani is the son of Mr. Madfhukar V. Kam- pani

3. Entities in which persons listed in 1 and 2 exercise significant influ- : VCK Share & Stock Broking Services Limited ence VCK Commodity Services Private Limited

VCK Forex Services Private Limited VCK Investments Private Limited

Note : Related Party Relationship are as identified by the Management and relied upon by the Auditors''

10. Previous year''s figures have been regrouped and rearranged wherever necessary.

11. Figures have been rounded off to the nearest thousand rupees.


Mar 31, 2012

Provident Fund contribution are made to the Employees Provident Fund Scheme of the Government of India. The Company does not have Superannuation Pension Plan since the same is covered by contributions to the Pension Scheme under Employees Provident Fund Act The Company has not made any in- vestment in Plan Assets towards the Gratuity Liability.

UNCLAIMED DEPOSIT

Against the amount lying under Unclaimed Public Deposit, an Investors Education and Protection Fund has been opened. The amount lying in Investor Education and Protection Fund as on March 31, 2012 is Rs.45,533/-

In compliance with the Accounting Standard - AS 22 relating to "Accounting For Taxes on Income" issued by the Institute of Chartered Accountants of India, the Company has adjusted the Deferred Tax Liability (Net) a rising out of timing differences for the period up to March 31, 2012. An amount of Rs.2,474/- has been written back in the Profit and Loss Account for the year ending March 31, 2012

Income of Rs. Nil (Nil) accrued on the above loans/lease debtors has not been credited in the accounts as per Reserve Bank of India guidelines.

As per Reserve Bank of India Guidelines, Loans & Advances and Sundry Debtors aggregating Rs.76,91,349/- (Previous year Rs.76,91,449/-) and Rs.63,18,425/- (Previous year Rs.63,17,427/-) respectively are "Sub-Standard" and Rs.40,00,000 /- and Rs.1,64,811/- are "Doubtful Assets". Necessary provision on account of the above have been made on doubtful assets. In the opinion of the management, provision for sub-standard asset would be made on the final outcome of the negotiations with them.

As per Reserve Bank of India Guidelines, Income on Non-Performing Assets have only been recognized to the extent realized

Presently, the Company is involved in Marketing of Mutual Fund. It is not involved in any NBFC activity. So in the opinion of the management, relevant provision in involving NBFC activity is not applicable.

Pursuant to the Orders of the Honble High Court dated June 14, 1999 and the Debts Recovery Tribunal-1, Kolkata dated December06, 1999, no fur there amounts are payable by the Company to ICICI Bank Limited (Formerly known as The Bank of Rajasthan Limited). The Hon'ble High Court vide its Order dated June 14, 1999 directed the Company to collect all balance Lease Rentals. ICICI Bank Limited (Formerly Bank of Rajasthan Limited) has filed an Appeal on February 21, 2000 challenging the Order dated June 14, 1999. No Stay has yet been obtained although the final result of the Appeal is awaited. Therefore, in the opinion of the Management no provision is considered necessary.

NON MOVING BANKACCOUNTS

Certain balance lying in dormant Banking Accounts aggregating To Rs.2,48,569/- (Previous Year Rs.2,48,569) has not been adjusted/ written off pending final outcome of the aforesaid appeal

DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES

Based on the information/documents available with the company, there are no dues to Micro, Small and Medium Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006 as at March 31,2012.

The Company has income from one Segment (i.e Retail Mobilization Services) so AS-17 (Segment Reporting) is not applicable.

All expenses are accounted for on an accrual basis, except statutory payments which are accounted for as and when paid (under Income/ Expenditure Recognition).

As required by the Accounting Standard - AS 18 "Related Parties Disclosure" issued by "The Institute of Chartered Accountants of India are as follows".

