| 1. The Company has only one class of Equity Shares having par value of
Re. 1 Each holder of equity shares is entitled to one vote per share.
The company declares and pays dividends in Indian rupees. The dividend
proposed by the Board of Directors are subject to the approval of the
shareholders in the ensuing Annual General Meeting.
2. In the event of liquidation of the Company, the holder of equity
shares will being entitled to receive any of the remaining assets of the
company, after distribution of all preferential amount. The distribution
will be in proportion to the number of equity shares held by the
shareholders.
3. Employee benefits
Provision for retirement benefits to employees was not provided on
accrual basis, which is not in conformity with Accounting Standard-15
issued by ICAI and the amount has not been quantified because actuarial
valuation report is not available. However, in the opinion of the
management the amount involved is negligible and has no material impact
on the Profit & Loss Account.
4. CONTINGENT LIABILITY & CAPITAL COMMITMENTS:
2014-2015 2013-2014
Amount in Rs. Amount in Rs.
Contingent Liabilities not provided for* 5,910 NIL
Contingent Liabilities not provided for** 5,00,000 NIL
Capital Commitments not provided for NIL NIL
Others NIL NIL
* The demand is raised by the assessing officer u/s 143(1) from the
Income Tax Authorities for the Assessment Year 2008-09. The demand
raised is likely to be deleted and accordingly no provision is
considered necessary.
** During the year, company has received various letters from RBI for
carrying on NBFC business without obtaining certificate of registration
(CoR) from RBI. Hence, penal provisions of section 58-B (4-A) of the
RBI Act, 1934 will be attracted imposing liability for payment of fine.
However, no fine has been imposed till date.
5. RELATED PARTY TRANSACTION:
List of Related Parties:-
a) Key Management personnel :-
i) Girraj Kishor Agrawal
b) Relatives to Key Management personnel :-
i) Girraj Kishor Agrawal HUF
ii) Saloni Agrawal
iii) Tanu Agrawal
c) Related parties over which Key Management personnel have significant
influence
i) Agrawal Bullion Limited (Formerly Kayaguru Health Solutions Limited)
ii) Axon Finance Limited (Formerly known as Axon Infotech Limited)
iii) Banas Finance Limited
iv) Five X Finance & Investment Limited
v) Handful Investrade Private Limited
vi) Kayaguru Capital Market Private Limited
vii) Rockon Capital Market Private Limited
viii) Rockon Fintech Limited
ix) Shree Nath Commercial & Finance Limited
6. As per information available with the Company, none of the
creditors has confirmed that they are registered under the Micro, Small
and Medium enterprises Development Act, 2006.
7. Trade Receivable, Trade Payable, Short Term Borrowings and Short
Term Loans and Advances balances are subject to confirmation and
reconciliation.
8. The financial assets of the company constitute more than 50% of
the total assets of the company. During the year, the company has
started a new business of trading in Textile, the income from which is
approximately 50% of the gross income of the company. Hence, the
company fulfills the NBFC criterion prescribed in terms of section
45-IA of the RBI Act, 1934 in the current financial year (as was
applicable last year) and is liable to obtain NBFC Certificate of
Registration (CoR). However, in the coming future the management is
confident of expanding the textile business, the income from which will
be more than 50% of gross income of the company. Hence, the NBFC
criterion will not be fulfilled and the company won't be liable to
obtain NBFC Certificate of Registration (CoR).
9. Majority of the loans given are demand loans, therefore in some
cases the terms of repayment and loan agreement are not available. In
view of the management all the loans outstanding are considered good
and therefore no provision has been made for bad and doubtful assets.
Demand and other loans given are governed by the Board policies.
Considering the close monitoring of Board no appraisal, renewal,
Policies, Procedure, Committee or documents have been prescribed and
executed.
10. Purchase and Sale of unquoted securities are done as per demand
and supply forces of the market. Therefore the rationale for the same
is not available. In view of the management all the unquoted securities
in stock are considered as good and therefore no provision for
diminutions has been made for Investments. Purchase and sale decisions
are governed by the Board policies. Considering the close monitoring of
Board no appraisal, Policies, Procedure, Committee or documents have
been prescribed and executed.
11. As the intention is to hold the unquoted securities for sale in
short term and in absence of flow of periodic data, absence of
liquidity and market related data closing stock of unquoted shares are
valued at cost.
12. Chief Financial Officer (CFO) of the company has resigned on 22nd
December 2014. However, no CFO has been appointed till date signing of
Balance Sheet.
13. The company does not have Internal Auditors for conduct of
Internal Audit.
14. Segment Information:
The Company has identified business segments as its primary segment.
Business segments are primarily "Finance & Securities" and "Textile
Trading". Revenue and expenses, assets and liabilities directly
attributable to segments are reported under each reportable segment.
15. The company has made investment in Kayaguru Capital Market Private
Limited (Shareholding 20.88%) and Rockon Capital Market Private Limited
(shareholding 27.63%). The Investment is acquired and held exclusively
with a view for its subsequent disposal in the near future held as
stock in Trade. Hence, as per AS 23 issued by ICAI Para no 7, these
investments are excluded for preparing consolidated financial
statements.
16. Previous year's figures have been regrouped, rearranged and
reclassified wherever necessary to conform to the current's
classification/ presentation.
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