Capital Trust Ltd. இன் கணக்கு குறிப்புகள்

Mar 31, 2018

1. Company Overview

Capital Trust Limited is a public Company incorporated in India under the provisions of the erstwhile Companies Act, 1956. Its shares are listed on Bombay Stock Exchange and National Stock Exchange. The Company is Non-banking Financial Company which is registered with Reserve Bank of India (‘RBI’’). The Company is engaged in the business of Micro Finance and Small Enterprise Loan.

(A) Terms, rights and restrictions attached to equity shares:

The Company has only one class of equity shares having a par value of Rs. 10 per share (previous year Rs. 10 per share). All issued shares rank pari-passu and have same voting rights per share. The Company declares and pays dividend in indian rupees, if any. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing general meeting. In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive remaining assets of the Company, after distribution of preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(f) During the previous year ended 31st March 2017, 143,915 equity share were alloted to Capital Employee Welfare Trust at a price of ‘559 aggregating to ‘ 80,448,490 under the scheme of Capital Trust Employee Option Scheme 2016.

(h) During the year, no share warrants were pending for conversion into equity shares (previous year, 1,550,000 share warrants held by Managing Director were converted into equal number of equity shares at a price of Rs. 117 per equity share, balance 1,857, 500 share warrants aggregating to Rs. 54,331,875 was forfeited).

The Board has recommended dividend of Rs. 0.50 (fifty paise only) per share on 16361415 equity shares (previous year Rs. 1.50 (One Rupee and fifty paise only) per share on 16361415, which is subject to approval by the shareholders in annual general meeting.

b. Terms and conditions of secured loans and nature of security

1. Term loans from banks and financial institutions except loan from Manaveeya Development and Finance Private Limited, which is secured by way of only hypothecation of loan receivables, are secured by way of hypothecation of the outstanding loan portfolio, in addition to the fixed deposits being held as collateral security.

2. Vehicle loans from HDFC Bank were secured against hypothecation of respective vehicles.

3. In addition to the above, following loans are also secured by way guarantees:

i) All term loans from MAS Financial Services Ltd are secured by way of personal guarantee of all directors.

ii) Terms loans from AU Financiers (India) Limited, Bank of India, IDBI Bank Limited and Moneywise Financial Services Private Limited are secured by way of personal guarantee of Managing Director and corporate guarantee of a shareholder.

iii) Term loans from DCB Bank Limited, Andhara Bank, State Bank of India, Small Industries Development Bank of India, Nabkishan Finance Limited and Nabsamruddhi Finance Limited are secured by way of personal guarantee of Managing Director.

iv) Term loan from Manaveeya Development and Finance Private Limited is secured by way of personal guarantee of Managing Director and a Director.

* Represents standard assets classified in accordance with the RBI prudential norms (refer note 15(a))

** Represents non-performing assets classified in accordance with the RBI prudential norms (refer note 15(a))

(i) Represents deposits placed as margin money to avail term loans from financial institutions.

2(a) Loan to customers

Loans to customers has been classified in accordance with the directives issued by RBI prudential norms, read with accounting policy.

* Based on the expert opinion obtained by the company, crystallisation of liability on these items is not considered probable.

3 The Company has given interest free collateral free loan of Rs. 8,05,10,000 (Previous Year Rs. 8,05,10,000) in earlier year to Capital Employee Welfare Trust under the scheme Employee Stock Option Scheme (“ESOP”) to purchase equity shares of the company under such scheme. The loan is repayable by the trust under a back to back arrangement by the trust with the employees of the company.

4 The Company has created ESOP Trust for the welfare of employees in the name of Capital Employees Welfare Trust. That the Trust is holding 143915 Equity shares in the company in the category of Non promoter Non Public. The Trust has not granted any options to the employees yet.

5 Rs. 65,63,625 ( previous year Rs. 6,20,33,479) received as commission during the year from Yes Bank Limited on account of business correspondent (BC) agreement with the Bank. This BC commission is earned by the company on facilitation of advances in rural as well as urban areas on behalf of Yes Bank Limited. Total exposure of Yes Bank Limited on this portfolio is Nil as on 31 March 2018 (previous year Rs. 34,32,18,281).

6 Segment Reporting

The Company operates in a single reportable segment i.e., financing, which has similar risks and returns for the purpose of AS 17 on ‘Segment Reporting’. The Company operates in a single geographical segment ie., domestic market.

7 Operating Lease

Office premises are obtained on operating lease. Lease payments made under cancellable operating lease agreegating to Rs. 3,04,01,720 (previous year: Rs. 2,61,62,672) disclosed as rent and the same has been recognised as an expense in the statement of profit and loss.

3) Derivatives

The Company does not have any derivatives exposure in the current and previous year.

4) Disclosure relating to Securitisation

A) The Company does not have any Securitisation exposure in the current and previous year

B) Details of Financial assets sold to securitisation / reconstruction Company for assets reconstruction

The Company has not sold any financial assets to Securitisation / Reconstruction Company for assets reconstruction during the current and previous year.

D) Details of non performing financials assets purchased / sold

The Company has not purchased / sold any non-performing financial assets (relating to securitisation) during the current and previous year.

