Mar 31, 2012
A) Terms/rights attached to shares Preference Shares
The authorised capital structure of the company includes 9% Redeemable
Cumulative Preference shares having a par value of Rs. 100/-per share.
Holder of preference shares have preference in right to receive
dividend in case company proposes to distribute and pay the same.
Maximum dividend which can be distributed and paid to preference
shareholders is 9% of the paid up amount of the preference share
capital. Holder of preference share is not entitled to vote unlike
holder of equity share.
In the event of liquidation of the company, the holders of preference
shares will have priority as compared to equity shareholders in
distribution of assets of the company. The distribution will be in
proportion to the number of preference shares held by the shareholders.
Equity Shares
The Company has only one class of equity shares having a par value of
110/-per share. Each holder of equity shares is entitled to vote per
share. The Company declares and pay dividends in indian rupees. The
dividend proposed by the Board of Director is subject to the approval
of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the company, the holders of equity
shares will entitled to receive remaning 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.
1.1 During the year 1997-98, the Company has received Wealth Tax refund
of Rs.10,83,250/- of M. G. Mittal & Co. and the same amount has been
shown as payable to M/s. M. G. Mittal & Company under the head sundry
creditors.
In case of Quoted Equity Instruments, the Company has not transferred
following shares in its own name and also the Company is not holding
valid transfer deed for the same shares. Losses because of non receipt
of dividend/bonus shares/right shares or non receipt of shares due to
spin-off / de-merger on those shares are unascertainable. However, the
company is pursuing to get valid transfer deed from respective
transferors or with Registrar of Companies as per section 108 (1-D) of
Companies Act, 1956.
2.1 Loans Given include
a) 1,78,82,349/- (Previous year Rs.1,79,82,349/-) due from companies in
which directors are interested as directors/members.
b) Dues from ex-officer of the Company Rs.1,77,133/- (Previous Year
Rs.1,77,133/-)
2.2 Loans Given (Gross) of Rs.178.82 lacs (Previous Year: Rs. 179.82 Lacs)
and which are outstanding for a long period and there are no
repayments/interest recovery. The management is of the opinion that the
aforesaid amounts are good and recoverable & hence no provision for bad
debts/ write off has been made except the provision made in the past as
required by NBFC Prudential Norms (Reserve Bank) Directions, 1998 when
the Company was registered as a NBFC with RBI.
2.3 Loans Given (Gross) of Rs.44.75 lacs (Previous Year: Rs. 44.75 Lacs)
and which are outstanding for a long period and there are no
repayments/interest recovery. The management is of the opinion that the
aforesaid amounts are doubtful & hence provision for Rs.37.81 Lacs only
(Previous Year: Rs. 37.81 Lacs) towards bad debts/ write off has been
made.
3.1 Sundry debtors includes a sum of Rs.1,52,21,204/- for which the
company has filed cases under section 138 of the Negotiable Instrument
Act, 1882. The Company has made provision as per guidelines issued by
the Reserve Bank of India applicable to all registered Non-Banking
Finance Companies in respect of all the sundry debtors on which the
Company has filed the cases under section 138 of the Negotiable
Instrument Act, 1882. However, in the opinion of the company the said
amounts are considered to be good and recoverable.
3.2 During the year 1994-95, the Company had given on lease plant and
machinery worth Rs. 41,34,000/- to one of the lessees. During the year
1997-98 , the said plant and machinery have been repossessed by the
Company and sold to other party at Rs. 23,00,000/-. As on 31.03.2012,
the amount outstanding is Rs. 12,50,012/- (P.Y. Rs. 12,50,012/-)and the
same has been shown under the head Sundry Debtors.
4.1 Short Term Loans and Advances of Rs.9,731/- (Previous year 17,100/-)
due from companies in which directors are interested as
directors/members.
Mar 31, 2011
1) Contingent Liability not provided for
(a) Rs. 14,91,000/- in respect 42600 partly paid-up shares of
Dhanalakshmi Bank Ltd. (Previous year Rs. 14,91,000/-)
(b) In respect of demand raised Rs.55,043/= by Income Tax Department
for A.Y.2002-2003 for which rectification application is made.
