ashika credit capital limited · 2012-07-03 · coverage ratio and net stable funding ratio. rbi...
TRANSCRIPT
Ashika CreditCapital Limited
19th Annual report
2011-12Trinity, 226/1, A.J.C.Bose Road, 7th floor, Kolkata – 700020
Phone: (033) 22839952/40102500, Fax: (033) 22891555
Email: [email protected]
Website: www.ashikagroup.com
A PRODUCT
Ashika Credit CapitalLimited is Eastern India’sfastest-growing financialservices provider. Strengthening its businessduring the downturn. Readying for the nextindustry rebound.
Across the pages…
BUSINESS OVERVIEW
02 From the Chairman’s desk
04 Business drivers
05 Corporate information
STATUTORY REPORTS
06 Directors’ Report
09 Corporate Governance Report
19 Management discussion and analysis
FINANCIAL STATEMENTS
21 Auditors’ Report
24 Balance Sheet
25 Profit and Loss Account
26 Cash Flow Statement
28 Notes to Financial Statement
Investingsafely.
Growingfirmly.
Net income (Rs. lacs)
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
Operating profit (Rs. lacs)
82.25
190.5383.39
796.23
728.81
2600.87
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
15.0458.74
22.0540.97
59.95113.63
Purpose
To provide seamless financial services
throughout the country.
Business
Ashika Credit Capital Limited (ACCL)
is a RBI-registered non-deposit taking
non-banking financial company
engaged in the financing business
Legacy
Incorporated as Ashika Credit Capital
Private Limited in March 1994 and
subsequently converted into a public
limited company in September 1996
Promoted by Pawan Jain and Daulat
Jain with more than 20 and 15 years
of experience respectively in the
financial services industry
Services
Engaged in fund-based activities like
investment in shares and securities,
providing loans and advances, inter-
corporate deposits to individuals,
corporates and financial institutions,
among others throughout the
country and also providing advisory
services.
Presence
Registered office in Kolkata; listed on
the Calcutta Stock Exchange Limited
and permitted to trade securities on
BSE Limited.
Principles
Trust
Transparency
Growth
Compliance
Highlights, 2011-12
Reported a 96.08% growth in profit
before tax from Rs. 57.95 lacs to
Rs. 113.63 lacs
Registered a 1255.69% growth in
net profit from Rs. 5.76 lacs to
Rs. 78.09 lacs
Received permission to trade
securities on BSE Ltd under the
‘permitted securities category’
Contemporarised the corporate logo
ASHIKA invests in shares
and securities, provides
loan and advances, inter-
corporate deposits to
individuals, corporates
AND financial institutions,
among others
Profit before tax (Rs. lacs)
Net profit (Rs. lacs)
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
14.62
12.8138.37
14.3932.05
5.76
58.6421.14
39.3157.95
113.63
78.09
EPS
2011-12: Rs. 1.12
2010-11: Rs. 0.08
1,300%
ROCE
2011-12: 11.16%
2010-11: 0.82%
1,034 bps
2
ASH
IKA
CRE
DIT
CA
PITA
L LI
MIT
ED
From the
Chairman’s desk
THE YEAR 2011-12 WAS ONE OF THE
MOST CHALLENGING IN THE HISTORY
OF OUR BUSINESS.
A number of reasons converged
concurrently to make it so: slower GDP
growth, global downturn, eurozone
crisis, rising food prices and 13
successive interest rate increases in India.
NBFC, the growth driver ofthe Indian financial systemNon-banking financial companies
(NBFCs) represent the growth engines
of the Indian financial system,
complementing the banking system.
Over the years, NBFCs pioneered retail
asset-backed lending, lending against
securities and microfinance, extending
credit to retail customers in under-
served areas and unbanked customers.
NBFCs accounted for 12.3% of assets of
the total financial system in 2011-12
compared with 11.2% in 2010-11
(Economic Survey, 2011-12). With the
growing importance assigned to
financial inclusion, NBFCs are now
regarded as critical financial
intermediaries for the small scale and
retail sectors.
Key developments in theNBFC sector
The implementation of the revised
regulatory guidelines on priority-sector
lending issued by the RBI in May 2011,
under which bank loans to NBFCs
(except eligible NBFC-microfinance
institution loans) are not eligible for the
banks' priority-sector loan targets,
adversely affecting a major source of
direct loans for NBFCs.
The RBI proposed regulatory changes
by revising the NPL definition to 90 days
overdue, setting a minimum Tier-1 ratio
of 12% (current 7.5%) and introducing
a liquidity ratio requirement.
The RBI issued its draft guidelines in
September 2011, imposing restrictions
on providing credit enhancement in
bilateral securitisations for NBFCs,
removing another key channel of
funding and making funding through
this route expensive for NBFCs. Most
NBFCs received a premium on bilateral
securitisations, as buying loans from
NBFCs helped banks meet their priority-
sector lending targets. While the
practice of booking this income upfront
or amortising it over the life of the
assets varies across the industry, this
source of income could disappear and
reduce profitability.
Going ahead, the high profitability and
credit growth that the sector enjoyed so
far will moderate owing to the increase
in funding and credit costs, and drop in
leverage. Further, NBFC’s dependence
on bank funding has been
significant.This will be affected by the
exclusion of bank loans to NBFCs from
the priority sector category.
Financial performanceIt is against this background that our
performance for 2011-12 must be
appraised: profit before tax surged
3
AN
NU
AL
REPO
RT 2
011-
12
Our
performance
96.08% from Rs. 57.95 lacs to Rs. 113.63
lacs; net profit increased 1,255.69% from
Rs. 5.76 lacs to Rs. 78.09 lacs
Fighting the slowdown In an environment where indices were
indecisive and the investing mood uncertain,
our management at Ashika Credit Capital
Limited engaged in decisive initiatives to
enhance viability. The Company engaged in
strengthening initiatives under its direct
control, which largely comprised extensive
cost-cutting and a direct engagement with
clients. These initiatives reduced costs on the
one hand and eliminated commissions
payable on the other, strengthening margins.
Becoming professional: The Company
professionalised its core operating culture
around documentation, which, among other
things, resulted in zero investor grievances,
satisfied clients and enhanced credibility.