6) Exposure

(a) Exposure to real estate sector

The Company does not have any real estate exposure in the current and previous year.

(b) Exposure to capital market

The Company does not have any exposure to capital market in the current and previous year.

(c) Details of financing of parent Company products

The Company does not have a parent Company and accordingly no disclosure required.

(d) Details of single borrower limit (SGL) / group borrower limit (GBL) exceeded by the applicable NBFC The Company does not exceed any limit related to SGL and GBL in the current and previous year.

(e) Unsecured advances

All advances given by the Company are unsecured advances to its customers (refer note 15).

7) Miscellaneous

(a) Registration obtained from other financial sector regulators

The Company is registered with following other financial sector regulators (Financial regulators as described by Ministry of Finance):

(i) Ministry of Corporate Affairs

(ii) Ministry of Finance (Financial Inteligence Unit)

(b) Disclosures of penalties imposed by RBI and other regulators

No penalties imposed by RBI or other financial sector regulators during the current and previous year.

(c) Related party transactions

Details of all material related party transactions are disclosed in note 31.

(d) Ratings assigned by credit rating agencies and migration of ratings during the year

The details of ratings assigned by Credit Analysis & Research Limited (CARE) vide their report dated 06 Feb,2018: Facilities Rating

Long-term facilities BBB

(e) Remuneration of directors

Details relating to remuneration of directors are disclosed in note 31.

f. Overseas assets (for those with joint ventures and subsidiaries aboard)

The company did not have any overseas assets during the current and previous year.

g. Off-balance sheet SPVs sponsored (which are required to be consolidated as per accounting norms) The company did not sponsor any SPVs during the current and previous year.

8 Foreign currency outflow on travelling and business promotion expenses are Nil/- (previous year ‘ Nil/-)

9 Remittance in foreign currency on account of Dividends

10 Disclosures as per schedule V of securities and exchange board of india (Listing Obligation and Disclosure Requirements) Regulation, 2015.

11 Pursuant to the master direction DNBR. PD. 008/03.10.119/2016-17 issued by the Reserve Bank of India, as updated on 9 March 2017, the Company has become Systemically Important Non-Deposit taking Non-Banking Financial Company during the current year.

12 Previous year’s figures have been taken from the accounts audited by previous auditor and figures have been regrouped/ reclassified to conform to currrent year’s figures wherever required.

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Mar 31, 2017

b. Terms and conditions of secured loans and nature of security

Term loans from banks and financial institutions except loan from Manaveeya Development and Finance Private Limited, which is secured by way of only hypothecation of loan receivables, are secured by way of hypothecation of the outstanding loan portfolio, in addition to the fixed deposits being held as collateral security. Vehicle loans from HDFC Bank were secured against hypothecation of respective vehicles.

In addition to the above, following loans are also secured by way guarantees:

1. All term loans from MAS Financial Services Ltd are secured by way of personal guarantee of all directors.

2. Terms loans from AU Financiers (India) Limited, Bank of India, IDBI Bank Limited and Moneywise Financial Services Private Limited are secured by way of personal guarantee of Mr. Yogen Khosla (Managing Director) and corporate guarantee of Indo Crediop Private Limited (shareholder).

3. Term loans from DCB Bank Limited, Andhara Bank, State Bank of India, Small Industries Development Bank of India, Nabkishan Finance Limited and Nabsamruddhi Finance Limited are secured by way of personal guarantee of Mr. Yogen Khosla (Managing Director).

4. Term loan from Manaveeya Development and Finance Private Limited is secured by way of personal guarantee of Mr. Yogen Khosla (Managing Director) and Mrs. Anju Khosla (Executive Director).

c. Terms and conditions of unsecured loans

Term loans from Capital First Limited and Moonlight Equity Private Limited are unsecured and carry interest in the range of 16.00% per annum to 18.00% per annum

(31 March 2016 : 18.00% per annum)

5Related party disclosure

In accordance with the required Accounting Standard (AS-18) on related party disclosures where control exist and where transactions have taken place and description of the relationship as identified and certified by management are as follows:

Name of related parties and description of relationship

Key Management Personnel (KMP) 1 Mr. Yogen Khosla (Managing Director)

Relatives of Key Management Personnel 1 Mr. Vahin Khosla

2 Mrs. Anju Khosla

Subsidiary 1 Capital Trust Microfinance Private Limited (Formerly known as Parikarma

Investments & Financial Services Private Ltd.) (w.e.f. 26 September 2016) Enterprise over which KMP and their 1 Italindian Trade & Financial Services Private Limited

relatives can exercise significant influence 2 Indo Crediop Private Limited

3 Vaibhav Farms Private Limited

4 Vishwas Welfare Foundation (Formerly known as Vishwas Credit & Livelihood Program)

5 Yogen Khosla & Sons (HUF)

6 Moonlight Equity Private Limited

7 Soter Capital India Private Limited

8 Capital Employee Welfare Trust (w.e.f. 7 October 2016)

9 M/s Capital Trust Microfinance Private Limited (Formerly known as Parikarma Investments & Financial Services Private Ltd.)

