Notes to Accounts of Shriram Asset Management Company Ltd.

Mar 31, 2019

1. Corporate Information

Shriram Asset Management Company Limited (‘the Company’) was incorporated under the Companies Act, 1956 on July 27, 1994 and received the Certificate of Commencement of Business on 5th December, 1994. The Company received permission from Securities and Exchange Board of India (SEBI) to act as the Asset Management Company of Shriram Mutual Fund on November 21, 1994 vide registration no. MF/017/94/4.

2. Basis of preparation

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time). The financial statements have been prepared under the historical cost convention or fair values as per the requirements of Ind AS. Accounting policies have been consistently applied to all periods presented, unless otherwise stated.

The preparation of financial statements requires the use of certain critical accounting estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosed amount of contingent liabilities.

The financial statements are presented in Indian Rupees (INR), except when otherwise indicated.

3. Presentation of financial statement

The financial statements of the Company are presented as per Schedule III (Division III) of the Companies Act, 2013. Financial assets and financial liabilities are generally reported on a gross basis except when, there is an unconditional legally enforceable right to offset the recognised amounts without being contingent on a future event and the parties intend to settle on a net basis in the following circumstances:

i. The normal course of business

ii. The event of default

iii. The event of insolvency or bankruptcy of the Company and/or its counterparties

4. Statement of compliance

These standalone or separate financial statements of the Company have been prepared in accordance with Indian Accounting Standards as per the Companies (Indian Accounting Standards) Rules, 2015 as amended and notified under Section 133 of the Companies Act, 2013 and the other relevant provisions of the Act.

The aforesaid financial statements have been approved by the board of directors in the meeting held on May 08, 2019.

The Company has no restrictions on the realisability of its investment properties or remittance of income and proceeds of disposal. Further, there are no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

4.1 Fair value of the Company’s investment properties

The fair value of the Company’s investment properties as at March 31, 2019 was arrived at on the basis of local enquiry carried out by the company.

4.2 Description of valuation techniques used and key inputs to valuation on investment properties

Properties, held to earn rentals and/or capital appreciation are classified as investment property and measured and reported at cost, including transaction costs. It is the value of the property at which it can be sold in open market at a particular time free from forced value or sentimental value. Investment properties (other than land) are depreciated using WDV method over their estimated useful lives. The useful life has been determined based on technical evaluation by management

4.3 Terms/rights attached to Equity Shares

The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share. Dividend, as and when recommended by the Board of Directors, is subject to approval of the shareholders in their Annual General Meeting. The Directors have not recommended any dividend for the year ended March 31, 2019.

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

4.4 The entire lot of Redeemable Non Convertible Preference Shares (RNCPS) were issued to meet the minimum net worth requirement as defined under SEBI (Mutual Funds) Regulations, 1996 as amended from time to time. Hence these RNCPS form a part of the eligible net worth & has been accordingly presented as part of Share Capital. Fair Market Value (FMV) of these RNCPS (not being listed on any Stock Exchange and redeemable at par) is equivalent to its Face Value.

Terms/rights attached to Redeemable Non Convertible Preference Shares (RNCPS)

a) These RNCPS carry non cumulative dividend @ 0.01% and 6% p.a. Each holder of RNCPS is entitled to one vote per share only on resolutions placed before the Company which directly affect the rights attached to RNCPS. The RNCPS shall be redeemed by the Company at par on expiry of five years/ten years from the date of allotment /issue of Preference Shares as per norms attached with the issue.

b) The Company shall, however, has the right to redeem the RNCPS before the due date.

c) Subject to the applicable laws, and the approvals/consents as may be necessary or required, the date of redemption of RNCPS can be extended for such further term as may be mutually agreed to between the Company and the holder of RNCPS.

d) During the year no provision has been made for dividend on Preference Shares on account of the loss for the year and carry forward losses.

Notes:

i) Gratuity is payable as per Company’s scheme as detailed in the report.

ii) Actuarial gain/loss is accounted for in the period of occurrence under Other Comprehensive Income (OCI).

iii) All above figures of OCI are gross of taxation.

iv) Salary escalation and attrition rate are considered as advised by the Company; they appear to be in line with the Industry practice considering promotion and demand & supply of the employees.

v) Maturity Analysis of Benefit Payments is undiscounted cash flows considering future salary, attrition & death in respective year for members as mentioned above.

vi) Average Expected Future Service represents Estimated Term of Post - Employee Benefit Obligation.

Note: An amount of Rs. 22,785,000/- representing disputed redemption money on 35,00,000 units of “Risk Guardian 95” is held by the Company in trust to be paid to the rightful owner when the dispute is settled by the appropriate court/forum. This amount has been deployed in NCD now (earlier in subordinated bond) and along with interest accrued thereon, the present value of which is Rs. 12,85,38,265/- (net of tax). The disputed amount of Rs. 22,785,000/- along with interest accrued thereon has been recognised in the accounts as payable to the rightful owner.

4.5 Lease Rent

The Company has entered into agreements for operating leases in respect of office premises taken on lease. All these leases are cancellable.

a)The lease expenditure recognised in the Statement of Profit and Loss : Expenditure Rs. 16,20,168/-(Previous year Rs. 14,51,088/-)

b) Under these agreements refundable interest free deposits are given.

c) All these agreements have restriction on further leasing.

d) Agreements for office premises provide for revision in the rent.

