Mar 31, 2015
Note 1.1
The Company had re-discounted the bills of its clients in the past. The
Company could not pay to its discounters as the Company's clients whose
bills were discounted by the Company had not paid the due amount to it.
The amounts are still due.
Note 1.2
These borrowings are interest free, due on demand and subject to
confirmation in many cases. Hence, there is no accrued interest.
Note 1.3 - Sundry Creditors
The amount of Rs. 3,08,13,778.93 (Previous Year Rs. 3,08,92,190.43) due
to Samaudra Securities Limited (SSL), the subsidiary of the Company
since 1st April, 2003 against purchase/sale of GOI securities from them
prior to 2004. This amount has remained unpaid for a few years on
account of Financial constraints. SSL has made a provision against the
amount due to them. The Company has made no provision in its books
since the value of investment would not be impaired if the dues to SSL
are settled. None of the creditors have intimated their status under
the Micro Small Medium Enterprises Development Act, 2006
Note 1.4 - Borrowings from Banks
i. The loans from Banks are secured by pari passu hypothecation of
present and future Hire Purchase (HP) receivables and Lease rentals and
the relative assets consisting of Plant and Machinery, Office
Equipments, Vehicles etc. and HP/ Lease debtors including overdue
interest, delayed payment charges and the assets. The loans are
further secured by way of collateral security given in the form of
equitable /registered mortgage of the Company' office units in Delhi
and Hyderabad to all banks along with pari passu hypothecation charge
on the movable assets at these premises. The security is insignificant
with respect to the amount claimed.
ii. The amounts were earlier advanced by the banks as Working Capital
limits and then converted into loans. Hence shown under this head.
The principal amount is as claimed by the banks in the suits filed by
them before the Debt Recovery Tribunals. (DRTs). The dates of defaults
areas per the dates recorded by the Mumbai Debt Recovery Tribunal. In
the earlier year, the principal was considered as per Company's
proposal given in 1999.
There is no change in the total liability claimed by the lenders. The
Recovery officers of the Debt Recovery Tribunals have sold some of the
fixed assets mortgaged to the banks as security. The net amount of
Rs.2,32,02,576/- realized by them are distributed by the Recovery
Officers during the year - Nil (Previous Year - Rs. 2,32,02,576/-) to
the banks after deducting the expenses and adding the interest earned.
iv. The above lenders had approached the Debt Recovery Tribunals of
Competent Jurisdiction.
Note 1.5 - Unpaid Debentures - Secured
i. The 19% Secured Non Convertible debentures are secured by an
exclusive charge/mortgage over specific assets given on Lease /Hire
Purchase and the debtors However the value of security including
collateral security (one office unit at Mumbai) is insignificant with
respect to amount claimed. The principal amount is shown as on the date
of filing the suit before the Debt Recovery Tribunal. After the
demerger of Unit Trust of India in 2002, the dues are bi-furcated
between UTI Asset Management Co Ltd and the Administrator of Specified
Undertaking of Unit Trust of India.
The interest is calculated at the rates as stated above from the date
of filing the appeal i.e. 15-Mar-2004.
Note 1.6 - Fixed Deposits
The Company had defaulted in repaying the deposits as per the original
terms of the deposits. The repayments were rescheduled by the Company
Law Board's (CLB) orders dated 26.06.2001 and its subsequent
modifications dated 11.09.2002, 30.04.2004, 28.02.2006, 07.02.2007 &
13.10.2009 . The Company has already paid all the claimed deposits on
29.12.2012 i.e. before 31.12.2012 the last date specified as per the
last CLB order of 13.10.2009. As all Fixed Deposits have matured as per
the original terms, the full amount is shown as dues to fixed
depositors. The break-up of principal and interest on cumulative
deposits upto the date of contracted maturity is given below.
The amount due within one year is Rs. 5,43,90,485/- (Previous Year Rs.
5,69,76,967/-)
Whereas majority of the warrants were encased within their validity
period, some of the remained unencashed.
Further the Company had been regularly issuing fresh warrants or bank
demand drafts, as the case may be, to the depositors, who could not
encash their warrants on time as and when request for the same were
received. In the process, the Company had repaid Rs. 25,86,482/-
(Previous Year Rs. 56,60,448/-) to the depositors during the year under
review.
Further, any request received from the deposit holders against the
unencashed amount shall be duly paid till the expiry of 7 years from
the respective due date whereupon the same shall be transferred to the
Investor Education and Protection Fund.
Note 1.7
Disclosure required under the Micro, Small and Medium Enterprises
Development Act, 2006 (the Act) are given as follows:
a. Principal amount and Interest due thereon remaining unpaid to any
supplier at the end of accounting year
b. Interest paid during the year beyond the appointed day
c Amount of interest due and payable for the period of delay in making
payment without adding the interest specified under the Act
d. Amount of interest accrued and remaining unpaid at the end of the
year
e. Amount of further interest remaining due and payable even in the
succeeding years, until such date when the interest dues as above are
actually paid to the small
Note 1.8
All the creditors of the Company, except few corporate, banks and
Financial Institutions (FIs) , have confirmed their dues to the Company
as on 31st March, 2015. Further, the amount due to the banks except
Vijaya Bank (VB), Bank of Rajasthan Ltd. (BR) (now merged with ICICI
Bank Ltd),Federal Bank Ltd (FB) and FIs have been stated at the amount
decreed by the Hon'ble Debt Recovery Tribunal (DRT) in their favour, as
increased by the interest due thereon at the rate ordered by DRT in the
respective decree. The dues to VB, BR, FBand FIs have been stated at
the amount claimed by them in their recovery suits filed before DRT and
interest due thereon up to 31st March, 2015 at the rate demanded by
them in their respective recovery suits.
Notes :
1. Buildings, mostly consist of office units, some of which are yet to
be recorded in Company's new name.
2. Buildings with the gross value of Rs. 1,63,64,355.68 located at New
Delhi and Hyderabad are given as collateral security to Banks (Note
6.4) and the building at Mumbai valued at Rs. 48,50,000 to Debenture
holders (Note 6.5)
3. Leased Assets deleted during the year represent assets removed from
the books on completion of lease.
4. The assets sold / retired during the year include offices of the
Company disposed off by the Recovery Officers of the Debt Recovery
Tribunals.
5. Office Equipment include cost of the software embedded in the
computers or were purchased /capitalized over 10 years ago and are
fully depreciated.
6. In accordance with the provisions of Schedule II of the Act, in
case of fixed assets having completed the useful life as at 1 st April,
2014 or have been depreciated more than the residual value, the net
carrying value(net of residual value) amounting to Rs. 1.32.187.43 has
been recognized in the retained earnings. No cognizance has been taken
of deferred tax due to uncertainty of future taxable profits
7. In case the depreciation was provided as per provisions of Schedule
XIV of the Companies Act, 2013, the depreciation would have been higher
by Rs. 89.284.49/-
A. The Long Term Investments as per the Accounting Standard 13 as
notified by the Companies (Accounting Standards) Rules 2006 are
classified Non Current investments.
B. Provision has been made on the basis of the Non-Banking Financial
(Deposits Accepting or Holding) Companies Prudential Norms (Reserve
Bank) Directions 2007.
C. The Investments are valued at Cost and provisions are made as per
the directions referred in B above.
D. Shares in unlisted companies (including Subsidiary company are held
in physical form while Government securities are held in electronic
form.
E. In case physically held securities (except subsidiary), the
changing of Company's name is under process.
F. No charge of SLR securities has been created in favors of the
Public Depositors. This has been permitted by Reserve Bank of India.
G. The Investee Company's status as Listed or Unlisted is as per the
Company Data on the website of Ministry of Corporate Affairs at the
current year end.
H. The meaning of abbreviations is A - Active, DO - Dormant, L-
Liquidated, UL - Under Liquidation, USO - Under Strike Off. These
particulars are from the same data as in G above. Shares of Struk off/
Liquidated Companies , Companies under Liquidation or strike off have
been written off. In case of Active companies to whom letter have been
send by Registered Post and which have been returned undelivered are
also written off.
I Provision on Standard Assets has been made @ 0.5% as per Reserve Bank
of India's directions.
J. D indicates shares are in dematerialized form otherwise they are in
physical form
K. Shares of Dormant and Under Liquidation /Liquidated Companies are
removed from the Books. Some 'Active' Companies' shares have also been
removed where no accounts for the last few years are available with
Registrar of Companies and the Registered letters are returned
undelivered
Note 1.9
A. The Current Investments are included in this Schedule as per the
Accounting Standard 13 as notified by the Companies (Accounting
Standards) Rules 2006 and there are restrictions on trading imposed by
Reserve Bank of India.
B. * These shares have been received by the Company on removal of
defects in case of bad deliveries or for lost shares. These have been
accounted at the market rate. C ** The Company's application for
duplicate shares / dematerialization not responded by respective
Companies
D. Where the company has written off the value of a
share/debenture/security due to non availably of market rate of a
period exceeding six months, its value has been shown as Nil despite
the quantitative number held as on the balance sheet date appearing.
Others are valued at lower of cost or market value
E. Shares marked as (D) are in electronic form, others are in physical
form. In case physical securities, the changing of Company's name is
under process.
F. The Investee Company's status as Listed or Unlisted is as per the
Company Data on the website of Ministry of Corporate Affairs at the
current year end.
G. The meaning of abbreviations is A - Active, DO - Dormant, L-
Liquidated, UL - Under Liquidation, USO - Under Strike Off. These
particulars are from the same data as in G above. Shares of Liquidated
Companies have been written off.