(up to 26 September 2016)

10 Capital Trust Housing Finance Private Limited

3) Derivatives

The Company does not have any derivatives exposure in the current and previous year

4) Disclosure relating to Securitization

A) The Company does not have any Securitizations exposure in the current and previous year

B) Details of Financial assets sold to securitization / reconstruction Company for assets reconstruction

The Company has not sold any financial assets to Securitization / Reconstruction Company for assets reconstruction during the current and previous year.

D) Details of non performing financials assets purchased / sold

The Company has not purchased / sold any non-performing financial assets (relating to securitization) during the current and previous year

(c) Details of financing of parent Company products

The Company does not have a parent Company and accordingly no disclosure required.

(d) Details of single borrower limit (SGL) / group borrower limit (GBL) exceeded by the applicable NBFC

The Company does not exceed any limit related to SGL and GBL in the current and previous year.

(e) Unsecured advances

All advances given by the Company are unsecured advances to its customers (refer note 15).

) Miscellaneous

(a) Registration obtained from other financial sector regulators

The Company has not obtained registration from other financial sector regulators

(b) Disclosures of penalties imposed by RBI and other regulators

There have been no penalties imposed on the Company by RBI or other financial sector regulators during the current year and previous year.

(c) Related party transactions

Details of all material related party transactions are disclosed in note 31.

(d) Ratings assigned by credit rating agencies and migration of ratings during the year

The details of ratings assigned by Brickwork Rating India Private Limited dated 18 August 2016 and Credit Analysis & Research Limited (CARE) vide their report dated 21 November 2016:

6 As per the provision of Section 135 sub-section 5 of the Companies Act, 2013, the board shall ensure that the Company spends in every financial year at least 2% of the average net profit of the preceding 3 financial year for undertaking CSR activities. However it is further clarified as per the second proviso of Section 135(5), if the Company fails to spend such amount for its CSR Activities, then the Company shall specify in its Board Report the reason for not spending such amount.

The Company is of the view that it is working for the upliftment of poor people and also imparting financial literacy. The Company has provided training to Urban people in various fields in finance and credit sector free of cost and have provided employment to deserving candidates among them. So the Company feels that there is no additional CSR expenditure required.

7 Rs,620.33 lakh (previous year Rs,1057.39 lakh) received as commission during the year from Yes Bank Limited on account of business correspondent (BC) agreement with the Bank. This BC commission is earned by the Company on facilitation of advances in rural as well as urban areas on behalf of Yes Bank Limited. Total exposure of Yes Bank Limited on this portfolio is Rs,34.32 crores as on 31 March 2017 (previous year Rs, 99.96 crores).

8 Foreign currency outflow on travelling and business promotion expenses are Nil/- (previous year Rs, 49,519/-).

9 Contingent liabilities

There is one legal case pending against the Company pending with State Commission Disputes Redressal Commission, Delhi with a total amount involved is Rs,61,300/.

10 The management is of the opinion that there is a virtual certainty of realizing DTA of Rs, 17,577,044/- created in the books (including Rs, 4,305,239/- for the previous year).

11 Segment Reporting

The Company has only one business segment ''''Financing'''' as its primary segment and hence disclosure of segment-wise information is not required under Accounting Standard 17 -''''Segmental Information'''' notified pursuant to the Companies (Accounting Standards) Rules, 2006 (as amended).

The Company has only one geographical segment. The Company caters mainly to the needs of the domestic market.

12 Lease payments made under cancellable operating lease amounting to Rs 26,162,672 (previous year: Rs 16,858,189) disclosed as rent and the same has been recognized as an expense in the statement of profit and loss.

13 Pursuant to the master direction DNBR. PD. 008/03.10.119/2016-17 issued by the Reserve Bank of India, as updated on 9 March 2017, the Company has become Systemically Important Non-Deposit taking Non-Banking Financial Company during the current year.

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Mar 31, 2016

. Vehicle Loans are secured against hypothecation of respective Vehicles

i. HDFC Bank Auto Premium Loan No.20464597 repayable in 60 monthly equal installments of '' 41,852/-, including interest @11.57% PA commencing from March 5, 2012

ii. HDFC Bank Auto Premium Loan No. 25239755 repayable in 60 monthly equal installments of Rs.15,133/- , including interest @10.75% PA commencing from October 7, 2013

iii. HDFC Bank Auto Loan No.26837649 repayable in 60 monthly equal installments of Rs. 6598/-, including interest @11.50% PA commencing from February 7, 2014 Company has raised secured term loan from A U Financier (India) Ltd, for small enterprise finance, against exclusive hypothecation of specific book debts:

(a.) Term Loan-I of Rs. 5,00,00,000 has been raised on 24.12.2014 having interest rate of 15.35% (revised rate), with interest bearing 10% FLDG in terms of security deposit (maturing at the end of loan), repayable in 30 equated installments, against personal guarantee of Managing Director and corporate guarantee of Indo Crediop private limited (shareholder company)

(b.) Term Loan-II of Rs. 5,00,00,000 with interest rate of 15.75% raised on 11.01.2016, repayable in 36 equated installments, against personal guarantee of Managing Director and corporate guarantee of Indo Crediop private limited (shareholder company)

Company has raised secured term loan of Rs. 10,00,00,000 from Bank of Maharashtra sanctioned on 30.09.2015, for small enterprise finance, against exclusive hypothecation of specific book debts, with interest bearing 15% FLDG in terms of security deposit (maturing at the end of loan) repayable in 54 equated monthly installments, against personal guarantee of Managing Director and corporate guarantee of Indo Crediop private limited (shareholder company)

Company has raised secured term loan of Rs. 20,00,00,000 from State Bank of India sanctioned on 20.01.2016, for small enterprise finance, against exclusive hypothecation of specific book debts, with interest bearing 15% FLDG in terms of security deposit (maturing at the end of loan)

* Subordinate Debts for Rs. 30500000/- are taken from Moonlight Equity Private Ltd repayable after a period of 5 years, interest @18% will be paid on monthly basis.