Cultural change: The Company refined its
logo to showcase a sense of stability. It
celebrated its Foundation Day, undertook
cultural events and recognised employee
contributions.
Looking aheadI would like to conclude that the Company
has always been focused on competitive,
sustainable and profitable growth by
investing in processes, cost efficiency and
customer service with the objective to
outperform industry growth and enhance
value for all its stakeholders.
Sincerely,
Pawan Jain,
Chairman and Managing Director
EBIDTA growth
93.23%
Profit before tax growth
96.08%
Net profit growth
1,255.69%
Operating profit margin
15.90%
4
ASH
IKA
CRE
DIT
CA
PITA
L LI
MIT
ED
Business drivers
Strong
relationships
Over the years, we built
enduring customer
relationships through periodic
interaction and on-time
service by providing timely
credit to our clients.
Transparency
Being transparent is our core
value and we strive to uphold
it at all times. We follow safe
business practices in
conducting our business that
instills a sense of
transparency, integrity and
confidence in our clients,
associates and employees.
Compliance
We follow rules and laws
strictly and undertake only
legal enterprises to preserve
the reputation of our
organisation.
Risk control
We possess a robust risk
management framework
monitored on a continuous
basis as a result of which we
remain open for continual
trading despite extreme
market volatility. This
reputation enabled long-term
client relationships through
customer loyalty and referrals.
Diversified
product
portfolio
We provide a range of products
such as loans and advances,
inter-corporate deposits and
advisory services to individuals,
corporates and financial
institutions pan-India.
Integrated
We progressively replaced the
physical with the virtual,
maximising online integration
and putting all policies on the
website to enhance
transparency.
Excellence
We provide cutting-edge and
competent services with a
personal touch by combining
energy and determination
with skills to deliver world-
class services.
Effective
communication
We provide a quick response to
investor queries by solving
investor grievances on time. Our
information dissemination system
is designed to maintain effective
communication with the
investing community through
best practices.
Young team
We have a young, energetic
and vibrant team who are
duly delegated and
empowered to take decisions.
These young professionals are
energetic and highly
motivated, taking necessary
measures to improve the
Company’s performance.
5
AN
NU
AL
REPO
RT 2
011-
12
CORPORATE INFORMATION
Board of DirectorsShri Pawan Jain – Chairman, Managing Director and CEO
Shri Daulat Jain – Director
Shri Kashi Prasad Khandelwal – Director
Shri Ashok Kumar Agarwal – Director
Shri Sagar Jain – Director
Shri R. S. Agarwal – Director
Shri K. K. Saraf – Director
Chief Financial Officer Ms Nidhi Palan
Company Secretary and Compliance OfficerMs. Anju Mundhra
Auditors P.K. Shah & Associates
Chartered Accountants
58/D, Netaji Subhas Road,
3rd Floor, Room No.316,
Kolkata – 700 001
Bankers HDFC Bank Ltd
Registered Office ‘Trinity’ 226/1 A. J. C. Bose Road, 7th Floor,
Kolkata – 700 020
Registrar & Share Transfer AgentMaheshwari Datamatics Pvt. Ltd.
6, Mangoe Lane, 2nd Floor
Kolkata – 700 001
6
ASH
IKA
CRE
DIT
CA
PITA
L LI
MIT
ED
Directors’ Report
Dear Shareholders,Your Directors have the pleasure to present their Nineteenth Annual Report of the Company together with the audited Statement
of Accounts for the year ended 31st March, 2012.
Financial Performance: (Amount in Rupees Lacs)
Industry Outlook:The advance estimate of GDP growth of 6.9 % for the year
2011-12 by Central Statistical Office (CSO) is close to RBI
baseline projection of 7%. RBI expects inflation to slowdown
to 6.5% in 2012-2013. RBI announced various developmental
regulatory policy measures and engaged with banks to
improve customer service. The major initiative taken by RBI in
the fiscal year 2011-2012 was the preparation of draft
guidelines on BASEL III - Implementation of Capital Regulation
in India, on Liquidity Risk Management and BASEL III frame
work on Liquidity standards which is proposed to come in
force in the fiscal year 2012-2013. In India, reforms have
continued so as to build a resilient financial system; such as
strengthening Urban Co-operative banks, NBFCs, and Micro
Finance Institutions. These guidelines provide better guidance
on liquidity risk governance, measurement, monitoring and
reporting to the RBI on liquidity positions. These guidelines
covered two minimum global regulatory standards: liquidity
coverage ratio and net stable funding ratio. RBI has introduced
guidelines under which bank loan to NBFCs are not considered
priority sectors loans from 1st April 2011, reducing incentives
for banks to lend directly to NBFCs and will increase the latter’s
funding costs. Further proposed regulatory changes include
revising the NPL definition to 90 days overdue, setting a
minimum Tier 1 ratio of 12% and introducing a liquidity ratio
requirement . These proposed and potential changes could
weaken the NBFCs' profitability affecting access to fresh capital
and funding.
NBFCs that are predominately engaged in lending against
collateral of gold jewellery have recorded significant growth
in recent years, both in terms of balance sheet size and physical
presence. RBI said banks should reduce their regulatory
exposure ceiling to a single NBFC, having gold loans to the
extent of 50% or more of its total financial assets, from the
existing 10% to 7.5% of bank’s capital funds.
Financial results for the year ended 31st March, 2012 31st March, 2011
Total income 728.81 796.23
Profit before tax 113.63 57.95
Less: Provision for taxation 36.03 50.83
Less: Deferred tax liabilities/(Assets) (0.49) 1.36
Profit after taxation 78.09 5.76
Add: Balance as per last financial statements 175.15 170.70
Less: Transfer to statutory reserve U/s 45-IC of RBI Act 1934 15.62 1.15
Less: TDS to the extent not refundable written off 0 0.16
Surplus in the statement of profit and loss 237.62 175.15
7
AN
NU
AL
REPO
RT 2
011-
12
Review of Financial Aspects and AccountingTreatment:During the year under review your Company has earned a total
income of Rs.728.81 Lacs as compared to Rs. 796.23 Lacs in
previous year. The major income of Rs 111.69 Lacs relates to
interest on loan granted. Profit before taxation shows Rs.