2) Loans & Advances include
a) Rs. 3,44,287/- (Previous year Rs. 3,44,287/-) due from companies
in which directors are interested as directors / members.
b) Dues from ex-officer of the Company Rs. 1,77,133/- (Rs,-1,77,133/-)
Maximum Balance outstanding at any time during the year Rs. 1,77,133/-
(1,77,133/-)
3) Loans &Advance (Gross) of Rs, 145.31 lacs and sundry debtors (Gross)
of Rs. -188.86 lacs which are outstanding for a long period and there
are no repayments/ interest recovery. The management is of the opinion
that the aforesaid amounts are good and recoverable & hence no provision
for bad debts/ write off has been made except the provision made in the
past as required by NBFC Prudential Norms (Reserve Bank) Directions,
1998 when the Company was registered as a NBFC with RBI.
4) Bank balances with bank in current accounts includes Rs. 406.77 in
The National Co. op. Bank Ltd. and Rs. 1,875.00 in Alibaug Co. op.
Bank. Maximum balance outstanding at anytime during the year with The
National Co. op .Bank Ltd. was Rs. 406.77 (Previous year Rs. 406.77)
and with Airbau Co-op. Bank was Rs. 1,875.00 (Previous year Rs.
1,989.00)
5) a) The balances of Loans & Advances, deposits, sundry debtors are
subject to confirmation. During the year company has not send
confirmation to lessees as to physical existence and working condition
of lease assets.
b) Due to non availability of confirmation from lessees to whom assets
are given on lease since last many years and in respect of other fixed
assets, whose useful life has expired and book value is Rs. Nil,
6) The Company has not transferred following shares in its own name and
also the Company is not holding valid transfer deed for the same
shares. Losses because of non receipt of dividend/bonus shares/right
shares or non receipt of shares due to spin-off/ de-merger on those
shares are unascertainable. However, the company is pursuing to get
valid transfer deed from respective transferors or with Registrar of
Companies as per section 108 (1-D) of Companies Act, 1956.
7) The Company has not complied with Sec. 383A of Companies Act, 1956
as the Company have no whole time Company Secretary and Sec.269 of
Companies Act, 1956 as the Company have no Managing Director.
8) The Management believes that the company is a going concern and will
continue to be so in the foreseeable future, notwithstanding the fact
that the company has eroded its net worth and its activity is
standstill. Considering the steps initiated by the company for recovery
of its dues from its clients, including legal recourse, the company is
confident that the outstanding will be reduced in dues course of time
and the Company will be able to ecommerce business activities
9) In the opinion of the Board of Directors, the Current Assets, Loans
and Advances have the value on realisation in an ordinary course of
business not less than the amount at which they are stated in the
Balance Sheet and Provision for all known liabilities are adequate.
10) No provision is considered necessary for sales tax on the transfer
of right to use any goods for any purpose under various state sales tax
laws. The demands, if held payable, are recoverable from the concerned
lessees, in accordance with the respective lease agreements.
11) Sundry debtors includes a sum of Rs. 1, 52, 21,204/- for which the
company has filed cases under section 138 of the Negotiable Instrument
Act, 1882. The Company has made provision as per guidelines issued by
the Reserve Bank of India applicable to all registered Non-Banking
Finance Companies in respect of all the sundry debtors on which the
Company has filed the cases under section 138 of the Negotiable
Instrument Act, 1882. However, in the opinion of the company the said
amounts are considered to be good and recoverable.
12) During the year 1994-95 the Company had given on lease plant and
machinery worth Rs.41, 34,000/- to one of the lessees. During the year
1997-98 , the said plant and machinery have been repossessed by the
Company and sold to other party at Rs. 23,00,000/-. As on 31.03.2011,
the amount outstanding is Rs. 12, 50,012/- and the same has been shown
under the head Sundry Debtors.
13) During the year 1997-98, the Company has received Wealth Tax refund
of Rs. 10,83,250/- of M. G. Mittal & Co. and the same amount has been
shown as payable to M/s. M. G. Mittal & Company under the head sundry
creditors.
14) Additional information pursuant to the provisions of paragraph 3 of
Part II of Schedule VI of the Companies Act, 1956.
i) Expenditure under Foreign Currency on account of travelling Rs. Nil
(Previous year Rs. Nil).
ii) Other information pursuant to the-provisions of paragraph 4, 4A, 4C
and 4D of Part II to schedule VI of the Companies Act, 1956
is not applicable.
15). As the Company has no Managing Director the calculation of Net
profit u/s.198 and349 of the Companies act, 1956 has not been given.
16). A) Related party disclosures
i. Related Party relationships:
Subsidiary Company
Mega Capital Broking Pvt. Ltd
Other Related Party
Arshiya International Ltd
Note :
1. The related party relationship have been determined by the
management on the basis of the requirements of the Accounting Standard
AS-18 'Related Party Disclosures' issued by the ICAI and the same have
been relied upon by the auditors.