1. Cash Credit from State Bank of India secured against assignment of Small Enterprise Finance receivables on 1 charge on specific book debts and personal guarantee of Sh Yogen Khosla (managing director).

Cash Credit Limit for a period of 12 months repayable monthly along with interest @ 12.30% PA as per drawing power based on monthly stock statement.

2. Rs.1057.39 Lacs ( Previous Year Rs.196.05 Lacs) received as Commission during the year from YES Bank Ltd on account of Business Correspondent (BC) agreement with Yes Bank. This BC Commission is earned by the company on facilitation of Advances in Rural as well as Urban Areas on behalf of Yes Bank. Total exposure of Yes Bank on this Portfolio is Rs.99.96 Crores as on March 31, 2016 (Previous Year Rs. 85.88 Crores).

3. Other Income includes fee based charges received from prospective borrowers on account of comprehensive and detailed search, valuation, verification and due diligence of the relevant documents.

4. a) Actual receipts of foreign currency is Rs.NIL (previous Year Rs.NIL).

b) Foreign currency outflow on travelling and business promotion expenses are Rs. 49,519/- (previous year Rs. 7,13,575/-)

5. Contingent Liabilities

1) The company has entered into an agreement with MAS Financial Services Ltd for managing of portfolio on partnership basis as per terms of agreement with Mas Financial Services Ltd and is contingently liable to an extent of Rs. 82,90,23,526 (Interest & Principal) not accounted for in the Accounts.

2) There is one legal cases pending against the company pending with State Commission Disputes Redressal Commission, Delhi with a total amount involved is Rs. 61,300/-.

6. Pursuant to enactment of Companies Act, 2013, the company has applied the estimated useful lives as specified in Schedule II, accordingly the unamortized caring value is being depreciated/amortized over the revised/remaining useful life of the Asset In respect of the Fixed Assets whose life has been expired as at 1 of April 2014.

7. The management is of the opinion that there is a virtual certainty of realizing DTA of Rs. 43,05,239/- created in the books (including Rs. 29,57,355/- for the previous year )

8. Sundry debtors/ Advances as at the Balance Sheet date in view of management represent bonafide sums due from debtors for services arising on or before that date and advances for value to be received in cash or in kind respectively.

9. Some borrower requested a change in their repayment schedule agreed by them at the time of granting of loan. Further, these customers also agreed to make fortnightly instead of monthly faster repayment of the loan. Considering, their request, the management agreed to restructure 363 no. of accounts after due verification.

10. Segment Reporting

The Company has only one business segment ''''Financing'''' as its primary segment and hence disclosure of segment-wise information is not required under Accounting Standard 17 - ''''Segmental Information'''' notified pursuant to the Companies (Accounting Standards) Rules, 2006 (as amended).

The Company has only one Geographical Segment. The Company caters mainly to the needs of the domestic market.

11. Schedule to the Balance sheet of NBFC (as required in terms of paragraph 9BB of Non Banking Financial Companies prudential norms (Reserve Bank ) directions, 1998

12. MSME undertakings as defined under the Micro, Small and Medium Development Act 2006, to whom the Company owes a sum are Rs. NIL (Previous year Rs. NIL)

13. Previous year figures have been regrouped/reclassified wherever considered necessary, to make them comparable with current year figures.

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Mar 31, 2015

1 Actual receipts of foreign currency is Rs.NIL (previous Year Rs.NIL).

2 Foreign currency outflow on travelling and business promotion expenses are Rs. 7,13,575 /- (previous year Rs. 1,44,41,14/-)

3 Contingent Liabilities

1) The company has entered into an agreement with MAS Financial Services Ltd for managing of their portfolio and is contingently liable to an extent of Rs. 50,88,66,484 (Interest & Principal) not accounted for in the Accounts.

2) There are 3 legal cases pending against the company with a total amount involved is Rs. 2,81,156/-.

4 Pursuant to enactment of Companies Act, 2013, the company has applied the estimated useful lives as specified in Schedule II, accordingly the unamortized carring value is being depreciated/amortized over the revised/remaining useful life of the Asset In respect of the Fixed Assets whose life has been expired as at 1st of April 2014, Rs. 1,61,659 has been adjusted net of tax from the opening balance of profit and loss account.

5 The depreciation expense in the Statement of Profit and Loss for the year is higher by Rs. 1.89 Lacs consequent to the change in the useful life of the assets.

