SATIN CREDITCARE NETWORK LIMITED
SCHEDULE 14
A. SIGNIFICANT ACCOUNTING POLICIES
1.
BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements have been prepared under historical cost convention in accordance with the
generally accepted accounting principles and the accounting standards referred to in the Companies Act,
1956, and in Companies (Accounting Standards) Rules 2006 and also guidelines issued by the Reserve
Bank of India. Accounting policies have been consistently applied except where a newly issued accounting
standard is initially adopted or a revision to the existing accounting standard requires a change in the
accounting policy hitherto in use. The management evaluates all recently issued or revised accounting
standards on an ongoing basis.
2.
USE OF ESTIMATES
The preparation of financial statements in conformity with the Indian generally accepted accounting
principles (GAAP) requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and the disclosure of contingent liabilities as at the date of the financial
statements and reported amounts of revenues and expenses during the reporting period. Actual results could
differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and
future periods.
3.
FIXED ASSETS:
All fixed assets owned by the Company are stated at historic cost less depreciation. Fixed assets acquired
on account of amalgamation are stated at the acquisition value agreed in the amalgamation agreement
Intangible assets are recorded at the consideration paid for acquisition. Capital work in progress comprises
outstanding advances paid to acquire fixed assets and the cost of fixed assets that are not ready for their
intended use as at the Balance sheet date.
4.
DEPRECIATION
Depreciation is provided at the rates prescribed in Schedule XIV of the Companies Act, 1956 on written
down value method. Depreciation for assets acquired on amalgamation has been charged from the effective
date of merger. Goodwill acquired on account of amalgamation will be written in equal installments over a
period of five years.
5.
INVESTMENTS:
(i)
Investments are classified as long-term investments and current investment.
(ii)
The Company value its Investment based on the accounting standard issued by the Institute of
Chartered Accountants of India as under:
a. Investment held as long-term investments are valued at cost. Provision for diminution in value is
not made unless there is a permanent fall in their net realisable value.
b. Current investments are valued at lower of cost or net realisable value.
6.
CURRENT ASSETS
(i)
Portfolio loan comprises of future receivables in respect of finance /loan contracts and are shown at
their principal value and which represents the net future recoverable as on the balance sheet date.
(ii)
Cash and bank balance includes cash in hand, balances in current account and fixed deposits with
banks.
7.
REVENUE RECOGNITION
(i)
The Reserve Bank of India’s prudential norms on income recognition and provisioning for bad and
doubtful debts has been followed.
(ii)
Subject to the above, specific incomes have been accounted for as under:
a.
Interest income on loans is recognized under the internal rate of return method.
b.
Interest income on deposits with bank is recognized on a time proportion accrual basis taking into
account the amount outstanding and the rate applicable.
c.
Loan processing fee and loan protection charges are recognized as income on accrual basis.
d.
Other Interest: Overdue interest and other interest on margin money /security deposits considered
recoverable is recognised as income, as and when received.
e.
Miscellaneous Income: Dividend income, Miscellaneous Income is accounted for as and when
received.
8.
BORROWING COSTS
Borrowing costs, which are directly attributable to the acquisition /construction of fixed assets, till the time
such assets are ready for intended use, are capitalized as a part of the cost of assets. Other borrowing costs
are recognized as an expense in the year in which they are incurred.
9.
FOREIGN CURRENCY:
Transactions in foreign currency are recorded at the rates of exchange prevalent on the date of transaction.
Exchange difference, if any, arising from foreign currency transaction are dealt in the Profit & Loss
account at year end rates.
10.
PROVISIONS AND CONTINGENT LIABILITIES:
Provisions involving substantial degree of estimation in measurement are recognized when there is present
obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent
liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor
disclosed in the financial statements.
11.
EMPLOYEES RETIREMENT BENEFITS:
Contributions to Provident Fund and Employee State Insurance are being paid and accounted as per the
rules and debited to profit and loss account. The Company has no further obligations beyond its monthly
contributions.
Employees Gratuity liability has been calculated and managed through a trust by the Life Insurance
Corporation of India. As per the valuation conducted by the insurance company the shortfall is paid as the
premium for the year and which is debited as an expense.
Provision for encashment of leave is being made on the basis of actuarial valuation made at the end of each
financial year and is charged to Profit and Loss account.
12.
IMPAIRMENT OF ASSETS:
An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An
impairment loss is charged to Profit & Loss account in the year in which the asset is identified as impaired.