B) Disclosure of Transactions with related party
Transaction with the subsidiary company Particulars of transaction Loan
given :
Opening Balance Rs. 8,050/- Loan Given Rs.5,100/-
Less: Receipt(*) Rs.6,050/--
Closing Balance Rs.7,100/- (*)Dividend received in respect of shares
held by subsidiary company
17) As there is no virtual certainty of future taxable income and in
view of losses during the year, no provision for deferred tax liability
as required by AS-22 has been considered.
18) In view of the no business activity of the subsidiary Company,
separate consolidated financial statement are not prepared as required
by AS 21 issued by ICAI.
19) In view of the benefits available as per Income Tax Act 1961 and
the carried forward business losses no income tax is payable, hence no
provision for income tax has been made.
20) The All Fixed Assets has been sold as a scrap in current year at
Rs.25, 775/-
21) Previous year's figures have been re-grouped, rearranged, reworked
& reclassified Wherever necessary.
As per our attached report of even date
1. The financial year of the Subsidiary Companies ended on 31.03.2011
2. Date from which they became subsidiary companies 23.02.1996
3. a) Number of shares held by Mega Fin (India) Limited
with its nominees in the subsidiaries at the end of the 2,71,000 Equity
Shares financial year of the subsidiary companies. of Rs. 10/- each.
b) Extent of interest of holding company at the end of 99.99%
the financial year of the subsidiary companies
22. The net aggregate amount of profit/(loss) of the subsi- diary
company so far as it concerns the members of the holding Company and is
not dealt with in the holding Company's accounts
i) For the financial year ended 31st March, 2011 (Rs.6,448/-)
of the subsidiary company.
ii) For the previous financial years of the subsidiary
companies since it became a subsidiary company. (Rs. 8, 38,276/-)
23. The net aggregate amount of profit/(loss) of the subsidiary company
so far as it concerns the members of the holding
Company and is dealt with in the holding Company's accounts.
i) For the financial year ended 31st March, 2011 NIL of the subsidiary
company.
ii) For the previous financial years of the Subsidiary Company since it
became a Subsidiary Company. NIL
24. Material changed if any between the end of financial year of
the NIL Subsidiary Company and that of the Holding Company.
Mar 31, 2010
1) Contingent Liability not provided for
(a) Rs. 14,91,000/- in respect 42600 partly paid-up shares of
Dhanalakshmi Bank Ltd. (Previous year Rs. 14,91,000/-)
(b) In respect of demand raised Rs.55,043/= by Income Tax Department
for A. Y.2002-2003 for which rectification application is made.
2) Loans & Advances include
a) Rs. 3,44,287/- (Previous year Rs. 3,44,287/-) due from companies in
which directors are interested as directors / members.
b) Dues from ex-officer of the Company Rs. 1,77,133/- (Rs. 1,77,133/-)
Maximum balance outstanding at any time during the year Rs. 1,77,133/-
(1,77,133/-)
3) Loans &Advance (Gross) of Rs. 145.31 lacs and sundry debtors (Gross)
of Rs. 188.86 lacs which are outstanding for a long period and there
are no repayments/ interest recovery. The management is of the opinion
that the aforesaid amounts are good and recoverable & hence no
provision for bad debts/ write off has been made except the provision
made in the past as required by NBFC Prudential Norms (Reserve Bank)
Directions, 1998 when the Company was registered as a NBFC with RBI.
4) Bank balances with bank in current accounts includes Rs. 406.77 in
The National Co. op.Bank Ltd. and Rs. 1,875.00 in Alibaug Co. op.
Bank. Maximum balance outstanding at anytime during the year with The
National Co. op .Bank Ltd. was Rs. 406.77 (Previous year Rs. 406.77)
and with Alibaug Co.op. Bank was Rs. 1,875.00 (Previous year Rs.
1,989.00)
5) a) The balances of Loans & Advances, deposits, sundry debtors are
subject to confirmation. During the year company has not send
confirmation to lessees as to physical existence and working condition
of lease assets.
b) Due to non availability of confirmation from lessees to whom assets
are given on lease since last many years and in respect of other fixed
assets, whose useful life has expired and book value is Rs.Nil, the
management has written off the lease assets in the next financial year
and has also scrap the other fixed assets in next financial year.