113.63 Lacs portraying the tremendous growth during the
period under review as compared to Rs. 57.95 Lacs in its
previous year. Overall the Company has able to increase its
growth rate. The profit of the year stands to Rs 78.09 Lacs
screening a development of 1255.69% rise with comparison
to its previous year profit. The EPS of the Company is Rs 1.12
for the year 2012 compared to Rs 0.08 in previous year.
The Company has prepared the Financial Statements for the
year ended 31st March,2012 as per revised Schedule VI of the
Companies Act 1956, notified by Ministry of Corporate Affairs
vide its notification dated 28th February 2011. The adoption
of revised Schedule VI does not impact recognition and
measurement principles followed for preparation of financial
statements. However, it has a significant impact on
presentation and disclosures made in the Financial Statements.
Therefore, the previous year figures have been reclassified
wherever necessary.
The Company has changed its accounting policy regarding
leave benefits to employees. Previously the sick leave and
privileges leave were paid on year to year basis, but from 1st
April,2011, the same will be accumulated and paid at the time
of retirement or termination as applicable.
Dividend:Your board of Directors has decided that the funds of the
Company are required for the expansion plan of the Company
and so the profits of the Company for the year ended 31st
March, 2012 may be deployed for the said purpose. The board
decided not to recommend any dividend for the year ended
31st March, 2012.
Major Highlights during the year:On 11th November, 2011, company got the permission to
trade its securities on the nationwide platform of BSE Ltd
under ‘Permitted Securities Category’.
Transfer of amount belonging to the ‘Unpaid Dividend
Account’ of the Company to ‘Investor Education and
Protection Fund‘ for the year 2003-2004.
Resignation of Mr. Rakesh Bahety from the post of Chief
Financial Officer with effect from 25th September, 2011 and
appointment of Ms Nidhi Palan as Chief Financial Officer of
the Company with effect from 1st October, 2011.
Application submitted with Registrar of Trade Mark for
registering the new Logo of the Company carrying the
existing trade mark and punch-line. The changes
incorporated in the logo, compared to the existing one are
adding a line in the existing mark and changing the letter
case of the punch line which represents stability
Formulation of Code of Conduct for prevention of Insider
Trading by employees of the Company, including the
Directors, in relation to the securities of the Company as per
regulations of Securities and Exchange Board of India
(Prohibition of Insider Trading), 1992.
Corporate Governance:Pursuant to clause 49 of the listing agreement with the Stock
Exchanges, a Management Discussion and Analysis, Corporate
Governance Report and Auditor’s Certificate regarding
compliance of conditions of corporate governance constitute
an integral part of the Annual Report.
Materials changes and commitments:There have been no material changes and commitments
affecting the financial position of the Company, which have
occurred since 31st March, 2012, being the end of the
Financial Year of the Company.
Directors:Pursuant to the provision of section 255 of the Companies Act,
1956 and Article 126 of the Articles of Association of the
Company, Mr. Sagar Jain and Mr. R.S.Agarwal, Directors of
the Company are liable to retire by rotation in the forthcoming
Annual General Meeting of the Company and being eligible,
offer themselves for re-appointment.
8
ASH
IKA
CRE
DIT
CA
PITA
L LI
MIT
ED
Auditor Report:The auditors have given their report on the Annual Accounts
of the Company and there is no reservation or qualification
made by them. The notes given in the Auditors’ Report are
self-explanatory and need no further clarification.
Auditors:M/s. P.K. Sah & Associates, Chartered Accountants, being the
Statutory Auditor of the Company shall retire at the ensuing
Annual General Meeting of the Company; and being eligible,
offer themselves for re-appointment. The Company has
received a Certificate from the Auditors that if re-appointed,
they are qualified under section 224(1B) of the Companies Act,
1956 to act as the Auditors of the Company.
Statutory and Other Information:There are no employees falling within the purview of Section
217(2A) of the Companies Act, 1956 read with Companies
(Particulars of Employees) Rules, 1975.
There was no expenditure or income in foreign currency during
the year under review.
Since your Company does not own any manufacturing unit,
the disclosure of information on the matter required to be
disclosed in terms of section 217(1)(e) of the Companies Act,
1956 read with the Companies (Disclosure of Particulars in
Report of Board of Directors) Rules, 1988, is not applicable
and hence not given.
Directors Responsibility Statement:As per the relevant provisions of section 217(2AA) of the
Companies Act, 1956, the Directors of your Company confirm
that:
i) In the preparation of the Annual accounts, the applicable
accounting standards have been followed and there is no
material departure from the above.
ii) The directors have selected such accounting policies and
applied them consistently and made judgements that are
reasonable so as to give a fair view of the state of affairs
of the Company at the end of the financial year and the
profit of the Company for that period.
iii) The directors have taken proper care for the maintenance
of adequate accounting records in accordance with the
provisions of the Companies Act. 1956 for safeguarding
the assets of the Company and for preventing and
detecting fraud and other irregularities to the best of their
knowledge and ability.
iv) The directors have prepared the annual account on a going
concern basis.
Acknowledgements:Lastly your Directors acknowledge the management team and
executive staff who are instrumental to the growth of the
Company. They also express their deep admiration and
gratitude for the support and co-operation extended by the
clients, bankers, investors, shareholders, and the media for
their unwavering support through the years. Your Directors
also wish to thank the employees at all levels, who through
their sheer commitment, sense of involvement, utmost
dedication and continued perseverance enabled the Company
to achieve the overall development, growth and prosperity.
For and on behalf of the Board of Directors
Place: Kolkata (Pawan Jain)
Date: 26th May, 2012 Chairman Cum Managing Director
9
AN
NU
AL
REPO
RT 2
011-
12
CORPORATE GOVERNANCE REPORT
a) Company’s Philosophy on corporategovernanceACCL believes that good Corporate Governance is essential toachieve long-term corporate goals and enhance stakeholders’value. Thus ACCL philosophy on corporate governance is basedon integrity, emphasis on quality services and transparency inits dealing with all stakeholders.
ACCL being a value driven organisation, has always workedtowards building trust with shareholders, employees,customers and suppliers based on principles of goodgovernance namely, integrity, transparency, accountability andcommitment to values
Ashika Credit Capital Limited continues to focus its strength,strategies and resources to become a truly global financial
service provider.
