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 shares is entitled to one vote per share. In the event of the liquidation of the Company, the holder of the equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all the preferential amounts. The distribution will be in proportion to the number of the equity shares held by the shareholders. The Company declares and pay dividend in Indian Rupees.
27. The Company provides Portfolio Management Services (PMS) to its clients. Transactions on account of PMS activities are carried out exclusively on behalf of PMS clients. Therefore, assets and liabilities arising out of the above effectively belong to the PMS clients and hence are not reflected in the Company's accounts. Management fees earned/expenditure incurred by the Company from this activity is accounted for on an accrual basis.
28. The Share Application Money for an amount of Rs. 216.69 Lakhs (Previous Year Rs. 216.69 Lakhs) is outstanding for a period of 276 months as at date of Balance Sheet date, for which the financial statements are in the process of being obtained. The Company has already initiated legal proceedings against the other party for recovery of the said application money along with interest thereon, under Section 138 of the Negotiable Instruments Act, 1881. At present, the matter is pending for hearing before the Hon'ble High Court at Mumbai.
29. Long-term Deposits which were given to M/s. Vimpsan Investments Private Ltd, upto total aggregate amount of Rs. 350.00 lakhs are still outstanding as at March 31,2025. Since the Company is not in the receipt of any interest on the said deposits since long period, the Company has not accounted any interest income on such deposits in the financial statement. The Company is in the process to initiate legal proceedings against them for recovery of the said deposits.
30. In the matter of M/s. Shree Rama Multitech Limited (SRML) in relation to recovery of outstanding rental income/license fee from SRML, the Hon'ble High Court, Mumbai had passed the order/decree in favor of the company during the period October 2019. Although the company is yet to receive the rental Income from SRML. Later, the Company has filed the execution application in the Small Cause Court during the period April 2022 in Mumbai for recovering the pending rental income/license fee amount from SRML. The Hon'ble Small Cause Court, Mumbai vide its order/decree dated December 7, 2022 shifted the said matter to the Hon'ble Additional Senior Civil Judge Court at Kalol, Gandhinagar for execution to recover the outstanding rental income/license fee. At present, the matter is pending for hearing before the Hon'ble Additional Senior Civil Judge Court at Kalol, Gandhinagar.
Subsequently, SRML has also filed a civil suit against the Company for recovery of interest on deposits before the Hon'ble Civil Court, Gandhinagar during the period January 2023. At present, the matter is pending for hearing before the Hon'ble Civil Court, Gandhinagar
31. In the matter of Mr. Hiten Parmar regarding receivable of the outstanding amount, the Company had filed the case in the month of October 2015 before the panel of arbitrators of National Stock Exchange of India Limited (NSE). The panel of arbitrators of NSE has considered the matter and passed the arbitral in favour of the Company on April 12, 2016. The panel of arbitrators directed Mr. Hiten Parmar to pay to the Company Rs. 55,85,544.87/- within 30 days from the date of receipt of award. However, the Company has not received any such amount till date from Mr. Hiten Parmar. The Company has initiated legal action and filed the suit against Mr. Hiten Parmar
in the Hon'ble District Court, Surat (‘the Court') for recovery of the arbitral award amount. At present, the matter is pending for hearing before the Court. Further, the Company are in process of simultaneously filing a complaint with Economic Offence Wing (EOW) Mumbai in the aforesaid matter.
32. During the year under review, the Company has sold one of its fixed assets i.e. immovable property situated at G7, Vikas building, Ground Floor, Green Street, Fort, Mumbai on such consideration as deemed fit by the Board of Directors of the Company. The carrying amount of these assets at the time of sale was Rs.4.28 crores. The sale consideration received amounted to Rs.9.00 crores, resulting in a profit of Rs. 4.72 crores, which has been recognized in the statement of profit and loss under ‘Other Income'. Further, Depreciation was charged up to the date of sale amounting to Rs.3.39 crores, which has been considered in deriving the carrying amount of the assets disposed.
