1. The Company provides Portfolio Management Services (PMS) to its
clients. Transactions on account of PMS activities are carried out
exclusively on behalf of PMS clients. Therefore, assets and liabilities
arising out of the above effectively belong to the PMS clients and
hence are not reflected in the Company''s accounts. Management fees
earned/expenditure incurred by the Company from this activity is
accounted for on an accrual basis.
2. Share Application Money of Rs. 216.69 Lacs (Previous year Rs.
216.69 Lacs) is outstanding for a period of 120 months as at the
balance sheet date, for which financial statements are in the process
of being obtained. The Company has initiated legal proceedings against
the party to recover the application money.
3. Short-term deposits from companies of Rs.100.00 Lacs is subject to
confirmation and subsequent adjustments, if any.
4. Short-term deposits to companies of Rs. 530.00 lacs together with
interest accrued thereon Rs. 135.80 lacs (included in loans and
advances) are subject to confirmation and subsequent adjustments, if
5. The Company has written back the amount of Rs.309.54 Lacs Out of
the closing Provision of Doubtful Debts of last year of Rs.390.02/-
Lacs, since these amounts represent old balances and management is of
the opinion that these are not receivable now. The Closing Balance of
Provision for doubtful debts now stands at Rs. 80.48/- Lacs.
6. There is a Mark to Market gain of Rs.1,25,750/- as on 31st March
2012 on account of Unrealised Gains on Future Contract. As per AS30, it
has been accounted as Other Income and credited to the Income
7. Income from Operations include profit on sale of shares held as
stock in trade of Rs.67 Lacs.
8. Debtors/ Creditors have been written off/ (written back) since
these were old balances and are not receivable Rs. 1,19,37,153/- &
payable Rs. 1,14,54,105/-, net effect of which is Rs. 4,83,047/-.
9. Fixed Assets having written down value of in the books of Rs.
6,32,324/-, have been written off, since the assets do not exist
physically with the company.
10. The Lease period of Office Premises at Walkeshwar got over after
Three years which was further renewable for a further period of two
years. However due to adverse market conditions it was not renewed. The
Assets lying at Walkeshwar Office were physically verified and then
scrapped out. In the process loss of Rs. 29,18,607/-.
11. The net deferred tax assets is calculated as follows:
12. Segment Information
For management purposes, the Company is organized into two segments -
Fee based and Investment/Stock. The Company has considered these two
divisions as its business segments.
The Fee based division provides financial advisory services relating to
mergers and acquisitions, equity and debt issue management, portfolio
management and broking.
Investment and Stock division carries out trading, investing and
speculation activities in capital markets (debt and equity) for the
Fixed assets used in the Company''s business are not identified to any
of the reportable segments, as these are used interchangeably between
segments and hence the fixed assets and depreciation are not allocated
to any of the reportable segments.
As the entire business operations of the Company are conducted only in
India, the Company has not reported any secondary segment information.
13. Related Party Disclosures Names of Related Parties:
A) Enterprises where control exists Associate Companies:
1. Trumonee Financial Ltd.
B) Enterprises in which key Managerial personnel exercise significant
1. Jayantilal Khandwala & Sons
C) Enterprises controlled by the relatives of the Key Managerial
1. Piggero Investments Pvt. Ltd.
2. Bentley Investments Pvt. Ltd.
3. Khandwala Commodity & Derivatives Pvt. Ltd.
D) Key Management Personnel:
1. Mr. Paresh J. Khandwala - Managing Director
2. Mr. P. J. Khandwala - HUF
E) Relatives of Key Management Personnel:
1. Mrs. Daxa P. Khandwala
2. Mr. Pratik P. Khandwala
3. Mr. Pranav P. Khandwala
4. Ms. Tulsi P. Khandwala
5. Mrs. Bhagyashree P. Khandwala
6. Mrs. Brinda P. Khandwala
14. As per information and explanation received there are no dues
payable to Small Scale Industrial Undertakings as at March 31, 2012.
15. Transaction in foreign currency: (In lacs)
Foreign travel expenses - Rs. 2.03, Previous year Rs. 5.62
Foreign Currency Income - Rs. 0.30, Previous year Rs. 0.52
16. Debtors include:
(i) Due from a firm in which a director is interested as partner - Rs.
152.85 lacs (Previous year Rs.171.85 lacs)
(ii) The above dues have arisen in the normal course of business.
17. Increase in Debtors & Creditors is in line with the growth of
business. The creditors are largely from receipt of margin money from
the clients while the debtors reflect the pattern of settlement period,
wherein year-end date falls within to be settled period.
18. Managerial Remuneration:
(i) Remuneration to Managing Director
Salary and Other : Rs. 31.25 Lacs Allowances (P.Y. Rs. 31.05 lacs)
(ii) Sitting fees to other directors : Rs. 0.75 lacs (P.Y. Rs. 1.00
19. Liability for Employee benefits has been determined by an actuary,
appointed for the purpose, in conformity with the principles set out in
the accounting standard 15 (Revised) the details of which are as
20. The figures for the previous period have been regrouped,
rearranged or reclassified wherever necessary to conform to the current