The Impairment loss recognized in prior accounting period is reversed if there has been a change in the
estimate of recoverable amount.
13.
AMORTISATION:
Preliminary & Public Issue expenses are written off equally over a period of ten years.
14.
TAXATION :
Tax expense comprises of current tax, deferred tax and fringe benefits tax.
(i)
Provision for current tax is made based on the estimated tax liability as per the appropriate
provisions of the Income Tax Act, 1961 and considering the previous final assessment orders.
(ii)
Deferred tax for timing differences between tax profit and book profit is accounted for using the tax
rates and laws that have been enacted or substantially enacted as on balance sheet date. Deferred
Tax Assets are recognized to the extent there is reasonable certainty that these assets can be realised
in future.
(iii)
Provision for fringe benefit tax has been recognized on the basis of appropriate provisions of the
Income Tax Act, 1961 and considering the previous final assessment orders.
15.
EARNING PER SHARE:
In determining earning per share, the Company considers the net profit after tax and includes the post tax
effect of any extra-ordinary / exceptional item. The number of shares used in computing basic earning per
share is the weighted average number of shares outstanding during the period. The number of shares used
in computing diluted earning per share comprises the weighted average shares considered for deriving basic
earnings per share and also the weighted average number of equity shares that could have been issued on
the conversion of all dilutive potential equity shares. The diluted potential equity shares are adjusted for the
proceeds receivable, had the shares been actually issued at fair value (i.e. the average market value of the
outstanding shares). Dilutive potential equity shares are deemed converted as of the beginning of the
period, unless issued at a later date. The number of shares and potential dilutive equity shares are adjusted
for any stock splits and bonus shares issued effected prior to the approval of the financial statements by the
board of directors.
B
NOTES TO ACCOUNTS
1.
Estimated amount of contract remaining to be executed on capital account and not provided for Rs.
Nil (Previous Year Rs.Nil).
2.
Contingent Liability: On account of Guarantees – Rs. 223.96 Lacs (Previous year Rs. Nil Lacs).
3.
Cash & Bank balance components are as under:
Particulars
Cash and Bank Balance
(Refer Schedule 7)
Cash in Hand
Balance with scheduled banks
- On Current accounts
- On Deposit accounts
Balance with Unscheduled Bank
- On Current accounts
Sarv UP Gramin Bank
- On Deposit accounts
SIDBI
Total
Maximum
Balance
with
Unscheduled Bank during the
year
- On Current accounts
Sarv UP Gramin Bank
- On Deposit accounts
SIDBI
As at 31.03.2009 (Rs.)
As at 31.03.2008 (Rs.)
2,76,91,240.50
1,55,73,666.00
8,74,70,606.58
11,55,06,675.69
3,87,99,830.42
17,57,50,000.00
15,86,588.00
0.00
40,00,000.00
23,62,55,110.77
20,00,000.00
23,21,23,496.42
43,91,701.00
0.00
40,00,000.00
20,00,000.00
Out of total money lying in deposit accounts amounting to Rs. 11,95,06,675.69 (Previous Year Rs.
17,77,50,000.00) lien is marked on Rs. 9,70,11,675.69 (Previous Year Rs. 5,77,50,000.00) against term
loan availed and assets assigned.
4.
The detail of borrowings from Banks and financial institutions as at 31.03.2009 is as under
Name of Institution
Nature &
purpose of
Loan
Principal
Outstanding
as at 31.03.09
(Rs./Lacs)
Primary Security
Guaranteed by
ICICI Bank Limited
Term Loan
for
microfinance
activities
Term Loan
for
microfinance
activities
Term Loan
for
microfinance
activities
Term Loan
for
microfinance
activities
825.59
(Previous
Year
1210.69)
562.50
(Previous
Year 662.50 )
Hypothecation of book
debts arising out of
bank’s assistance
Personal guarantee of Mr. H P Singh
and Mr. Satvinder Singh
Hypothecation of book
debts arising out of
bank’s assistance
Personal guarantee of Mr. H P Singh
and Mr. Satvinder Singh
680.00
(Previous
Year 568.57 )
Hypothecation of book
debts arising out of
bank’s assistance
Personal guarantee of Mr. H P Singh
and Mr. Satvinder Singh
160.00
(Previous
Year 200.00)
Nil
Term Loan
for
Microfinance
Activities
Term Loan
for
Microfinance
Activities
Nil
(Previous
Year 33.99
Hypothecation of book
debts (equivalent to
110% of the loan
amount plus interest
due at all times).