5. Segment Reporting

Based on the guiding principles given in INDAS-108, issued by the Institute of Chartered Accountants of India, Company’s primary business : Investment manager of Shriram Mutual Fund. As the company’s business activity falls within a single primary business segment, the disclosure requirements of INDAS-108, are not applicable.

6. The Company does not have ‘suppliers’ registered under Micro, Small and Medium Enterprises Development (“MSMED”) Act, 2006. Accordingly, no disclosure relating to amounts unpaid as at the year end, together with interest paid/payable are required to be furnished.

7. There are no capital commitments as on March 31,2019 and March 31,2018.

8. In view of the Loss incurred during the period, no provision for Income Tax is considered necessary.

9. No dividend is proposed on 14,00,000 (Fourteen Lakhs) (0.01%) RNCPS of Rs. 100/- each fully paid up and 35,00,000 (Thirty Five Lakh) (6%) RNCpS of Rs. 100/- each fully paid up, in view of loss incurred by the Company.

10. Reconciliations between previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from previous GAAP to Ind AS.

# Shriram Value Services Limited (SVS) became Subsidiary of Shriram Capital Limited (Ultimate Holding Company w.e.f. February 28, 2019. Company’s transaction with SVS towards HR, IT and Network Support Services for the year amounts to Rs. 3,30,000/- against which an amount of Rs. 165,000/- is outstanding including the above mentioned amount of Rs. 27,500/-.

11. Corresponding figures for the previous periods have been regrouped wherever necessary to confirm the current period classification.

---

Mar 31, 2018

NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018

		March 31, 2018	March 31, 2017
		(Rs)	(Rs.)
12 CASH AND CASH EQUIVALENTS
Balances with banks
On current accounts		1,374,942	1,388,464
Cash in hand		10,161	9,443
Total		1,385,103	1,397,907
13 SHORT TERM LOANS AND ADVANCES
13.1) Advances recoverable in cash or kind
Unsecured considered good		44,484	44,857
Sub Total		44,484	44,857
13.2) Other Loans and Advances
Prepaid expenses		218,770	111,959
Loans to employees		352,992	220,266
Advance to Income Tax (net of provision for taxation)		6,892,622	7,571,716
Short Term Loan to Related Party		150,000,000	-
Sub Total		157,464,384	7,903,941
Total (13.1 13.2)		157,508,868	7,948,798
14 OTHER CURRENT ASSETS
GST Input		2,338,739	-
Service Tax Input		-	1,324,218
Other Assets		1,069,022	960,272
Total		3,407,761	2,284,490
15 INCOME FROM OPERATION
Management Fees		9,021,223	8,642,030
Total		9,021,223	8,642,030
16 OTHER INCOME
Interest received on staff loan		29,618	26,741
Dividend Income - Equity		3,000	1,500
Rent received		180,000	180,000
Profit /(Loss) on sale of Fixed Assets		3,367,709	-
Income on Sale of Mutual Fund Units		4,105,480	1,174,498
Interest received on Income Tax Refund		289,346	-
Liability no longer required		10,007	171,000
Interest Income on Arbitration Award #		-	10,752,948
Interest on Loan From SISBL		1,863,014	-
Miscellaneous Income		3,447	333
Interest Received on Subordinate Bond (Gross) for the
year ended 31.03.2018**	11,724,296		10,534,624
	11,724,296		10,534,624
Less: Contingency provision for interest payable to the
rightful owner	11,724,296		10,534,624
Total		9,851,621	12,307,020

16.1) Interest income on subordinate bond

** Interest of Rs. 57,21,434/- (net of tax,if any) for the period from 01.04.2017 to 31.03.2018 has been recognised as interest received in the accounts.

# Interest Income on Arbitration Award

In the previous FY 2016-17 the Company had received an interest of Rs. 1,07,52,948/- against an arbitration award from BSE Limited.

	March 31, 2018	March 31, 2017
	(Rs)	(Rs)
17 EMPLOYEE BENEFIT EXPENSES
Salaries,wages and bonus	16,593,778	14,012,410
Contribution to provident and other fund	882,854	690,287
Gratuity expense	457,563	237,500
Medical Expenses	83,821	90,786
Staff welfare expenses	128,716	21,338
Total	18,146,732	15,052,321
18 OTHER EXPENSES
Advertisement and Business Promotion Expenses	242,196	156,666
Annual Custodial Fees	20,250	37,500
Auditors'' Remuneration	353,335	314,290
Board and General Meeting expenses	49,100	58,239
Depository fees	40,000	70,132
Directors'' Sitting Fees	778,000	209,000
Telephone, Courier and Postage Expenses	258,781	209,653
Membership Subscription	400,000	400,000
Annual Fees	128,750	128,750
Insurance Premium	72,387	67,977
Professional Charges	830,765	595,513
Filing Fees	3,335,152	11,710
Listing Fees	250,000	200,000
Printing & Stationery	203,677	119,307
Sundry Expenses	337,387	121,499
Trustee Meeting Fees	520,000	270,000
Travelling, Hotel and Conveyance expenses	661,060	466,998
HR IT & Network Support	330,000	342,054
Software expenses	436,992	12,054
Retainership Fees	1,806,667	1,670,000
Rent	2,014,202	1,367,162
Repairs & Maintenance	435,387	378,691
Share of Common Infrastructure Costs	795,602	835,794
Rates & Taxes	5,000	21,948
Car hire Charges	84,561	92,411
Write Off of Fixed Assets	-	23,243
General Expenses	24,773	31,382
Interest Paid To Income Tax	108,174	-
Royalty Expenses	500,000	-
Total	15,022,198	8,211,973