H. The shares of Dormant or under liquidation / dormant Companies as
per website of Ministry of Corporate Affairs have been removed from the
books.
Note 1.10
i. Interoperate Deposit was given in earlier years and is doubtful of
recovery. No interest has been accrued as per the Non-Banking Financial
(Deposit Accepting or Holding) Companies Prudential Norms (Reserve
Bank) Directions 2007. ii. Bills Discounted are dues for bills
discounted in earlier years and are doubtful of recovery. No interest
has been accrued as per the Non-Banking Financial Deposit Accepting or
Holding) Companies Prudential Norms (Reserve Bank) Directions 2007.
iii As per the Orders of the Debt Recovery Tribunals ordering the sale
of Company's Assets, the Recovery Officers have sold certain assets and
realized these amounts to be appropriated to various lenders.
NOTE 2
(1) Contingent Liabilities :
i) Dividend on 13% Redeemable Cumulative Preference Shares is in
arrears- Rs. 55,22,79,000/-17 years (previous Year Rs.51,97,92,000/-16
years)
ii) Wealth Tax Rs. 3,27,843/- ( Previous Year Rs. 3,27,843-)
iii) Sales Tax Rs. 23,14,158/- ( Previous Year Rs. 23,14,158/-)
iv) Others Rs. 13,20,000/- (PY Rs. 13,20,000/-)
The above liabilities, except dividend on preference shares, are
dependent upon the outcome of appeals before various authorities. The
contingent liability towards dividend on Preference Shares would be
payable if the Company has distributable profits.
Claims against the Company not acknowledged as debts, as the same are
disputed by the Company. Others Rs. 29,35,966/- (Previous Year Rs.
23,98,362/-)
(3) CURRENTS DEFERRED TAX
There is no provision for Income Tax during the year due to loss..
The Company has not created the Deferred Taxation Asset as its
utilization for set off against future taxable income is uncertain in
the foreseeable future.
(4) The accumulated loss of Rs. 851,8383,069.83/- (Previous Year Rs.
7,86,40,13,154.60/- includes unabsorbed depreciation of
Rs.170,19,80,477.39/- (Previous Year Rs. 1,70,14,93,343.52/-)
(5) The Company has paid an amount of Rs. 4,45,197/- (PY Rs.
7,69,866/-) towards Provident & Pension Funds and Gratuity &
Superannuation Schemes. For leave benefit the Company has provided, on
actuarial basis. A liability of Rs. 14,53,459/- (PYRs. 15,48,515/-) is
accrued as at the year end.
The present value of obligation towards gratuity is determined based on
actuarial valuation report furnished by LIC, which recognizes each
period of service as giving rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final
obligation. It is fully funded as on the year end.
(6) Related Party Disclosures
1. Relationships
(i) Shareholders in the Company
STEL Holdings Ltd. holds 48.81% equity share capital of the Compny,
(ii) Subsidiary of the Company
Samudra Securities Ltd. (formerly Ceat Securities Limited) (iii) Other
related parties
Ace Garment Export Ltd**
Indo Dean Leather Ltd**
Kaveri Polysacks Ltd.**
Spectrum Alkyd & Resins Ltd**
Ruia Hospitality Ltd**
**(The Company holds over 20% shareholding in these companies. These
investments were made as Merchant Bankers. The Company does not have
any significant influence over their managements and are hence not
considered for related party disclosures as associates. The financial
statements for the previous three years are also not available on the
website Ministry of corporate Affair , (MCA) Government of India. As
per MCA most of these Companies are dormant.
Even in case of "Active' Companies the letters sent to the registered
offices as per MCA website were returned undelivered. These investments
are also removed from the books during the year, (iv) Directors and
other executives (including those who were associated for part of the
period)
Mr H C Mathur - Chairman & Managing Director
Mr R C Kurup - Company Secretary
Mr Ramulu B M - Chief Financial Officer
(8) Segment Information
The Company's present activity is to take steps to close its Non
Banking Financial activities. The other activities have not made any
significant progress. Hence there are no segments.
(7) A sum of Rs. 50,000/-(P Y Rs. 35,103/-) is transferable to the
Investors Education & Protection Fund at the end of the year.
After the year end a sum of Rs. 50,000/- ( P Y Rs. 35,103/-) have been
transferred to the said Fund till the date of these statements.
(8) The Company follows the directions given by Reserve Bank of India
(RBI) to Non Banking Financial Companies and maintains Statutory
Liquidity Ratio (SLR) as per RBI's instructions in the matter. The
Company continues to be governed by the Non-Banking Financial (Deposit
Accepting or Holding) Companies Prudential Norms (Reserve Bank)
Directions 2007. However Consequent to the Net Worth of the Company
having become negative, the restrictions placed by para 16 of these
norms pertaining to a minimum Capital Adequacy of 12% and Para 19
(pertaining to acquisition of land and building other than for own use)
and Para 20 (pertaining to Concentration of Credit/Investment) could
not be met.
(9) The details required as per Para 13 of the Non Banking Financial
(Deposit Accepting or Holding) Companies Prudential Norms (Reserve
Bank) Directions 2007 are annexed.
(10) The Company is not liable to spend any money towards Corporate
Social Responsibility as per Section 135 of the Companies Act, 2013
since it has losses u/s 197 of the said Act for all the last three
financial years
(11) Disclosures required with regard to the subsidiaries and
transactions with related parties in forms AOC-1 & AOC -2 are attached
as Annexure.
(12) Previous Year's figures have been reclassified and /or regrouped
wherever necessary to correspond with the current year's classification
and disclosures.
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 the
Non-Banking Financial Companies Prudential Norms (Reserve Bank)
Directions, 2007.
3 All Accounting Standards and Guidance Notes issued by ICAI are
applicable including for valuation of investments and other assets as
also assets acquired in satisfaction of debt. However, market value in
respect of quoted investments and break up/fair value/NAV in respect of
unquoted investments should be disclosed irrespective of whether they
are classified as long term or current in column (5) above.
Mar 31, 2014
NOTE 1
GENERAL INFORMATION COMPANY PROFILE
A. CFL Capital Financial Services Limited was incorporated in 1983 as
Samudra Mahal Investments Limited as Public Company and was engaged in
the business of Non Banking Financial Business under valid permission
from Reserve Bank of India (RBI), granted in April 1998. Due to the
poor financial condition of the Company, on account of dot.com burst of
199899 and subsequent impact thereof which lead to inter-alia Capital
Risk Adequacy Ratio (CRAR) going below the prescribed limit, RBI
cancelled its Certificate of Registration w.e.f 18-May-2004. The RBI
also directed that the Company continues to be governed by the relevant
provisions of the Act (RBI Act, 1934) and various
directions/instructions issued by RBI from time to time until such time
the entire amount of public deposits held by the company are repaid
with interest and the entire financial assets are disposed of or the
Company is converted to a non-banking non-financial Company. As per its
assets and income, the Company continues to be a Non Banking Financial
Company. The Company has its registered office in Kolkata, West
Bengal.Its Company Identification Number as given by Registrar of
Companies, West Bengal, is L67120WB1983PLC036805. Its equity shares are
listed on the Bombay Stock Exchange Limited.
B. In view of the above, the Company cannot carry on any fresh Non
Banking Financial activities. Hence these financial statements show the
results of these operations / activities.
C. Going Concern
The net worth of the Company has become negative due to the accumulated
losses in the previous years. The Company had drawn a plan to liquidate
assets, borrow money including from shareholders / promoters etc. for
meeting the liabilities of the financial year ending 31st March, 2014.
Hence, the Accounts have been drawn up on a going concern basis. The
winding up petition filed by a depositor in the previous year is
pending before the Hon''ble Calcutta High Court.
However, in view of the net worth of the Company being negative and in
view of the accumulated losses for the last few years aggregating to
Rs. 78,640.13 lakhs till March 2014, the Company''s ability to maintain
the status is dependent on concessions from stake holders'' and others''
support. Substantial support is reflected in this year''s accounts from
creditors and shareholders. One of the banks has filed a Winding up
petition against the Company before the Hon''ble High Court Calcutta
which was dismissed by the Hon''ble Court in April, 2014.
Note 2.1
The Company had re-discounted the bills of its clients in the past.The
Company could not pay to its discounters as the Company''s clients whose
bills were discounted by the Company, had not paid the due amount to
it. The amounts are still due.
Note 2.2
These borrowings are interest free and are due on demand. Hence, there
is no accrued interest.
Note 2.3 - Sundry Creditors
The amount of Rs. 3,08,92,190.43 (Previous Year Rs. 3,04,08,208.68) is
due to Samudra Securities Limited (SSL), the subsidiary of the Company
since 1st April,2003 against purchase / sale of GOI securities from
them prior to 2004. This amount has remained unpaid for a few years on
account of financial constraints. SSL has made a provision against the
amount due to them. The Company has made no provision in its books
since the value of investment would not be impaired if the dues to SSL
are settled. None of the creditors have intimated their status under
the Micro Small Medium Enterprises Development Act, 2006
Note 2.4 - Borrowings from Banks
i. The loans from Banks are secured by pari passu hypothecation of
present and future Hire Purchase (HP) receivables and Lease rentals and
the relative assets consisting of Plant and Machinery, Office
Equipments, Vehicles etc. and HP/ Lease debtors including overdue
interest, delayed payment charges and the assets.The loans are further
secured by way of collateral security given in the form of equitable /
registered mortgage of the Company'' office units n Delhi and Hyderabad
to all banks along with pari passu hypothecation charge on the movable
assets at these premises. The security is insignificant with respect to
the amount claimed.
ii. The amounts were earlier advanced by the banks as Working Capital
limits and later converted into loans. Hence shown under this head.
