CORPORATE INFORMATION

East India Securities Ltd was incorporated in the year 1995 and it is engaged in stock broking and other financial market activities. It is one the oldest depository participants of India. The Company offers complete spectrum of financial services including trading in stock exchanges in all segments, demat account of NSDL and CDSL, Clearing services, mutual fund services, fixed income, bonds, etc. The shares of company are listed on SME Platform of BSE Ltd.

Note 1.1: Investment has been stated at Cost

Note 1.2: There is no significant Diminution in value of Investments as shown above Note 8.3: Market value of Quoted Shares as on 31.03.2018 is Rs. 12,78,07,864/-

NOTE-2: CAPITAL COMMITMENTS

Estimated amount of contracts to be executed on capital account and not provided for as on 31st March, 2018 – Rs. NIL (31.03.2017-NIL)

NOTE-3: CONTINGENT LIABILITIES TO THE EXTENT NOT PROVIDED FOR

A) Bank Guarantees amounting to Rs. 6,00,00,000/- (previous year ‘19,20,00,000/-) given to Exchanges as margin, from banks against fixed deposit and units of mf and bond of Rs. 3,00,00,000/- (previous year Rs. 9,10,00,000/-) and counter guarantee given by the company.

B) SEBI had passed ad-interim order no. WTM/RKA/ISD/ 162/2014 dated 19.12.2014 in the matter of dealing in “First Financial Service Ltd” restraining East India Securities Ltd, among others, from accessing Securities Markets in its proprietary capacity. Confirmatory order was passed by SEBI on 14.06.2016.

Now SEBI vide its order dated 02.04.2018 has revoked the interim order against East India Securities Ltd and all the restraints therefore have been removed from the company in absence of any adverse findings against the company.

C) Income Tax Assessment order dated 26/08/2016 for AY 2014-15 received by the company with demand of Rs. 7,45,64,360/-. The company has preferred appeal before CIT (Appeals) for additions made.

NOTE-4: DEFERRED TAX

In accordance with Accounting Standard -22 “Accounting for Taxes on Income’, issued by The Institute of Chartered Accountants of India the company has accounted for deferred tax during the year. Consequently the Deferred tax Assets for the Financial Year 2017-18 Rs. 4,03,081.69 (Previous Year Deferred tax Liability Rs 89,958.07) has been recorded by crediting to Profit and Loss Account.

NOTE-5: EARNING PER SHARE

In accordance with Accounting Standard -20 “Earning per share” issued by The Institute of Chartered Accountants of India, basic and diluted earning per share are calculated as below:-

NOTE-6:

The Company’s operations predominantly relate to one segment, viz., broking and financial services. The entire operations are organised and managed as one organisational unit with same set of risks and returns. Hence, same is considered as one single primary segment. Besides, the Company’s operations are located only in India and hence, separate secondary geographical segment information is not disclosed.

NOTE-7:

Various debit and credit balances including sundry debtors, advances and sundry creditors are subject to confirmation and consequential reconciliation there of with individual details.

NOTE-8:

The figures for the previous year have been regrouped/ restated wherever necessary to conform to the classification of the current year.

NOTE-9:

There was no employee during the year drawing remuneration to the extent as laid down in provisions of The Companies Act, 2013.

NOTE-10:

Sundry Debtors include Rs. 19,91,263.70 dues from parties (last year Rs. 2,309,936.69) which are outstanding for more than six months. In the opinion of management Rs. 1,62,051.43 (Previous Year Rs. 497,446.69) is considered to be doubtful. The management has further identified ‘ Nil (Previous year Rs. 323,077.49) as irrecoverable out of total doubtful debts of Rs. 1,62,051.43 ( Previous Year Rs. 497,446.69) and has written off in the books of the company as provision for bad and doubtful debts.

NOTE-11: EMPLOYEE BENEFITS PLANS

Provident Fund and Employee State Insurance

The Company makes Provident Fund and Employee State Insurance contributions for qualifying employees. Under the plans, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company has recognised Rs. 60,545/- (Previous year: Rs. 55,268/-) towards Provident Fund contributions and Rs. 20,163/- (Previous year: Rs. 18615/- ) towards Employee State Insurance contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at the rates specified in the rules of the schemes.

Gratuity

The company has not made any provision for Gratuity. As per management none of its employees had completed minimum term of employment hence provisions of Gratuity are not applicable to the company.

NOTE-12: INCOME & EXPENDITURE IN FOREIGN CURRENCY

The company has no Income & expenditure in foreign currency during current year and previous year.

NOTE-13: CORPORATE SOCIAL RESPONSIBILITIES

Note on Corporate Social Responsibility expenditure under Guidance Note on Accounting for Expenditure on Corporate Social Responsibility Activities issued by ICAI:

(a) Gross amount required to be spent by the Company during the year: Rs. 39,79,636/-.

(b) Amount spent during the year on:

NOTE-14:

Balance of Loans & Advances, Debtors & Creditors are subject to confirmation and reconciliation

NOTE-15:

Company does not have any interest in Joint Venture

NOTE-16:

The Company has not adopted Indian Accounting Standards(Ind AS) as it is not applicable to securities listed on SME Exchange platform.