1. Corporate Information
Kailash Auto Finance Ltd. Is a public company domiciled in India and
incorporated under the provisions of the Companies Act, 1956. Its
shares are listed on Bombay Stock Exchange in India. The company is
engaged in the business of Leasing & Hiring of Vehicles, Machinery,
Direct Marketing Agency, & Financial Consultancy etc. The company
caters to domestic market only.
2. Basis of preparation
The financial statements of the company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP). The company has prepared these financial statements to
comply in all material respects with the accounting standards notified
under the Companies (Accounting Standards) Rule, 2006, (as amended) and
the relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on an accrual basis and under the
historical cost convention.
The accounting policies adopted in the preparation of the financial
statements are consistent with those of previous year, except for the
change in accounting policies explained below.
1.1 CONTINGENT LIABILITY AND NOTES
1. Contingent Liability not provided for: As at As at
(a) Income & Interest Tax demands
distputed by the company (Amount
already paid Rs. 57,98,482/-) 58,37,482.00 58,37,482.00
(b) Claims against the company
not acknowledged as debt Nil Nil
(c) Service Tax on Hire Purchase and Amount not Amount not
Lease transaction not realized and ascertained ascertained
in view of interim stay of hon''ble
paid Madras High Court for the
period up to
(d) Disputed penalty liabilities
in legal cases 7,00,213.00 7,00,213.00
(Amount already paid Rs. 3,55,000/-)
(e) Income Tax Demand for the F.Y.
2003-04 (Matter pending 4,45,727.00 4,45,727.00
2. Stock in hire repossessed include 14 cases amounting to Rs.
18,17,000/- which are legaly disputed and their recovery is pending
before the legal authorities.
3. The contingent liabilities as mentioned in point no. 1 & 2 above
except disputed liabilities on account of Income Tax & other statutory
taxes had been assigned to M/s Kailash Motors Finance Pvt. Ltd.
Jabalpur vide assignment deed executed on 13-02-2012.
4. Segment Reporting
The company is engaged primarily in the business of financing and
related services and accordingly there are no separate reportable
segments as per accounting standard AS-17- segment reporting issued by
5. (a) Related Parties
Relation Name of the Party
(I) Subsidiaries Company does not have any subsidiaries.
(ii) Joint Venture Company Company does not have any joint venture
(iii) Other related
Parties with whom
during the year 1. Commercial Automobiles Pvt.
2. Commercial Body Builders
3. Kailash Motyors Finance Pvt. Ltd.
(iv) Key Management
Perssonel 1. Mr. Rahul Agrawal, Director
2. Mrs. Shalini Gupta, Director
3. Mr. Kailash Gupta, Director
4. Mr. Rajesh Dhirawani, Director
6. Expenditure in foreign currency : Nil (Previous Year - Nil)
7. Income in foreign currency : Nil (Previous Year - Nil)
8. Fixed deposits repayment due within one year is Rs. 3,10,880/-
(Previous Year Rs. 3,14,891/-) and all due amount deposited in SBI
9. Market value of quoted investment as at 31-03-2012 is Rs. - Nil
10. Certain Balances of parties under sundry debtors, creditors, loans
& advances etc. are under confirmations/reconciliation.
11. There are no dues payable to Small Scale Industries undertaking.
12. In the opinion of the Board, the Current Assets, Loans and Advances
have a value on realisation in the ordinary course of business at least
equal to the amount at which they are stated in the balance sheet.
13. During the previous year excess MAT provision for the F Y 2009-10
i.e. Rs.12,90,488/- (2158950 - 868462) has been creduted in P & L A/c
under the head Extraordinary Interns.
14. Balance sheet abstract and company''s general business profile as
per Part IV to schedule VI of the Companies Act, 1956 shown in Annexure
15. Previous year figures have been regrouped, rearranged and
reclassified whereever necessary to make them comparable with this