6 The management is of the opinion that there is a virtual certainty of realizing DTA of Rs 29,57,355/- created in the books (including Rs 23,39,160/- for the previous year )

7 Sundry debtors/ Advances as at the Balance Sheet date in view of management represent bonafide sums due from debtors for services arising on or before that date and advances for value to be received in cash or in kind respectively. Some of the balances however are subject to confirmation from respective parties

8 Sundry Creditors and other payables as at the Balance Sheet date in view of management represent bonafide sums payable by the company against the services / sums received, which would be paid / disbursed in due course of time. Some of the balances wich are duly reconciled but, are subject to confirmation except related parties who have confirmed the balance outstanding in their account.

9 Segment Reporting

The Company has only one business segment ''Financing'' as its primary segment and hence disclosure of segment-wise information is not required under Accounting Standard 17 - ''Segmental Information'' notified pursuant to the Companies (Accounting Standards) Rules, 2006 (as amended).

The Company has only one Geographical Segment. The Company caters mainly to the needs of the domestic market.

10 Schedule to the Balance sheet of NBFC (as required in terms of paragraph 9BB of Non Banking Financial Companies prudential norms (Reserve Bank ) directions, 1998

11. Related Party Information:

1. Relationship

(a) Key Management Personnel

1 Mr. Yogen Khosla (Managing Director)

2 Mr. Surendra Mahanti (Director)

3 Mr. Vijay Kumar (Director)

4 Mr. Hari Bhaskaran (Director)

5 Mrs. Anju Khosla (Director)

6 Mr. Mukesh Sehgal (C.F.O)

7 Ms. Tanys sethi (C.S.)

(b) Relatives of Key Management Personnel

1 Mrs. Anju Khosla

2 Yogen Khosla & Sons HUF

(c) Other Related Parties where control exists:

1 M/S Moonlight Equity Pvt Ltd.

2 M/S Italindian Trade & Financial Services P. Ltd.

3 M/S Indo Crediop Pvt Ltd.

4 M/S Vaibhav Farms Pvt Ltd.

5 M/S Vishwas Credit & Livelihood Programme.

6 M/S Parikarma Investments & Financial Services Pvt Ltd.

12 MSME undertakings as defined under the Micro, Small and Medium Development Act 2006, to whom the Company owes a sum are Rs .NIL Previous year NIL.

13 Previous year figures have been regrouped/reclassified wherever considered necessary, to make them comparable with current year figures.

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Mar 31, 2014

1. Vehicle Loans are secured against hypothication of respective Vehicles

i. HDFC Bank Auto Loan No. 16774738 repayble in 60 monthly equal instalments of Rs.18,537/- including interest @10.76% P A commencing from 5th July 2010.

ii. HDFC Bank Auto Premium Loan No.20464597 repayable in 60 monthly equal instalments of Rs.41,852/- including interest @11.57% PA commencing from 5th March 2012

iii. HDFC Bank Auto Premium Loan No.25239755 repayable in 60 monthly equal instalments of Rs.15,133/- including interest @10.75% PA commencing from 7th October 2013.

iv. HDFC Bank Auto Loan No.26837649 repayable in 60 monthly equal instalments of Rs.6598/- including interest @11.50% PA commencing from 7th Feb 2014

1) The liability for gratuity is covered under the group gratuity scheme with Life Insurance Corporation of India and Contributions made for the current year have been charged to profit and loss account as per certificate provided by LIC of India and counter certificate from certified Actuary as on 31st March 2014.

Contributions made to the current year have been charged to Profit & Loss Account as per certificate provided by LIC of India and counter certificate from Certified Actuary as on 31st March 2014.

1. Cash Credit from Vijaya Bank secured against assignment of Small Enterprise Finance receivables on 1st charge on specific book debts and personal guarantee of Managing Director

Cash Credit Limit for a period of 12 months repayable monthly along with interest @ 16.25% PA as per drawing power based on monthly stock statement.

2 Term Loans from others (unsecured) except Mount Nathan are secured against assignment of Micro & Small Enterprise Finance receivables on 1st charge on specific book debts. Terms of Loans given in the table.

a) In the opinion of the Board of Directors aggregate value of the Current Assets, Loans & Advances on realization in the ordinary course of the business shall not be less than the amount at which they are stated in the Balance Sheet.

b) (i) Contingent Provision Against Standard Assets/Loan Loss Provision had been Provided as per RBI Guidelines

(ii) Contingent Liabilities on account of Sale of Portfolio/Advance Funding Facility extended by Mas Financial Services Ltd principal and interest Rs.45,88,07,649/- (Previous Year Rs.24,94,85,188)

c) Aggregate amount of debtors/loans due from directors and companies in which they are directors/members are Rs.NIL Lacs. (Previous Year Rs.NIL Lacs)

1. Other Income includes Rs.149000/- (Previous Year Rs.223990/- ) in respect of amount received on closure of two wheler finance division of the company as out of court settlement of NPA''s Civil cases pending in District Courts.

The Company has subscribed the "Group Gratuity Scheme of LIC" for purpose of discharging the gratuity liability under the payment of Gratuity Act. The provision of Gratuity is made as per premium due/payable for the year as per calculation of premium on Actuarial basis certified by a Certified Actuary as required by AS-15. Out of this provision of gratuity, some portion is also funded by LIC of India. Contributions to the Provident Fund and Superannuation Fund are charged to the Profit & Loss Account.

