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Notes to Accounts of Wall Street Finance Ltd.

Mar 31, 2015

A. Information on equity shares allotted as bonus shares during the period of five years immediately preceding the reporting date : Nil

B. Terms / rights attached to equity shares

The Company has one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share.

C. Terms of conversion / redemption of convertible preference shares : N.A.

i. The Cash Credit / Overdraft Limits and Term Loan to the extent of Rs. 300.00 lacs are secured by hypothecation of stock of foreign currencies, export receivables, western union receivables of the Company and SBLC provided by Western Union.

ii. Term Loan from Banks to the extent of Rs. 230 lacs is secured by lien on FDs provided by the Holding Company.

Based on the information of status of suppliers to the extent received by the Company, there are no micro and small enterprises included in trade payables to whom the payments are outstanding for a period of more than 45 days. Further, the Company has not received any Memorandum (as required to be filed by the suppliers with the notified authority under the Micro, Small and Medium Enterprises Development Act, 2006) claiming their status. Consequently, the amount paid / payable to these during the year is Rs. Nil; ( Previous year: Rs. Nil)

1.1: Premises Deposit includes deposits aggregating to Rs. 186.93 lacs which are disputed. After adjustment of lease rentals, already due, an amount of Rs. 186.93 lacs is recoverable. The Company had initiated legal proceedings in an earlier year comprising of a legal recovery suit for Rs. 167.72 lacs, which has been referred by the court to an arbitrator, and another suit and winding up petition for recovery of deposits Rs. 19.21 lacs. In view of the above, the Company is confident of recovery of such deposits and therefore no provision is considered necessary.

2.1: The Company had invested Rs. 25.00 lacs in redeemable preference shares of the erstwhile subsidiary company, Wall Street Commodities Private Limited (WSCPL), which were due for redemption in December 2011. In absence of such redemption by WSCPL, the Company had initiated legal recourse to recover the amount of investments and filed a winding up petition in the High Court. The High Court has passed order of winding up and appointed an Official Liquidator for liquidation. In absence of availability of latest financials of WSCPL, the Company is relying upon the last available audited accounts as at 31st March 2012, according to which the net worth of WSCPL was sufficient to redeem the total preference share capital of Rs. 25.00 lacs and therefore, no provision for diminution is considered necessary

During the year, the Company has collected a substantial amount of Rs. 474 lacs against an insurance claim filed in 2011-12 for losses arising out of some fraudulent transactions at a branch in southern region, leaving a balance of Rs 20.54 lacs, which is under process of recovery. The insurance claim of Rs. 280.34 lacs filed to cover third party claims arising out of such transactions becomes receivable only if such third party claims becomes actually payable.

2.2 Defined Benefit Plan

As per Accounting Standard 15 (AS 15), Employee Benefits, the Company has adopted the standard for Retirement benefits resulting into following:

a) Defined Contribution Plan

The Company makes contribution towards provident fund to a defined contribution retirement benefit plan for qualifying employees. Under the scheme, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit scheme to fund the benefit.

b) Defined Benefit Plan

The Company makes annual contributions to the Employees' Gratuity Scheme of the Max New York Life Insurance Co. Ltd., a funded defined benefit plan for qualifying employees.

The present value of defined benefit obligation and the relevant current service cost were measured using Projected Unit Credit Method with actuarial valuations being carried out at each balance sheet date.

The Gross Managerial Remmuneration includes Rs.57.72 Lacs (PY 50.67 Lacs) to Mr. Arun Ajmera, the Chief Executive Officer, Rs.25.81 Lacs (PY 24.23 Lacs) to Mr. Gopal Tiwari, the Chief Financial Officer, for the period from 1st April 2014 to 11th February 2015, Rs.5.77 to Mr. Bharat Adnani from 11th February 2015, the Chief Financial Officer and Rs. 2.43 to Ms. Chaitali Desai, Company Secretary from 26th November 2014.

NOTE NO. 3

CONTINGENT LIABILITIES

a) Bank Guarantees Issued by the Bank on behalf of the Company 231.65 231.65

b) Other Legal Matters - -

Claim against the Company not acknowledged as debts

Claims have been made by some parties relating to fraudulent transactions 280.34 280.34 at a branch.