Hypothecation of book
debts arising out of
bank’s assistance
Nil
(Previous
Year 212.00)
Hypothecation of book
debts
with
asset
coverage of minimum
55%
of
the
outstanding principal.
First Loss guarantee in the form of cash
deposit of minimum 50% of the
outstanding principal, at any point,
placed with Standard Chartered Bank,
UK by Vision Microfinance Fund,
Luxembourg.
Personal guarantee of Mr. H P Singh
and Mr. Satvinder Singh
HDFC Bank Limited
Axis Bank Limited
Maanaveeya Holdings
and Investments Private
Limited
Standard Chartered Bank
Standard Chartered Bank
Personal guarantee of Mr. H P Singh
and Mr. Satvinder Singh
Yes Bank Limited
Term Loan
for
microfinance
activities
944.44
(Previous
Year
1388.89)
BNP Paribas
Term Loan
for
microfinance
activities
Term Loan
for
microfinance
activities
Term Loan
for
microfinance
activities
Term Loan
300.00
(Previous
Year 50.00)
Hypothecation of book
debts (equivalent to
110% or 115% of the
outstanding
term
loan).
Hypothecation of book
debts arising out of
bank’s assistance
1700.00
(Previous
Year 500.00)
Hypothecation of book
debts arising out of
bank’s assistance
Personal guarantee of Mr. H P Singh
and Mr. Satvinder Singh
333.50
(Previous
Year 200.00)
Hypothecation of book
debts arising out of
bank’s assistance
Personal guarantee of Mr. H P Singh
and Mr. Satvinder Singh
385.89
Hypothecation of book
Nil
Indian Bank
Small Industries
Development Bank of
India (SIDBI)
Reliance Capital Limited
Nil
HSBC Bank
Indian Overseas Bank
Bank Of India
Yes Bank Limited
for
microfinance
activities
Term Loan
for
microfinance
activities
Term Loan
for
microfinance
activities
Term Loan
for
microfinance
activities
Cash Credit
Limit
(Previous
Year Nil)
debts arising out of the
loan amount
275.00
(Previous
Year Nil)
Hypothecation of book
debts arising out of the
loan amount
Personal guarantee of Mr. H P Singh
and Mr. Satvinder Singh
833.33
(Previous
Year Nil)
Hypothecation of book
debts arising out of the
loan amount
Personal guarantee of Mr. H P Singh
and Mr. Satvinder Singh
700.00
(Previous
Year Nil)
Hypothecation of book
debts arising out of the
loan amount
Personal guarantee of Mr. H P Singh
and Mr. Satvinder Singh
160.22
(Previous
Year Nil)
Hypothecation of book
debts equivalent to
115%
of
the
outstanding term loan)
Nil
B. Unsecured Loans
Name of Institution
Nature, purpose & duration of Loan
Principal
Outstanding
as at 31.03.09
(Rs./Lacs)
Guaranteed by
Small Industries
Development Bank of
India (SIDBI)
HDFC Limited
Term Loan for on lending to individual
borrower / micro enterprises
Nil
(Previous
Year 57.15)
18.75
(Previous
Year 123.02)
Personal guarantee of Mr. H P Singh
and Mr. Satvinder Singh.
5.
Nil
Auditors’ remuneration includes the following:
Audit Fees
Tax Audit Fees
Certification work
6.
Term Loan for microfinance activities
CURRENT YEAR
(In Rs.)
PREVIOUS YEAR
(In Rs.)
50,000.00
10,000.00
24,786.00
_________
84,786.00
========
44,944.00
11,236.00
30,379.00
_________
86,559.00
========
Directors' remuneration includes the following:
CURRENT YEAR
(In Rs.)
Salary
Provident Fund
Value of perquisites
27,00,000.00
3,24,000.00
4,78,800.00
___________
35,02,800.00
==========
PREVIOUS YEAR
(In Rs.)
21,00,000.00
2,52,000.00
2,03,800.00
___________
25,55,800.00
==========
7. (i) In the opinion of the Directors, Current Assets, Loans and Advances are good for recovery unless
otherwise stated. An amount of Rs 35,25,820.37 (Previous Year –Rs 23, 87,129.79) has been written off
/ provided as bad debts during the year. In the opinion of management, the amounts, which are written
off as bad debts, are not recoverable despite legal and other steps taken against erring borrowers.