NOTE 3
(1) Contingent Liabilities :
i) Dividend on 13% Redeemable Cumulative Preference Shares is in
arrears- Rs. 51,97,92,000/-16 years (previous Year Rs.48,73,05,000/-15
years)
ii) Wealth Tax Rs. 3,27,843/- ( Previous Year Rs. 3,27,843-)
iii) Sales Tax Rs. 23,14,158/- ( Previous Year Rs. 23,14,158/-)
iv) Others Rs. 13,20,000/- (Previous Year Rs. 13,20,000/-)
The above liabilities, except dividend on preference shares, are
dependent upon the outcome of appeals before various authorities. The
contingent liability towards dividend on preference share would be
payable, if the Company has distributable profits.
Claims against the Company not acknowledged as debts (as the same are
disputed by the Company). Others - Rs. 42,49,283/- (Previous Year Rs.
39,20,191/-)
(2) CURRENT & DEFERRED TAX
There is no provision for Income Tax during the year due to loss.
The Company has not created the Deferred Taxation Asset as its
utilisation for set off against future taxable income is uncertain in
the forseeable future.
(3) The accumulated loss (as at 31st March, 2014) of Rs.
7,86,40,13,154.60/- (Previous Year Rs. 7,29,24,12,964.13/-) includes
unabsorbed depreciation of Rs.1,70,14,93,343.52/- (Previous Year Rs.
1,70,09,26,683/-)
(4) The Company has paid an amount of Rs. 11,05,605.96/- (Previous Year
Rs. 15,77,046.69/-) towards Provident & Pension Funds and Gratuity &
Superannuation Schemes. For leave benefit the Company has provided, on
actuarial basis, a liability of Rs. 17,36,521/- (Previous Year Rs.
16,80,063/-) as at the year end. During the year an amount of Rs. Nil
(Previous Year Rs. 2,61,749/-) was paid by the Company to the Executive
Provident Fund Trust due to lower income. The said Trust managing the
Executive Fund was wound up as the recognition under the Income Tax Act
1961 was proposed to be withdrawn with effect from 01.04.2012 as per
the proposal of the Finance Bill 2012.
(5) A sum of Rs. 35,103/-(P Y Rs. 26,350/-) is transferable to the
Investors Education & Protection Fund at the end of the year.
After the year end a sum of Rs. 35,103/- ( P Y Rs. 26,350/-) have been
transferred to the said Fund till the date of these statements.
(6) The Company follows the directions given by Reserve Bank of India
(RBI) to Non Banking Financial Companies and maintains Statutory
Liquidity Ratio (SLR) as per RBI''s instructions in the matter. The
Company continues to be governed by the Non-Banking Financial (Deposit
Accepting or Holding) Companies Prudential Norms (Reserve Bank)
Directions 2007. However Consequent to the Net Worth of the Company
having become negative, the restrictions placed by para 16 of these
norms pertaining to a minimum Capital Adequacy of 12% and Para 19
(pertaining to acquisition of land and building other than for own use)
and Para 20 (pertaining to Concentration of Credit/Investment) could
not be met.
(7) The details required as per Para 13 of the Non Banking Financial
(Deposit Accepting or Holding) Companies Prudential Norms (Reserve
Bank) Directions 2007 are annexed.
(8) The disclosures required as per Section 212(3) and 212(8) of the
Companies Act, 1956 are annexed.
(9) Previous Year''s figures have been reclassified and /or regrouped,
wherever necessary, to correspond with the current year''s
classification and disclosures.
Mar 31, 2013
A. COMPANY PROFILE
CFL Capital Financial Services Limited was incorporated in 1983 as
Samudra Mahal Investments Limited as Public Company and continued to
carry on Non Banking Financial Business and had the valid permissions
for the same from Reserve Bank of India (RBI) and other authorities.
Due to the poor financial condition of the Company, RBI cancelled its
Certificate of Registration w.e.f 18-May-2004. However, the RBI has
directed that the Company continues to be governed by the relevant
provisions of the Act (RBI Act, 1934) and various
directions/instructions issued by RBI from time to time until such time
the entire amount of public deposits held by the company are repaid
with interest and the entire financial assets are disposed of or the
Company is converted to a non-banking non-financial company. As per its
assets and income, the Company continues to be a Non Banking Financial
Company. CFL has its registered office in Kolkata, West Bengal. Its
Company Identification Number as given by Regiatrar of Companies, West
Bengal, is L67120WB1983PLC036805. Its equity shares are listed on the
Bombay Stock Exchange Limited.
B. Going Concern
The net worth of the Company has become negative due to the accumulated
losses in the previous years. The Company has drawn a plan to liquidate
assets, borrow money including from shareholders / promoters etc for
meeting the liabilities of the financial year ending 31st March, 2014
Hence, the Accounts have been drawn up on a going concern basis. The
winding up petition filed by a depositor in the previous year is
pending before the Hon''ble Calcutta High Court.
The Company''s accounts have been drawn on a Going Concern basis.
However, in view of the net worth of the Company being negative and in
view of the accumulated losses for the last few years aggregating to
Rs. 49,339.01 lakhs in all, the Company''s ability to maintain the
status is dependent on concessions from creditors (which is under
consideration) and shareholders'' support. Substantial support is
reflected in this year''s accounts from creditors and shareholders.
C. As the net owned fund of the Company are negative, Reserve Bank of
India (RBI) had cancelled the registration of the Company as Non
Banking Financial Company with effect from 18th May, 2004. Accordingly
the Company cannot carry on any fresh Non Banking Financial activates.
Hence these financial statements show the results of these operations /
activities.
The Company is contemplating to carry on Non Banking Non Financial
business and the operations from this activity during this year are not
significant and hence no separation is made.
Note 1.1
The Company used to re-discount the bills which it used to discount of
its clients in the course of its funding business. The amount is
outstanding as the recovery from the discounters is pending and other
disputes with the concerned discounters.
Note 1.2
These borrowings are interest free and due on demand. Hence there is no
accrued interest.
Note 1.3 - Sundry Creditors
Sundry Creditors include dues from subsidiary- - Samudra Securities
Limited - Rs. 3,04,08,208.68 (Previous Year Rs. 3,05,08,208.68) Samudra
Securities Limited (SSL) (formerly Ceat Securities Ltd.)has become a
subsidiary of the Company with effect from 1st April, 2003 as per the
scheme of amalgamation approved by the Hon. High Courts of Madras and
Calcutta. An amount of Rs. 3,04,08,208.68 is due to SSL on account of
GOI securities purchased from them. This amount has remained unpaid for
a few years on account of Financial constraints. SSL has made a
provision against the amount due to them. The Company has made no
provision in its books since the value of investment would not be
impaired if the dues to SSL are settled.
Note 1.4 - Borrowings from Banks
i. The loans from Banks are secured by hypothecation of present and
future Hire Purchase and Leased assets and Book Debts. Specific cases
of these transactions covering, Plant % Machinery, Computers, Office
Equipments, Vehicles etc were provided to the specific banks. Certain
buildings were also mortgaged to the banks collectively. The security
is however insignificant in relation to the dues.
ii. The Company had entered into agreements with some banks for
settlement of their dues and completed the settlements in earlier
years. The Company is negotiating with the others including those who
have initiated legal proceedings against the Company. The Adjudicating
Authorities have decreed against the Company in many cases and the
Recovery Officers have commenced possession and disposal of these
assets given as security to the bankers. The amount shown as payable is
calculated on the basis of amounts decreed by the adjudicating
authorities along with the interest as decreed. In case the decree has
not been passed the amount is computed on the basis of the claimed
amount and with interest computed as per the claim. The amount payable
as on the Balance sheet date is disclosed in notes 6.4 and 6.8 below.
iii Debt Recovery Tribunals (DRT) - I & II< Mumbai have passed decrees
in favour of six banks and in pursuance thereto recovery proceedings
are pending against the Company. Five more suits filed by the banks are
still pending before the DRT at Mumbai, Kolkata and Chennai. Two
recovery proceedings are pending before the DRT-II, Delhi pursuant to
an interim and final decree for the balance amount in respect of one
bank. DRT-I, Kolkata, DRT-II, Delhi and DRT-I, Mumbai have passed
injunction/status quo orders in respect of mortgaged assets/properties.
DRT-I, Mumbai had appointed a Receiver in respect of the mortgaged
properties in one recovery proceeding. The mortgaged properties at
Ahmedabad, Kanpur, Luck now, Ghaziabad have already been auctioned off
by DRT-I, Mumbai in the recovery proceeding filed by Dena Bank, where
some other banks have also joined themselves. The Pune property was
auctioned off pursuant to recovery proceedings at DRT, Pune. The
Company has also preferred six appeals before the Debt Recovery
Appellate Tribunals, at Mumbai and Delhi, which are pending before the
Hon''ble Appellate Tribunals. The amounts were earlier advanced by the
banks as Working Capital limits and then converted into loans. Hence
shown under this head.
The principal shown is as per the earlier proposal accepted
in-principle by majority. The difference between the book principal and
the one claimed by the banks as on the date of default is added to
interest account referred in note 6.8.
The Recovery officers of the Debt Recovery Tribunals have sold some of
the fixed assets mortgaged to the banks as security. The amount
realized is held by the Recovery Officers on behalf of the above banks.