Labour matters involving issues relating to regularization of employment, 64.28 64.28 termination of employment, compensation etc.

In all the above cases, the Company is hopeful of succeeding and as such does not expect any significant liability to crystallize.

c) Demands relating to TDS agreegating to Rs. 35.23 Lacs are reflected on the TRACES Website. Such demands are mainly on account of Challan Mismatch, Invalid PAN error, PAN not available, Wrong deductee code mentioned in the TDS return etc. The Company is actively rectifying the defects in filling due to which such demand is likely to be substantially reduced on completion of rectification process. Pending completion of the process, no provision is considered neccessary.

NOTE NO. 4

In the opinion of the Board, current assets, loans and advances have value equal to the amount shown in the Balance Sheet, if realized in the ordinary course of business.

NOTE NO. 5

As per CBEC Circular dated 14th October 2014, Service Tax has been extended to MTSS commission income received by agents of foreign bank / company. As per the opinion of a legal expert, the company's arrangement with Western Union is on a principal-to-principal basis and does not fall within the definition of the word 'Intermediaries' as defined in Rule 2(f) of the Place of Provision of Service Rules, 2012 (PSR). Consequently, services rendered by WSFL will fall under Rule 3 of PSR and will qualify as export of service and therefore not chargeable to service tax.

NOTE NO. 6

RELATED PARTY TRANSACTIONS

Related Parties have been classified below as per Accounting Standard 18, Related Party. Transactions during the year with these parties have been tabulated as per this classification:

A) As per Clause 3(a) of AS 18:

a) Smart Value Ventures Pvt. Ltd. (Earstwhile Spice Global Investments Pvt. Ltd)

b) S Global Insurance Advisory Ltd.

B) Individuals owning directly or indirectly an interest in the voting power of the reporting enterprise that gives them significant influence over the enterprise, and relative of such individual (Clause 3(c) of AS 18):

a) Mr. Dilip Modi, Ms. Divya Tongya and their relatives within the meaning to Section 2(77) of the Companies Act, 2013 read with Rule 4 of the (Companies Specification of Deflations Details) Rules, 2014.

C) Key Management Personnel (Clause 3(d) of AS 18) and their relatives within the meaning to Section 2(77) of the Companies Act, 2013 read with Rule 4 of the (Companies Specification of Definations Details) Rules, 2014:

a) Mr. Arun Ajmera

b) Mr. Gopal Tiwari (upto 11th February 2015)

c) Mr. Bharat Adnani (from 11th February 2015)

d) Ms. Vandita Agarwal (upto 4th June 2014)

e) Ms. Chaitali Desai (from 26th November 2014)

D) Enterprises over which any person described in (B) or (C) is able to exercise significant influence (Clause 3(e) of AS 18) (related parties where transactions have taken place during the year): -

a) S Mobility Limited

b) Spice Retail Limited

c) Spice Innovative Technologies Private Limited

d) Smart Entertainment Private Limited

e) Spice Global Investments Private Limited

f) Spicebulls Investments Limited (erstwhile known as 21st Century Capitals Limited)

g) Spice Televentures Private Limited (Amalgamated with Spice Mobility Ltd. w.e.f. 4th November 2010)

h) Goldman Securities Private Limited (with effect from 30th September 2011)

i) Bharat IT Services Limited

j) Spice Digital Limited

k) Mobisoc Technology Private Limited

l) AGS Transact Technologies Limited

m) Spice Labs Private Limited

NOTE NO. 7

Schedule to the Balance Sheet of a Non-Banking Financial Company as required in terms of paragraph 13 of Non-Banking Financial (Non- Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.

NOTE NO. 8

The Company is engaged primarily in the business of forex and money transfer and hence, there is no separate reportable segment within the criteria defined under Accounting Standard 17 - Segment Reporting. The nature of Company's activities is such that geographical segments are not separately identified.

NOTE NO. 9

The Company uses forward exchange contracts to hedge against its foreign currency exposures related to the underlying transactions and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purposes.

The forward exchange contracts outstanding as at 31st March 2015 are as under Currency exchange USD/INR

(a) Number of sale contracts 3

(b) Aggregate amount (Rs. lacs) 7694.12

NOTE NO. 10

Previous year's figures have been regrouped / reclassified to make them comparable with those of current period.


