| 1. Contingent liabilities not provided for in respect of:
a) Income tax demand for the Assessment Year 1996-97 amounting to Rs.
6,900,919/- (Previous year Rs. 6,900,919/-) including Interest of Rs.
1,031,539/- calculated upto July 2008 against which the Company had
filed an appeal under Section 260A of the Income Tax Act, 1961, before
the Hon'ble High Court at Calcutta. The Company had already paid a sum
of Rs. 6,900,919/- (Previous year Rs. 6,900,919/-) under protest which has
been shown under Long-Term Loans and Advances in NOTE 11. However, the
case was heard and judgement was given in favour of Income tax
department and appeal of the Company was dismissed. The Company, after
having consultation with experts, has decided to file an appeal before
the Hon'ble Supreme Court shortly.
b) Income tax demand pertaining to Assessment Year 2011-12 amounting to
Rs. 88,330/- (Previous year Rs. 85,897/-) in respect of which a
rectification petition u/s 154 of the Income tax Act has been filed
against Assessment Order u/s 143(3) dated 04/03/2014.
c) Income tax demand pertaining to Assessment Years 2012-13 and 2013-14
amounting to Rs. 171,890/- (Previous Year Rs. 169,750/-) and Rs. 100,740/-
(Previous Year Rs. NIL) respectively, the Company has submitted response
for outstanding demands to CPC.
2. General Reserve includes Revenue Reserve of Rs. 17,871,849/-
(Previous Year Rs. 17,871,849/-) being difference between assets and
liabilities taken over after adjustment of consideration money in terms
of Scheme of Amalgamation of United Credit Financial Services Ltd.
3. The Company has followed the prudential norms prescribed by the
Reserve Bank of India in respect of income recognition and provision
for non-performing assets. The Company has made a provision of Rs.
856,800/- as on 31/03/2015 in respect of NPA assets under doubtful
category. However, the Company has received an amount of Rs. 582,389/-
(Previous year Rs. 582,389/-) towards Interest on Outstanding Principal
from M/s The India Jute and Industries Ltd. The sum so received was as
per the terms of settlement of our dues mentioned in the Draft
Rehabilitation Scheme (DRS) filed with BIFR.
4. In compliance with the Notification No.DNBS/223/CGM(US)-2011 dated
17/01/2011 issued by Reserve Bank of India, the Company has made
provision of Rs. 17,821/- (Previous year Rs. NIL) for Standard Assets
@0.25% of outstanding loan amount. The Company has maintained a total
provision of Rs. 225,399/- (Previous year Rs. 207,578/-) and the same has
been separately shown as "Contingent Provisions against Standard
Assets" under the head "Long-Term Provisions" under Non-Current
Liabilities in NOTE 5.
5. Effective from 1st April 2014, the Company has charged
depreciation based on the revised remaining useful life of the assets
as per requirement of Schedule II of the Companies Act, 2013. Due to
the above, depreciation charged for the year is higher by Rs. 234,328/-.
Further based on transitional provision provided in Note 7(b) of the
Schedule II, an amount of Rs. 65,541/- (Net of tax of Rs. 29,309/-) has
been adjusted with retained earnings against carrying value of those
assets whose remaining useful lives have been completed as on 31st
March, 2014.
6. The Company is predominantly engaged in Non-Banking Financial
activities and therefore Segment Reporting as envisaged in Accounting
Standard (AS-17) on Segment Reporting is not applicable.
7. There are no reported micro, small and medium enterprises as
defined in, "The Micro, Small and Medium Enterprises Development
(MSMED) Act, 2006" to which the Company owes dues and as such the
disclosure requirements under Section 22 of the said Act does not
arise.
8. The disclosures for "Employee Benefits" as defined in AS-15
(revised 2005) are given below:
Long Term Defined Benefit Plans in respect of Gratuity and Compensated
Absences as on 31st March 2015 as per Actuarial Valuations using
Projected Unit Credit Method and recognised in the financial statements
in respect of Employee Benefit Schemes.
9.During the current year, the Company has computed tax as per
normal provisions of the Income Tax Act, 1961 and is eligible to claim
MAT Credit to the extent as specified under Section 115JAA (4) & (5) of
the said Act.
10. Paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or
Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.
As required in terms of paragraph 13 of Non-Banking Financial
(Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve
Bank) Directions, 2007, the Note to the Balance Sheet is appended
hereunder:
Notes:-
1. As defined in paragraph 2(1)(xii) of the Non-Banking Financial
Companies Acceptance of Public Deposits (Reserve Bank) Directions,
1998.
2. Provisioning norms are applicable as prescribed in Non-Banking
Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms
(Reserve Bank) Directions, 2007.
3. Market value in respect of quoted investments and break up / fair
value / NAV in respect of unquoted investments are disclosed.
11. The previous year's figures have been regrouped, recast and
rearranged wherever necessary to make it comparable with the current
year figures.
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