	March 31, 2018	March 31, 2017
	(Rs)	(Rs.)
18.1) Auditors'' Remuneration
Statutory Audit fee	272,000	228,000
Tax audit fee	60,000	60,000
Corporate Governance and Other Certification Fees	18,000	20,500
Out of pocket expenses	3,335	5,790
Total	353,335	314,290
18.2) Mutual Fund Expenses
Mutual Fund Expense	1,823,911	539,957
Brokerage	2,358,768	2,706,198
RTA Expenses	875,106	879,379
Fund Accounting Charges	123,108	114,543
DMAT Rolling and Safe Custody Charges	113,154	103,999
Total	5,294,046	4,344,076

18.2.1) In terms of decision by the Operations Committee as delegated to it by Board, Mutual Fund Expenses of Rs. 52.94 Lakhs representing total expenditure absorbed during current year against Rs. 43.44 Lakhs of previous year. The overall revenue from operation amounted to Rs. 90.21 Lakhs from Rs. 86.42 Lakhs of previous year. Such accounting has the effect of increasing the loss for the year by Rs. 5.74 Lakhs over the previous year.

19. The "Unclaimed Redemption Money" with respect to Mutual Fund Schemes wound up during earlier years amounts to Rs. 3,67,888/- as on March 31, 2018. The company has decided not to charge any "Management Fees" with respect to these Funds, as the same is not material.

20. Contingent Liabilities not provided for:

Particulars	For the year ended March 31, 2018 (Rs.)	For the year ended March 31 ,2017 (Rs)
a) Demand in respect of Income Tax AY 2010-11 (Amount of Rs. 2,00,000 has been paid under protest on May 08, 2013).	21,59,460	21,59,460
b) As regards A.Y. 2007-08, the Company has received a favourable order from ITAT allowing bad debts amounting to Rs. 27,10,000/- in respect of dues from Ahmedabad Urban Cooperative Bank Ltd., which was previously disallowed by CIT (A). There will be a refund due to the Company if the order giving effect to the decision of the ITAT is issued which is awaited.	-	-

21. The components of Deferred Tax Liability and Assets as at March 31, 2018 are as under:

Particulars	For the year ended March 31, 2018 (Rs)	For the year ended March 31, 2017 (Rs)
Deferred tax liability :
(i) W.D.V on fixed assets	(418,221)	(520,553)
	(418,221)	(520,553)
Deferred tax assets :
(i) Provision for Gratuity and Leave encashment	982,146	677,436
(ii) Diminution in value of investments	798,936	798,936
(iii) Contingency provision for interest payable to rightful owner	29,805,428	26,182,621
(iv) Provision for Bonus	80,340	71,070
	31,666,851	27,730,063
Net Deferred Tax Asset/(Liability)	# 31,248,630	# 27,209,510

# Deferred tax asset has not been recognized in the accounts on the basis of prudence as per AS 22 for the financial year 2017-18.

22. In view of the Loss incurred during the period, no provision for Income Tax is considered necessary.

23. The Company operates in only one segment. Hence segment reporting under AS17 is not applicable to the Company.

24. Related party disclosure as required by Accounting Standard (AS)-18 "Related Party Disclosure" as notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 2013.

Name	Relationship
Shriram Ownership Trust	Promoter Group
Shriram Credit Company Limited	Holding Company
Ceylinco Shriram Capital Management Services Co. Private Limited	Associate Company
Shriram Insight Share Brokers Limited	Associate Company
Shriram Fortune Solutions Limited	Associate Company
Shriram Financial Products Solutions (Chennai) Private Limited	Associate Company
Mr. Akhilesh Kumar Singh (M.D)	Key Managerial Personnel
Ms. Chandana Dutt (CFO)	Key Managerial Personnel
Ms. Reena Yadav (CS)	Key Managerial Personnel

The following transactions were carried out with the related parties in the ordinary course of business.

Particulars	Promoter Group / Holding Company		Associates		Key Management Personnel		Total
	31.03.2018	31.03.2017	31.03.2018	31.03.2017	31.03.2018	31.03.2017	31.03.2018	31.03.2017
Payments :
Rent	-	-	648,396	807,162	-	-	648,396	807,162
Brokerage:
Shriram Insight Share Brokers Ltd.	-	-	1,952,890	2,007,113	-	-	1,952,890	2,007,113
Shriram Fortune Solutions Ltd.	-	-	166,813	212,326	-	-	166,813	212,326
Other Expenses	-	-	8,400	22,600	-	-	8,400	22,600
Share of Common Infrastructure
Costs	-	-	435,602	475,794	-	-	435,602	475,794
Royalty Expenses	500,000	-	-	-	-	-	500,000	-
Reimbursement of actual Salary	-	884,000	-	2,500,000	-	-	-	3,384,000
Employee Benefits for Key
Managerial Personnel	-	-	-	-	5,295,776	5,038,484	5,295,776	5,038,484
Short Term Loan Receivable from:
Shriram Insight Share Brokers Ltd.	-	-	150,000,000	-	-	-	150,000,000	-
Interest received on above Short
Term Loan	-	-	1,863,014	-	-	-	1,863,014	-
Balance Outstanding :
Investment in equity shares of Ceylinco Shriram Capital Management Services Co Private Limited			3,878,332	3,878,332			3,878,332	3,878,332
Shriram Insight Share Brokers Limited	_	_	536,117	518,442	_	_	536,117	518,442
Shriram Fortune Solutions Limited	-	-	12,748	-	-	-	12,748	-
Shriram Ownership Trust	135,000	-	-	-	-	-	135,000	-