33. During the year under review, there was certain sundry debtors and advances to the extent of Rs. 407.53 lakhs which are unlikely to be recoverable due to various factors and despites a regular follow up by the Company. The Board of Directors of the Company, after considering all the factors and lack of scope for recovery, had written-off the above mentioned sundry debtors and advances of Rs. 407.53 lakhs as bad and doubtful debts in the current financial year.
35. Segment Information
For management purposes, the Company is organized into two segments - Fee based and Investment/Trading In Stock. The Company has considered these two divisions as its business segments.
The Fee based division provides financial advisory services relating to mergers and acquisitions, equity and debt issue management, portfolio management and broking.
Investment and Stock division carries out trading, investing and speculation activities in capital markets (debt and equity) for the Company.
Fixed assets used in the Company's business are not identified to any of the reportable segments, as these are used interchangeably between segments and hence the fixed assets and depreciation are not allocated to any of the reportable segments.
As the entire business operations of the Company are conducted only in India, the Company has not reported any secondary segment information.
36. Earnings per share:
The Company reports basic and diluted earnings per share in accordance with Ind AS -33 - Earnings Per Share.
Basic earnings per share are computed by dividing the net profit after tax attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.
Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue equity shares were exercised or converted during the year. Diluted earnings per share are computed by dividing the net profit after tax by the weighted average number of equity shares and dilutive potential equity shares outstanding at year-end.
38. As per information and explanation received there are no dues payable to Small Scale Industrial Undertakings as at March 31, 2025.
39. Transaction in foreign currency: (In Thousand)
Foreign Travel Expenses - Rs. 793.53 (Previous year Rs. 532.89)
Foreign Currency Income - Rs. 12,639.75 (Previous year Rs. 13,025.76)
40. Debtors include: (In Thousand)
(i) Due from a firm in which a director is interested as partner - Rs. Nil (Previous year Rs. Nil )
(ii) Due from relatives and Enterprises controlled by the relatives of the Key Management Personnel Rs. 6,255.87.
(iii) The above dues have arisen in the normal course of business.
41. The creditors are largely from receipt of margin money from the clients while the debtors reflect the pattern of settlement period, wherein year-end date falls within to be settled period.
42. Managerial Remuneration:
(i) Remuneration to Managing Director (In Thousands)
Salary and Other : Rs. 4,925.00
Allowances (P.Y. Rs. 4,925.00)
(ii) Sitting fees to other Directors : Rs. 105.00 (P.Y. Rs. 95.00)
Gratuity is payable as per company's scheme as detailed in the report.
Actuarial Gain/ Loss are recognized in the period of occurrence under other Comprehensive Income (OCI)
All above reported figures of OCI are gross of taxation.
Salary escalation & 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.
Maturity Analysis of Benefit payments is undiscounted cash flows considering future salary, attrition & death in respective year for members as mentioned above.
Average Expected Future Service represents Estimated Term of Post- Employment Benefit Obligation.
Value of asset provided by the client is considered as fair value of plan asset for the period of reporting as same is not evaluated by us.
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44. Contingent Liabilities: -
i) Contingent Liabilities on account of disputed cases pending before various authorities of Income Tax Act is annexed below. No provision has been made in the books of accounts as the outcome is still awaited:
(Rs. In Thousand)
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Name of
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Nature
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Amount
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Period
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Forum
|
Under
|
| |
the
|
of the
|
|
to which
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where
|
Section
|
| |
Statute
|
Dues
|
|
the
|
Dispute is
|
|
| |
|
|
|
amount
|
pending
|
|
| |
|
|
|
relates
|
|
|
| |
Income
|
Income
|
496.27
|
A.Y.
|
Mumbai
|
143(3)
|
| |
Tax Act
|
Tax
|
|
2007-08
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High Court
|
|
| |
1961
|
|
|
|
|
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ii) Preference dividends are in arrears from F.Y 2008-09 to F.Y.2020-21 as aggregating to Rs. 2.49 Crores.
iii) TDS defaults showing on TDS traces website for the various Financial Years as on 31st March 2025 has been reviewed and there is no possible demand arising due to that. The Company is under process of rectifying the defaults by revising the TDS returns.
45. The figures for the previous period have been regrouped, rearranged or reclassified wherever necessary to conform to the current period's presentation.
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