1. Contingent Liabilities:
a) Contingent liabilities for Bank Guarantee issued in favour of NSE /
BSE is Rs. 4,50,00,000/- (Previous year was Rs. 3,00,00,000/-).
b) Contingent liabilities in respect of demand raised by the concerned
departments against which company has preferred appeal before the
higher authorities, details of which are as under -
c) Ademand of Rs. 2,42,260/- has been raised by the Income Tax
Department for A.Y. 2010-11. The demand is due to the reason that the
assessing officer has made certain additions for which the Company has
not preferred any appeal. The department has also not allowed credit of
certain TDS claimed by the Company. As the exact calculation for amount
of tax and interest is not available with the Company, the Company has
provided Rs. 67, 700/-on prudent basis in the F.Y.2012-13, out of the
above demand and the same has been adjusted against the refund
receivable.
d) A provision of Rs. 3, 94,000/- for the similar reasons on prudent
basis for the A.Y. 2008-09 and A.Y. 2009-10 has been made during
F.Y.2011-12, the same has not been paid by the Company as no
calculation for the bifurcation of the amount for tax and interest has
been made available to the Company by the income tax department.
2. In the opinion of Management the current assets, loans and advances
have a value on realization in the ordinary course of the business at
least equal to the amount at which they are stated and provisions for
all known liabilities have been made. Balance of Sundry Debtors and
Sundry Creditors are subject to confirmations.
3. There are no amounts payable to any micro, small and medium (SMEs)
scale industrial undertaking as identified by the management from the
information available with the company and relied upon by the Auditors.
4. Shares and Securities received from or on behalf of clients, held
by the Company as collateral in its own name in a fiduciary capacity,
and/or are lodged with the exchanges/F 6t 0 Clearing Member towards
additional base capital / exposure and / or pledged to bank against
overdraft facility.
5. In the current year, various expenses like advertisement, salary,
rent and other expenses has been allocated and accounted for in
respective expenses head on proportionate basis to the Subsidiary
Company Swastika Commodities Private Limited and Swastika Fin-Mart
Private Limited and the payment from Subsidiary Company has been
received against the same.
6. Interest expenses is netted off by the amount of Rs. 44,15,096/-
(Previous year Rs.52,45,505/-) allocated to the Swastika Commodities
Private Limited (a 100% Subsidiary Company) on account of utilization
of the funds on behalf of the common clients of the Company and
Swastika Commodities Private Limited.
7. During the current year, the company has implemented Schedule II
of the Companies Act, 2013 and accordingly computed the depreciation
based on revised useful life of the fixed assets as prescribed under
Schedule II of the Act. The carrying value of the fixed assets which
have completed their useful life as on 1st April,2014 have been charged
off against the Statement of Profit and Loss at Rs. 20.62 lacs.
Had there not been any change in useful life of the fixed assets, the
depreciation would have been lower by Rs. 43.35 lacs and therefore the
profit would have been higher by Rs. 43.35 lacs.
8. In the opinion of the management, fixed assets are not found to be
impaired and therefore, no provision for impairment loss is made for
the year.
9. The management is of the view that the diminution in the value of
Long-term Investment is temporary in nature and therefore, no provision
for the same has been made in the books of accounts for the year.
10. Short term borrowing includes amount received from Sub-brokers /
Business Associates as security deposit for business purpose amounting
to Rs. 14,345,199/- (F.Y. Rs. 19,248,198/-)
11. Previous year figures have been reclassified wherever necessary to
confirm to the Classification for the year.
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