Given below are the Company’s corporate governance policiesand practices for 2011-2012. As will be seen, ACCL corporategovernance practices and disclosures go beyond complyingwith the statutory and regulatory requirements.
b) Board of DirectorsIn order to maintain independence of the board, the Companyhas a balanced combination of Executive, Non Executive andIndependent Directors, which is essential to separate the twomain Board functions namely governance and management.
CompositionThe Article Number 124 of Article of Association provide for aminimum of 3 and a maximum of 12 directors.
As on 31st March, 2012, the board of Ashika Credit Capital Limited consisted of 7 (seven) directors among which one (1) is
Executive Director and Six (6) are Non Executive Director. The composition of the board of directors is as under: -
Name Designation Category Shareholding Number of Number of Membershipin company directorship / chairmanship in(no. of share) held in other various Board
companies* Committees **
Mr. Pawan Jain Chairman cum Promoter, 17,19,320 in 14 3 (Chairman of
Managing Executive Director capacity as karta of three committee)
Director, CEO Pawan Jain (HUF)
Mr. Daulat Jain Director Promoter, Non-Executive 7,69,375 in 14 9 (Chairman of
Director capacity as karta of three committee)
Daulat Jain (HUF)
Mr. Kashi Prasad Director Non- Executive, – 3 6 (Chairman of
Khandelwal Independent Director two committee)
Mr. Ashok Kr. Director Non-Executive, – 7 5 (Chairman of
Agarwal Independent Director one committee)
Mr. Sagar Jain Director Non-Executive, – 6 5 (Chairman of
Independent Director three committee)
Mr. R.S.Agarwal Director Non-Executive, – 1 4
Independent Director
Mr. Keshav Kumar Director Non-Executive, – 3 4
Saraf Independent Director
(Forming part of the Director Report for the year ended 31st March, 2012)
* Including Ashika Credit Capital Limited.
** Includes Audit Committee, Remuneration Committee, Share Transfer Committee, Shareholder/Investor Grievance Committee, IPO and FPO
Committee, Independent Committee and other.
10
ASH
IKA
CRE
DIT
CA
PITA
L LI
MIT
ED
TO WHOMSOEVER IT MAY CONCERN
I, Mr. Pawan Jain, the Managing Director and CEO of the Company, do hereby declare that all the board members and senior
management personnel of the Company have affirmed their compliance on an annual basis with the code of conduct as laid
down by the Company pursuant to the requirements of clause 49 of the Listing Agreements with the Stock Exchange.
Kolkata Pawan Jain
11th April, 2012 (Chief Executive Officer)
Board Meeting and Attendance: During the year 2011-2012, the board of directors met four
times on the following dates: 20th April, 2011, 15th July, 2011,
29th October, 2011 and 30th January, 2012. The gaps between
any two meetings has been less than or equal to four months.
The dates of the meeting were decided well in advance.
Composition of the board and attendance record of directors
for 2011-2012:
Name of Director Meeting Whether attended
attended AGM held on
30th June, 2011
Mr. Pawan Jain 4 Yes
Mr. Daulat Jain 4 No
Mr. Kashi Prasad 4 Yes
Khandelwal
Mr. Ashok Agarwal 3 No
Mr. Sagar Jain 4 Yes
Mr. R.S.Agarwal 4 No
Mr. Keshav Kumar Saraf 3 No
Board Agenda and minutesThe Company holds at least four board meetings in a year, one
in each quarter with the time gap between the two board
meetings not exceeding four calendar months to review the
financial results and other item of the agenda. Apart from the
four scheduled board meetings, additional board meetings are
also convened to address specific requirements of the
Company. Every Director on the board is free to suggest any
item for inclusion in the agenda for the board’s consideration.
All the departments in the Company communicate with the
Company Secretary well in advance about matters requiring
approval of the board/committees meeting(s).
Agenda papers are generally circulated to the board members
well in advance before the meeting of the board. The
Company secretary while preparing the agenda and minutes of
the board meeting required to ensure adherence to the
applicable provisions of the law including the Companies Act,
1956.The draft minutes of the proceedings of each board
meeting duly initiated by the board in its next meeting. The
board also takes note of the minutes of the committee
meeting duly approved by their respective chairman.
Review of Legal compliance reportThe board quarterly reviewed the compliance report prepared
and placed by practicing Company secretary and in-house
Company secretary in respect of the laws applicable to the
Company.
c) Code of conduct for Directors andSenior ManagementThe Company has already adopted a code of conduct, which
was made applicable to all its directors, and all senior
management personnel of the Company. Board members and
senior management personnel have affirmed compliance with
the Company’s code of conduct during the period. A
statement to this effect that all directors and senior
management personnel have complied with the Company’s
code of conduct during the period and the same duly certified
by CEO of the Company is annexed herein below. The code
has been posted on the website of the Company.
11
AN
NU
AL
REPO
RT 2
011-
12
d) Audit CommitteeThe terms of Reference of the Audit committee are in
accordance with those specified in clause 49 of the Listing
Agreement. It inter alia includes the overview of the Company’s
financial reporting processes, review of the quarterly, half yearly
and annual financial statements, the adequacy of internal
control systems, performance of statutory auditor, internal
audit functions, the financial and risk management policies,
appointment of Chief Financial Officer among others.
Following information is mandatorily reviewed by the
committee: -
Management discussion and analysis of financial condition
and results of operation
Statement of significant related party transactions (as defined
by the audit committee), submitted by management.
Management letters/letters of internal control weaknesses
issued by the statutory auditors
Internal audit report relating to internal control weaknesses;
and
The appointment, removal and terms of remuneration of the
chief internal auditors shall be subject to review by the audit
committee.
e) Shareholder/ Investor Grievance CommitteeThe Company has formed a Investor’/Shareholders’ Grievance
Committee under the chairmanship of Mr. Ashok Agarwal, an
independent director. Mr. Daulat Jain and Mr. Kashi Prasad
Khandelwal are the other members of the committee. The
meetings of the committee are held to review and resolve all
the cases which comes out in the normal course of business.
The committee met as and when required during the year. The
monthly review of activities of share transfer agent is
undertaken regularly by the Company secretary.
Compliance OfficerMs. Anju Mundhra – Company Secretary is Compliance Officer
of the Company.