25. Earnings per share (EPS) computed in accordance with Accounting Standard 20 "Earning per Share" Basic and Diluted

Particulars		March 31, 2018 (Rs)	March 31, 2017 (Rs)
Profit after tax as per accounts (Rs)		(20,128,742)	(6,978,995)
Add/(Less): Prior Period Adjustment/ (Excess provision w/back)		-	-
Profit attributable to Equity share holders	(A)	(20,128,742)	(6,978,995)
Number of shares issued	(B)	6,000,000	6,000,000
Basic EPS (Rupees) (Face value Rs 10 each)	(A)/(B)	(3.35)	(1.16)

26. The Company does not have ''suppliers'' registered under the Micro, Small and Medium Enterprises Development ("MSMED") Act, 2006. Accordingly, no disclosure relating to amounts unpaid as at the year end, together with interest paid / payable are required to be furnished.

27. No dividend is proposed on 14,00,000 (Fourteen Lakhs) (0.01%) RNCPS of Rs 100/- each fully paid up and 35,00,000 (Thirty Five Lakhs) (6%) RNCPS of Rs 100/- each fully paid up, in view of loss incurred by the Company.

28. Previous period figures have been re-grouped and re-arranged, wherever considered necessary.

As per our report of even date attached
FOR G. D.APTE & CO.	FOR SHRIRAM ASSET MANAGEMENT COMPANY LIMITED
CHARTERED ACCOUNTANTS
FIRM REGISTRATION NO.100515W
	AKHILESH KUMAR SINGH	R.SUNDARA RAJAN
	MANAGING DIRECTOR	DIRECTOR
	DINNo.00421577	DIN No.00498404
CHETAN R. SAPRE
PARTNER	REENA YADAV	CHANDANA DUTT
MEMBERSHIP NO. 116952	COMPANY SECRETARY	CHIEF FINANCIAL OFFICER
Place : Mumbai	Place : Chennai
Date : April 27, 2018	Date : April 27, 2018

---

Mar 31, 2017

1. Terms/rights attached to Equity Shares

The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share. Dividend, as and when recommended by the Board of Directors, is subject to approval of the shareholders in their Annual General Meeting. The Directors have not recommended any dividend for the year ended March 31, 2017.

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

2. Terms/rights attached to Redeemable Non Convertible Preference Shares (RNCPS)

During the financial year 2015-16 the Company issued additional 1000000 (Ten lakh) (0.01%) RNCPS of Rs. 100/- each fully paid up, over and above 400000 (Four lakh) issued in earlier Financial Years, taking the total amount of RNCPS to Rs. 14,00,00,000/- These RNCPS carry non cumulative dividend @ 0.01% p.a. Each holder of RNCPS is entitled to one vote per share only on resolutions placed before the Company which directly affect the rights attached to RNCPS. The RNCPS shall be redeemed by the Company at par on expiry of five years/ten years from the date of allotment /issue of Preference Shares as per norms attached with the issue. The Company shall, however, has the right to redeem the RNCPS before the due date. Subject to the applicable laws, and the approvals/consents as may be necessary or required, the date of redemption of RNCPS can be extended for such further term as may be mutually agreed to between the Company and the holder of RNCPS. During the period no provision has been made for dividend on Preference Shares.

3. An amount of Rs. 22,785,000/- representing disputed redemption money on 35,00,000 units of “Risk Guardian 95” is held by the Company in trust to be paid to the rightful owner when the dispute is settled by the appropriate court/forum. This amount has been deployed in subordinated bond and along with interest accrued thereon, the present value of which is Rs. 10,53,34,730/- (inclusive of tax of Rs. 11,122,842/- for the period from 2001-02 to 2010-11). The disputed amount of Rs. 22,785,000/- along with interest accrued thereon has been recognized in the accounts as payable to the rightful owner.

4. In terms of decision by the Operations Committee as delegated to it by Board, Mutual Fund Expenses of Rs. 43.44 Lakhs representing total expenditure absorbed during current year against Rs. 53.88 Lakhs of previous year. The overall revenue from operation amounted to Rs. 86.42 Lakhs from Rs. 76.95 Lakhs of previous year. Such accounting has the effect of decreasing the loss for the year by Rs. 19.91 Lakhs over the previous year.

5. The Scheme Risk GuardianRs.95 has been wound up, effective 7th July 2000 and the three tax saving schemes Tax GuardianRs.95, Tax GuardianRs.96, Tax GuardianRs.97 have been wound up with effect from 30th April 2001 and Interval Fund 97 with effect from 1st December 2001, with the approval of SEBI. For the unclaimed redemption money of these schemes the company has been following the provisions laid down under Regulation 59 of SEBI (Mutual Funds) Regulations, 1996. Further, as the unclaimed redemption money being managed by the Company is very small amounting to Rs. 367,888/-, it has been decided not to charge asset management fees from 01.04.2004 to Shriram Mutual Fund with regard to the old schemes mentioned above.

