The company has one class of share referred to as equity shares having a par value of Rs.5/-. Each holder of equity shares is entitled to one vote per share and dividend per share as may be declared/proposed by the Board of Directors.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
The Company has already provided during the earlier years out of abundant caution 50% of the Principal Liability in case of Sl. Nos. 1, 2, & 4 and 55% in case of Sl. Nos. 3 & 5 as Contingency Provision.
Presently all the above matters are under litigation with various authorities and hence based on the final outcome or management perception appropriate accounting entries will be passed fastening the liability or its reversal.
2. Exceptional Items
Exceptional Item of Rs.688 (‘000s) represents the Custodial Fees paid to NSDL for the years from 2013-2024 to 2018-2029 as the Bill for this demand raised by them during the current year. In the previous year Exceptional Item of Rs. 4000 (‘000s) represents Reinstatement Fees paid to BSE Limited
4. Hon’ble Bombay High Court has sanctioned the Scheme of Compromise under section 391 with many of the Bankers and Trustees for Debenture Holders in the year 2005 and 2010. the Company has completed all the payments as per the Sanctioned Scheme. However the Company is yet to receive the final discharge from the Bankers and Trustees of Debenture Holders for release of assets.
5. The Company has paid under protest all the outstanding dues claimed by BSE / NSE / NSDL / CDSL under protest as these were the stumbling block in the matter of trading in the shares of the Company. The Company has successfully pursued the matter of Revocation of Suspension in Trading of its shares and after making payment of all the outstanding dues as mentioned above the trading in shares of the Company recommenced in BSE and NSE with effect from 5th December 2022.
6. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.
7. During the previous year the Company has got Udyam Registration Certificate dated 25th May,2022 from Ministry of Micro, Small and Medium Enterprises (MSME).
11. The company has two employees on its payroll. The Company has provided Gratuity as per Gratuity Act 1972 instead of Ind AS 19 “Employee Benefit” issued by Institute of Chartered Accountant of India.
12. Undisclosed income: The Company does not have any undisclosed income which is not recorded in the books of account that has been surrendered or disclosed as income during the year (previous year) in the tax assessments under the Income TaxAct, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.
13. Corporate Social Responsibility: The company is not liable to make payment towards Corporate Social Responsibility as per Section 135 of Companies Act 2013.
14. Details of Crypto Currency or Virtual Currency: The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
15. The Company does not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.
16. Capital-Work-in Progress (CWIP): The company does not have any Capital-Work in progress hence disclosures related to Capital Work-in-Progress is not applicable.
17. Intangible Assets under development: The company does not have any Intangible Assets under development hence disclosures related to Intangible asset under development is not applicable.
18. Title Deeds of Immovable Property not held in name of the Company: The title in respect of self-constructed buildings and title deeds of all other immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee), disclosed in the financial statements included under property, plant and equipment are held in the name of the Company as at the balance sheet date
19. The disclosures relating to Revaluation of Property is not applicable since there is no revaluation done for immovable property during current year
20. The company does not grant any loans and advances in nature of loans to Promoters, Directors, KMP and the Related Parties (as defined under Companies Act, 2013), hence disclosures related to Loans and advances is not applicable to the company.
21. The Company has not been declared a wilful defaulter (As defined by RBI circular) by any bank or financial institution or other lander during the financial year.
22. Relationship with Struck off Companies under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.The company does not have any transaction with companies struck off under section 248 of companies act 2013. or section 560 of companies act 1956.
23. Registration of charges or satisfaction with Registrar of Companies: The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
24. The Company has complied with the number of layers under prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.
25. Expenditure in foreign currency: No expenditure incurred in Foreign currency during the year.
26. Earnings of foreign exchange: No earning of Foreign currency during the year
27. Utilisation of Borrowed funds and share premium:
1. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
2. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,
28. Comparative financial information (i.e., the amounts and other disclosures for the previous year presented above as corresponding figures), is included as an integral part of the current year’s Financial Statements and is to be read in relation to the amounts and other disclosures relating to the current year. Figures of the previous year have been reworked, regrouped, rearranged and reclassified wherever necessary to correspond to figures of the current year.
29. SCHEME OF ARRANGEMENT:
During the year, the Company held an Extraordinary General Meeting (EGM) on 15th September, 2023 under the provisions of Sections 233 of the Companies Act, 2013 read with Rule 25 of Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 for the proposed Scheme of Amalgamation of Maximus Securities Limited (Transferor Company) with Hybrid Financial Services Limited (Transferee Company). The majority members in the EGM approves the scheme. However, The Regional Director, Ministry of Corporate Affairs, Mumbai had rejected this proposal on account of delayed submission of documents. Now the Company has decided to approach National Company Law Tribunal (NCLT), Mumbai for the proposed Scheme of Merger. The Company recommends the same to be approved by the members as and when a meeting for the same is proposed by NCLT.
30. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES Financial Risk Factors
The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Company.
Market Risk
Market Risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, by providing for the same, while optimising the return.
Interest Rate Risk
The Company has financial assets which are at fixed interest rates and is therefore not exposed to the risks associated with the effects of fluctuation in interest rates.
Foreign Exchange Risk
Foreign Currency Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. As the company does not deal in forex transaction, there is no foreign exchange risk.
Credit Risk
Credit Risk represents the potential loss that the Company would incur if counter parties fail to perform pursuant to the terms of their obligations to the Company. The Company limits its credit risk by carrying out transactions. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the statement of financial position. The Company’s main credit risk concentration as on 31st March 2024 is negligible. There is no risk in terms of Bank Balances, since the counterparty is a reputable bank with high quality external credit ratings.
Liquidity Risk
Liquidity Risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation. The Company manages liquidity risk by maintaining adequate reserves, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of the financial assets and liabilities. The table below illustrates the aged analysis of the Company’s financial liabilities.
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