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Action Financial Services (India)

BSE: 511706|ISIN: INE357A01032|SECTOR: Finance - Investments
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VOLUME 2
Action Financial Services (India) is not listed on NSE
Mar 14
Notes to Accounts Year End : Mar '15
1. Corporate Information
 
 Action Financial Services (India) Limited is a public Company listed in
 Bombay stock exchange. The company is engaged in share Broking and
 depository services. The company has two wholly owned subsidiaries viz.
 Action Securities Limited and Action Commodities Limited.
 
 NOTE:
 
 The Preference share carry right to receive 10% dividend on cumulative
 basis. The Redemption of preference shares has been extended up to on
 or before March 2018 as there was lack of profit for the redemption. A
 confirmation letter for the said extension has been received from all
 the preference share holders. The Company has not declared or paid
 dividend on preference capital.
 
 2. Last 5 years details of Shares issued / bought back
 
 There are no issues for consideration other than cash, Bonus shares or
 buy back in past 5 years.
 
 3. There are no shares reserved for issue under options and contracts
 /commitments for sale of Shares/disinvestment.
 
 4. There are no unpaid calls as at Balance sheet date.
 
 5. There are no forfeited shares as at Balance sheet date.
 
 Note:-
 
 1. The Company had contested Income Tax demand of Rs 10,130,835/-for
 Assessment Year 2008-09. The Company has paid Rs. 87, 51,819/-The
 company has preferred an appeal in the ITAT against the CIT (A) order.
 
 2. The Company had contested Income Tax Deducted at Sources of
 Rs.129,990/- and Rs.143,056/- for Assessment Year 2010-11 and 2011-12.
 The company has preferred an appeal in CIT (A).
 
 3. During the year company received notice u/s 131 of the Income Tax
 Act -1961.The survey was carried out at the premises of the company on
 13th June, 2014 and the company officials attended to the notice. No
 further notice has yet been received from the Income tax Department
 with regards to this matter.
 
 6.  SEBI has imposed penalty on the company of Rs. 21 lacs under
 Section 15HA and HB of SEBI Act 1992 vide their order dated 16th May
 2014.The Company has filed Appeal with Securities Appellate Tribunal
 vide Appeal No. 325 of 2014 on 1st September 14.The company is
 expecting favorable outcome in this respect and hence no provision is
 made against SEBI order.
 
 7.  Except as described above, there are no pending disputes as on 31st
 March, 2015 which the company believes would have material adverse
 effect on the results of operations, cash flow or the financial
 position of the company.
 
 8.  Capital Commitments : Nil
 
 9.  Share Warrants :
 
 As per the provisions of the Companies Act 2013, the Company had issued
 1,230,000 warrants convertible, within a period of eighteen months from
 the date of issue, into equal number of equity shares on preferential
 basis at a price of Rs.38 per warrant to promoter and promoter group on
 December 4, 2012. During the year the company has not received further
 subscription and on lapse of eighteen months period i.e. June 3, 2014,
 the amount of Rs. 11,685,000/- received as subscription is forfeited
 and is credited to Capital Reserve Account.
 
 Capital Reserve Account consist of amounts on account of forfeiture of
 warrants Rs. 17,960,000/-.
 
 10.  Borrowings Bank Overdraft:
 
 The company has overdraft facility from scheduled bank of Rs.1.27
 Crores (P.Y. Rs. 2.10 Crores) against which outstanding balance as at
 31st March, 2015 was Rs.1.27 Crores (P.Y. Rs. 2 Crores). The overdraft
 facility is secured against Personal Guarantee of both Directors and
 equitable mortgage of the property own by the company. Facility carries
 interest ranging from 14 to 14.75%.
 
 11.  ICD:
 
 Inter corporate deposit of Rs.9,200,388/- (P.Y. Rs.5,000,388/-) as at
 31.03.2015 received from Enpee Enterprises Pvt. Limited is secured
 against Pledge of Equity shares as well as Company premises in BSE
 Building. It carries interest @21% p.a. There are no stipulations as to
 repayment of ICD.
 
 12.  Managerial Remuneration:
 
 Whole time directors are paid remuneration of Rs. 175,000/- per month
 and other perquisites and benefits. The computation of net profit under
 section 197/198 of the Companies Act, 2013 has not been given since no
 commission is paid / payable to any director in the current year.
 
 13.  Trade Receivables:
 
 In compliance with RBI guidelines in relation to Non-Banking Financial
 Companies, the company has provided Rs. nil (P.Y. 157,082/-) as opening
 provision was more than 0.25% of standard asset as ''Contingent
 provision against standard assets''. The provision for Non performing
 assets is maintained at Rs. 857,945/- (P.Y. Rs. 570,554/-) being 10% of
 receivables outstanding for more than 6 months from due date. The
 company has written off Rs. 287,391/- being excess provision for Non
 performing assets included under Other Expenses.
 
