| NOTE : 1
The Company is engaged in one segment i.e. Hire Purchase, Leasing &
Trading and Investment in securities etc which are governed by the same
set of risk and returns. The said treatment is in accordance with the
guiding principle enunciated in the AS-17 on Segment Reporting.
NOTE : 2
Managerial remuneration paid to Managing Director & Other Directors :
Rs Nil (Previous Year : Nil. )
NOTE : 3
Traveling Expenses of Managing Directors & Other Directors : Rs. Nil
(Previous Year Rs. Nil )
NOTE : 4
Related Party (As identified by the Company) Disclosures under
Accounting Standard 18 :
(a) Associates : 1) Gandhinagar Hotels Ltd.
2) Pragna Finance Pvt. Ltd.
3) Pragna Auto Services
(b) Key Management Personnel : 1) Smt. Pragnaben V Joshi
2) Mr. Pritesh V Joshi
(c) Transactions with related parties :
a) The Company was received Rs. 90,000/- (Previous Year Rs. 90,000) as
Lease Rental Deposit from Gandhinagar Hotels Limited - a company in
which Directors are interested as Director of both the Company.
b) The Company was invested Rs. 43 Lacs (Previous Year Rs. 43 Lacs) in
Redeemable Preference Shares of Gandhinagar Hotels Limited - a company
in which Directors are interested as Director of both the Company.
c) The Company has also paid Rs. 0.36 Lacs (Previous Year : 0.36 Lacs)
to Gandhinagar Hotels Ltd a Company in which Directors are interested
as Director of both the Company, for Office Rent .
d) The loans & advance includes Rs.14,205/- (Previous Year : 16,290/- )
amount due from the concerns in which directors are interested as
Directors of both the Companies.
e) The Company holds 4,00,120 (Previous Year No. of shares 4,00,120)
shares of Pragna Finance Private Ltd as stock in trade for which no
Market quotation is available as said company is not listed at anystock
exchange and 3,00,000 shares of Gandhinagar Hotels Limited (Previous
Year No of Shares is 3,00,000 ) .
f) The Company has given Rs. 129.81 Lacs as Share Application Money
(Previous Year Rs. 129.81 Lacs) to Pragna Finance Pvt Ltd. a Company in
which Directors are interested as Director of both the Companies.
g) The Company has earned Lease Rental of Rs. 2,435/- ( Previous Year
Rs.2,935/- ) from Gandhinagar Hotels Limited the company in which
Directors are interested of said company. The transaction are not
prejudicial to the interest of the company as the said transaction are
at reasonable rate having regard to the market rate prevailing for such
lease transaction.
h) The Company has paid Rs. Nil ( Previous Year Rs. 25 Lacs ) to Charu
Anchlia as Advance for purchase of shares of Gandhinagar Hotels Ltd a
Company in which Directors are interested as Director of both the
Company. Due to nonpayment of Loan given, the said shares are taken
away from the party.
i) The Company has given Rs. 48.49 Lacs as Commercial Building Advance
(Previous Year Rs. 140.21 Lacs) to Gandhinagar Hotels Ltd. a Company in
which Directors are interested as Director of both the Company for the
purpose of commercial property at Gandhinagar.
As per AS 22 point No 18 "The existence of unabsorbed or carry forward
of losses under tax laws is strong evidence that future taxable income
may not be available. Therefore, when an enterprise has a history of
recent losses, the enterprise recognizes deferred tax assets only to
the extent that is has timing differences the reversal of which will
result in sufficient income or there is other convincing evidence that
sufficient taxable income will be available against which such deferred
tax assets can be realized. In such circumstances, the nature of the
evidence supporting its recognition is disclosed."
In view of huge brought forward losses and in absence of sufficient
income which result into sufficient taxable income, in near future and
on consideration of prudence, the Company has not recognized net
deferred tax & / deferred tax assets in the financial statements.
NOTE : 5
a) Previous year's figures have been regrouped / rearranged wherever
necessary to make them comparable with those of the current year.
b) Signature to Notes 1 To 22 of Balance Sheet and Profit and Loss
Accounts form an integral part of the Audit Report.
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