Notes to Accounts of AK Capital Services Ltd.

Mar 31, 2018

b. Terms / rights attached to equity shares

The Company has only one class of equity shares having a par value of ''10 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian rupees.

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

* Term loan from bank is secured against mortgage of the Company''s immovable property together with all structures and appurtenances thereon held by the Company situated at 8th Floor, Mafatlal Centre, Nariman Point, Mumbai 400 021.The loan amount is repayable in 20 quarterly installments commencing from the end of third month from the date of disbursement.

** Term loan from NBFC was secured against mortgage of the Company''s immovable property together with all structures and appurtenances thereon held by the Company situated at 8th Floor, Mafatlal Centre, Nariman Point, Mumbai 400 021.The loan amount was repayable in 12 quarterly installments commencing from the end of third month after the moratorium period of 24 months from the date of first disbursement, with a put and call option at the end of moratorium period and every 6 months thereon with 30 days notice. During the year, term loan has been fully repaid.

*** Vehicle loan from banks are repayable in 36 to 60 equated monthly installments along with interest from the date of loan. The loans are secured by hypothecation of motor vehicle purchased there against.

Note:

* Paid up per unit Rs. 49,430 (Previous year Rs.101,430)

During the year, cost of investment in Urban Infrastructure Venture Capital Limited has been reduced by Rs.3,640,000 (including Rs.2,870,000 pertaining to earlier years) towards reduction in paid up value of the funds on account of distribution received from Urban Infrastructure Opportunity fund by way of return of capital.

Consequent to the adoption of Accounting Standard 15 (AS 15 Revised 2005) on employee benefits, the following disclosures have been made as required by the standards :

1) Retirement benefits in the form of Provident fund are defined contribution scheme and the contributions are charged to the statement of profit and loss of the current year when the contribution to the respective fund is due. There are no other obligations other than the contribution payable to the respective fund.

2) Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation made at the end of each financial year.

NOTE - 1

SEGMENT REPORTING

The Company operates in a single business and geographical segment i.e. "Providing Merchant Banking Services" within India. Accordingly, no separate disclosures for primary business and secondary geographical segment are required.

Notes:

A) The related party relationships have been determined on the basis of the requirements of the Accounting Standard (AS) - 18 ‘Related Party Disclosures’ and the same have been relied upon by the auditors.

B) The relationships as mentioned above pertain to those related parties with whom transactions have taken place during the year, except where control exist, in which case the relationships have been mentioned irrespective of transactions with the relatives.

NOTE - 2 LEASES

i Where the company is lessee:

The Company has taken various office premises under operating lease that are renewable on a periodic basis at the option of both the lessor and lessee.

Notes:

The amount of minimum lease payments with respect to operating lease recognised in the statement of profit and loss for the year is Rs.29,620,965 (previous year Rs.41,046,664)

Above disclosure is for leases entered after 1 April 2001, as per Accounting Standard (AS) - 19 ‘Leases’as notified by Central Government of India.

NOTE - 3

Non Current Investments (Note 12) include '' 68,100,000 being amount invested in unquoted equity shares of a company (other than group company) in earlier years. The investee company is under going through severe financial difficulties and accordingly, petition for winding up is admitted by the Hon’ble High Court. However, having regard to the fact that the outcome of the said matter is still pending before High Court, management feels that diminution in the value of such long term unquoted investments in shares is of temporary in nature in accordance with Accounting Standard - 13 "Accounting for Investments" and there is no need to provide for any impairment loss of such investment at this point of time.

NOTE - 4

CORPORATE SOCIAL RESPONSIBILITY (CSR)

As per Section 135 of the Companies Act, 2013, a CSR committee has been formed by the Company. The areas for CSR activities are eradicating hunger, poverty and malnutrition, promoting preventive health care and sanitation and making available safe drinking water, promoting education, promoting gender equality, empowering women, setting up homes and ensuring environmental sustainability.

NOTE - 5

The Company has not received any intimation from its suppliers regarding their registration under the ‘Micro, Small and Medium Enterprises Development Act, 2006’. Hence, no disclosure has been made.

NOTE - 6

There was no impairment loss on the fixed assets on the basis of review carried out by the management in accordance with Accounting Standard (AS) - 28 ‘Impairment of Assets’.

NOTE - 7

Income from investments (net) includes interest income Rs.417,491,030 (previous year Rs.232,290,797).

NOTE - 8

In the opinion of management, current assets, loans and advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet. The provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably stated.