6) The Company has not transferred following shares in its own name and
also the Company is not holding valid transfer deed for the same
shares. Losses because of non receipt of dividend/bonus shares/right
shares or non receipt of shares due to spin-off / de-merger on those
shares are unascertainable. However, the company is pursuing to get
valid transfer deed from respective transferors or with Registrar of
Companies as per section 108 (1-D) of Companies Act, 1956.
8) The Company has not complied with Sec. 3 83A of Companies Act, 1956
as the Company have no whole time Company Secretary and Sec.269 of
Companies Act, 1956 as the Company have no Managing Director.
9) The Management believes that the company is a going concern and will
continue to be so in the foreseeable future, notwithstanding the fact
that the company has eroded its net worth and its activity is
standstill. Considering the steps initiated by the company for recovery
of its dues from its clients, including legal recourse, the company is
confident that the outstanding will be reduced in dues course of time
and the Company will be able to recommence business activities
10) In the opinion of the Board of Directors, the Current Assets, Loans
and Advances have the value on realisation in an ordinary course of
business not less than the amount at which they are stated in the
Balance Sheet and Provision for all known liabilities are adequate.
11) No provision is considered necessary for sales tax on the transfer
of right to use any goods for any purpose under various state sales tax
laws. The demands, if held payable, are recoverable from the concerned
lessees, in accordance with the respective lease agreements.
12) Sundry debtors includes a sum of Rs. 1,52,21,204/- for which the
company has filed cases under section 138 of the Negotiable Instrument
Act, 1882. The Company has made provision as per guidelines issued by
the Reserve Bank of India applicable to all registered Non-Banking
Finance Companies in respect of all the sundry debtors on which the
Company has filed the cases under section 138 of the Negotiable
Instrument Act, 1882. However, in the opinion of the company the said
amounts are considered to be good and recoverable.
13) During the year 1994-95 the Company had given on lease plant and
machinery worth Rs.41, 34,000/- to one of the lessees. During the year
1997-98 , the said plant and machinery have been repossessed by the
Company and sold to other party at Rs. 23,00,000/-. As on 31.03.2010,
the amount outstanding is Rs. 12, 50,012/- and the same has been shown
under the head Sundry Debtors.
14) During the year 1997-98, the Company has received Wealth Tax refund
of Rs. 10,83,250/- of M. G. Mittal & Co. and the same amount has been
shown as payable to M/s. M. G. Mittal & Company under the head sundry
creditors.
15) Additional information pursuant to the provisions of paragraph 3 of
Part II of Schedule VI of the Companies Act, 1956.
i) Expenditure under Foreign Currency on account of travelling Rs. Nil
(Previous year Rs. Nil).
ii) Other information pursuant to the provisions of paragraph 4, 4A, 4C
and 4D of Part II to schedule VI of the Companies Act, 1956 is not
applicable.
16) As the Company has no Managing Director the calculation of Net
profit u/s. 198 and349 of the Companies act, 1956 has not been given.
17) In view of non availability of balance confirmation and statement
of account from Union Bank of India - Ahmedabad this balances are
subject to confirmation and reconciliation and adjustment / entries to
these account would be made on receipt of Statement of account and
confirmation and completion of reconciliation .We have been Informed
that as the accounts are not at all operative , there will not be any
material Impact on financial statement.
18) A) Related party disclosures
i. Related Party relationships:
Subsidiary Company
Mega Capital Broking Pvt. Ltd
Other Related Party
Arshiya International Ltd
Note:
1. The related party relationship have been determined by the
management on the basis of the requirements of the Accounting Standard
AS-18 Related Party Disclosures issued by the ICAI and the same have
been relied upon by the auditors.
B) Disclosure of Transactions with related party
20) AS-28 issued by the ICAI is applicable to the Company with effect
from accounting Period commencing on or after 01/04/2004. Therefore,
during the financial year 2004-05, the Company had identified its
assets usage carrying values had been impaired and having regard to the
principles of AS-28, the Company had made a provision of Rs.
18,07,400/- in respect of impairment of office equipments, electric
installation and furniture & fixtures, as in the opinion of the
management the net realisable value of all these assets were
insignificant compared to cost price at which the same was carried
forward.
19) As there is no virtual certainty of future taxable income and in
view of losses during the year, no provision for deferred tax liability
as required by AS-22 has been considered.
20) In view of the no business activity of the subsidiary Company,
separate consolidated financial statement are not prepared as required
by AS-21 issued by ICAI.
21) In view of the benefits available as per Income Tax Act 1961 and
the carried forward business losses no income tax is payable, hence no
provision for income tax has been made.
22) Previous years figures have been re-grouped, rearranged, reworked
& reclassified wherever necessary.