6. Contingent Liabilities not provided for:

The Company received an order dated 26.03.15 from CIT(A) for A.Y. 2010-11, in which the decision of the A.O to treat interest income of Rs. 1,15,19,591/- as income from other sources was determined instead of the head business. The company being aggrieved has filed an appeal with ITAT against the said order on 23.06.2015 which is pending disposal.

The Company received an Order dated 10.03.2013 U/S 143 (3) of the IT Act for the assessment year 2010 -11 along with a demand notice of Rs. 21,59,460/- and paid Rs. 2,00,000/- on protest towards the demand which is pending disposal. The Company has already filed an appeal with the CIT(A) against the order.

7. As regards A.Y. 2007-08, the Company has received a favourable order from ITAT allowing bad debts amounting to Rs. 27,10,000/- in respect of dues from Ahmedabad Urban Co-operative Bank Ltd., which was previously disallowed by CIT (A). There will be a refund due to the Company if the order giving effect to the decision of the ITAT is issued which is awaited.

8. In view of the loss incurred during the period, no provision for Income Tax is considered necessary.

9. The Company operates in only one segment. Hence segment reporting under AS17 is not applicable to the Company.

10. Related party disclosure as required by Accounting Standard (AS)-18 “Related Party Disclosure” as notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 2013.

11. The Company does not have ‘suppliers'' registered under the Micro, Small and Medium Enterprises Development (“MSMED”) Act, 2006. Accordingly, no disclosure relating to amounts unpaid as at the year end, together with interest paid / payable are required to be furnished.

12. No dividend is proposed on 14,00,000 (Fourteen Lakhs) (0.01%) RNCPS of Rs. 100/-each fully paid up in view of loss incurred by the Company.

13. Previous year''s figures have been re-grouped and re-arranged, wherever considered necessary.

---

Mar 31, 2015

1. Terms/rights attached to Equity Shares

The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share. Dividend, as and when recommended by the Board of Directors, is subject to approval of the shareholders in their Annual General Meeting. The Directors have not recommended any dividend for the year ended March 31, 2015.

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

2. Terms/rights attached to Redeemable Non Convertible Preference Shares (RNCPS)

During the previous year ended March 31, 2014 the Company issued additional 300000 (Three lakh) (0.01%) RNCPS of Rs. 100/-each fully paid up, taking the total amount of RNCPS to Rs. 4,00,00,000/-. These RNCPS carry non cumulative dividend @ 0.01% p.a. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting. Each holder of RNCPS is entitled to one vote per share only on resolutions placed before the Company which directly affect the rights attached to RNCPS. The RNCPS shall be redeemed by the Company at par on expiry of five years from the date of allotment. The Company shall, however, has the right to redeem the RNCPS before the due date. Subject to the applicable laws, and the approvals/consents as may be necessary or required, the date of redemption of RNCPS can be extended for such further term as may be mutually agreed to between the Company and the holder of RNCPS.

During the period no provision has been made for dividend on Preference Share.

4. RESERVES AND SURPLUS

(*) Note: To fall in line with the requirements of Schedule II of Companies Act, 2013, necessary adjustments have been made in the life of the asset as required either through retained earnings account where remaining useful life is Nil or through Profit and Loss Account in other cases. No depreciation provision is considered necessary where WDV is less than adjusted residual value. Such change has no material effect on the Financial Results of the Company under review.

5. LONG TERM LIABILITIES

An amount of Rs. 22,785,000/- representing disputed redemption money on 35,00,000 units of "Risk Guardian 95" is held by the Company in trust to be paid to the rightful owner when the dispute is settled by the appropriate court/forum. This amount has been deployed in subordinated bond and along with interest accrued thereon, the present value of which is Rs. 85,309,871/- (inclusive of tax of Rs. 11,122,842/- for the period from 2001-02 to 2010-11).The disputed amount of Rs. 22,785,000/- along with interest accrued thereon has been recognised in the accounts as payable to the rightful owner. In view of the loss incurred during the period, no provision for Income Tax is considered necessary.

Notes: Gratuity is payable as per Company's scheme as detailed in the report. Actuarial gain/loss is accounted for in the period of occurrence. Salary escalation and attrition rate are considered as advised by the Company, they appear to be in line with the industry practice considering promotion and demand and supply of the employees.

# Receivable from broker

The Company's claim for the recovery from a broker for a principal amount of Rs. 72.10 lakhs, together with interest thereon has been upheld by the Arbitration Tribunal of the BSE Limited. However, the Income Tax Department had issued prohibitory orders/attachment notices, against the Exchange in respect of properties of the broker. In response, the Exchange has filed a Writ Petition, before the Hon'ble High Court, Bombay against the Income Tax Department, challenging the prohibitory order/attachment notices. The Hon'ble Court has passed an Interim Order, inter alia directing the Exchange not to disburse the amount till further orders. The said Writ Petition is pending before the Hon'ble High Court, Bombay. In view of the uncertainty pending finality of the proceedings, the Company has not recognised the interest on principal amount of Rs. 72.10 lakhs. In 2010-11, the Company received Rs. 3 lakhs from the Exchange, as a part payment against the award.