Mar 31, 2014

1. NATURE OF OPERATIONS

Wall Street Finance Limited ("the Company") is a premier financial services company with forex and money remittance as its core activities. The Company engages in the buying and selling of foreign currencies, travellers'' cheques and various forex-related services. The Reserve Bank of India (RBI) has granted license to operate as an Authorised Dealer Category-II apart from holding a NBFC license as a Non-Deposit accepting financial company. The Company is also the principal agent of Western Union Financial Services - the world''s largest money transfer company.

2. a Information on equity shares allotted as bonus shares during the period of five years immediately preceding the reporting date : Nil

b. Terms / rights attached to equity shares

The Company has one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share.

c. Terms of conversion /redemption of convertible preference shares : N.A.

3. Premises Deposit includes deposits aggregating to Rs. 186.93 lacs which are disputed. After adjustment of lease rentals, already due, an amount of Rs. 186.93 lacs is recoverable. The Company had initiated legal proceedings in the previous year comprising of a legal recovery suit for Rs. 167.72 lacs, which has been referred by the court to an arbitrator, and another suit and winding up petition for recovery of deposits Rs. 19.21 lacs.

Based on the progress and the merits of the case, the Company is confident of recovery of such deposits and therefore no provision is considered necessary.

4. The Company had invested Rs. 25.00 lacs in redeemable preference shares of the erstwhile subsidiary company, Wall Street Commodities Private Limited (WSCPL), which were due for redemption in December 2011. In absence of such redemption by WSCPL, the Company had initiated legal recourse to recover the amount of investments. In absence of availability of latest financials of WSCPL, the Company had to rely upon the last available audited accounts as at 31st March 2012, according to which the net worth of WSCPL was sufficient to redeem the total preference share capital of Rs. 25.00 lacs and therefore, no provision for diminution is considered necessary.

5. Defined Benefit Plan

As per Accounting Standard 15 (AS 15), Employee Benefits, the Company has adopted the standard for Retirement benefits resulting into following:

a) Defined Contribution Plan

The Company makes contribution towards provident fund to a defined contribution retirement benefit plan for qualifying employees. Under the scheme, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit scheme to fund the benefit.

b) Defined Benefit Plan

The Company makes annual contributions to the Employees'' Gratuity Scheme of the Max New York Life Insurance Co. Ltd., a funded defined benefit plan for qualifying employees.

The present value of defined benefit obligation and the relevant current service cost were measured using Projected Unit Credit Method with actuarial valuations being carried out at each balance sheet date.

NOTE NO. 6

CONTINGENT LIABILITIES

Year ended Year ended 31.03.2014 31.03.2013 (Rs. lacs) (Rs. lacs)

a) Bank Guarantees Issued by the Bank on behalf of the Company 231.65 231.65

b) Other Legal Matters -

Claim against the Company not acknowledged as debts

Claims have been made by some parties relating to fraudulent 280.34 280.34

transactions at a branch.

Labour matters involving issues relating to regularization of employment, termination 64.28 65.60 of employment, compensation etc.

In all the above cases, the Company is hopeful of succeeding and as such does not expect any significant liability to crystallize.

c) Demands relating to TDS aggregating to Rs. 81.41 lacs are reflected on the TRACES Website. Such demands are mainly on account of Challan Mismatch, Invalid PAN errors, PAN not available, Wrong deductee code mentioned in the TDS return etc. The Company is actively rectifying the defects in filling due to which such demand has since reduced to Rs. 46.61 lacs and is likely to be substantially reduced on completion of the rectification process. Pending completion of the process, no provision is considered necessary.

NOTE NO. 7

In the opinion of the Board, current assets, loans and advances have value equal to the amount shown in the Balance Sheet, if realized in the ordinary course of business.

NOTE NO. 8

RELATED PARTY TRANSACTIONS

Related Parties have been classified below as per Accounting Standard 18, Related Party. Transactions during the year with these parties have been tabulated as per this classification:

A) As per Clause 3(a) of AS 18:

a) Smart Value Ventures Pvt. Ltd. (Erstwhile Spice Investments and Finance Advisors Pvt. Ltd.)

b) S Global Insurance Advisory Ltd.