3 Actual receipts of foreign currency is Rs.NIL (previous Year Rs.NIL).

4 Foreign currency outflow on travelling and business promotion expenses are Rs.14,44,114 /- (previous year Rs.168,346/-)

5 Segment Reporting

The Company has only one business segment ''''Financing" as its primary segment and hence disclosure of segment-wise information is not required under Accounting Standard 17 - ''''Segmental Information'''' notified pursuant to the Companies (Accounting Standards) Rules, 2006 (as amended).

The Company has only one Geographical Segment. The Company caters mainly to the needs of the domestic market.

6 Schedule to the Balance sheet of NBFC (as required in terms of paragraph 9BB of Non Banking Financial Companies prudential norms (Reserve Bank ) directions, 1998.

7. Related Party Information:

1. Relationship

(a) Key Management Personnel

1 Mr. Yogen Khosla (Managing Director)

2 Mr. Surendra Mahanti (Director)

3 Mr. Vijay Kumar (Director)

4 Mr. Hari Bhaskaran (Director)

(b) Relatives of Key Management Personnel

1 Mrs. Anju Khosla

2 Yogen Khosla & Sons HUF

(c) Other Related Parties where control exists:

1. M/s. First Realtors Pvt Ltd.

2. M/s. Italindian Trade & Financial Services P. Ltd.

3. M/s. Indo Crediop Pvt Ltd.

4. M/s. Vaibhav Farms Pvt Ltd.

5. M/s. Vishwas Credit & Livelihood Programme

6. M/s. Dreamcann Foods Pvt Ltd.

7. M/s. I C Construction & Services Ltd.

8. M/s. VELO Sportive Pvt Ltd.

9. M/s. V.K. Consultant Pvt. Ltd.

Note:

1 Related party relationship on the basis of requirements of Accounting Standard 18 (AS-18) is identified by the Company and relied upon by the Auditors.

2 Transaction carried out with related parties referred in 1 above, in ordinary course of business:

8 MSME undertakings as defined under the Micro, Small and Medium Development Act 2006, to whom the Company owes a sum are Rs .NIL Previous year NIL.

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Mar 31, 2013

1 As per Certificate obtained from Certified Actuary the company is having an excess provision of gratuity to the extent of 1.54 Lacs. However, no provision is reversed during the year. As per the certificate of Actuary certain previous year figures including "Experience Adjustment on Plan Liabilities-(Gain)/Loss" arenot available.

2 Segment Reporting

The Company has only one business segment "Financing" as its primary segment and hence disclosure of segment-wise information is not required under Accounting Standard 17 - "Segmental Information" notified pursuant to the Companies (AccountingStandards) Rules, 2006 (asamended).

The Company has only one Geographical Segment. The Company caters mainly to the needs of the domestic market.

3 Schedule to the Balance sheet of NBFC (as required in terms of paragraph 9BB of Non Banking Financial Companies prudential norms (Reserve Bank ) directions, 1998.

4. Related Party Information:

1. Relationship

(a) Key Management Personnel

1 Mr YogenKhosIa (Managing Director)

2 Mr. Surendra Mahanti (Director)

3 Cdr. K. L. Khullar (Retd.) (Director)

4 Mr. Vijay Kumar (Additional Director)

(b) Relatives of Key Management Personnel

1 Mrs. Anju Khosla

2 Yogen Khosla & Sons HUF

(c) Other Related Parties where control exists:

1. M/s. First Realtors Pvt. Ltd.

2. M/s. Italindian Trade & Financial Services P. Ltd.

3. M/s. IC Construction & Services Ltd.

4. M/s. IndoCrediopPvt. Ltd.

5. M/s. Vaibhav Farms Pvt. Ltd.

6. M/s. Vishwas Credit & Livelihood Programme.

7. M/s. Dreamcann Foods Pvt. Ltd.

5 MSME undertakings as defined under the Micro, Small and Medium Development Act 2006, to whom the Company owes a sum are Rs .NIL Previous year NIL.

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Mar 31, 2012

1 Actual receipts of foreign currency is Rs.NIL (previous Year $.12,91,854/-) which is received as consultancy fees and reimbursement of expenses.

2 Foreign currency outflow on travelling and business promotion expenses are $.3,68,774 /- (previous year $.69,775/-)

3 Deferred Tax:

In view of no taxable income in the current year and also due to uncertainty in future taxable income, the Company has not recorded net Deferred Tax Assets of $.67.64 Lacs as on 31.03.2012 (Previous Year $.90.17 Lacs) arising on account of timing difference as stipulated in Accounting Standard-22 on "Accounting for Taxes on Income".

4 As per Certificate obtained from Certified Actuary the company is having an excess provision of gratuity to the extent of 1.54 Lacs. However, no provision is reversed during the year. As per the certificate of Actuary certain previous year figures including "Experience Adjustment on Plan Liabilities-(Gain)/Loss" are not available.

5 Segment Reporting

The Company has only one business segment ''Financing'' as its primary segment and hence disclosure of segment-wise information is not required under Accounting Standard 17 - ''Segmental Information'' notified pursuant to the Companies (Accounting Standards) Rules, 2006 (as amended).