NOTE - 9

Previous year figures have been regrouped or rearranged, wherever considered necessary, to conform with the current year''s presentation.

NOTE - 10

Amounts for the year ended and as at March 31, 2017 were audited by previous auditors Suresh Surana & Associates LLP.

---

Mar 31, 2016

NOTE - 1

The Company has not received any intimation from its suppliers regarding their registration under the ‘Micro, Small and Medium Enterprises Development Act, 2006’. Hence, no disclosure has been made.

NOTE - 2

There was no impairment loss on the fixed assets on the basis of review carried out by the management in accordance with Accounting Standard (AS) - 28 ‘Impairment of Assets’.

NOTE - 3

In the opinion of the management, diminution in the value of long term investments in shares (other than group companies) is of temporary in nature in accordance with Accounting Standard - 13 "Accounting for Investments". Accordingly, carrying amount of such long term investment is not reduced to recognize such decline.

NOTE - 4

Income from investments includes interest income Rs.118,855,191 (previous year Rs.149,424,726)

NOTE - 5

In the opinion of management, current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet. The provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably stated.

NOTE - 6

Previous year figures have been regrouped or rearranged, wherever considered necessary, to conform with the current year''s presentation.

---

Mar 31, 2015

NOTE - 1

SEGMENT REPORTING

The Company operates in a single business and geographical segment i.e. "Providing Merchant Banking Services" within India. Accordingly, no separate disclosures for primary business and secondary geographical segment are required.

NOTE - 2

RELATED PARTY DISCLOSURES

I Related party relationships: Subsidiaries

A. K. Stockmart Private Limited (wholly owned) A. K. Capital Corporation Private Limited (wholly owned) A. K. Wealth Management Private Limited (wholly owned) A. K. Capital (Singapore) PTE Ltd (Wholly owned) A. K. Capital Finance Private Limited

Key managerial personnel

Mr. A. K. Mittal Mr. Deepak Mittal

Relative of key management personnel

Mrs. Anshu

Mr. Abhinav Kumar Mittal

Enterprise in which relative of key management personnel is having significant influence

M Square Automobile Private Limited Notes:

a The related party relationships have been determined on the basis of the requirements of the Accounting Standard (AS) -18 'Related Party Disclosures' and the same have been relied upon by the auditors.

b The relationships as mentioned above pertain to those related parties with whom transactions have taken place during the year, except where control exist, in which case the relationships have been mentioned irrespective of transactions with the relatives.

NOTE - 3

CORPORATE SOCIAL RESPONSIBILITY (CSR)

As per Section 135 of the Companies Act, 2013, a CSR committee has been formed by the Company. The areas for CSR activities are eradicating hunger, poverty and malnutrition, promoting preventive health care and sanitation and making available safe drinking water, promoting education, promoting gender equality, empowering women, setting up homes and ensuring environmental sustainability. The amount has been expended on the activities which are specified in Schedule VII of the Companies Act, 2013.

NOTE-4

The Company has not received any intimation from its suppliers regarding their registration under the 'Micro, Small and Medium Enterprises Development Act, 2006'. Hence, no disclosure has been made.

NOTE-5

There was no impairment loss on the fixed assets on the basis of review carried out by the management in accordance with Accounting Standard (AS)-28 'Impairment of Assets'.

NOTE-6

In the opinion of management, current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet. The provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably stated.

NOTE-7

Previous year figures have been regrouped or rearranged, wherever considered necessary, to conform with the current year's presentation.

---

Mar 31, 2013

NOTE-1

Consequent to the adoption of Accounting Standard 15 (AS 15 Revised 2005) on employee benefits, the following disclosures have been made as required by the standards :

(i) Retirement benefits in the form of Provident fund are defined contribution scheme and the contributions are charged to the statement of profit and loss of the current year when the contribution to the respective fund is due. There are no other obligations other than the contribution payable to the respective fund.

(ii) Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation made at the end of each financial year.

The estimates of future salary increases, considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

NOTE-2

SEGMENT REPORTING

The Company operates in a single business and geographical segment i.e. "Providing Merchant Banking Services" within India. Accordingly, no separate disclosures for primary business and secondary geographical segment are required.