Note 1.5 - Unpaid Debentures
The 19% Secured Non Convertible debentures are secured by an exclusive
charge/mortgage over specific assets given on Lease / Hire Purchase and
the debtors However the value of security including collateral security
( one office unit) is insignificant with respect to amount due. The
principal amount of Rs. 195 lakhs was payable to the lenders as per the
original terms. The difference between the book principal and that
claimed by lenders as on the date of default is added to the interest
account referred in note 6.6 . The Company could not pay the dues as per
the proposal. After the demerger of Unit Trust of India in 2002, the
dues are bi-furcated between UTI Asset Management Co Ltd and the
Administrator of Specified Undertaking of Unit Trust of India. The
amount due as on the Balance Sheet date is disclosed below.
Note 1.6- Fixed Deposits
The Company had defaulted in repaying the deposits as per the original
terms of the deposit which were rescheduled by the Company Law Board''s
(CLB) orders dated 26.06.2001 and its subsequent modifications dated
11.09.2002, 30.04.2004, 28.02.2006, 07.02.2007 & 13.10.2009 The Company
has already paid all the claimed deposits on 29.12.2012 as per the last
CLB order. As all Fixed Deposits have matured as per the Original
terms, the full amount is shown as dues to fixed depositors. The CLB
has also considered the maturity amount while deciding about the amount
of installments Hence entire amount of deposits is classified as due
within one year is Rs 6,26,37,415/- (PY Rs. 15,99,10,994.10). The
interest accrued and due on cumulative deposits and included in these
amounts is Rs, 1,19,24,782/-(PY Rs. 3,75,27,370.10)
No. of Deposits Amount No. of Deposits Amount Amount unclaimed 4,180
62,637,415.00 4,208 63,685,616.00
As per the order of the Honorable Company Law Board (CLB) dated May
25, 2005, no delayed payment interest would be payable if the Company
makes the payment as per its order dated April 30, 2004. The CLB has
subsequently amended its orders. CLB vide its latest order dated
October 13, 2009 permitted the company to pay the total dues in four
annual installments by December 31 every year from 2009 to 2012. The
Company has repaid all the installments before 31st December, 2012 as
permitted by CLB to all the depositors who have lodged their claims for
repayments. Hence the Company has no unpaid deposits. The Company
issues a fresh warrant / demand draft to the depositor on receipt of
the stale warrant / demand draft or proper affidavit / undertaking. The
amount is transferable to Investors Education and Protection Fund as
Unclaimed matured deposits. The same are not due for transfer as on
Balance Sheet Date.
Interest has been provided at the rates as per the claim before DRT or
as ordered by it on the principal claimed by the banks. Also refer note
6.4.
In case of most of the buildings the change to the new name of the
Company in the concerned records is to be completed.
Leased Assets shown as ''Sales/Transfer/Retirement'' consist mainly of
completed leases. The leased assets shown above are mainly those
where there are disputes or the transfers of title are not completed.
The assets sold / retired during the year include offices of the
Company disposed off by the Recovery Officers of the Debt Recovery
Tribunals.
The software used for computers was embeded in them or were purchased
and capitalized with them over 10 years ago and are fully depreciated.
The updating has been made by the clients to whom Company provided
administrative services and hence are not capitalized.
A. The Long Term Investments as per the Accounting Standard 13 as
notified by the Companies (Accounting Standards) Rules 2006 are
classified Non Current investments.
B. Provision has been made on the basis of the Non-Banking Financial
(Deposits Accepting or Holding) Companies Prudential Norms (Reserve
Bank) Directions 2007.
C. The Investments are valued at Cost and provisions are made as per
the directions referred in B above.
D. Shares in unlisted companies (including Subsidiary company are held
in physical form while Government securities are held in electronic
form.
E. In case physically held securities (except subsidiary), the
changing of Company''s name is under process.
F. No charge of SLR securities has been created in favour of the
Public Depositors. This has been permitted by Reserve Bank of India.
G. The Investee Company''s status as Listed or Unlisted is as per the
Company Data on the website of Ministry of Corporate Affairs at the
current year end.
H. The meaning of abbreviations is A - Active, DO - Dormant, L-
Liquidated, UL - Under Liquidation, USO - Under Strike Off. These
particulars are from the same data as in G above. Shares of Liquidated
Companies have been written off.
I. Provision on Standard Assets has been made @ 0.5% as per Reserve
Bank of India''s directions.
Note 1.a
A. The Current Investments are included in this Schedule as per the
Accounting Standard 13 as notified by the Companies (Accounting
Standards) Rules 2006 and there are restrictions on trading imposed by
Reserve Bank of India.
B. * These shares have been received by the Company on removal of
defects in case of bad deliveries or for lost shares. These have been
accounted at the market rate.
C. ** The Company''s application for duplicate shares /
dematerialization not responded by respective Companies
D. Where the company has written off the value of a
share/debenture/security due to non availability of market rate of a
period exceeding six months, its value has been shown as Nil despite
the quantitative number held as on the balance sheet date appearing.
Others are valued at lower of cost or market value
E. Shares marked as (D) are in electronic form, others are in physical
form. In case physical securities, the changing of Company''s name is
under process.
F. The Investee Company''s status as Listed or Unlisted is as per the
Company Data on the website of Ministry of Corporate Affairs at the
current year end.
G. The meaning of abbreviations is A - Active, DO - Dormant, L-
Liquidated, UL - Under Liquidation, USO - Under Strike Off. These
particulars are from the same data as in G above. Shares of Liquidated
Companies have been written off.
Note 1.b
i. The above receivables are outstanding for a period exceeding six
months from the date they were due for payment
ii The above do not consist of any amount due from the Directors or
Officers of the Company or Firms and Companies in which they are
Partners/Directors
Note 1.c
The amount in the escrow account is maintained as per the directions of
the Reserve Bank of India and the amount to be utilized for the
purpose of repaying the fixed deposits.
i. Inter Corporate Deposit was given in earlier years and is doubtful
of recovery. No interest has been accrued as per the Non-Banking
Financial (Deposit Accepting or Holding) Companies Prudential Norms
(Reserve Bank) Directions 2007.
ii. Bills Discounted are dues for bills discounted in earlier years
and are doubtful of recovery. No interest has been accrued as per the
Non-Banking Financial Deposit Accepting or Holding) Companies
Prudential Norms (Reserve Bank) Directions 2007.
iii. As per the Orders of the Debt Recovery Tribunals ordering the sale
of Company''s Assets, the Recovery Officers have sold certain assets and
realized these amounts to be appropriated to various lenders.
Note 1.f
i The above do not consist of any amount due from the Directors or
Officers of the Company or Firms and Companies in which they are
Partners/Directors
Note 2.1 Interest on loans
In the earlier years, the Company was providing simple interest @
12.50% pa as was offered by the Company in 1999 with its proposal for
settlement of bank dues. In the last year the Company has provided
interest retrospectively on the basis of claim made by the lenders
which is in most cases on compound basis and at higher rate. The
interest for the current year and last year is as under:
NOTE 3
Contingent Liabilities :
i) Dividend on 13% Redeemable Cumulative Preference Shares is in
arrears- Rs. 48,73,05,000/-15 years (previous Year Rs.45,48,18,000/-14
years)
ii) Income Tax Rs Nil ( Previous Year Rs 13,78,66,110/-)
iii) Wealth Tax Rs. 3,27,843/- ( Previous Year Rs. 3,27,843-)
iv) Sales Tax Rs. 23,14,158/- ( Previous Year Rs. 23,14,158/-)
v) Custom Duty Rs. Nil (Previous Year Rs. 7,00,000/-)
vi) Others Rs. 13,20,000/- (PY Rs. 27,50,760/-)
The above liabilities are dependent upon the outcome of appeals before
various authorities and future distributable profits.
In the opinion of the Management, there is no possibility of
reimbursement, except to the extent of taxes paid and included under
Loans & Advances.
Claims against the Company not acknowledged as debts, as the same are
disputed by the Company. Others Rs. 21,20,585/- (Previous Year Rs.
17,99,596-)
NOTE 4
CURRENT & DEFERRED TAX
There is no provision for Income Tax during the year due to loss.
The Company has not created the Deferred Taxation Asset as its
utilization for set off against future taxable income is uncertain in
the foreseeable future.
NOTE 5
The accumulated loss of Rs. 729,26,74,837/- (Previous Year Rs.
679;99,24,828/-) includes unabsorbed depreciation of Rs.170,09,26,683/-
(Previous Year Rs. 1,70,02,99,479/-)
NOTE 6
The Company has paid an amount of Rs 11,05,605.96/- (PY Rs.
15,77,046.69/- ) towards Provident & Pension Funds and Gratuity &
Superannuation Schemes. It has provided on actuarial basis a liability
of Rs. 17,36,521/- (PY Rs. 16,80,063/-) as at the year end on account
of leave benefit due to the employees. From 1.4.2009 the Employees
Provident Fund Scheme has been transferred to the Regional PF
Commissioner Kolkata. Hence the Employees PF Scheme, Employees Pension
Scheme and Superannuation Scheme are Defined Contribution Schemes and
the same are fully funded on the Balance Sheet date as per the schemes.
Executive Provident Fund managed by the Trust and Gratuity managed by
Life Insurance Corporation of India are defined benefit schemes and are
fully funded on the Balance Sheet date as per the requirements of
AS-15. During the year and amount of Rs. Nil (PY Rs. 2,61,749/-) was
paid by the Company to the Trust due to lower income. The Trust
managing the Executive Fund was wound up as the recognition under the
Income Tax Act 1961 was proposed to be withdrawn with effect from
01.04.2012 as per the proposal of the Finance Bill 2012. Leave
Liability as on Balance Sheet date is provided as per the requirements
of AS-15 on the basis of Actuarial Certificate.