Interest income on subordinate bond

** Interest of Rs. 8,502,688/- (net of tax, if any) for the period from April 01, 2014 to March 31,2015 has been recognised as interest received in the accounts for the year ended March 31,2015.

19. The Scheme Risk Guardian'95 has been wound up, effective July 7, 2000 and the three tax saving schemes Tax Guardian'95, Tax Guardian'96, Tax Guardian'97 have been wound up with effect from April 30, 2001 and Interval Fund 97 effective December 01, 2001, with the approval of SEBI. For the unclaimed redemption money of these schemes the company has been following the provisions laid down under Regulation 59 of SEBI (Mutual Funds) Regulations, 1996. Further, as the unclaimed redemption money being managed by the Company is very small amounting to Rs. 385,748/-, it has been decided not to charge asset management fees from April 01,2004 to Shriram Mutual Fund.

6. Contingent Liabilities

6.1 An appeal is pending before CIT (A) for the A.Y.2006-07, wherein the disallowance made under section 14A of the Income Tax Act, 1961, of Rs. 279,520/- calculated as per Rule 8D, is disputed by the Company.

6.2 As regards A.Y 2007-08, the Company has filed appeal before ITAT against disallowance of Rs. 2,710,000/- by CIT(A) written off as bad debts in respect of Ahmedabad Urban Co-operative Bank Ltd.

6.3 The Company received an Order dated March 10, 2013 U/S 143 (3) of the IT Act along with a demand notice of Rs. 2,159,460/- and paid Rs. 200,000/- on protest for A.Y 2010-11 for sundry disallowances. The Company has already filed an appeal with the appropriate authority against the order.

# Deferred tax asset has not been recognized in the accounts on the basis of prudence as per AS 22 for the financial year 2014-15.

7. The Company operates in only one segment. Hence segment reporting under AS17 is not applicable to the Company.

8. Related party disclosure as required by Accounting Standard (AS)-18 "Related Party Disclosure" as notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 2013.

Name Relationship

a) Shriram Credit Company Limited Holding Company

b) Shriram Transport Finance Co Ltd (STFC) Associate to Holding Co.

c) Ceylinco Shriram Capital Management Services Co. Pvt. Ltd. Associate Co.

d) Mr. Akhilesh Kumar Singh (M.D) Key Management personnel

e) Shriram Insight Share Brokers Ltd. Associate Co.

f) Shriram Fortune Solutions Ltd. Associate Co.

9. The Company does not have 'suppliers' registered under the Micro, Small and Medium Enterprises Development ("MSMED") Act, 2006. Accordingly, no disclosures relating to amounts unpaid as at the year end and together with interest paid / payable are required to be furnished.

10. Since the Company has incurred a loss in the current year, hence provision for dividend on 400000 (Four Lakh) (0.01%) RNCPS of Rs.100/- each fully paid up has not been provided in the accounts.

11. Previous year's figures have been re-grouped and re-arranged, wherever considered necessary.

---

Mar 31, 2014

1. The Scheme Risk Guardian''95 has been wound up, effective 7th July 2000 and the three tax saving schemes Tax Guardian''95, Tax Guardian''96, Tax Guardian''97 have been wound up with effect from 30th April 2001 and Interval Fund 97 effective 1st December 2001, with the approval of SEBI. For the unclaimed redemption money of these schemes the company has been following the provisions laid down under Regulation 59 of SEBI (Mutual Funds) Regulations 1996. Further, as the unclaimed redemption money being managed by the Company is very small amounting to Rs. 385,748/- it has been decided not to charge asset management fees from 01.04.2004 to Shriram Mutual Fund.

2. Contingent Liabilities

2.1 An appeal is pending before CIT (A) for the A.Y.2006-07, wherein the disallowance made under Section 14A of the Income Tax Act, 1961, of Rs. 2,79,520/- calculated as per Rule 8D,is disputed by the Company.

2.2 As regards A.Y 2007-08, the Company has filed appeal before ITAT against disallowance of Rs. 27,10,000/- by CIT(A) written off as bad debts in respect of Ahmedabad Urban Co-operative Bank Ltd.

2.3 The Company received an Order dated 10.03.2013 U/S 143(3) of the IT Act along with a demand notice of Rs.21,59,460/- and paid Rs. 2,00,000/- on protest for AY 2010-11 for sundry disallowances . The Company has already filed an appeal with the appropriate authority against the order.

# Deferred tax asset has not been recognized in the accounts on the basis of prudence as per AS 22 for the financial year 2013-14.

3. The Company operates in only one segment. Hence segment reporting under AS17 is not applicable to the Company.

4. Related party disclosure as required by Accounting Standard (AS)-18 "Related Party Disclosure" as notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956.

Name Relationship

a) Shriram Credit Company Limited Holding Company

b) Shriram Transport Finance Co. Ltd. (STFC) Associate to Holding Co.

c) Ceylinco Shriram Capital Management Services Co. Pvt. Ltd. Associate Co.

d) Mr. Akhilesh Kumar Singh (M.D.) Key Management personnel

e) Shriram Insight Share Brokers Ltd. Associate Co.

f) Shriram Fortune Solutions Ltd. Associate Co.

5. The Company does not have ''suppliers'' registered under the "The Micro, Small and Medium Enterprises Development ("MSMED") Act, 2006. Accordingly, no disclosures relating to amounts unpaid as at the year end and together with interest paid / payable are required to be furnished.

