1.1) Terms/rights attached to equity shares
The Company has only one class of equity shares having a par value of
Rs.10 per share. Each holder of equity share is entitled to one vote
per share. Dividend, as and when recommended by the Board of Directors,
is subject to approval of the shareholders in their Annual General
For the financial year ended March 31, 2012, the Company has not
declared any dividend.
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive 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.
2.1) An amount of Rs.22,785,000/- representing disputed redemption
money on 35,00,000 units of Risk Guardian 95 is held by the
Company in trust to be paid to the rightful owner when the dispute is
settled by the appropriate court/forum. This amount has been deployed
in subordinate bond and along with interest accrued thereon, the
present value of which is Rs.61,179,768/- (inclusive of tax of
Rs.11,122,842/- for the period from 2001-02 to 2010-11).
The disputed amount of Rs.22,785,000/- along with interest accrued
thereon has been recognised in the accounts as payable to the rightful
# Receivable from broker
The Company''s claim for the recovery from a broker for a principal
amount of Rs.72.10 lakhs, together with interest thereon has been
upheld by the Arbitration Tribunal of the Bombay Stock Exchange Ltd.
However, the Income Tax Department had issued prohibitory orders
/attachment notices, against the Exchange in respect of properties of
the broker. In response, the Exchange has filed a Writ Petition, before
the Hon''ble High Court, Bombay against the Income Tax Department,
challenging the prohibitory order/ attachment notices. The Hon''ble
Court has passed an Interim Order, interalia directing the Exchange not
to disburse the amount till further orders. The said Writ Petition is
pending before the Hon''ble High Court, Bombay.
In view of the uncertainty pending finality of the proceedings, the
Company has not recognised the interest on principal amount of Rs.72.10
lakhs. In the previous year, the Company received Rupees Three lakhs
from the Exchange, as a part payment against the award.
3.1) Interest income on subordinate bond
Interest on the subordinate bond of Rs.22,388,702/- (net of tax) for
the period from financial year 2001-02 to financial year 2010- 11 has
been recognised as prior period item. Interest of Rs.4,883,224/- (net
of tax) for the period from 01.04.2011 to 31.03.2012 has been
recognised as interest received in the accounts for the financial year
Prior period item of Rs.33,511,544/- (gross) represents interest
received against subordinate bond for the priod from financial year
2001-02 to financial year 2010-11 and had offered for tax during the
4. The Scheme Risk Guardian''95 has been wound up effective 7th July
2000 and the three tax saving schemes Tax Guardian''95, Tax
Guardian''96, Tax Guardian''97 have been wound up effective 30th
April 2001 and Interval Fund 97 effective 1st December 2001.
5. Though all the schemes of Shriram Mutual Fund have been wound up
and no new schemes have been launched during the year, the Company has
continued to maintain its status as an Asset Management Company for
Mutual Fund. Accordingly, the financial statements of the Company have
been prepared on going concern basis.
6. As the unclaimed redemption money being managed by the Company is
very small, it has been decided not to charge asset management fees
from 01.04.2004 to Shriram Mutual Fund.
7. Contingent Liabilities
7.1 An appeal is pending before CIT (A) for the A.Y.2006-07, wherein
the disallowance made under section 14A of the Income Tax Act, 1961, of
Rs. 2,79,520/- calculated as per Rule 8D, is disputed by the Company.
7.2 As regards A.Y 2007-08, the Company has filed appeal before CIT
(A) against disallowance of Rs.2,96,560/- under the provisions of
Section 14A of the Income Tax Act, 1961 and also against disallowance
of Rs.27,10,000/- written off as bad debts in respect of Ahmedabad
Urban Co-operative Bank Ltd.
8. Income Tax assessment has been completed up to and including the
Assessment Year 2007-08
9. The Company operates in only one segment. Hence segment reporting
under AS17 is not applicable to the Company.
10. Earning per share (EPS) computed in accordance with Accounting
Standard 20 Earning per Share
11. The Company does not have ''suppliers'' registered under the
The Micro, Small and Medium Enterprises Development (MSMED)
Act, 2006. Accordingly, no disclosures relating to amounts unpaid as at
the year end and together with interest paid / payable are required to
12. Previous year''s figures have been re-grouped and re-arranged,
wherever considered necessary.