Role and ObjectivesThe role and objectives of the committee are as under:
Oversee the shareholder related issue like non-receipt of
declared dividends, annual reports among others.
Resolve case related to investors’ grievances.
Composition, Meetings and Attendance threatThe audit committee of the board comprises of five directors. The committee has met four times during the year and
attendance of the members at these meetings was as follow:
Name of Director Status Meeting attended
20th April, 15th July, 29th October, 30th January,
2011 2011 2011 2012
Mr. Sagar Jain Chairman, Non- Executive and Yes Yes Yes Yes
Independent
Mr. Daulat Jain Non-Executive Yes Yes Yes Yes
Mr. Kashi Prasad Khandelwal Non-Executive and Independent Yes Yes Yes Yes
Mr. K. K. Saraf Non-Executive and Independent Yes Yes No Yes
Mr. R. S. Agarwal Non-Executive and Independent Yes Yes Yes Yes
Ms Nidhi Palan was appointed as Chief Financial Officer of the Company with effect from 1st October, 2011.
12
ASH
IKA
CRE
DIT
CA
PITA
L LI
MIT
ED
The shareholder complaints received and resolved during the year 1st April 2011 to 31st March 2012 are as under:
Sr. No. Type of Pending Total Complaint Redressal Pendingcomplaint as on 31st Complaint Redressal under as on 31st
March, 2011 Received process March, 2012
1. Letter received from SEBI Nil Nil Nil Nil Nil
2. Letter received from stock Exchange Nil Nil Nil Nil Nil
3. letter received from Shareholder Nil Nil Nil Nil Nil
4. Registrar and Transfer Agent Nil Nil Nil Nil Nil
f) Share Transfer CommitteeThe Share Transfer Committee of the Company is formulated
under the chairmanship of Mr. Daulat Jain, Non Executive
Director, Mr. R.S.Agarwal and Mr. K.K.Saraf as members, the
Non-Executive Independent Directors of the Company. The
committee met as and when required during the year. The
secretary of the Company is acting as secretary of the committee.
Role & Objectives:Approve the transfer of physical share certificates of the
Company as and when required in accordance with the
provisions of the Companies Act, 1956.
Issue the duplicate share certificates to the shareholders as
and when required.
Keep record of the physical share certificates kept with RTA.
Take note of the dematerialisation of shares of the Company.
Issue the share certificates on rematerialisation.
Sign the share certificates.
Report regularly to the Board of Directors on the committee’s
deliberation and actions.
The Board of Directors has authorised the secretary to approve
the transfer/transmission/ rematerialisation of shares which are
properly processed and related formalities are done by the
Registrar and Share Transfer Agent.
g) Remuneration Committee:The Remuneration Committee of the Company comprises of
five Non-Executive Independent Directors.
Sr. No. Name of the Director
1. Mr K. P. Khandelwal, Chairman
2. Mr. Sagar Jain, Member
3. Mr. Ashok Kr Agarwal, Member
4. Mr R. S. Agarwal, Member
5. Mr K. K. Saraf, Member
The remuneration policy of the Company is directed towards
rewarding performance, based on review of achievements on
a periodical basis. Company has a policy of remunerating
managerial personnel by way of monthly salary which are duly
approved by the remuneration committee. No remuneration
except sitting fees for attending the board meeting is paid to
other directors
The remuneration committee meets as and when need arises.
The Managing Director is being paid remuneration as per the
agreement with the Company duly approved by board and
shareholder. The remuneration structure of the Managing
Director comprises of salary inclusive of perquisites and
benefits. There are no stock option benefits to any of the
directors. The Managing Director is not being paid sitting fees
for attending meeting of board or Committee thereof. The
other Directors are being paid sitting fees of Rs 5000/- for
attending each board meeting. No sitting fee is paid to
directors for attending committee meetings.
13
AN
NU
AL
REPO
RT 2
011-
12
i) Disclosures:A statement in summary form of transactions with related
party in ordinary course of business is placed annually before
the audit committee. The pricing of all the transactions with
related party transactions were on arm length basis.
There are no materially significant transactions made by the
Company with its promoters, directors or the management,
or relatives among others which are at potential conflict with
the interest of the Company at large.
While preparation of financial statements for the year under
review, no accounting treatment which was different from
that prescribed in the Accounting Standard was followed.
The Financial Statements for the year ended 31st March,
2012 is prepared as per revised Schedule VI of the
Companies Act 1956 notified by Ministry of Corporate
Affairs. It has significant impact on presentation and
disclosures made in the Financial Statements.
Transactions with regard to related party as per requirement
of Accounting Standard (AS) - 18 “Related Party Disclosure”,
are disclosed in Note 27 to the Audited Financial Statements
of the Company for the year ended 31st March, 2012 in the
Annual Report.
Details of remuneration paid to all the directors and managerial personnel for the financial year 2011-2012 are as follow;
Name of Directors Designation Salary Sitting Fees for attending(per annum) Board Meeting
Mr Pawan Jain Chairman Cum Managing Director and CEO 15,00,000 –
Mr Daulat Jain Non- Executive Director – 20,000
Mr K.P.Khandelwal Non- Executive Independent Director – 20,000
Mr Ashok Kr Agarwal Non- Executive Independent Director – 15,000
Mr R.S.Agarwal Non- Executive Independent Director – 20,000
Mr Sagar Jain Non- Executive Independent Director – 20,000
Mr K.K.Saraf Non- Executive Independent Director – 15,000
h) General Body Meetings:The general meetings of the Company were held as per details given below:
Year Date Venue Time Number of SpecialResolutions passed
2010-2011 30th June, 2011 “TRINITY”, 226/1 A.J.C. Bose Road, 4.00 P.M. Nil
7th Floor Kolkata-700020
2010-2011 (EGM) 7th September, 2010 “TRINITY”, 226/1 A.J.C. Bose Road, 4.30 P.M. Two
7th Floor Kolkata-700020
2009-2010 17th July, 2010 “TRINITY”, 226/1 A.J.C. Bose Road, 1.00 P.M. Nil
7th Floor Kolkata-700020
2008-2009 15th September, 2009 “TRINITY”, 226/1 A.J.C. Bose Road, 4.00 P.M. Nil
7th Floor Kolkata-700020
Note: The Company shall comply with the requirements of using postal ballot as and when required.