6. Since the Company has incurred a loss in the current year, hence provision for dividend on 400000 (Four Lakh) 0.01% RNCPS of Rs. 100/-each fully paid up has not been provided in the accounts.

7. Previous year''s figures have been re-grouped and re-arranged, wherever considered necessary.

---

Mar 31, 2013

1. The Scheme Risk Guardian''95 has been wound up effective 7th July 2000 and the three tax saving schemes Tax Guardian''95, Tax Guardian''96, Tax Guardian''97 have been wound up effective 30th April 2001 and Interval Fund 97 effective 1st December 2001.

2. Currently Shriram Mutual Fund does not have any live schemes and no new schemes have been launched during the year, however, for all the five schemes launched previously the company has been following the provisions laid down under Regulations 59 of SEBI (Mutual Funds) Regulations, 1996. Further, the Company has continued to maintain its status as an Asset Management Company for Mutual Fund by complying with all the relevant provisions of SEBI (Mutual Funds) Regulations, 1996. Accordingly, the financial statements of the Company have been prepared on a going concern basis.

3. As the unclaimed redemption money being managed by the Company is very small, it has been decided not to charge asset management fees from 01.04.2004 to Shriram Mutual Fund.

4. Contingent Liabilities

4.1 An appeal is pending before CIT (A) for the A.Y.2006-07, wherein the disallowance made under Section 14A of the Income Tax Act, 1961, of Rs. 279,520/- calculated as per Rule 8D, is disputed by the Company.

As regards A.Y 2007-08, the Company has filed appeal before ITAT against disallowance of Rs. 27,10,000/- by CIT(A) written off as bad debts in respect of Ahmedabad Urban Co-operative Bank Ltd.

4.2 The Company received an Order dated 10.03.2013 U/S 143 (3) of the IT Act along with a demand notice of Rs. 2,159,460/- for AY 2010-11 for sundry disallowances. The Company has already filed an appeal with the appropriate authority against the order.

5. The Company operates in only one segment. Hence segment reporting under AS17 is not applicable to the Company.

6. The Company does not have ''suppliers'' registered under the The Micro, Small and Medium Enterprises Development ("MSMED") Act, 2006. Accordingly, no disclosures relating to amounts unpaid as at the year end and together with interest paid / payable are required to be furnished.

7. Since the Company has incurred a loss in the current year, hence provision for dividend on 1,00,000 (One Lac) 0.01% Redeemable Non Covertible Preference Shares of Rs.100/- each fully paid up has not been provided in the accounts.

8. Previous year''s figures have been re-grouped and re-arranged, wherever considered necessary.

---

Mar 31, 2012

1.1) Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity share is entitled to one vote per share. Dividend, as and when recommended by the Board of Directors, is subject to approval of the shareholders in their Annual General Meeting.

For the financial year ended March 31, 2012, the Company has not declared any dividend.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts.

The distribution will be in proportion to the number of equity shares held by the shareholders.

2.1) An amount of Rs.22,785,000/- representing disputed redemption money on 35,00,000 units of "Risk Guardian 95" is held by the Company in trust to be paid to the rightful owner when the dispute is settled by the appropriate court/forum. This amount has been deployed in subordinate bond and along with interest accrued thereon, the present value of which is Rs.61,179,768/- (inclusive of tax of Rs.11,122,842/- for the period from 2001-02 to 2010-11).

The disputed amount of Rs.22,785,000/- along with interest accrued thereon has been recognised in the accounts as payable to the rightful owner.

# Receivable from broker

The Company's claim for the recovery from a broker for a principal amount of Rs.72.10 lakhs, together with interest thereon has been upheld by the Arbitration Tribunal of the Bombay Stock Exchange Ltd. However, the Income Tax Department had issued prohibitory orders /attachment notices, against the Exchange in respect of properties of the broker. In response, the Exchange has filed a Writ Petition, before the Hon'ble High Court, Bombay against the Income Tax Department, challenging the prohibitory order/ attachment notices. The Hon'ble Court has passed an Interim Order, interalia directing the Exchange not to disburse the amount till further orders. The said Writ Petition is pending before the Hon'ble High Court, Bombay.

In view of the uncertainty pending finality of the proceedings, the Company has not recognised the interest on principal amount of Rs.72.10 lakhs. In the previous year, the Company received Rupees Three lakhs from the Exchange, as a part payment against the award.

3.1) Interest income on subordinate bond

Interest on the subordinate bond of Rs.22,388,702/- (net of tax) for the period from financial year 2001-02 to financial year 2010- 11 has been recognised as prior period item. Interest of Rs.4,883,224/- (net of tax) for the period from 01.04.2011 to 31.03.2012 has been recognised as interest received in the accounts for the financial year ended 31.03.2012.

Prior period item of Rs.33,511,544/- (gross) represents interest received against subordinate bond for the priod from financial year 2001-02 to financial year 2010-11 and had offered for tax during the respective years.

4. The Scheme Risk Guardian'95 has been wound up effective 7th July 2000 and the three tax saving schemes Tax Guardian'95, Tax Guardian'96, Tax Guardian'97 have been wound up effective 30th April 2001 and Interval Fund 97 effective 1st December 2001.