(ii) Portfolio loans amounting to Rs. 63,89,14,110.59 (Previous year Rs. 37,09,76,497.49) are shown at
their principal value and are net of assigned portfolio. An amount of Rs. Nil (Previous Year Rs.
28,95,000.00) is outstanding as Loans and Advances and is included under Advances recoverable in cash
or in kind or for value to be received in Current Assets.
(iii) Installments in arrear amounting to Rs. 2,92,47,291.31 (Previous Year Rs. 2,24,83,647.03) is net of
provision for doubtful debts. As per prudential norms prescribed by the Reserve Bank of India on
income recognition and provisioning for bad and doubtful debts, a provision of Rs. 6,42,210.69
(Previous year Rs. 2,05,475.97) stood at towards bad and doubtful debts. In the opinion of the
management the classification of various assets as per the prudential norms prescribed by the Reserve
Bank of India are as under:
Asset classification
Standard Assets
Substandard Assets
Doubtful Assets
Loss Assets
Total
Less: Provision for Bad and Doubtful Debts
Net
Less: Assigned Portfolio
Own Portfolio
Loan Outstanding
As at 31.03.2009 (Rs.) As at 31.03.2008 (Rs.)
39,53,67,243.83
75,60,15,937.89
11,93,376.66
40,03,997.19
0.00
3,02,009.51
0.00
0.00
39,65,60,620.49
76,03,21,944.59
2,05,475.97
6,42,210.69
39,63,55,144.52
75,96,79,733.90
0.00
9,15,18,332.00
39,63,55,144.52
66,81,61,401.90
8.
The disclosures required under Accounting Standard 15 “ Employee Benefits’ notified in the
Companies (Accounting Standards) Rules 2006, are given below:
Provident fund
Defined Contribution Plan
Contribution to Defined Contribution Plan, recognized are charged off for the year are as under:
Current Year
Previous Year
In Rupees
In Rupees
Employer’s Contribution to Provident Fund
Employer’s Contribution to Superannuation Fund
Employer’s Contribution to Pension Scheme
Gratuity
967,513.00
Nil
Nil
662,165.00
Nil
Nil
The employee’s gratuity fund scheme managed by Life Insurance Corporation of India. The present value
of obligation is determined based on actuarial valuation using the Project Unit Credit Method, which
recognizes each period of service as giving rise to additional unit of employee benefit entitlement and
measures each unit separately to build up the final obligation.
Leave Encashment
The obligation for leave encashment is recognized based on the present value of obligation based on
actuarial valuation using the Project Unit Credit Method, which recognizes each period of service as giving
rise to additional unit of employee benefit entitlement and measures each unit separately to build up the
final obligation. The detail of the same is as under:
Current Year Previous Year
In Rupees
In Rupees
Leave Encashment (Unfunded)
a. Reconciliation of opening and closing balances of Defined Benefit Obligation
Defined Benefit obligation at beginning of the year
Current Service Cost
Interest Cost
Actuarial (gain)/loss
Benefits paid
Defined Benefit obligation at year end
8,69,037.00
4,34,831.00
61,066.00
1,27,113.00
(1,09,655.00)
13,82,392.00
5,83,483.00
2,31,409.00
44,685.00
59,311.00
(49,851.00)
869,037.00
b. Reconciliation of opening and closing balances of fair value of plan assets
Fair value of plan assets at the beginning of the year
Expected return on plan assets
Actuarial gain/(loss)
Employer contribution
Benefits Paid
Fair value of plan assets at year end
Actual return on plan assets
(1,09,655.00) (49,851.00)
c. Reconciliation of fair value of assets and obligations
Fair Value of plan assets as at 31st March, 2009
Present value of obligation as at 31st March,2009
Amount recognized in Balance Sheet
1,382,392.00 869,037.00
1,382,392.00 869,037.00
d. Expenses recognized during the year (Under the head “Payments to and Provisions for Employees)
Current Service Cost
Interest Cost
4,34,,831.00
61,066.00
231,409.00
44,685.00
Expected return on plan assets
Actuarial (gain)/loss
Net Cost
1,27,113.00 59,311.00
6,23,010.00 335,405.00
e. Actuarial assumptions
Mortality Table (L.I.C)
LIC 1994-96 (Ultimate) LIC 1994-96 (Ultimate)
Discount Rate (per annum)
7.50%
8.00%
Expected rate of return on plan assets (per annum)
Rate of escalation in salary (per annum)
5.00%
5.00%
The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation,
seniority, promotion and other relevant factors including supply and demand in the employment market.