NOTE 7
As per Accounting Standard 15 "Employee Benefits", the disclosures of
Employee benefits as defined in the Accounting Standard are given
below:-Defined Contribution Plan
The Company''s Provident Fund is exempted under para 27 of Employees''
Provident Fund Scheme, 1952.Conditions for grant of exemptions
stipulates that the benefits granted by the Funds will not be less
favorable than those available under statutory fund. The trust was
closed since the recognition was proposed to be withdrawn from
01.04.2012 as per the proposals in the Finance Bill 2012. The
employees'' gratuity fund scheme is managed by Life Insurance
Corporation of India. The present value of obligation is determined
based on actuarial valuation report furnished by them, which recognizes
each period of service as giving rise to additional unit of employee
benefit entitlement and measures each unit separately to build up the
final obligation. The obligation for leave encashment is recognized on
the basis of the actuarial certificate and is not funded
The Certificate for Gratuity is as given by the Life Insurance
Corporation. In case of Leave encashment, the certificate is given by
an Actuary
** ( The Company holds over 20% shareholding in these companies. These
investments were made as Merchant Bankers. The Company does not have
any significant influence over their managements and are hence not
considered as Associates for related parties disclosures.)
(iv) Directors and other executives ( including those who were
associated for part of the period)
Mr. H C Mathur Chairman & Managing Director
Segment Information
The Company''s present activity is to take steps to close its Non
Banking Financial activities. The other activities have not made any
significant progress. Hence there are no segments
NOTE 8
A sum of Rs. 26,350/-(P Y Rs. 94,695/-) is transferable to the
Investors Education & Protection Fund at the end of the year.Fund.
After the year end a sum of Rs. 26,350/-( P Y Rs. 94,695/-) have been
transferred to the said Fund till the date of these statements.
NOTE 9
The Company follows the directions given by Reserve Bank of India (RBI)
to Non Banking Financial Companies and maintains Statutory Liquidity
Ratio (SLR) as per RBI''s instructions in the matter. The Company
continues to be governed by the Non-Banking Financial (Deposit
Accepting or Holding) Companies Prudential Norms (Reserve Bank)
Directions 2007. However Consequent to the Net Worth of the Company
having become negative, the restrictions placed by para 16 of these
norms pertaining to a minimum Capital Adequacy of 12% and Para 19
(pertaining to acquisition of land and building other than for own use)
and Para 20 (pertaining to Concentration of Credit/ Investment) could
not be met.
NOTE 10
The details required as per Para 13 of the Non Banking Financial
(Deposit Accepting or Holding) Companies Prudential Norms (Reserve
Bank) Directions 2007 are annexed.
NOTE 11
The disclosures required as per Section 212(3) and 212(8) of the
Companies Act, 1956 are annexed.
NOTE 12
Previous Year''s figures have been reclassified and /or regrouped
wherever necessary to correspond with the current year''s classification
and disclosures.
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 the
Non-Banking Financial Companies Pridential Norms (Reserve Bank )
Directions, 2007.
3 All Accounting Standards and Guidance Notes issued by ICAI are
applicable including for valuation of investments and other assets as
also assets acquired in satisfaction of debt. However, market value in
respect of quoted investments and break up/ fair value/ NAV in respect
of unquoted investments should be disclosed irrespective of whether
they are classified as long term or current in column (5) above.
Mar 31, 2012
A CFL Capital Financial Services Limited was incorporated in 1983 as
Samudra Mahal Investments Limited as Public Company and continued to
carry on Non Banking Financial Business and had the valid permissions '
for the same from Reserve Bank of India (RBI) and other authorities.
Due to the poor financial condition of the Company, RBI cancelled its
Certificate of Registration w.e.f 18-May-2004. However, the RBI has
directed that the Company continues to be governed by the relevant
provisions of the Act (RBI Act, 1934) and various
directions/instructions issued by RBI from time to time until such time
the entire amount of public deposits held by the company are repaid
with interest and the entire financial assets are disposed of or the
Company is converted to a non-banking non-financial company. As per its
assets and income, the Company continues to be a Non Banking Financial
Company. CFL has its registered office in Kolkata, West Bengal. Its
Company Identification Number as given by Regiatrar of Companies, West
Bengal, is L67120WB1983PLC036805. Its equity shares are listed on the
Bombay Stock Exchange Limited.
B Going Concern
The networth of the Company has become negative due to the accumulated
losses in the previous years. The Company has drawn a plan to liquidate
assets, borrow money including from shareholders / promoters etc for
meeting the liabilities of the financial year ending 31st March, 2013
Hence, the Accounts have been drawn up on a going concern basis. The
winding up petition filed by a depositor in the previous year is
pending before the Hon'ble Calcutta High Court.
C As the net owned fund of the Company are negative. Reserve Bank of
India (RBI) has cancelled the registration of the Company as Non
Banking Financial Company with effect from 18th May, 2004. Accordingly
the Company cannot carry on any fresh Non Banking Financial activites.
Hence these financial statements show the continuation of earlier
operations / activities.
i. Rights of equity shareholders
Equity shareholders have the rights as provided under the Companies
Act, 1956 and the Memorandum and Articles of Association of the
Company.
The above amounts are due for repayment after 12 months from the date
of the Balance Sheet.
Note 1.1 - Borrowings from Banks
i. The loans from Banks are secured by hypothecation of specified
assets present and future, owned by the Company, Hire Purchase and
Leased Assets and Boot Debts. However the value of the security offered
to the banks is inadequate with respect to the amount due.
ii. The Company has entered into agreements with some banks for
settlement of their dues and completed the settlements in earlier
years. The Company is negotiating with the others including those who
have initiated legal proceedings against the Company. The Adjudicating
Authorities have decreed against the Company in man} cases and the
Recovery Officers have commenced possession and disposal of these
assets given as security to the bankers. The amount shown as payable is
calculated on the basis of amounts decreed by the adjudication
authorities along with the interest as decreed. in case the decree has
not been passed the amount is computed on the basis of the claimed
amount and with interest computed as per the claim. In the previous
year amounts shown above are the Principal outstanding and the interest
accrued and due thereon are based on the principal as per the Company's
calculations that are based upon the earlier proposals/agreements
entered into with the banks and approved in-principle by most of them.
The Company could not pay the dues as per the proposal. The amount
payable as on the Balance sheet date is disclosed in note 6.7 below.
iii. "Debts Recovery Tribunals (DRT) I & II Mumbai have passed decrees
in favour of six banks. These banks have filed recovery proceedings
against the Company Six more suits filed by other banks are pending - 3
before DRT-1 Mumbai and one each before DRTs at Delhi, Kolkata and
Chennai. DRT-II Delhi had also passed i partial Decree against the
Company in favour of one of the banks and consequently another recovery
proceedings is pending before the Recovery Officer of DRT-II
Delhi.-DRT-I Kolkata, DRT-II Delhi and the Recovery Officer of DRT-I
Mumbai have passed injuction / status quo orders in case of mortgaged
assets / properties The Recovery Officer of DRT-I Mumbai has appointed
a Receiver in respect of the mortgaged properies in one such recovery
proceeding. Two more execution proceedings filed by one of the banks
are pending before Recovery Officers at DRTs at Hyderabad and Lucknow
for the said properties. The mortgaged properties a" Ahmedabad, Kanpur,
Lucknow and Pune have already been auctioned off, by the Recovery
Officers in two recovery proceedings. The Company has also preferrec
five appeals before the Debt Recovery Appellate Tribunals, Mumbai,
which are pending before the Hon'ble Appellate Tribunal. In one of such
recovery proceedings pending before DRT-I Mumbai, CEAT Ltd. has filed
an intervention application The amounts were earlier advances as
Working Capital limits and then converted into loans. Hence shown under
this head.
The above amounts are the defaulted slums claimed by the lenders before
the Debt Recovery Tribunals (DRT). These are admitted by DRT" and in
some cases orders passed in their favor. The Claimed amount is the
Principal as per the Lenders. The principal shown year is as per
Company's claim.
The Recovery officers of the Debt Recovery Tribunals have sold some of
the fixed assets mortgaged to the banks as security. The amount
realised is held by the Recovery Officers on behalf of the above banks.
Note 1.2
The Company used to re-discount the bills which it used to discount of
its clients in the course of its funding business. The amount is
outstanding as the recovery from the discounters is pending and other
disputes with the concerned discounters.
Note 1.3
These are short term loans that are interest free and due on demand.
Note 1.4 Sundry Creditors
Sundry Creditors include dues from subsidiary - Samudra Securities
Limited Rs. 3,05,08,208.68 (Previous Year Rs. 3,04,08,208.68) Samudra
Securities Limited (SSL) (formerly Ceat Securities Ltd)has become a
subsidiary of the Company with effect from 1st April, 2003 as per the
scheme of amalgamation approved by the Hon. High Courts of Madras and
Calcutta. An amount of Rs. 304.08 lakhs is due to CSL on account of GOI
securities purchased from them. This amount has remained unpaid for a
few years on account of financial constraints. SSL has made a provision
against the amount due to them. The Company has made no provision in
its books, since the value of the investment would not be impaired if
the dues to SSL are settled.