List of Related Parties with whom transactions have taken place during the year:

A) CONTROLLING COMPANIES :

None

B) SUBSIDIARY COMPANIES :

None

C) ASSOCIATE COMPANIES :

a) VCK Share & Stock Broking Services Limited

b) VCK Forex Services Private Limited

c) VCK Commodity Services Private Limited

d) VCK Investments Private Limited

D) KEY MANAGEMENT PERSONNEL :

a) Mr. Madhukar V. Kampani

b) Mr. Samir Kothari

c) Mr. Hemal Kampani

CONTINGENT LIABILITIES:

The Company is contingently liable along with VCK Investments Private Limited for the Corporate Guarantee to J. M. Financial Products Limited for the Term Loan Facility of Rs.10,00,00,000/-(Rupees Ten Crores only) taken by VCK Share & Stock Broking Services Limited

ADDITIONAL INFORMATION :{To the extent applicable to the Company}

Shares/Securities are not considered as goods and hence, quantitative information thereof are not given.

Previous Year's Figures are given in Parenthesis and these have been regrouped and/or rearranged wherever necessary.


Mar 31, 2010

1. There is a shortfall of Rs. 1,03,99,645/- in the Market Value of quoted Investments as compared to their book value as on the Balance Sheet date. Since all these are long term in nature with no permanent diminution in their values, particularly in view of present market position, no provision is considered necessary.

2. As per Reserve Bank of India Guidelines, Loans & Advances and Sundry Debtors aggregating Rs. 85,52,779/- (Previous year Rs. 74,14,350/-) and Rs. 63,16,563/- (Previous Year Rs. 63,16,563/-) respectively are "Sub-Standard" and Rs. 40,00,000/- and Rs. 1,64,811/- are "Doubtful Assets". Necessary provision in terms of the above guidelines has been made in the accounts. Necessary legal steps have been taken by the Company, wherever considered appropriate.

3. DUES TO MICRO. SMALL AND MEDIUM ENTERPRISES

Based on the information/documents available with the Company, there are no dues to Micro, Small and Medium Enter- prises as defined in the Micro, Small and Medium Enterprises Development Act, 2006 as at March 31, 2010.

4. Income of Rs. Nil (Nil) accrued on the above loans/lease debtors has not been credited in the accounts as per Reserve Bank of India Guidelines.

5. As per Reserve Bank of India Guidelines, Income on Non-Performing Assets have only been recognized to the extent real- ized.

6. In compliance with the Accounting Standard - AS 22 relating to "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the Company has adjusted the Deferred Tax Liability (net) arising out of timing differences for the period upto March 31, 2010. Rs. 42,215/- has been written back in the Profit and Loss Account for the year ending March 31, 2010.

7. The Company has income from one Segment (i.e. Retail Mobilization Services) so AS-17 (Segment Reporting) is not applica- ble.

8. All expenses are accounted for on an accrual basis, except statutory payments which are accounted for as and when paid (under Income/Expenditure Recognition).

9. Consequent upon the Orders of the Honble High Court dated June 14, 1999 and the Debts Recovery Tribunal-I, Kolkata dated December 06, 1999, no further amounts are payable by the Company to The Bank of Rajasthan Limited. The Honble High Court vide its Order dated June 14, 1999 directed the Company to collect all balance Lease Rentals. The Bank of Rajast- han Limited has filed an Appeal on February 21, challenging the Order dated June 14, 1999, no Stay has yet been obtained although the final result of the Appeal is awaited. Therefore, in the opinion of the Management no provision is considered necessary.

10. As required by the Accounting Standard - AS 18 "Related Parties Disclosure" issued by The Institute of Chartered Account- ants of India are as follows".

List of Related Parties with whom transactions have taken place during the year:

A) CONTROLLING COMPANIES :

None

B) SUBSIDIARY COMPANIES:

None

C) ASSOCIATE COMPANIES :

None

D) KEY MANAGEMENT COMPANIES :

None

11. ADDITIONAL INFORMATION : {To the extent applicable to the Company}

Shares/Securities are not considered as goods and hence, quantitative information thereof are not given.

12. Previous Years Figures are given in Parenthesis and these have been regrouped and/or rearranged wherever necessary. Signature to Schedule 1 to 13

 
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