NOTE-3

RELATED PARTY DISCLOSURES

i Related party relationships: Subsidiaries

A. K. Stockmart Private Limited (wholly owned)

A. K. Capital Corporation Private Limited (wholly owned)

A. K. Wealth Management Private Limited (wholly owned)

A. K. Capital Finance Private Limited

Key managerial personnel

Mr. A. K. Mittal

Mr. Deepak Mittal

Relative of key management personnel

Mrs. Anshu

Mr. Abhinav Kumar Mittal

Enterprise in which relative of key management personnel is having significant influence

M Square Automobile Private Limited

Notes:

a The related party relationships have been determined on the basis of the requirements of the Accounting Standard (AS) -18 ''Related Party Disclosures'' and the same have been relied upon by the auditors.

b The relationships as mentioned above pertain to those related parties with whom transactions have taken place during the year, except where control exist, in which case the relationships have been mentioned irrespective of transactions with the relatives.

NOTE-4

The Company has not received any intimation from its suppliers regarding their registration under the ''Micro, Small and Medium Enterprises Development Act, 2006''. Hence, no disclosure has been made.

NOTE-5

There was no impairment loss on the fixed assets on the basis of review carried out by the management in accordance with Accounting Standard (AS)-28 ''Impairment of Assets''.

NOTE-6

In the opinion of management, current assets, loans and advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet. The provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably stated.

NOTE-7

Previous year figures have been regrouped or rearranged, wherever considered necessary, to confirm with the current year''s presentation.

---

Mar 31, 2012

A. Terms / rights attached to equity shares

The Company has only one class of equity shares having a par value of R 10 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended March 31, 2012, the amount per share final dividend recognised as distributions to equity shareholders is R 6; (Previous year R 3 - final dividend, R 3 - interim dividend).

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

*Working capital loan from NBFC is secured against mortgage of the Company's immovable property together with all structures and appurtenances thereon held by the Company situated at 8th Floor, Mafatlal Centre, Nariman Point, Mumbai 400 021. The above loan amount is repayable in lump sum at the end of the term of loan of 12 months.

**Bank overdraft is secured against debt securities and personal guarantee of two directors of the company. The loan is repayable on demand.

*During the year, R 38,790 has been credited into Investor Education and Protection Fund under Section 205C of the Companies Act, 1956. There are no dues as at March 31, 2012 which needs to be credited into Investor Education and Protection Fund.

NOTE 1

Consequent to the adoption of Accounting Standard 15 (AS 15 Revised 2005) on employee benefits, the following disclosures have been made as required by the standards :

(i) Retirement benefits in the form of Provident fund are defined contribution scheme and the contributions are charged to the statement of profit and loss of the current year when the contribution to the respective fund is due. There are no other obligations other than the contribution payable to the respective fund.

(ii) Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation made at the end of each financial year.

The estimates of future salary increases, considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

NOTE 2

SEGMENT REPORTING

The Company operates in a single business and geographical segment i.e. "Providing Merchant Banking Services" within India. Accordingly, no separate disclosures for primary business and secondary geographical segment are required.

NOTE 3

RELATED PARTY DISCLOSURES: i Related party relationships:

Subsidiaries

A.K. Stockmart Private Limited (wholly owned)

A.K. Capital Corporation Private Limited (wholly owned)

A.K. Wealth Management Private Limited (wholly owned) (w.e.f. May 12, 2010)

A.K. Capital Finance Private Limited

Key managerial personnel

Mr. Atul Kumar Mittal Mr. Deepak Mittal

Relative of key management personnel

Mv Anshu

Mr. Abhinav Kumar Mittal Notes:

a The related party relationships have been determined on the basis of the requirements of the Accounting Standard (AS) - 18 'Related Party Disclosures' and the same have been relied upon by the auditors.

b The relationships as mentioned above pertain to those related parties with whom transactions have taken place during the year, except where control exist, in which case the relationships have been mentioned irrespective of transactions with the relatives.

NOTE 4 LEASES

i Where the Company is lessee:

The Company has taken various office premises under operating lease that are renewable on a periodic basis at the option of both the lessor and lessee.

Notes:

The amount of minimum lease payments with respect to the above lease recognised in the statement of profit and loss for the year is R 5,895,420 (previous year R 1,943,200).

Above disclosure is for leases entered after 1 April, 2001, as per Accounting Standard (AS) - 19 'Leases' issued by the Institute of Chartered Accountants of India.

NOTE 5

The Company has not received any intimation from its suppliers regarding their registration under the 'Micro, Small and Medium Enterprises Development Act, 2006'. Hence, no disclosure has been made.

NOTE 6

There was no impairment loss on the fixed assets on the basis of review carried out by the management in accordance with Accounting Standard (AS) - 28 "Impairment of Assets".