Note 1.5 - Unpaid Debentures
The 19% Secured Non Convertible debentures are secured by an exclusive
charge/mortgage over specific assets given on Lease / Hire Purchase
However the value of security including colateral security is
inadequate with respect to amount due. The principal amount of Rs. 195
lakhs was payable as security to the bankers. The amount shown as
payable is calculated on the basis of amounts claimed before the
adjudication authorities along with interest as claimed. In the
previous year amounts shown above are the Principal outstanding and the
interest accrued and due thereon are based on the principal as per the
Company's calculations that are based upon the earlier sanction given
by Unit Trust of India in 1999-2000 at the time of reschedulement. The
Company could not pay the dues as per the proposal. After the demerger
of Unit Trust of India in 2002, the dues are bi-furcated between UTI
Asset Management Co Ltd and the Administator of Specified Undertaking
of Unit Trust of India. The amount due as on the Balance Sheet date is
disclosed below.
Note 1.6 - Fixed Deposits
The Company has defaulted in repaying the deposits as per the original
terms of the deposit. However the Company is repaying Fixed Depositors
in instalments as per the Company Law Board's (CLB) orders dated
26.06.2001 and its subsequent modifications dated 11.09.2002,
30.04.2004, 28.02.2006, 07.02.2007 & 13.10.2009
As all Fixed Deposits have matured as per the Original terms, the full
amount is shown as dues to fixed depositors. The CLB has also considered
the .maturity amount while deciding about the amount of instalments
Amount of deposits repayable, as per CLB Order dated 13.10.2009, within
one year is Rs 15,99,10,994.10 (installment plus hardship cases) (PYRs.
11,54,21,933/-)
As per the order of the Honourable Company law Board (CLB) dated May
25, 2005, no delayed payment interest would be payable if the Company
makes the payment as per its order dated April 30, 2004. The CLB has
subsequently amended its orders. CLB vide its latest order dated
October 13, 2009 permitted the company to pay the total dues in four
annual installments by December 31 every year from 2009 to 2012. During
the current year, the Company has paid the installment before 31st
December, 2011 as permitted by CLB to all the depositors who have
lodged their claims for repayments. Hence the Company has no unpaid
deposits.
In case of most of the buildings the change to the new name of the
Company in the records is to be completed.
Leased Assets shown as 'Sales/Transfer/Retirement' consist mainly of
completed leases. The leased assets shown above are mainly those where
there are disputes or the transfers of title are not completed.
The assets sold / retired during the year include offices of the
Company disposed off by the Recovery Officers of the Debt Recovery
Tribunals.
The software used for computers was emmbeded in them or were purchased
and capitalised with them over 10 years ago and are fully depreciated.
The updation has been made by the clients to whom Company provided
administrative services and hence are not capitalised.
A. The Long Term Investments as per the Accounting Standard 13 as
notified by the Companies (Accounting Standards) Rules 2006 are
classified Non Current investments.
B. Provision has been made on the basis of the Non-Banking Financial
(Deposits Accepting or Holding) Companies Prudential Norms (Reserve
Bank) Directions 2007. C The Investments are valued at Cost and
provisions are made as per the directions referred in B above.
D. Shares in unlisted companies (including Subsidiary company) are
held in physical form while Government securities are held in
electronic form.
E. In case physically held securities (except subsidiary), the
changing of Company's name is under process.
F. No charge of SLR securities has been created in favour of the
Public Depositors. This has been permitted by Reserve Bank of India.
G. The Investee Company's status as Listed or Unlisted is as per the
Company Data on the website of Ministry of Corporate Affairs at the
current year end.
H. The meaning of abbreviations is A - Active, DO - Dormant, L-
Liquidated, UL - Under Liqidation, USO - Under Strike Off. These
particulars are from the same data as in G above. Shares of Liquidated
Companies have been written off.
I. Provision on Standard Assets has been made @ 0.5% as per Reserve Bank
of India's directions.
Note 2.a
A. The Current Investments are included in this Schedule as per the
Accounting Standard 13 as notified by the Companies (Accounting
Standards) Rules 2006 and there are restrictions on trading imposed by
Reserve Bank of India.
B. * These shares have been received by the Company on removal of
defects in case of bad deliveries or for lost Shares. These have been
accounted at the market rate.
C ** The Company's application for duplicate shares / dematerialisation
not responded by respective Companies
D. Where the company has written off the value of a
share/debenture/security due to non availabilty of market rate of a
period exceeding six months, its value has been shown as Nil despite
the quantitative number held as on the balance sheet date appearing.
Others are valued at lower of cost or market value
E. Shares marked as (D) are in electronic form, others are in physical
form. In case physical securities, the changing of Company's name is
under process.
F. The Investee Company's status as Listed or Unlisted is as per the
Company Data on the website of Ministry of Corporate Affairs at the
current year end.
G. The meaning of abbreviations is A - Active, DO - Dormant, L-
Liquidate UL - Under Liquidation, USO - Under Strike Off. These
particulars are from the same data as in G above. Shares of Liquidated
Companies have been written off.
H On reduction of Capital, one equity share of Rs. 10/- each was
allotted in lieu of 10 equity shares of Rs. 10 each held earlier.
Note 2.b
The amount in the escrow account is maintained as per the directions of
the Reserve Bank of India and the amount to be utilised for the purpose
of repaying the fixed deposits.
Note 2.c
i. Inter Corporate Deposit was given in earlier years and is doubtful
of recovery. No interest has been accrued as per the Non-Banking
Financial (Deposit Accepting or Holding) Companies Prudential Norms
(Reserve Bank) Directions 2007.
ii. Bills Discounted are dues for bills discounted in earlier years
and are doubtful of recovery. No interest has been accrued as per the
Non-Banking Financial (Deposit Accepting or Holding) Companies
Prudential Norms (Reserve Bank) Directions 2007. iii As per the Orders
of the Debt Recovery Tribunals ordering the sale of Company's Assets,
the Recovery Officers have sold certain assets and realised these
amounts to be appropriated to various lenders.
Interest on loans
In the earlier years, the Company was providing simple interest @
12.50% pa as was offered by the Company in 1999 with its proposal for
settlement of bank dues. In the current year the Company has provided
interest retrospectively on the basis of claim made by the lenders
which is in most cases on compound basis and at higher rate. The
interest for the current year and earlier year is as under:
CURRENT & DEFERRED TAX
There is no provision for Income Tax during the year due to loss..
The Company has not created the Deferred Taxation Asset as it
utilisation for set off against future taxable income is uncertain in
the for seeable future.
NOTE 3
The accumulated loss of Rs.679,99,24,824/- (Previous Year Rs.
511,34,85,531 /-) includes unabsorbed depreciation of Rs.
1,70,02,99,479/- (Previous Year Rs. 169,93,22.850/- )
NOTE 4 A
The Company has paid an amount of Rs 21,21,022/- (PY Rs. 12,21,909/-)
Towards Provident & Pension Funds and Gratuity & Superannuation
Schemes. It has provided on actuarial basis a liability of Rs.
10,94,219/- (PY Rs. 10,55,096/-) as at the year end on account of leave
benefit due to the employees. From 1.4.2009 the Employees Provident
Fund Scheme has been transferred to the Regional PF Commissioner
Kolkata. Hence the Employees PF Scheme, Employees Pension Scheme and
Superanuation Scheme are Defined Contribution Schemes and the same are
fully funded on the Balance Sheet date as per the schemes. Executive
Provident Fund managed by the Trust and Gratuity managed by Life
Insurance Corporation of India are defined benefit schemes and are
fully funded on the Balance Sheet date as per the requirements of
AS-15. During the year and amount of Rs. 2,61,749/- (PY Rs. 4,80,500)
was paid by the Company to the Trust due to lower income. Leave
Liability as on Balance Sheet date is provided as per the requirements
of AS-15 on the basis of Actuarial Certificate."
NOTE 5
As per Accounting Standard 15 "Employee Benefits", the disclosure of
Employee benefits as defines in the Accounting Standard are given
below:-
Defined Contribution Plan
Contribution to Defined Contribution Plan, recognised as expense for
the year are as under:
NOTE 6
Related Party Disclosures
1. Relationships
(i) Shareholders in the Company
STEL Holdings Limited holds 34.27% equity share capital of the Company.
(ii) Subsidiary of the Company ,
Samudra Securities Ltd (formerly Ceat Securities Limited)
(iii) Other related parties
Ace Garment Export Ltd**
Indo Dean Leather Ltd**
Kaveri Polysacks Ltd.**
Spectrum Alkyd & ResinsLtd"
Ruia Hospitality Ltd**
** (The Company holds over 20% shareholding in these companies. These
investments were made as Merchant Bankers. The Company does not have
any significant influence over their managements and are hence not
considered as Associates for related parties disclosures.)
(iv) Directors and other executives (including those who were
associated for part of the period)
Mr H C Mathur - Managing Director
Segment information
The Company's present activity is to take steps to close its Non
Banking Financial activities. The other activities have not made any
significant progress. Hence there are no segments
NOTE 7
A sum of Rs. 94,695/- (P Y Rs. 86,029/-) is transferable to the
Investors Education & Protection Fund at the end of the year. After the
year end a sum of Rs. 86,029/- (P Y Rs. 3,45,148/-) have been
transferred to the said Fund till the date of these statements.
NOTE 8
The Company follows the directions given by Reserve Bank of India (RBI)
to Non Banking Financial Companies and maintains Statutory Liquidity
Ratio (SLR) as per RBI's instructions in the matter. The Company
continues to be governed by the Non-Banking Financial (Deposit
Accepting or Holding) Companies Prudential Norms (Reserve Bank)
Directions 2007. However, consequent to the Net Worth of the Company
having become negative, the restrictions placed by para 16 of these
norms pertaining to a minimum Capital Adequacy of 12% and Para 19
(pertaining to acquisition of land and building other than for own use)
and Para 20 (pertaining to Concentration of Credit/ Investment) could
not be met.