The above information is certified by the actuary. The above figures pertain to Long Term Liability worked
in respect of deferred leave only. Expected Short Term Liability of Rs. 2,68,151.00 (Previous Year Rs.
1,82,263.00) will be added to this figure.
9.
Pursuant to Accounting Standard - 22 issued by The Institute of Chartered Accountants of India in
respect of “Accounting for Taxes on Income” necessary deferred tax liabilities and assets have been
recognised. The major components of deferred tax as at 31.03.2009 are as under:
Timing difference on account of
Depreciation
Provisions created but not claimed
in Income Tax
Total (Deferred Tax Assets)
10.
As at 31.03.2008
(Liability)/Assets/Mo As at 31.03.2009
vements/ during the
year
5,58,148.60
- 91,253.44
4,66,895.16
3,88,343.77
+3,90,963.21
7,79,306.98
9,46,492.37
+2,99,709.77
12,46,202.14
Earning Per Share
In accordance with the Accounting Standard 20 of ‘Earning Per Share’ as notified by the Companies
(Accounting Standards) Rules, 2006:
a) Calculation of Earnings Per Share:
Particulars
Net Profit after Tax available for appropriation (Rs.)
Weighted average number of Equity Shares for computation
of Basic Earnings Per Share
Basic Earnings Per Share (Rs.)
Weighted average number of Equity Shares for computation
of Diluted Earnings Per Share
Diluted Earning Per Share (Rs.)
Current Year (Rs.)
75,02,252.26
88,31,679
Previous Year (Rs.)
51,14,909.28
66,08,460
0.85
0.77
1,01,51,679
0.74
68,25,446
0.75
b) The reconciliation between Basic and Diluted Earnings Per Share is as follows:
Particulars
Basic Earnings Per Share
Effect of outstanding Fully Convertible Warrants pending
conversion
Diluted Earnings Per Share
Current Year (Rs.)
0.85
(0.11)
Previous Year (Rs.)
0.77
(0.02)
0.74
0.75
c) The Basic Earnings Per Share has been computed by dividing the Net Profit after Tax by the weighted
average number of equity shares for the respective periods whereas the Diluted Earnings Per Share has
been computed by dividing the Net Profit after Tax by the weighted average number of equity shares, after
giving dilutive effect of the outstanding fully convertible warrants for the respective periods.
11.
Segment Reporting:
The Company is operating as single segment i.e. financing operations. Hence the segment wise reporting is
not applicable to the Company.
12.
(i) Earning /Remittance (Inward) in Foreign currency
: Equity Share Capital Rs. Nil (Previous
year Rs. 4,87,40,000/-)
(ii) Expenditure /remittance (Outward) in Foreign Currency: Rs. Nil (Previous year Rs. Nil)
13.
Pursuant to the provision of section 45 (IC) of Reserve Bank of India Act, 1934, the Company has
transferred Rs. 15,00,450.00 (Previous Year Rs. 10,24,592.00) towards Statutory Reserve Fund.
14.
Related party disclosures in terms of Accounting Standard 18 issued by The Institute of Chartered
Accountants of India:
Name of Related party
Description
relationship
Parishek Finance Private Limited
Nature
transaction
of
Investment
equity shares
in
Mr. H P Singh
Influence of Key
Managerial
Personnel
&
Relatives
Influence of Key
Managerial
Personnel
&
Relatives
Key Personnel
Mr. Satvinder Singh
Key Personnel
Remuneration
Satin (India) Limited
Influence of Key
Managerial
Personnel
&
Relatives
Investment
equity shares
Influence of Key
Managerial
Personnel
&
Investment
equity shares
Taco
Consultants
Limited
Private
of
Interest Corporate
Deposit
refund
and
Interest
thereon
Remuneration
in
Inter Corporate
Deposit refund,
Interest & Others
Volume
transaction
(Rs.)
Nil
(Nil)
of
Outstanding
amount as at 31st
March, 2009 (Rs.)
8,00,000.00
(8,00,000.00)
Amount written off
or written back
(Rs.)
Nil
(Nil)
Nil
(2,74,192.00)
Nil
(Nil)
Nil
(Nil
23,30,400.00
(14,58,400.00)
11,72,400.00
(10,97,400.00)
Nil
(Nil)
Nil
(Nil)
6,000.00
(Nil)
25,00,000.00 Dr.
(25,00,000.00 Dr.)
Nil
(Nil)
Nil
(Nil)
Nil
(Nil)
11,62,384.00
(785,584.00)
Nil
(11,00,000.00 Dr.)