NOTE 7

In the opinion of management, current assets, loans and advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet. The provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably stated.

NOTE 8

Till the year ended March 31, 2011, the Company was using pre-revised Schedule VI to the Companies Act, 1956, for the preparation and presentation of its financial statements. During the year ended March 31, 2012, the revised Schedule VI notified under the Companies Act, has become applicable to the Company. Therefore, the Company has re-classified previous year figures to conform to the current year's presentation.

---

Mar 31, 2011

1. Contingent liabilities not provided for:

Guarantee given by bank on behalf of the Company V500,000 (previous year V100,000).

2. a) Term loan is secured by equitable mortgage of the Company's immovable property comprising of land and buildings and other structures, machinery and plant and other fixtures and fittings erected or installed thereon (both present and future), situated at 8th Floor (Part), Mafatlal Centre, Nariman Point, Mumbai 400 021.

b) Vehicle loans are secured by hypothecation of vehicles purchased against the said loan.

c) Bank overdraft is secured against pledge of debt securities and personal guarantee of two directors of the Company.

3. Leases

a) Where the Company is lessee:

The Company has taken various residential and office premises under operating lease that are renewable on a periodic basis at the option of both the lessor and lessee. Lease period varies from 22 months to 45 months.

4. a) Pursuant to provisions of the Share Subscription and Shareholders' Agreement dated September 11, 2007, the Company had allotted on April 13, 2009, 800,000 equity shares of V10 each as fully paid up for cash at a premium of V215 per equity share by converting 800,000 6% Convertible cumulative preference shares (CCPS) of Rs. 225 each to First Rand (Ireland) Public Limited Company, a company incorporated under the laws of Ireland.

b) The Company had allotted on October 13, 2007, 3,000,000 equity share warrants at V225 each to the promoter group and others. An amount equivalent to 10% of the subscription amount was received as application money. Each equity share warrant was convertible into 1 (one) equity share of Rs. 10 each at a premium of V215 per equity share within a period of 18 months from the date of allotment. The balance amount was payable at the time of conversion of equity share warrants. 3,000,000 Equity share warrants issued on preferential basis to the promoter group and others on October 13, 2007 had lapsed during the previous year, due to non-exercise of warrants. An amount equivalent to 10% of the subscription amount which was received as application money (upfront money) on the above Equity share warrants amounting to Rs. 67,500,000 was forfeited by the Company in the previous year and credited to Capital Reserve Account.

5. Related party disclosure:

a) Related parties and their relationships:

Subsidiaries A. K. Stockmart Private Limited (Wholly owned)

A. K. Capital Corporation Private Limited (Wholly owned)

A. K. Capital Finance Private Limited

A. K. Wealth Management Private Limited (Subsidiary w.e.f. May 12, 2010 ) (Wholly owned)

Enterprise on which key management personnel or their relatives have significant influence India Bond Private Limited (w.e.f. June 23, 2009 )

Key management personnel Mr. Atul Kumar Mittal

Mr. Deepak Mittal

Relative of key management personnel Mrs. Anshu

Mr. Abhinav Kumar Mittal

Notes:

i. The related party relationships have been determined on the basis of the requirements of the Accounting Standard (AS)-18 'Related Party Disclosures' and the same have been relied upon by the auditors.

ii. The relationships as mentioned above pertain to those related parties with whom transactions have taken place during the year except where control exists.

6. Segment information:

The Company operates in a single business and geographical segment i.e. "Providing Merchant Banking Services" within India. Accordingly, no separate disclosures for primary business and secondary geographical segment are required.

b) In the earlier years, the Company had erroneously charged excess depreciation on various fixed assets aggregating to Rs. 2,466,590 which has been rectified in the previous year and has been appropriately disclosed as prior year adjustment in the financial statements.

7. There was no impairment loss on the fixed assets on the basis of review carried out by the management in accordance with Accounting Standard (AS) – 28 'Impairment of Assets'.

b) No commission is payable to Directors / Managing Director and hence, computation of Net Profit in accordance with Section 198, 309 and 349 of the Companies Act, 1956 has not been given.

8. During the year, the Company has given loan to a subsidiary company (i.e A. K. Capital Finance Private Limited) amounting to Rs. 650,000,000. The maximum balance outstanding during the year was Rs. 453,439,726 and year end outstanding balance was Rs. 200,147,946.

9. Deposits include amount aggregating to Rs. 23,700,000 (previous year Rs. 18,900,000) given to directors of the Company as security deposit towards premises taken on rent. Maximum balance outstanding during the year Rs. 23,700,000 (previous year Rs. 18,900,000).

