Edelweiss Capital
BSE: 532922 | NSE: EDELWEISS | ISIN: INE532F01047 | Finance - General
- Directors Report
- Chairman's Speech
- Auditors Report
- Notes To Accounts
- Accounting Policy
- Finished Products
- Raw Materials
| Notes to Accounts | Year End : Mar '09 |
1 Segment reporting Income for each segment has been specifically identified. Expenditure, assets and liabilities are either specifically identifiable with individual segments or have been allocated to segments on a systematic basis. Based on such allocations, segmental balance sheet as at 31 March 2009 and segmental profit and loss account for the year ended 31 March 2009 have been prepared. Since the business operations of the Company are primarily concentrated in India, the Company is considered to operate only in the domestic segment. 2 Disclosure pursuant to Accounting Standard 15 ( Revised } - Empioyee Benefits A) Defined contribution plan (Provident fund): Amount of Rs. 4,010,689 (previous year: Rs. 2,109,429) is recognised as expenses and included in Employee Costs -Schedule 19 in the profit and loss account. B) Defined benefit plan (Gratuity): The following tables summarise the components of the net employee benefit expenses recognised in the profit and loss account, the fund status and amount recognised in the balance sheet for the gratuity benefit plan. Profit and loss account 3 Operating leases The Company has taken various premises on operating lease. Gross rental expenses for the year ended 31 March 2009 aggregated to Rs. 36,934,273 (Previous year: Rs. 25,720,950) which has been included under the head Operating expenses - Rent, in the profit and loss account, 4 Employee stock option plans The Company has currently six Employee Stock Option Plans (Plans) in force. The Plans provide that the Companys employees and those of its subsidiaries are granted an option to acquire equity shares of the Company that vests in a graded manner. The options may be exercised within a specified period. The Company follows the intrinsic value method to account for its stock based compensation plans. Compensation cost is measured as the excess, if any, of the fair market value of the underlying share over the exercise price. During the previous year, the Company has issued ESOP 2007 Plan wherein stock options were granted to employees with a variable exercise price (i.e. the exercise price was linked to either a discount on market price at the time of exercise or a specified amount, whichever is higher). The stock options vested after fifteen days from the date of grant. For determination of compensation cost, the Company has assumed the exercise price to be the specified amount. During the year, the Company has issued ESOP 2008 Plan wherein stock options were granted to employees with a variable exercise price (i.e. the exercise price was linked to either a discount on market price at the time of exercise or a specified amount, whichever is higher). The stock options vested after one year from the date of grant. For determination of compensation cost, the Company has assumed the exercise price to be the specified amount. The shareholders of the Company also approved by a special resolution passed by postal ballot dated 30 March, 2009, the grant of 5 million options under the new Employee Stock Option Plan, ESOP 2009. No stock options have been granted under this plan upto the date of this balance sheet. With respect to stock options granted upto 31st March 2008, the fair market value of the underlying shares has been determined based on an independent valuers report as these stock options were granted by the Company to its employees when it was not listed on the stock exchanges. The fair value under stock options granted during the year is arrived as stipulated in the Guidance Note on Accounting for Employee Share Based Payments issued by The Institute of Chartered Accountants of India. The compensation cost recorded in the profit and loss account for the year is Rs. 6,804,788/- (Previous year: Rs. 3,494,278). 5 Capital commitment Capital commitments (net of advances) - Rs. 39,000,000 (Previous year: Rs. 21,555,096) 6 Contingent liability Taxation matters in respect of which appeal is pending - Rs. 1,747,928 (Previous year: Rs. 15,858,396). The demand paid under protest in respect of disputed taxation matters pertaining to open assessments of earlier years is Rs. 1,747,928 (Previous year: Rs. 5,441,046). The Company has issued corporate guarantees to the extent of Rs. 6,188,300,000 (Previous year: Rs. 7,310,000,000), in favour of banks to secure the credit facilities sanctioned by these banks to Edelweiss Securities Limited, EC Commodity Limited , Edelweiss Broking Limited and Edelweiss Commodities Limited (subsidiary companies). 7 Loans and advances include i) Rs. 556,153 (Previous year: Rs, 30,612) due from Edelweiss Asset Reconstruction Company Limited (maximum amount due at any time during the year Rs. 556,153; Previous year: Rs. 30,612) ii) Rs. 5,774,114 (Previous year: Rs, 9,230,924) due from Edelweiss Real Estate Advisors Private Limited (maximum amount due at any time during the year Rs. 11,063,494; Previous year: Rs. 9,230,924) iii) Rs. 424,815,952 (Previous year: Rs, 223,165,952) due from Edelweiss Employees Welfare Trust (maximum amount due at any time during the year Rs. 424,815,952; Previous year: Rs. 223,165,952) 8 Cost sharing Edelweiss Capital Limited, being the holding company within the Edelweiss Group incurs expenditure like common senior management compensation cost, rent expenditure, which is for the common benefit of itself and certain subsidiary companies. This cost so expended is recovered as reimbursement from the subsidiaries on the basis of number of employees, area occupied, time spent by employees for other companies, actual identifications etc. Accordingly, and as identified appropriately, these expenditure heads in Schedule 19 and Schedule 20 are net of the reimbursements. 9 Utilisation of proceeds from initial public offer The Company has fully utilised, as per the Objects of the issue, the net issue proceeds of Rs. 671.49 crores raised by the Initial Public Offering in the financial year 2007-08. 10 Schedule VI disclosures Disclosures under Schedule VI to the Companies Act, 1956 has been made to the extent applicable to the Company. 11 Prior period comparatives Previous year figures have been regrouped and rearranged wherever necessary. |
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| Source : Religare Technova | |
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