 14.  Bad debts written off:
 
 During the year the company has written off Rs. 1,77,698/- being bad
 debts net off write back.
 
 15.  Investments:
 
 (a) The aggregate market value of quoted investments as at 31.03.2015
 is Rs.49,004,103/-(P.Y. Rs.55,712,172/-) as against the total cost of
 quoted investment of Rs.48,687,708/-(P.Y. Rs. 53,968,744 /-).
 
 (b) No provision for diminution in the value of quoted investment is
 considered necessary as in the management''s view the short fall in
 market value of few of the script is of temporary nature.
 
 16. Defined Benefit Plan:
 
 The company has applied revised Accounting Standard AS - 15 Employees
 Benefits notified under the Companies (Accounting Standard) Rules,
 2006. Consequent to the introduction of AS - 15, we have obtained the
 Actuarial Certificate for Valuation of Gratuity and Leave Encashment as
 under:
 
 17. Provision for Taxation :
 
 Tax provision for the year has been made on the basis of Minimum
 Alternate Tax (MAT provision) of the Income Tax Act, 1961.
 
 18.  a. Based on the details regarding the status of the suppliers, to
 the
 
 extent obtained, no supplier is covered under the Micro, Small and
 Medium Enterprises Development Act, 2006. The auditors have relied upon
 the management representation in this regard.
 
 b. To the extent information available with the company, the company
 does not owe any sum to small scale industrial unit as defined in
 clause (j) of Section 3 of the Industrial (Development & Regulation)
 Act, 1951. The auditors have relied upon the management representation
 in this regard.
 
 19.  Disclosures as required by Accounting Standards 19 - Leases are
 given below: -
 
 a.  The Company has taken one office premises under leave and license
 agreements.
 
 b.  Lease payments are recognized in the statement of Profit and Loss
 under Rent
 
 c.  The future minimum lease payments under Non Cancellable operating
 lease:
 
 20.  As per Accounting Standard 18, the disclosures of transaction with
 the related parties as defined in the Accounting Standard are given
 below:
 
 a. Relationship & name of related party:
 
 SN.                 Relation
 
 1.            Enterprise controlling the company NA
 
 2.            Key Management Personnel
 
 3.            Enterpri se controlled by the company
 
 4.            Relative of key management Personnel
 
 5.           Enterprise under control of relative of Key
              Management Personnel
 
 6.           Enterprise under common control of Key
              Management Personnel
 
 SN.              Related Party
 
 1.               NA
 
 2.               1.Mr. Milan R. Parekh
                    Chairman & Managing Director
 
                  2. Mr. Bakul R. Parekh Joint Managing Director &
                     CFO w.e.f. 12/02/2015
 
                  3.  Jayantilal Suthar
                      CS w.e.f. 01/10/2014
 
 3.               Subsidiaries:
 
                  1.  Action Securities Limited
 
                  2.  Action Co mmodities Limited
 
 4.               1. Sagar Parekh
 
                  2. Nayana Parekh
 
 5.               R. B. Parekh - HUF
 
 
 6.               M/s. Milan R Parekh
 
 21.  There are no amount payable towards Investor education and
 protection fund u/s 125 of the Companies Act, 2013.
 
 22.  Long term contracts and derivatives contracts:
 
 The Company does not have long term contract including in the nature of
 derivative contracts except lease agreement for premises. There are no
 foreseeable losses on such contracts.
 
 23.  Public Deposits:
 
 The Company has not accepted any deposits from public within the
 meaning of sections 73 to 76 of the Companies Act, 2013 and Rules
 framed there under.
 
 24.  Impact of Schedule II:
 
 In accordance with requirements prescribed under Schedule II of the
 Companies Act 2013, the company has assessed the estimated useful life
 of its assets and has adopted the useful life as prescribed in the
 Schedule II in respect of all assets.
 
 The impact of the change in estimated useful life of the fixed assets
 are as given below-
 
 i. The depreciation charged to retained earnings includes the carrying
 amount of those assets whose remaining useful life has become nil at
 the beginning of the financial year amounting to Rs. 713,433/-and
 depreciation credited to retained earnings towards excess depreciation
 charged in earlier year of Rs. 385,493/- The net effect of above two is
 Rs. 327,940/-.
 
 ii. The depreciation charged to Statement of Profit and Loss is higher
 by Rs. 618,947/- on account of changes in estimated useful life.
 
 25.  Company''s primary business activities are Broking and Depository
 Services, both are covered under one broad segment of Share broking
 activities hence segment reporting is not applicable.
 
 26.  Exceptional items consist of profit on sale of fixed assets
 (office premise) during the year and does not constitute sale of
 substantial part of Fixed Assets.
 
 27.  Previous year''s figures have been regrouped, reclassified and/or
 renamed to confirm to this year''s classification.
Source : Dion Global Solutions Limited
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