5. Though all the schemes of Shriram Mutual Fund have been wound up and no new schemes have been launched during the year, the Company has continued to maintain its status as an Asset Management Company for Mutual Fund. Accordingly, the financial statements of the Company have been prepared on going concern basis.

6. As the unclaimed redemption money being managed by the Company is very small, it has been decided not to charge asset management fees from 01.04.2004 to Shriram Mutual Fund.

7. Contingent Liabilities

7.1 An appeal is pending before CIT (A) for the A.Y.2006-07, wherein the disallowance made under section 14A of the Income Tax Act, 1961, of Rs. 2,79,520/- calculated as per Rule 8D, is disputed by the Company.

7.2 As regards A.Y 2007-08, the Company has filed appeal before CIT (A) against disallowance of Rs.2,96,560/- under the provisions of Section 14A of the Income Tax Act, 1961 and also against disallowance of Rs.27,10,000/- written off as bad debts in respect of Ahmedabad Urban Co-operative Bank Ltd.

8. Income Tax assessment has been completed up to and including the Assessment Year 2007-08

9. The Company operates in only one segment. Hence segment reporting under AS17 is not applicable to the Company.

10. Earning per share (EPS) computed in accordance with Accounting Standard 20 " Earning per Share"

11. The Company does not have 'suppliers' registered under the "The Micro, Small and Medium Enterprises Development ("MSMED") Act, 2006. Accordingly, no disclosures relating to amounts unpaid as at the year end and together with interest paid / payable are required to be furnished.

12. Previous year's figures have been re-grouped and re-arranged, wherever considered necessary.

---

Mar 31, 2010

1. The Scheme Risk Guardian95 has been wound up effective 07.07.2000 and the three tax saving schemes Tax Guardian95, Tax Guardian96, Tax Guardian97 have been wound up effective 30.04.2001 and Interval Fund 97 effective 01.12.2001. The assets appearing in Schedule F (A) to the accounts represents assets taken over from / relating to the schemes which have been wound up.

2. Though all the schemes of Shriram Mutual Fund have been wound up and no new schemes have been launched during the year, the Company has continued to maintain its status as an Asset Management Company for Mutual Fund. Accordingly, the financial statements of the Company have been prepared on going concern basis.

3. As the unclaimed redemption money being managed by the Company is very small, it has been decided not to charge asset management fees from 01.04.2004 to Shriram Mutual Fund.

4. Contingent Liabilities

a) An appeal is pending before CIT (A) for the A.Y.2006-07, wherein the disallowance made under Section 14A of the Income Tax Act, 1961, of Rs.2,79,520/- calculated as per Rule 8D, is disputed by the Company.

b) As regards A.Y. 2007-08, the Company has filed appeal before CIT (A) against disallowance of Rs. 2,96,560/- under the provisions of Section 14A of the Income Tax Act, 1961 and also against disallowance of Rs. 27,10,000/- written off as bad debts in respect of Ahmedabad Urban Co-operative Bank Ltd.

5. A sum of Rs. 41,340,000/- as on 01.04.2009 (P.Y. Rs. 41,340,000/-) represents disputed redemption amount which is held by the Company in trust which is to be paid to the rightful owner when the dispute is settled by an appropriate court / forum. An equivalent amount is invested in subordinate debt certificate. Accordingly, this amount and interest earned thereon of Rs. 54,22,948/- (TDS Rs. 5,42,294/-) during the year ended 31.03.2010 are not reflected in the Balance Sheet and Profit and Loss account of the Company.

6. Provision for tax has been worked out after considering interest income on subordinated bonds.

The tax payments on this account will be claimed at the time of interest payments to the rightful owner in the event of settlement of dispute as stated in Note No.7 above.

7. Other Current Assets includes:

Rs. 7,210,351/- (P.Y. Rs. 7,061,349/-) is receivable from a broker and taken over by the Company from mutual fund. In the arbitral reference filed by the Company, the broker has entered into consent terms with the Company and consequently, the High Court of Judicature at Mumbai allowed the parties to re-agitate the issues freshly before the Arbitration Panel of stock exchange. On reference to the Arbitration panel of Bombay Stock Exchange, Companys claim for principal amount of Rs. 72.10 lakhs has been allowed. Company has preferred further appeal for interest on delayed payments which is pending before the Honble Appeal Bench of the Bombay Stock Exchange Ltd.

8. Income Tax assessment has been completed up to and including the Assessment Year 2007-08

9. The Deferred Ta x Assets & Liabilities arising on account of timing difference are recognized in the Profit & Loss account. Deferred tax assets have been recognized only to the extent there is virtual certainty that the assets would be realized in future.

10. The Company operates in only one segment.

11. Related party disclosure as required by Accounting Standard (AS)-18 "Related Party Disclosure" issued by the Institute of Chartered Accountants of India



Name Relationship

a) Shriram Transport Finance Co. Ltd. (STFC) Associate Co.

b) Ceylinco Shriram Capital Management Services Co. Pvt. Ltd. Associate Co.

c) Shriram Capital Ltd. Associate Co.

d) Mr.R.Sundara Rajan (M.D) Key Managerial personnel



12. The Company does not have suppliers registered under the "The Micro, Small and Medium Enterprises Development ("MSMED") Act, 2006. Accordingly, no disclosures relating to amounts unpaid as at the year end and together with interest paid / payable are required to be furnished.

13. Previous years figures have been re-grouped and re-arranged, wherever considered necessary.