14
ASH
IKA
CRE
DIT
CA
PITA
L LI
MIT
ED
No penalties or strictures have been imposed on the
Company by Stock Exchange or SEBI or any statutory
authority on any matter related to capital market for non-
compliance by the Company during the last three years.
The Company does not have any Whistle Blower Policy.
However, any employee would not be denied access to the
Audit and Finance Committee.
Chief Executive Officer (CEO) and Chief Financial Officer
(CFO) certification, on financial statements has been issued
pursuant to the provisions of clause 49 of Listing Agreement
and is annexed to the Corporate Governance and forms part
of Annual Reports.
The Company got the approval to trade its securities on the
nationwide platform of BSE Ltd under “Permitted Securities
category” with effect from 11th November, 2011.
j) Means of Communication:Annual Report in respect of each financial year are sent to the
shareholders and each report contains the annual accounts of
the Company in respect of the financial year with the Director’s
and Auditor’s Reports. Also included in each annual report is
the notice convening the Annual General Meeting, the
financial year’s Corporate Governance Report and Cash Flow
Statement together with the corresponding Reports of the
Auditors.
The Financial Results are being published in The Business
Standards one of the leading national (English) newspaper –
All India Edition and in Arthik Lipi, vernacular newspaper
(Bengali).
k) Mandatory Requirement:The Company has complied with the mandatory requirements
as stipulated in clause 49 of the listing agreements with the
exchanges.
l) Compliance with Non MandatoryRequirements of Clause 49:Adoption of non-mandatory requirements is actively
considered by the Company.
m) Compliance Certificate of the Auditor:The Company has obtained a certificate from the Statutory
Auditor regarding compliance of conditions of Corporate
Governance as stipulated in clause in Clause 49 of the Listing
Agreement. The Certificate is annexed.
n) Going Concern:The directors are satisfied that the Company has adequate
resources to continue its business for the foreseeable future
The Financial Results of the Company were officially released or would be released in accordance with the following schedule:
Sr. No. Nature of Communication Dates of Publication Forwarded/to be forwardedto Stock Exchanges on
BSE CSE
1 Quarterly Unaudited Financial 16th July, 2011 N.A. 15th July ,2011
Statements (First Quarter 11-12)
2 Quarterly Unaudited Financial 31st October, 2011 N.A. 29th October, 2011
Statements (Second Quarter 11-12)
3 Quarterly Unaudited Financial 31st January, 2012 30th January, 2012 30th January, 2012
Statements along with Limited Review
(Third Quarter 11-12)
4 Publication of Annual Audited Results 27th May, 2012 26th May, 2012 26thMay,2012
for The year ended 31st March 2012.
In accordance with Clause 41 of the
Listing Agreement with the Stock Exchanges.
The Management Discussion and Analysis in respect of the Financial Year is a part of the Director’s Report.
15
AN
NU
AL
REPO
RT 2
011-
12
and consequently consider it appropriate to adopt the going
concern basis in preparing financial statements.
O) Additional Shareholder Information:1. Registered & Corporate Office :
“Trinity”, 226/1, A.J.C. Bose Road
7th floor, Kolkata – 700 020.
2. Date of Incorporation :
8th March ,1994
3. Registration No./ CIN :
L67120WB1994PLC062159
4. Email id for Investor Grievances :
5. Date, Time and venue of 19th AGM :
Friday, the 27th July, 2012 at “Trinity”,
226/1, A.J.C. Bose Road, 7th floor, Kolkata- 700020 at
10 A.M. The notice of the AGM is being sent to the
members along with its annual report.
6. Date of Book Closure :
21st July, 2012 to 27th July, 2012 (both inclusive)
7. Dividend Payout :
Nil
8. Financial Year :
1st April, 2011 – 31st March,, 2012
9. Listing Payment:
The Annual Listing fees have been paid and there is no
outstanding payment towards the stock exchanges, as
on date.
10. Listed & Traded on Stock Exchanges :
The Company’s equity shares are listed with The
Calcutta Stock Exchange Association Limited and traded
at nation-wide platform of BSE Ltd under “Permitted
Securities Category” with effect from 11th November,
2011
11. Scrip ID : ASHIKACR
12. Scrip Code : 11591 and 10011591 (CSE),
590122 (BSE)
13. Registrar and Share Transfer Agent :
Maheshwari Datamatics Private Ltd.
(Share Transfer & Communication regarding share
certificates, dividends and change of Address)
6, Mangoe Lane, 2nd Floor, Kolkata – 700001
Telephone: 91-33-2248 2248, 2243 5029/5809
Fax no: 91-33-2248 4787
Email:[email protected], [email protected]
14. Stock Market Data :
Month High Low
BSE CSE BSE CSE
April, 2011 – – – –
May, 2011 – – – –
June, 2011 – – – –
July, 2011 – – – –
August, 2011 – – – –
September, 2011 – – – –
October, 2011 – – – –
November, 2011 59.40 – 49.00 –
December, 2011 59.60 – 49.20 –
January, 2012 57.55 – 50.95 –
February, 2012 52.20 – 44.00 –
March, 2012 50.55 – 37.05 –
16
ASH
IKA
CRE
DIT
CA
PITA
L LI
MIT
ED
15. Dematerialisation of Shares and Liquidity : The Company’s shares are available for trading in the depository systems
of both NSDL and CDSL.