The Company has only one Geographical Segment. The Company caters mainly to the needs of the domestic market. The export turnover is not significant in the context of total turnover.

6. Related Party Information:

1. Relationship

(a) Key Management Personnel

1 Mr. Yogen Khosla (Managing Director)

2 Mr. Surendra Mahanti (Director)

3 Cdr. K. L. Khullar (Retd.) (Director)

4 Mr. C.R. Sharma (Director, till 01.02.2012)

(b) Relatives of Key Management Personnel

1 Mrs. Anju Khosla

2 Yogen Khosla & Sons HUF

(c) Other Related Parties where control exists:

1 M/s. First Realtors Pvt. Ltd.

2 M/s. Italindian Trade & Financial Services P. Ltd.

3 M/s. I. C. Construction & Services Ltd

4 M/s. Indo Crediop Pvt. Ltd.

5 M/s. Vaibhav Farms Pvt. Ltd.

7 MSME undertakings as defined under the Micro, Small and Medium Development Act 2006, to whom the Company owes a sum are Rs. NIL Previous year NIL.

8 The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

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Mar 31, 2011

Contingent Liabilities (not provided for) in respect of:

Claims against the Company not acknowledged as debt, which are pending in different courts.

Current Year Previous Year

Particulars No of Cases Amount No of Cases Amount (Rs.) (Rs.)

1. State Commission, New Delhi Nil 0 Nil 0

2. National Commission, New Delhi Nil 0 Nil 0

3. Civil Judge, Tis Hazari Court Nil 0 Nil 0

4. Consumer Forum Nil 0 Nil 0

Total Rs. Nil 0 Nil 0

2. In the opinion of the Board of Directors aggregate value of the Current Assets, Loans & Advances on realization in the ordinary course of the business shall not be less than the amount at which they are stated in the Balance Sheet.

3. Other income includes Rs.15,019/- from trade investments.(Previous year Rs. 25000/- and Rs. 6,87,971/- in respect of amount received on closure of two wheler finance division of the company as out of court settlement of NPA's Civil cases pending in District Courts.

4. The company has entered into an agreement with Foreign Investment Advisor for raising Equity and Debt from Foreign Market and paid a total advisory cost of USD 16,500/-. The company has decided to treat this expenditure as Deferred Revenue Expenditure spread over next 5 years. One fifth of the total expenditure is charged to revenue under Deferred Expenses written off.

5. The liability for gratuity is covered under the group gratuity scheme with Life Insurance Corporation of India and Contributions made for the current year have been charged to profit and loss account as per certificate provided by LIC of India as on 31st March 2011.

6. Aggregate amount of debtors/loans due from directors and companies in which they are directors/members are Rs.35.71 Lacs. (Previous Year Rs.NIL)

7. Debt due by directors or other officers of the company is Rs. NIL (previous year NIL) Maximum amount of such debts due at any time during the year was Rs. NIL (Previous year (NIL)

8. Actual receipts of foreign currency is Rs.12,91,854/- (previous Year Rs.16,82,916/-) which is received as consultancy fees and reimbursement of expenses.

9. Foreign currency outflow on travelling and business promotion expenses are 69,775 /- (previous year 2,89,210/-)

10. Small Scale Industrial (SME) Undertaking to whom the Company owes a sum are Rs .NIL

11. Previous year figures have been re-grouped wherever necessary to correspond with current year’s presentation.

12. Deferred Tax:

In view of no taxable income in the current year and also due to uncertainty in future taxable income, the Company has not recorded net Deferred Tax Assets of Rs.90.17 Lacs as on 31.03.2011 (Previous Year Rs.48.45 Lacs) arising on account of timing difference as stipulated in Accounting Standard- 22 on “Accounting for Taxes on Income”.

13. The company has been advised that a computation of net profit (for the purpose of calculation of Director’s remuneration under section 349 of the Companies Act, 1956) need not be enumerated since no commission is paid to the directors.

14. Other clauses of paragraph 3,4C & 4D of Part II Schedule VI of the Companies Act, 1956 not commented up to are not applicable.

15. Related Party Information:

1. Relationship

(a) Key Management Personnel

1 Mr. Yogen Khosla (Managing Director)

2 Mr. K.K.Raj (Director)

3 Mr. Surendra Mahanti (Director)

4 Cdr. K. L. Khullar (Retd.) (Director)

5 Mr. J. S. Tomar (Director)

6 Mr. C.R. Sharma (Director)

(b) Relatives of Key Management Personnel

1 Mrs. Anju Khosla

2 Yogen Khosla & Sons HUF

(c) Other Related Parties where control exists:

1 M/s First Capital Trust Stock Brokers Pvt. Ltd.

2 Italindian Trade & Financial Services P. Ltd.

3 M/s I C Construction & Services Ltd

4 M/s Indo Crediop Pvt Ltd

5 M/s Vaibhav Farms Pvt Ltd

Note:

1 Related party relationship on the basis of requirements of Accounting Standard 18 (AS-18) is identified by the Company and relied upon by the Auditors.