NOTE 9
The details required as per Para 13 of the Non Banking Financial
(Deposit Accepting or Holding) Companies Prudential Norms (Reserve
Bank) Directions 2007 are annexed.
NOTE 10
The disclosures required as per Section 212(3) and 212(8) of the
Companies Act, 1956 are annexed.
NOTE 11
The Revised Schedule Vi has become effective from 1-Apr-2011 for the
preparation of the financial statements. This has significantly
impacted the disclosures and presentation in the financial statements.
Previous Year's figures have been reclassified and /or regrouped
wherever necessary to correspond with the current year's classification
and disclosures.
Mar 31, 2011
1 Going Concern
The networth of the Company has become negative due to the accumulated
losses in the previous years. The Company has drawn a plan to liquidate
assets, borrow money and increase the capital. The Company is in the
process of implementation of the same with the support from the
creditors and shareholders. Hence, the Accounts have been drawn up on a
going concern basis. The winding up petition filed by one of the
creditors in the previous year is pending before the Hon'ble Calcutta
High Court.
2 As the net owned fund of the Company are negative, Reserve Bank of
India (RBI) has cancelled the registration of the Company as Non
Banking Financial Company with effect from 18th May, 2004. Accordingly
the Company cannot carry on as Non Banking Financial Company and has to
take steps to close NBFC activity and convert itself into a Non-NBFC
Company. These accounts show the operations of this activity.
The Company is contemplating to carry on Non Banking Non Financial
business and the operations from this activity during this year are not
significant and hence no separation is made.
3 As per the order of the Honourable Company Law Board (CLB) dated May
25, 2005, no delayed payment interest would be payable if the Company
makes the payment as per its order dated April 30, 2004. The CLB has
subsequently amended its orders. CLB vide its latest order dated
October 13 2009 permitted the Company to pay the total dues in four
annual installments by December 31 every year from 2009 to 2012. During
the current year, the Company has paid the installment before 31st
December, 2011 as permitted by CLB to all the depositors who have
lodged their claims for repayments.
4 Inflow / Outflow in foreign currency during the year as well as
previous year are nil.
5 Confirmations from most of the debtors, discounters and other parties
have not been received and the amounts appearing in these statements
are as per books of account of the Company. These balances have been
examined from the point of Prudential Norms prescribed from time to
time by the Reserve Bank of India and necessary adjustments and
provisions made as prescribed in these norms. These are therefore
treated as unsecured debtors and classified as such inspite of HP /
Lease agreements with them. In case o NPA accounts where installments
and / or finance charges are not received regularly, the steps as
considered necessary, having regard to the operations of the borrowers
and overall objectives of the Company, are taken from time to time.
6 Most of the Fixed Assets of the Company are in the nature of
Corporate Assets since they are given as security to Secured Creditors
and not as Cash Generating Units as defined in Accounting Standard 28
as notified under the Companies (Accounting Standards) Rules, 2006.
Hence in the opinion of the Management there is no impairment of these
Fixed Assets of the Company.
7 Fixed Assets are shown at lower of written down value or realisable
value based on the valuation reports or the best estimates by the
management in this regard for considering any impairment.
The same is within the limits prescribed by the Schedule XIII of the
Companies Act, 1956 and as approved by the Central Government. The
shareholders have approved the same at the Annual General Meeting held
on 24th July, 2009.
8 There is no provision for Income Tax during the year.
9 The Government of India had introduced a new Pension Scheme with
effect from 16.11.1995. There was a lot of opposition and many
extablishments had filed writ petitions in various High Courts. These
matters were finally clubbed, heard and decided by the Hon. Supreme
Court of India in 2002. The Company deposited the relevant contribution
along with interest with the Regional Provident Fund Commissioner,
Kolkata (RPFC) in June 2002.
However due to the poor condition of the Company majority of the
employees left the services of the Company between 1995 and 2002.
Their dues were settled by transfer of the total employer's
contribution to the new employer's Provident fund or payment to the
employees as Direct Settlements as per the rules of the scheme. The
RPFC contends that the part of the Company's contibution atrributable
to the Pension scheme should be deposited with them even if the same
has been paid to the employees directly or to their suceeding
employers. The RPFC has raised a demand of Rs 75,12,301/- (P.Y. Rs.
75,12,301/- ) consisting of contribution of Rs. 35,32,735/- (P.Y. Rs.
35,32,735/-) and Rs. 39,79,566/- (P.Y. Rs. 39,79,566/-) as interest
thereon.The Company is advised that the demand is likely to be set
aside since the Company has settled the dues of the employees in full.
10 The accumulated loss of Rs. 511,34,84,532/- (Previous Year Rs.
501,27,54,978/-) includes unabsorbed depreciation of Rs.169,93,22,850/-
(Previous Year Rs.169,82,40,098/-)
11 Contingent Liabilities :
i) Dividend on 13% Redeemable Cumulative Preference Shares is in
arrears- Rs. 42,23,31,000/- (Previous Year Rs.38,98,44,000/-)
ii) IncomeTax Rs 51,68,993/- (Previous Year Rs 5168,993/-)
iii) Sales Tax Rs. 1,55,99,969/- (Previous Year Rs. 1,55,99,969/-)
iv) Custom Duty Rs. 7,00,000/- (Previous Year Rs. 7,00,000/-)
v) Pension Scheme Rs. 75,12,301/- ( Previous Year Rs. 75,12,301/-)
vi) Others Rs. 69,74,203/- (PY Rs. 14,60,000/-)
The above liabilities are dependent upon the outcome of appeals before
various authorities and future distrubutable profits.
In the opinion of the Management, there is no possibility of
reimbursement, except to the extent of taxes paid and included under
Loans & Advances.
12 Claims against the Company not acknowledged as debts, as the same
are disputed by the Company.
Amounts claimed by Banks & UTI Rs.163,96,18,918/- (Previour Year Rs.
/-) Others Rs. Nil/- (Previous Year Rs. 14,55,000/-)
13 Samudra Securities Limited (SSL) (formerly Ceat Securities Ltd.)has
become a subsidiary of the Company with effect from 1st April, 2003 as
per the scheme of amalgamation approved by the Hon. High Courts of
Madras and Calcutta. An amount of Rs. 304.08 lakhs is due to SSL on
account of GO securities purchased from them. This amount has remained
unpaid for a few years on account of financial constraints. SSL has
made a provision against the amount due to them. The Company has made
no provision in its books, since the value of the investment would not
be impaired if the dues to SSL are settled.
14 The Company has paid an amount of Rs 21,21,022/- (PY Rs.
12,21,909/-) towards Provident & Pension Funds and Gratuity &
Superannuation Schemes. It has provided on actuarial basis a liability
of Rs. 10,94,219/- (PY Rs. 10,55,096/-) as at the year end on account
of leave benefit due to the employees. From 1.4.2009 the Employees
Provident Fund Scheme has been transferred to the Regional PF
Commissioner Kolkata. Hence the Employees PF Scheme, Employees Pension
Scheme and Superanuation Scheme are Defined Contribution Schemes and
the same are fully funded on the Balance Sheet date as per the schemes.
Executive Provident Fund managed by the Trust and Gratuity managed by
Life Insurance Corporation of India are defined benefit schemes and are
fully funded on the Balance Sheet date as per the requirements of
AS-15. During the year an amount of Rs. 4,80,500/- (PY Rs. 3,83,500)
was paid by the Company to the Trust due to lower income. Leave
Liability as on Balance Sheet date is provided as per the requirements
of AS-15 on the basis of Actuarial Certificate.
15 As per Accounting Standard 15 "Employee Benefi ts", the disclosurs
of Employee benefits as defi nes in the Accounting Standard are given
below:-
Defined Contribution Plan
The Company's Provident Fund is exempted under para 27 of Employees'
Provident Fund Scheme, 1952.Conditions for grant of exemptions
stipulates that the benefits granted by the Funds will not be less
favourable than those available under statutory fund.
The employees' Gratuity Fund scheme is managed by Life Insurance
Corporation of India. The present value of obligation is determined
based on actuarial valuation report furnished by them, which recognises
each period of service as giving rise to additional unit of employee
benefit entitlement and measures each unit separately to build up the
final obligation. The obligation for leave encashment is recognised on
the basis of the actuarial certificate and is not funded.
16 Related Party Disclosures
1. Relationships
(i) Shareholders in the Company
THarrisons Malayalam Financial Services Ltd (a subsidairy of Harrisons
Malayalam Ltd) holds 34.27% equity share capital of the Company.
Instant Holdings Limited held over 20% of the equity share capital of the
Company for part of the year.
(ii) Subsidiary of the Company
Samudra Securities Ltd (formerly Ceat Securities Limited)
(iii) Other related parties
Indo Dean Leather Ltd**
Spectrum Alkyd & Resins Ltd**
Ruia Hospitality Ltd**
** (The Company holds over 20% shareholding in these companies. These
investments were made as Merchant Bankers. The Company does not have
any significant influence over their managements and are hence not
considered as Associates for related parties disclosures.)
(iv)Directors and other executives (including those who were associated
for part of the period)
Mr. H.C. Mathur - Managing Director
17 Segment Information
The Company's present activity is to take steps to close its Non
Banking Financial activities. The other activities have not made any
significant progress. Hence there are no segments
18 Deferred Taxation
The Company has not created the Deferred Taxation Asset as it
utilisation for set off against future taxable income is uncertain in
the forseeable future.