16. Outstanding GDR/Warrants : None
17. Distribution of Shareholding as at 31st March, 2012
Slab of shareholding Number of Shareholders % Number of Shares %
1 - 5000 444 63.8849 48837 0.6982
5001 - 10000 100 14.3885 93051 1.3303
10001 - 20000 51 7.3382 87485 1.2506
20001 - 30000 18 2.5899 48368 .6915
30001 - 40000 10 1.4388 37569 .5371
40001 - 50000 10 1.4388 48996 .7005
50001 - 100000 23 3.3094 171422 2.4507
100001 and above 39 5.6115 6459098 92.3411
Total 695 100 6994826 100
18. Shareholding Pattern as on 31st March, 2012:
Shareholding Pattern Number of Shares % of Shareholding
Indian Promoters and their Associates 3791695 54.2071
Mutual Funds and UTI – –
Banks, Financial Institutions, Insurance Companies
(Central and State Government Institutions/ Non-Government Institutions) – –
Other Corporate Bodies 1935119 27.6650
Resident Individuals (Public) 917010 13.1098
Any Other 351002 5.0181
Grand Total 6994826 100
19. Addresses for Investor correspondence:
Company Address: Registrar and Transfer Agent:
Secretarial Department Maheshwari Datamatics Private Limited
Ms. Anju Mundhra (Registrar and Share Transfer Agent)
Company Secretary & Compliance Officer Mangoe Lane, 2nd Floor, Kolkata – 700001
“Trinity”, 5th floor, 226/1, A.J.C. Bose Road, Kolkata – 700 020. Tel no: 91-33-2243 5029/5809, 2248 2248
Tel No. (033) 40102500 • Fax No. (033) 2289-1555 Fax no: 91-33-2248 4787
Email : [email protected] Email: [email protected],[email protected]
For, Ashika Credit Capital Limited
Place: Kolkata (Pawan Jain)
Date: 26th May, 2012 Chairman Cum Managing Director
17
AN
NU
AL
REPO
RT 2
011-
12
CHIEF EXECUTIVE OFFICER (CEO) AND
CHIEF FINANCIAL OFFICER (CFO) CERTIFICATION:
We, Pawan Jain, Chief Executive Officer, (Chairman Cum Managing Director) and Nidhi Palan, Chief Financial Officer, to the best
of our knowledge and belief certify that:
1. We have reviewed the Balance sheet as at 31st March, 2012 and Profit and Loss Account for the year ended 31st March 2012,
and all its schedules and notes on accounts as well as the Cash Flow statements and the Director’s report;
2. Based on our knowledge and information, these statements do not contain any untrue statement of material fact or omits
to state a material fact or does not contain any statement that might be misleading;
3. Based on our knowledge and information the financial statements and other financial information included in this report
present in all material respects a true and fair view of the Company affairs, the financial condition, results of operations and
cash flows of the Company as of, and for, the periods presented in this report, and are in compliance with the existing
Accounting Standards and/or applicable laws and regulations;
4. To the best of our knowledge and belief no transactions entered into by the Company during the aforesaid period are
fraudulent, illegal or violative of the Company’s’ code of conduct;
5. We are responsible for establishing and maintaining disclosure, controls and procedures and internal controls over financial
reporting for the Company and we have;
i. Evaluated the effectiveness of the Company’s disclosure, controls and procedures over financial reporting and
ii. Disclose in this report any change in the Company’s internal control over financial reporting that occurred during the
Company’s most recent fiscal year that has materially affected, or is reasonably likely to materially affect, the Company’s
internal control over financial reporting;
6. We have disclosed based on our most recent evaluation, wherever applicable, to the Company’s Auditor and the Audit
Committee of the Company’s Board of Director’s;
i. All deficiencies in the design or operation of internal controls, which could adversely affect the Company’s ability to
record, process, summarise and report financial data and have identified for the Company’s Auditors, any material
weakness in internal control over financial reporting including any corrective actions with regard to deficiencies;
ii. Significant Changes in internal controls during the period covered by this report, if any;
iii. All significant changes in Accounting Policies during the year, if any, and the same have been disclosed in the notes to
the financial statements;
iv. Instances of significant fraud of which we are aware that involves management or other employees who have a significant
role in the Company’s internal control system;
7. We affirm that we have not denied any personnel, access to the audit committee of the Company (in respect of matters
involving alleged misconduct).
Pawan Jain Nidhi Palan
Chief Executive Officer Chief Financial Officer
Date: 26th May, 2012 Managing Director
18
ASH
IKA
CRE
DIT
CA
PITA
L LI
MIT
ED
AUDITORS CERTIFICATE ON
CORPORATE GOVERNANCE
To
The members,
Ashika Credit Capital Ltd
We have examined the compliance of the conditions of Corporate Governance by Ashika Credit Capital Limited, of 226/1, A. J.
C. Bose Road, 7th Floor, Kolkata - 700 020 for the year ended on 31st March, 2012 as stipulated in Clause 49 of the Listing
Agreement entered into by the Company with the stock exchange.
The compliance of the conditions of Corporate Governance is the responsibility of the management. Our examination was limited
to a review of the procedures and implementation thereof, adopted by the Company to ensure compliance with the conditions
of Corporate Governance as stipulated in the said Clause. It is neither an audit nor an expression of opinion on the financial
statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us and based on the representation
made by the Directors and the management, we certify that the Company has complied with the conditions of Corporate
Governance as stipulated in Clause 49 of the above-mentioned Listing Agreement.
We state that such compliance is neither an assurance as to the future viability of the Company nor of the efficiency or
effectiveness with which the management conducted the Company’s affairs.
For P. K. SAH & ASSOCIATES
Chartered Accountants
(Firm Regn. No 322271E)
(P. K. SAH, FCA)
Place: Kolkata Partner
Date: 26th May,2012 Mem. No. 56216
19
AN
NU
AL
REPO
RT 2
011-
12
Management
Discussion and Analysis
Industrial structure and development India’s GDP is expected to expand by 6.9% in FY 2012. The
country’s economic condition in the current fiscal was
challenging with inflation being the major factor driving
economic policy. This had a major impact on other economic
variables. Policy formulation has become difficult with volatility
witnessed in the forex market, where the rupee tended to
move downwards. FY 2012 witnessed combating inflation,
slowing down of investment, pressure on budget deficit,
widening current account balance, depreciating purpose and
uncertain capital markets. Going forward, high oil and other
commodity prices and the impact of the anti-inflationary
monetary stance will impact growth. Most business confidence
surveys show a decline in business confidence.
The global economic environment was tenuous through the
year, turning adverse post-September 2011, against the
eurozone crisis, downgrades of sovereign credit rating of
eurozone and other advanced coun5ries, followed by political
unrest, currency wars and the recent oil crisis.
Non-Banking Financial Companies (NBFCs) play a crucial role
in broadening access to financial services, enhancing
competition and diversifying the financial sector. Banks and
NBFCs compete for businesses. Despite strong competition
faced by the NBFCs, the inner strength of NBFCs local
knowledge, credit appraisal skill, well trained collection
machinery, close monitoring of borrowers and personalised
attention to each client, cater to the needs of small and
medium enterprises in rural and semi-urban areas.