10. The Company has not received any intimation from its suppliers regarding their registration under the Micro, Small and Medium Enterprises Development Act, 2006, hence no disclosure has been made.

11. In the opinion of the management, current assets, loans, advances and deposits are approximately of the value stated, if realised in the ordinary course of business. The provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

12. Balances of certain sundry debtors, sundry creditors, loans and advances are subject to confirmations / reconciliation and consequential adjustments, if any. The management does not expect any material difference affecting the current year's financial statements on such reconciliation / adjustments.

13. Previous year figures have been regrouped or rearranged, wherever considered necessary, to conform with the current year presentation.

---

Mar 31, 2010

1. a) Term loan has been secured by equitable mortgage of the Companys immovable property comprising of land and buildings and other structures, machinery and plant and other fixtures and fittings erected or installed thereon (both present and future), situated at 8th Floor(Part), Mafatlal Centre, Nariman Point, Mumbai 400 021

b) Vehicle loans are secured by hypothecation of vehicles purchased against the said loan.

2. Leases

a) Where the Company is lessee:

The Company has taken various residential and office premises under operating lease that are renewable on a periodic basis at the option of both the lessor and lessee. Lease period varies from 22 months to 45 months.

3. a) Pursuant to provisions of the Share Subscription and S hareholders Agreement dated September 11,2007, the Company has allotted on April 13, 2009, 800,000 equity shares of Rs. 10 each as fully paid up for cash at a premium of Rs. 215 per equity share by converting 800,000 6% Convertible cumulative preference shares (CCPS) of Rs. 225 each to First Rand (Ireland) Public Limited Company, a company incorporated under the laws of Ireland.

b) The Company has allotted on October 13, 2007, 3,000,000 equity share warrants at Rs. 225 each to the promoter group and others. An amount equivalent to 10% of the subscription amount has been received as application money. Each equity share warrant is convertible into 1 (one) equity share of Rs. 10 each at a premium of Rs. 215 per equity share within a period of 18 months from the date of allotment. The balance amount is payable at the time of conversion of equity share warrants.

3,000,000 Equity share warrants issued on preferential basis to the promoter group and others on October 13, 2007 had lapsed during the year, due to non-exercise of warrants. An amount equivalent to 10% of the subscription amount which was received as application money (upfront money) on the above Equity share warrants amounting to Rs. 67,500,000 stands forfeited by the Company and credited to Capital Reserve Account.

Notes:

i. The related party relationships have been determined on the basis of the requirements of the Accounting Standard (AS)-18 Related Party Disclosures and the same have been relied upon by the auditors.,

ii. The relationships as mentioned above pertain to those relarted parties with whom transactions have taken place during the year except where control exists.

4. Segment information:

The Company operates in a single business and geographical segment i.e. "Providing Merchant Banking Services" within India. Accordingly, no separate disclosures for primary business and secondary geographical segment are required.

5. There was no impairment loss on the fixed assets on the basis of review carried out by the management in accordance with Accounting Standard (AS) - 28 Impairment of Assets.

6. Directors remuneration:

a) The profit and loss account includes remuneration to Directors as follows:

Notes:

i. The perquisites for which monetary value is not determinable are considered as per Income Tax Rules. ii. As the liability for gratuity is provided on an actuarial basis for the Company as a whole, the amount pertaining to the Directors is not ascertainable and therefore not included above.

b) No commission is payable to Directors / Managing Director and hence, computation of Net Profit in accordance with Section 198, 309 and 349 of the Companies Act, 1956 has not been given.

7. Deposits include amount aggregating to Rs. 18,900,000 (previous year Rs. 18,900,000) given to directors of the Company as security deposit towards premises taken on rent. Maximum balance outstanding during the year Rs. 18,900,000 (previous year Rs. 18,900,000).

8. The Company has not received any intimation from its suppliers regarding their registration under the Micro, Small and Medium Enterprises Development Act, 2006, hence no disclosure has been made.

9. In the opinion of the management, current assets, loans, advances and deposits are approximately of the value stated, if realised in the ordinary course of business. The provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

10. Balances of certain sundry debtors, sundry creditors, loans and advances are subject to confirmations / reconciliation and consequential adjustments, if any. The management does not expect any material difference affecting the current years financial statements on such reconciliation / adjustments.

11. Previous year figures have been regrouped or rearranged, wherever considered necessary, to conform with the current year presentation.