19 A sum of Rs. 24,80,336/-(P Y Rs. 45,78,279/-) is transferable to the
Investors Education & Protection Fund at the end of the year. After the
year end a sum of Rs. 3,45,148/- ( P Y Rs. 39,29,759/-) has been
transferred to the said Fund till the date of these statements.
20 The Company follows the directions given by Reserve Bank of India
(RBI) to Non Banking Financial Companies and maintains Statutory
Liquidity Ratio (SLR) as per RBI's instructions in the matter. The
Company continues to be governed by the Non-Banking Financial (Deposit
Accepting or Holding) Companies Prudential Norms (Reserve Bank)
Directions 2007. However Consequent to the Net Worth of the Company
having become negative, the restrictions placed by para 16 of these
norms pertaining to a minimum Capital Adequacy of 12% and Para 19
(pertaining to acquisition of land and building other than for own use)
and Para 20 (pertaining to Concentration of Credit / Investment) could
not be met.
21 The details required as per Para 13 of the Non Banking Financial
(Deposit Accepting or Holding) Companies Prudential Norms (Reserve
Bank) Directions 2007 are annexed.
22 Previous year's figures have been regrouped or recast wherever
necessary to make them comparable with current year's figures.
Mar 31, 2010
1 Going Concern
The networth of the Company has become negative due to the accumulated
losses in the previous years. The Company has drawn a plan to liquidate
assets, borrow money and increase the capital. The Company is in the
process of implementation of the same with the support from the
creditorsand shareholders. Hence, the Accounts have been drawn up on a
going concern basis. The winding up petition filed by one of the
creditors in the previous year is pending before the Honble Calcutta
High Court.
2 As the net owned fund of the Company are negative, Reserve Bank of
India (RBI) has cancelled the registration of the Company as
Non Banking Financial Company with effect from 18th May, 2004.
Accordingly the Company cannot carry on as Non Banking Financial
Company and has to take steps to close NBFC activity and convert itself
into a Non- NBFC Company. These accounts show the operations of this
activity. The Company is contemplating to carry on Non Banking Non
Financial business and the operations from this activity during this
year are not significant and hence no separation is made.
3 As per the order of the Honourable Company law Board (CLB) dated May
25, 2005, no delayed payment interest would be payable if the Company
makes the payment as per its order dated April 30, 2004. The CLB has
subsequently amended its orders. CLB vide its latest order dated
October 13,2009 permitted the company to pay the total dues in four
annual installments by December 31 every yearfrom 2009 to 2012. During
the currentyear, the Company has paid the installment before 31 st
December, 2010 as permitted by CLB to all the depositors who have
lodged their claims for repayments.
4 Inflow / Outflow in foreign currency during the year as well as
previous year are nil.
5 Confirmations from most of the debtors, discounters and other parties
have not been received and the amounts appearing in these statements
are as per books of account of the company. These balances have been
examined from the point of Prudential Norms prescribed from time to
time by the Reserve Bank of India and necessary adjustments and
provisions made as prescribed in these norms. These are therefore
treated as unsecured debtors and classified as such inspite of HP/Lease
agreements with them. In case of NPA accounts where installments and/or
finance charges are not received regularly, the steps as considered
necessary, having regard to the operations of the borrowers and overall
objectives of the company, are taken from time to time.
6 Most of the Fixed Assets of the Company are in the nature of
Corporate Assets since they are given as security to Secured Creditors
and not as Cash Generating Units as defined in Accounting Standard 28
prescribed by the Institute of Chartered Accountants of India. Hence
in the opinion of the Management there is no impairment of these Fixed
Assets of the Company.
7 Fixed Assets are shown at lower of written down value or realisable
value based on the valuation reports or the best estimates by the
management in this regard for consideringany impairment.
8 There is no provision for Income Tax during the year.
9 The Government of India had introduced a new Pension Scheme with
effect from 16.11,1995.There was a lot of opposition and many
extablishments had filed writ petitions in various High Courts. These
matters were finally clubbed and heard and decided by the Hon Supreme
Court of India in 2002. The Company deposited the relevant contribution
along with interest with the Regional Provident Fund Commissioner,
Kolkata (RPFC) in June 2002.
However due to the poor condition of the company majority of the
employees left the services of the company. There dues were settled by
transfer of the total employers contribution to the new employers
Provident fund or payment to the employees as Direct Settlements as per
the rules of the scheme. The RPFC contends that the part of the
Companys, contibution atrributable to the Pension scheme should be
deposited with them even if the same has been paid to the employees
directly or to their suceeding employers. The RPFC has raised a demand
of Rs 75.94 lakhs consiting of contribution of Rs. 35.95 lakhs and Rs.
39.94 lakhs as interest thereon.The Company is advised that the demand
is likely to be set aside since the Company has paid the dues in full.
10 The accumulated loss of Rs. 50,127.55 lakhs (Previous Year
Rs.49,339.01 Lakhs) includes unabsorbed depreciation of Rs.16,982.40
lakhs (Previous Year Rs. 16,971.38 Lakhs)
11 Contingent Liabilities:
i) Dividend on 13% Redeemable CumulativePreference Shares is in
arrears- Rs. 3,898.44 lakhs. (Previous Year Rs. 3,573.57 lakhs)
ii) IncomeTax Rs 51.68 lakhs. ( Previous Year Rs 91.44 lakhs)
iii) Sales Tax Rs. 155.99 lakhs ( Previous Year Rs. 127.30 lakhs)
iv) Custom Duty Rs. 7.00 lakhs (Previous Year Rs. 7.00 Lakhs)
v) Pension Scheme Rs. 75.94 lakhs ( Previous Year Rs. 75.94 lakhs)
The above liabilities are dependent upon the outcome of appeals before
various authorities and future distrubutable profits.
In the opinion of the Management, there is no possibility of
reimbursement, except to the extent of taxes paid and included under
Loans & Advances.
12 Claims against the Company not acknowledged as debts, as the same
are disputed by the Company. Amounts claimed by Banks & UTI Rs.
13,239.49 lakhs
Others Rs. 14.55 Lakhs (Previous Year Rs. 14.55 Lakhs)
13 Ceat Securities Limited (CSL) has become a subsidiary of the Company
with effect from*1st April, 2003 as per the scheme of amalgamation
approved by the Hon. High Courts of Madras and Calcutta. An amount of
Rs. 312.33 lakhs is due to CSL on account of GOI securities purchased
from them. This amount has remained unpaid for a few years on account
of financial constraints. CSL has
14 . The Company has paid an amount of Rs 12.26 lakhs (PY Rs. 17.67
lakhs) towards Provident & Pension Funds and Gratuity & Superannuation
Schemes. It has provided on acturial basis a liability of Rs. 10.55
lakhs as at the year end on account of leave benefit due to the
employees. From 1.4.2009the Employees Provident Fund Scheme has been
transferred to the Regional PF Commissioner Kolkata. Hence the
Employees PF Scheme Employees Pension Scheme and Superanuation Scheme
are Defined Contribution Schemes and the same are fully funded on the
Balance Sheet date as per the schemes. Executive Provident Fund managed
by the à Trust and Gratuity managed by Life Insurance Corporation of
India are defined benefit schemes and are fully funded on the Balance
Sheet date as per the requirements of AS-15. During the year and amount
of Rs. 3.43 lakhs was paid by the Company to the Trust due to lower
income. Leave Liability as on Balance Sheet date is provided as per the
requirements of AS-15 on the basis of Acturial Certificate.
15 Related Party Disclosures
1. Relationships
(i) Shareholders in the Company .
Harrisons Malayalam Financial Services Ltd (a subsidairy of Harrisons
Malayalam Ltd) holds 34.27% equity share capital of the Company Instant
Holdings Limited held over 20% of the Equity share Capital of the
Company for part of the year.
(ii) Subsidiary of the Company
Ceat Securities Ltd
(iii) Other related parties
Indo Dean Leather Ltd"
Spectrum Alkyd & Resins Ltd"
Ruia Hospitality Ltd"
** (The Company holds over 20% shareholding in these companies. These
investments were made as Merchant Bankers. The Company does not have
any significant influenqe over their managements and are hence not
considered as Associates for related parties disclosures.)
(iv) Directors and other executives (including those who were
associated for part of the period)
Mr H C Mathur - Managing Director
16 Segment Information
The Companys present activity is to take steps to close its Non
Banking Financial activities. The other activities have not made any
significant progress. Hence there are no segments. . /
17 A sum of Rs. 45.79 Lakhs (PY Rs. 37.96 lakhs) is under transfer with
the bankers as at year end for transfer to Investor Education &
Protection Fund.Afterthe year end a sum of Rs 39.30 lakhs ( P Y Rs.
31.47 lakhs) have been transferred to the said Fund.
18 The Company follows the directions given by Reserve Bank of India
(RBI) to Non Banking Financial Companies and maintains
StatutoryLiquidity Ratio (SLR) as per RBIs instructions in the matter.
The Company continues to be governed by the Non-Banking Financial
(Deposit Accepting or Holding) Companies Prudential Norms (Reserve
Bank) Directions 2007. However Consequent to the Net Worth of the
Company having become negative, the restrictions placed by para 16 of
these norms pertaining to a minimum Capital Adequacy of 12%and Para
19(pertaining to acquisition of land and building other than for own
use) and Para 20 (pertaining to Concentration of Credit/Investment)
could not be met
19 The details required as per Para 13 of the Non Banking Financial
(Deposit Accepting or Holding) Companies Prudential Norms (Reserve
Bank) Directions 2007 are annexed.
20 - Previous years figures have been regrouped or recast wherever
necessary to make them comparable with current years figures.
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