B) Individuals owning directly or indirectly an interest in the voting power of the reporting enterprise that gives them significant influence over the enterprise, and relative of such individual (Clause 3(c) of AS 18):

a) Mr. Dilip Modi, Ms. Divya Modi-Tongya and their relatives within the meaning of section 6, read with Schedule 1A of the Companies Act, 1956

C) Key Management Personnel (Clause 3(d) of AS 18):

a) Mr. Arun Ajmera and his relatives within the meaning of section 6 read with Schedule 1A of the Companies Act, 1956.

b) Mr. Gopal Tiwari and his relatives within the meaning of section 6 read with Schedule 1A of the Companies Act, 1956.

D) Enterprises over which any person described in (B) or (C) is able to exercise significant influence (Clause 3(e) of AS 18) (related parties where transactions have taken place during the year): -

a) Spice Mobility Limited

b) Spice Retail Limited

c) Spice Innovative Technologies Private Limited

d) Spice Enfotainment Limited

e) Spice Global Investments Pvt. Ltd.

f) Spicebulls Investments Limited (erstwhile known as 21st Century Capitals Limited)

g) Spice Televentures Private Limited (Amalgamated with Spice Mobility Ltd. w.e.f. 4th Nov. 10)

h) Goldman Securities Private Limited (w.e.f 30th Sep. 2011.)

i) Bharat IT Services Limited

j) Spice Digital Limited

k) Mobisoc Technology Private Limited

l) AGS Transact Technologies Limited

m) Spice Labs Private Limited

n) S i2i Limited

o) G. M. Modi Hospital & Research Centre

NOTE NO. 9

The Company is engaged primarily in the business of forex and money transfer and hence, there is no separate reportable segment within the criteria defined under Accounting Standard 17 - Segment Reporting. The nature of Company''s activities is such that geographical segments are not separately identified.

The Company uses forward exchange contracts to hedge against its foreign currency exposures related to the underlying transactions and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purposes.

NOT NO. 10

Previous year''s figures have been regrouped / reclassified to make them comparable with those of current period.


Mar 31, 2013

1. NATURE OF OPERATIONS

Wall Street Finance Limited ("the Company") is a premier financial services company with forex and money remittance as its core activities. The Company engages in the buying and selling of foreign currencies, travellers'' cheques and various forex-related services. The Reserve Bank of India (RBI) has granted license to operate as an Authorised Dealer Category-ll apart from holding a NBFC license as a Non-Deposit accepting financial company. The Company is also the principal agent of Western Union Financial Services - the world''s largest money transfer company.

2.1: Premises Deposit includes amount aggregating to Rs. 186.93 lacs which are disputed.The Company had entered into a registered lease agreement with the erstwhile promoters of the Company for use of their office premises for which deposits of Rs. 225.00 lacs were paid. After adjustment of lease rentals, already due, an amount of Rs. 186.93 lacs was recoverable from such erstwhile promoters, which is now being disputed. The Company has initiated legal proceedings in the previous year which comprised of a legal recovery suit for Rs. 167.72 lacs, which has been referred by the court to an arbitrator and another suit and winding up petition for recovery of deposits Rs. 19.21 lacs.

Based on the legal suits filed by the Company and the facts and merits of the case, the Company is confident of recovery of such deposits and therefore no provision is considered necessary.

3.1: Claims receivable include an amount of Rs.211.80 lacs (RY. Rs. 211.80 lacs) being an insurance claim relating to loss of currency in the year 2003-04 for which the Company has preferred a suit in the Bombay High Court against the Insurance Company. The suit was dismissed by the High court during the previous year. The Company had submitted an appeal to reconsider to set aside such Court Order and the same has been admitted by the Honorable Court. Based on the facts and merit of the case, the Company is hopeful of recovery of the insurance claim and therefore no provision is considered necessary.

