1. Loan Assets and installments due from borrowers are secured or partly secured by
a. Equitable Mortgage of Property and/or
b. Assignment of Life Insurance Policies and/or
c. Personal Guarantee of borrowers and/or
d. Undertaking to create a security
2. In the opinion of the Board of Directors, the Current Assets and Loans & Advances are approximately of the value stated above, if realized in the ordinary course of the business.
3. The Secured 7% Non-Convertible Redeemable Debenture was assigned rating of BB-(Stable Outlook) by Informatics Valuation and Rating Private Limited.
4. Disclosure regarding “Reserve Fund u/s 29C of the National Housing Bank Act, 1987” as per circular no: NHB (ND)/DRS/Pol. Circular 61/2013-14 dated April 7, 2014
For the purpose of compliance with the provision of Section 29C of the National Housing Bank Act, 1987, the company is creating and maintaining Special Reserve in terms of clause (viii) sub-section (I) of Section 36 of the Income Tax Act, 1961, and therein transferring a sum not less than twenty percent of its net profit. During the year under review the company transferred to the said special reserve a sum ofRs, 6,756,108, which is stated in the table “Appropriation of Reserve Fund” provided below:
5. Contingent Liabilities & Commitments
a. Contingent Liabilities not provided for in respect of Income Tax Matters:
The Income Tax Assessments of the company have been completed up to Assessment Year 2015-16. Based on the decision of the Appellate authorities and the interpretation of relevant tax provisions, the Company has been legally advised that the additions made in the assessment order for the Assessment year 2010-11 are likely to be deleted or substantially reduced. Tax value of matters under appeal as at March 31, 2018 is f 3,878,240 (Previous Year f NIL) against which the company had deposited f 776,000 (Previous Year f NIL).
b. Other commitments:
Estimated amount of contracts remaining to be executed on capital account (Net of advances) f Nil (Previous Year f 1,400,000), not provided for f Nil (Previous Year f 348,548).
6. Segment Information
The Company’s main business is to provide loans for the purchase or construction of residential houses. All other activities of the Company are related to the main business. As such there are no separate reportable segments, as per the Accounting Standard on ‘Segment Reporting’ (AS 17).
7. Related Party Disclosures
List of Related Parties
a. Major shareholder having control over the company
- Sahara India Corp Investment Limited
- Sahara Prime City Limited
- Sahara India Finance & Investment Limited
b. Key Management Personnel
Shri D. J. Bagchi, Chief Executive Officer, Company Secretary/Manager Shri Vivek Kapoor, Chief Financial Officer
c. Companies under common control
- Sahara India Financial Corporation Limited
- Sahara India Commercial Corporation Limited
e. Related party relationship identified by the Company and relied upon by the Auditors.
8. Trade payables do not include amount payable to Micro, Small and Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) as at March 31, 2018.
9. Expenditure in Foreign Currency : f Nil (Previous Year f Nil)
10. The balances in Trade Receivables, Trade payables and Advances are subject to confirmations and adjustments, if any. Such adjustments, in the opinion of the management, are not likely to be material.
11. Previous year figures have been regrouped and reclassified wherever necessary to conform to current year’s classification.
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