2 Transaction carried out with related parties referred in 1 above, in ordinary course of business:

16. SEGMENT INFORMATION :

A. BUSINESS SEGMENT :

Other Disclosures

1. Segments have been identified in line with the Accounting Standard on Segment Reporting (AS-17) taking into account the organization structure as well as the differential risks and returns of these segments.

2. The Company has disclosed Business segment as the primary segment

3. Types of products and services in each business segment: 1. Leasing HP & Loan and others

4. Inter Segment revenues are NIL

5. The Segment Revenues, Results. Assets and Liabilities include the respective amounts identifiable to each of the segment and amounts allocated on a reasonable basis.

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Mar 31, 2010

1. Contingent Liabilities (not provided for) in respect of Claims against the Company not acknowledged as debt, which are pending in different courts.

Current Year Previous Year

Particulars No of Cases Amount (Rs) No of Cases Amount (Rs)

1. State Commission, New Delhi Nil 0 1 20000

2. National Commission, New Delhi Nil 0 0 0

3. CivilJudge, Tis Hazari Court Nil 0 3 59076

4. Consumer Forum Nil 0 3 60000

Total Rs. Nil 0 7 139076

2. In the opinion of the Board of Directors aggregate value of the Current Assets, Loans & Advances on realization in the ordinary course of the business shall not be less than the amount at which they are stated in the Balance Sheet.

3. Other income includes Rs.25,000/- from trade investments.(Previous year Rs. NIL):

4. The Company has during the year discontinued its Two Wheeler Finance Division and all advances lying there are either provided or settled out of court.

5. Other Income includes Rs. 54,71,688/- in respect of amount received on closure of two wheler finance division of the company as out of court settlement of NPAs Civil cases pending in District Courts.

6. Other Income also includes Rs.67,839/- lying under un-matured Finance Charges in respect of 130 old NPA Cases settled during the year by way of out of Court Settlements

7. Gratuity has been provided on the basis of Actuarial calculations whereas the company has not obtained a certificate from Registered Actuary for the same. Actuarial gains and losses are also not recognized in two cases, due to non availability of Actuarian Value calculated by LIC of India as on 31.03.2009

8. The company has entered into an agreement with Foreign Investment Advisor for raising Equity and Debt from Foreign Market and paid a total advisory cost of USD 16,500/-. The company has decided to treat this expenditure as Deferred Revenue Expenditure spread over next 5 years. One fifth of the total expenditure is charged to revenue under Deferred Expenses written off.

9. The liability for gratuity is covered under the group gratuity scheme with Life Insurance Corporation of India and Contributions made for the current year have been charged to profit and loss account.

10. Aggregate amount of debtors/loans due from directors and companies in which they are directors/members areRs.NIL (Previous Year Rs.NIL)

11. Debt due by directors or other officers of the company is Rs. NIL (previous year NIL) Maximum amount of such debts due at any time during the year was Rs. NIL (Previous year (NIL)

12. Deferred Tax:

Actual receipts of foreign currency is Rs. 16,82,916/- (previous Year Rs.20,32,531/-) which is received as consultancy fees and reimbursement of expenses.

13. Foreign currency outflow on travelling and business promotion expenses are 2 ,89,210/- (previous year4,44,012/-)

14. Small Scale Industrial Undertaking to whom the Company owes a sum are Rs NIL

15. Hire purchase installments are secured against hire purchase contracts.

16. Previous year figures have been re-grouped wherever necessary to correspond with current years presentation.

17. Deferred Tax: In view of no taxable income in the current year and also due to uncertainty in future taxable income, the Company has not recorded net Deferred Tax Assets of Rs.48.45 Lacs as on 31.03.2010 (Previous Year Rs.48.22 Lacs) arising on account of timing difference as stipulated in Accounting Standard-22 on "Accounting for Taxes on Income".

18. The company has been advised that a computation of net profit (for the purpose of calculation of Directors remuneration under section 349 of the Companies Act, 1956) need not be enumerated since no commission is paid to the directors.

19. Related Party Information:

1. Relationship

(a) Key Management Personnel

1 Mr. Yogen Khosla (Managing Director)

2 Mr. K.K.Raj (Director)

3 Mr. Surendra Mahanti (Director)

4 Cdr. K. L. Khullar (Retd.) (Director)

5 J.S.Tomar (Additional Director)

(b) Relatives of Key Management Personnel

1 Mrs. Anju Khosla

2 Yogen Khosla & Sons HUF

(c) Other Related Parties where control exists:

1 First Realtors Pvt. Ltd.

2 Italindian Trade & Financial Services P. Ltd.

3 IC Constructions Services Ltd

4 IndoCrediopPvtLtd

Note:

1 Related party relationship on the basis of requirements of Accounting Standard 18 (AS-18) is identified by the Company and relied upon by the Auditors.

Other Disclosures

1. Segments have been identified in line with the Accounting Standard on Segment Reporting (AS-17) taking into account the organization structure as well as the differential risks and returns of these segments.

2. The Company has disclosed Business segment as the primary segment

3. Types of products and services in each business segment: 1. Leasing HP & Loan & others

4. Inter Segment revenues are NIL

5. The Segment Revenues, Results. Assets and Liabilities include the respective amounts identifiable to each of the segment and amounts allocated on a reasonable basis.