Nil
(Nil)
30,00,000.00 Dr.
(30,00,000.00 Dr.)

Satin Media Solutions Limited
in
Nil
(Nil)
Relatives
Inter Corporate
Deposit, interest
& Others
9,44,000.00
(1,44,000.00)
Nil
(8,00,000.00 Dr.)
# Figures in brackets pertain to previous year.
The names and relationship with all the related parties with whom the Company had financial transaction
have been included in the above list.
15.
Disclosure of loans/advances and investments in its own shares by the listed company, its
subsidiaries, associates etc. (as certified by the management):
Current Year
Previous Year
Amount
Maximum
amount Amount
Maximum
amount
Name
outstanding as at outstanding during the outstanding as at outstanding during the
31.03.2009
year (31.03.2009)
31.03.2008
year (31.03.2008)
Loans and advances in
Nil.
8,00,000.00 Dr. 8,00,000.00 Dr.
8,00,000.00 Dr.
the nature of loan to
associate
Company:
Satin Media Solutions
Ltd.
Investment by the
Loanee (i.e.
Satin Media Solutions
Ltd.) in the shares of
the Company (paid up
value)
Loans and advances in
the nature of loan to
associate
Company:
Satin (India) Ltd.
Investment by the
Loanee (i.e.
Satin (India) Ltd.) in
the shares of the
Company (paid up
value)
10,90,000.00
10,90,000.00
10,90,000.00
10,90,000.00
Nil
11,00,000.00 Dr.
11,00,000.00Dr.
16,00,000.00 Dr.
30,61,000.00
30,61,000.00
30,61,000.00
30,61,000.00
16.
The Company had stopped accepting public deposits with effect from 20th November, 2004. The
Company has intimated the same to Reserve Bank of India. Payment to depositors is being made on the
maturity of deposit or over premature request from depositor. The outstanding public deposits as at 31 st
March, 2009 is Rs. 33,680.00 (Previous year Rs. 38,430.00). Investments of Rs. 50,591.33 (Previous year
Rs. 50,591.33) are being held in pursuant to directions issued by the Reserve Bank of India as applicable to
Non Banking Financial Companies. The entire amount of outstanding public deposit is being held in an
Escrow account with scheduled bank.
17.
Disclosure as required by Para 13 of Non Banking Financial (Deposit Accepting or Holding)
Companies Prudential Norms (Reserve Bank) Directions, 2007 are enclosed in Annexure I to the notes on
accounts.
18.
Based on the information available with the company , there were no suppliers who are registered as
micro, small or medium enterprises under “The Micro, Small and Medium Enterprises Development
Act,2006” as at 31st March,2009.
19.
The Company had allotted 13,20,000 Fully Convertible Warrants (FCWs) of Rs. 10/- each at par on
preferential basis to the non promoters on 1st February, 2008 to meet the working capital requirements for
the existing operations and for expansion of the Company’s business operations. As per the terms of
allotment these FCWs are convertible into equal number of equity shares of Rs. 10/- each fully paid up
after receipt of balance amount within eighteen months from the date of allotment. The Company has
further received Rs. 79,20,000.00 towards part payment of allotment money during the year. Accordingly,
the entire amount received has been reflected as Share Application Money as on 31.03.2009.
20. During the year the Company has entered into assignment agreements with Scheduled Bank in
respect of certain loan contracts, whereby underlying pool of assets are transferred to the bank for a lump
sum consideration. During the year, the company has assigned loan portfolio having book value of Rs.
915.18 Lacs and received Rs. 992.74 Lacs as consideration. The difference between the consideration
received and the book value of the loan portfolio assigned amounting to Rs 77.56 Lacs has been accounted
as a gain in the profit & loss account in the current year, as all the right to benefits specified in the contract
have been unconditionally and irrevocably transferred to the bank without any recourse obligation.
21. During the year the category of the company has been changed from Category A (Deposit taking) to
Category B (Non Deposit Taking) by RBI.
22. The figures of the previous year have been regrouped / reclassified wherever necessary to make
them comparable with the figures of the current year.
As per our report of even date annexed
For A.K Gangaher & Co.
Chartered Accountants
A. K. Gangaher
Proprietor
M. No. 83674
Place: Delhi
Dated: 30.06.2009
For and on behalf of Board of Directors
H P Singh
(Director)
Jugal Kataria
CFO & CS
Satvinder Singh
(Director)