4.1: The Company had invested Rs. 25.00 lacs in redeemable preference shares of the erstwhile subsidiary company, Wall Street Commodities Private Limited (WSCPL), which were due for redemption in December 2011. In absence of such redemption by WSCPL, the Company has initiated legal recourse to recover the amount of investments. In absence of availability of latest financials of WSCPL, the Company has relied upon the audited accounts as at 31st March 2012, according to which the net worth of WSCPL was sufficient to redeem the total preference share capital of Rs. 25.00 lacs and therefore, no provision for diminution is considered necessary.

5.1: During the previous year, some fraudulent transactions at a branch in southern region were noticed which resulted losses aggregating to Rs. 521.61 lacs apart from third party claims of Rs. 280.34 lacs for which insurance claim has been filed.

The purvey by the Insurance Surveyor has been completed and the Company believes that the final survey report has been submitted to the Insurance Company. The Company has not received any intimation from the Insurance Company pointing out any discrepancy. Under these circumstances, the Company is hopeful of recovery of such insurance claim.

6.1 Defined Benefit Plan

As per Accounting Standard 15 (AS 15), Employee Benefits, the Company has adopted the standard for Retirement benefits resulting into following:

a) Defined Contribution Plan

The Company makes contribution towards provident fund to a defined contribution retirement benefit plan for qualifying employees. Under the scheme, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit scheme to fund the benefit.

b) Defined Benefit Plan

The Company makes annual contributions to the Employees'' Gratuity Scheme of the Max New York Life Insurance Co. Ltd., a funded defined benefit plan for qualifying employees.

The present value of defined benefit obligation and the relevant current service cost were measured using Projected Unit Credit Method with actuarial valuations being carried out at each balance sheet date.

The following table sets out the status of defined benefit plans as required under AS 15 as on March 31, 2013.

NOTE NO. 7

In the opinion of the Board, current assets, loans and advances have value equal to the amount shown in the Balance Sheet, if realized in the ordinary course of business.

NOTE NO. 8

RELATED PARTY TRANSACTIONS

Related Parties have been classified below as per Accounting Standard 18, Related Party. Transactions during the year with these parties have been tabulated as per this classification:

A) As per Clause 3(a) of AS 18:

a) Spice Investments and Finance Advisors Private Limited

B) Individuals owning directly or indirectly an interest in the voting power of the reporting enterprise that gives them significant influence over the enterprise, and relative of such individual (Clause 3(c) of AS 18):

a) Mr. DilipModi, Ms. Divya Modi and their relatives within the meaning of section 6, read with Schedule 1Aof the Companies Act, 1956

C) Key Management Personnel (Clause 3(d) of AS 18):

a) Mr. Arun Ajmera and his relatives within the meaning of section 6 read with Schedule 1A of the Companies Act, 1956.

D) Enterprises over which any person described in (B) or (C) is able to exercise significant influence (Clause 3(e) of AS 18) (related parties where transactions have taken place during the year): -

a) Spice Mobility Limited

b) Spice Retail Limited

c) Spice Innovative Technologies Private Limited

d) Spice Enfotainment Limited

e) Spice Global Investments Private Limited

f) Spicebulls Investments Limited (erstwhile known as 21st Century Capitals Limited)

g) Spice Televentures Private Limited (Amalgamated with Spice Mobility Ltd. w.e.f. 4th Nov. 10) h) Goldman Securities Private Limited

i) Bharat IT Services Limited

j) Spice Digital Limited

k) Mobisoc Technology Private Limited

I) AGS Transact Technologies Limited

m) Spice Labs Private Limited

n) S i2i Limited

NOTE NO. 9

The Company is engaged primarily in the business of forex and money transfer and hence, there is no separate reportable segment within the criteria defined under Accounting Standard 17 - Segment Reporting. The nature of Company''s activities is such that geographical segments are not separately identified.

NOTE NO. 10

The Company uses forward exchange contracts to hedge against its foreign currency exposures related to the underlying transactions and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purposes.

The forward exchange contracts outstanding as at March 31, 2013 are as under Currency exchange USD/ INR

(a) Number of buy contracts = Nil

(b) Aggregate amount (Rs. lac) = Nil

(c) Number of sale contracts = 14

(d) Aggregate amount (Rs. lac) = 4631.14

NOTE NO. 11

Previous period / year''s figures have been regrouped / reclassified to make them comparable with those of current period.

 
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