Non-Banking Finance Companies (NBFCs) evolved as
complementary to banks by offering better services and
products to customers, accounting for 12.3% of the assets of
the total financial system.
Under the extant FDI policy, ‘leasing and finance’ is one of
the 18 NBFC activities wherein FDI up to 100% is permitted
under automatic route, subject to minimum capitalisation
norms.
RBI has put restrictions on non-banking finance companies
(NBFCS) by insisting that their loan-to-value ratio cannot be
more than 60%, in a bid to reign in unbridled growth in gold
loans. Reiterating its concern over the significant increase in
gold loans by NBFCs in the recent period, the RBI requested
banks to pare their regulatory exposure to a single NBFC
(with gold loans to the extent of 50% or more of its total
financial assets) to 7.5% from the existing 10% of their
capital funds.
RBI in May 2011 confirmed that it will regulate the
microfinance sector. It also clarified that bank credits to MFIs
extended from April 1, 2011 will be eligible for a priority
sector classification, provided the MFI and the loans meet
credit conditions.
Opportunity and threatsNBFCs continue to play a critical role in making financial
services accessible to a wider set of India’s
population,including semi-urban and rural areas, accounting
for a majority of the NBFC business.With our keen
understanding of customer needs, we remain focused on
product innovation and customisation.The improvement will
be driven by a structural shift in asset composition towards
secured asset classes, stronger underwriting norms and
monitoring mechanisms, and a favourable business
environment. However, the performance of new asset classes
such as loans against property and gold loans will continue to
be keenly monitored.
20
ASH
IKA
CRE
DIT
CA
PITA
L LI
MIT
ED
A high dependence of NBFCs on bank funding (over 60% of
total debt in FY11) is a major sector-wide structural weakness.
The significant 55% growth in bank credit to the broad NBFC
sector in FY11 (compared with 23% overall credit growth) and
the RBI's subsequent revised guidelines, under which bank
loans to NBFCs are not classified as priority-sector loans from
1 April 2011, reduce the banks' motivation for fresh direct
lending to NBFCs.Gaining access to alternate long-term
funding is a major challenge for the industry and our Company
as well.
Risks and concernsThe Company is exposed to various risks (credit risk, market
risk, liquidity risk, price risk and operational risk). Our
philosophy involves maintaining a healthy portfolio within our
risk appetite and regulatory framework. Our key focus areas
remain measurement, monitoring and managing risks through
prudent and ethical business practices.
Internal control systemThe success and growth of any Company is derived by
maintaining transparent operations and employing proper
system and controls in place. Internal control system corrects
transactions which in turn safeguards the Company’s assets.
The Company has an adequate internal control system
commensurate with its size and nature of business and
suitable internal control procedures, optimum resource
utilisation and compliance with the various statues is ensured.
The Audit Committee reviews the adequacy of the internal
control system regularly and follow-up actions are then
implemented immediately.
OutlookThe outlook of NBFCs could remain sluggish in 2012-13 as
regulatory changes could increase the cost of raising fresh
capital and reduce profitability. Cyclical headwinds from a
moderating economy are affecting the NBFC’s asset quality.
The Company will continue to focus on better management to
maintain competitiveness.
Human resourceOur HR practices motivating people to extend beyond their
routine responsibilities.We strengthened our HR functions
through superior workforce planning, systematic appraisal,
recognition, career plans, interpersonal skills and employee
benefits. These initiatives created an energised workforce
continually improving performance standards.
Operations and financial performanceDuring the year under review, the Company’s total income
decreased 8.46% from Rs. 796.23 lacs to Rs. 728.81 lacs,
profit before taxation stood at Rs. 113.63 lacs in 2011-12
against Rs. 57.95 lacs in 2010-11, registering a growth of
96.08%. The net profit improved 1,255.72%from Rs. 5.76 lacs
to Rs. 78.09 lacs, owing to stringent measures to cut costs
and overheads.
Cautionary statementStatement in this report on Management discussion and
analysis, describing the Company’s objectives, estimates,
expectations or predictions are ‘forward-looking statements’
within the meaning of the applicable securities laws and
regulations. These statements are based on certain
assumptions and expectations of future events. The Company
assumes no responsibility to publicly amend, modify or revise
any forward-looking statements on the basis of any
subsequent developments, information and events.
21
AN
NU
AL
REPO
RT 2
011-
12
Auditors’ Report
1. We have audited the attached Balance Sheet of Ashika
Credit Capital Limited (the ‘Company’) as at 31st March,
2012, the Statement of Profit and Loss and Cash Flow
Statement of the Company for the year ended on that
date annexed thereto which we have signed under
reference to this report. These financial statements are the
responsibility of the Company’s management. Our
responsibility is to express an opinion on these financial
statements based on our audit.
2. We have conducted our audit in accordance with the
auditing standards generally accepted in India. Those
Standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles
used and significant estimates made by management, as
well as evaluating the overall financial statement
presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. As required by the Companies (Auditor’s Report) Order
2003, as amended (the ‘Order’), issued by the Central
Government of India in accordance to section 227(4A) of
the Companies Act 1956 (the ‘Act’), we enclose in the
Annexure, a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in
paragraph (3) above, we report that:
i) We have obtained all the information and
explanations, which to the best of our knowledge
and belief were necessary for the purposes of our
audit;
ii) In our opinion, proper books of account as required
by law have been kept by the Company so far as
appears from our examination of those books;
iii) The Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report are in
agreement with the books of account;
iv) In our opinion, the Balance Sheet, Statement of Profit
and Loss and Cash Flow Statement dealt with by this
report comply with the Accounting Standards
referred to in sub section (3C) of Section 211 of the
Companies Act, 1956;
v) On the basis of written representations received from
the directors, as on 31st March, 2012, and taken on
record by the Board of Directors, we report that none
of the directors is disqualified as on 31st March, 2012
from being appointed as a director in terms of clause
(g) of sub section 1 of section 274 of the Companies
Act, 1956;
vi) In our opinion and to the best of our information and
according to the explanations given to us, the said
accounts read together with the notes thereon and
attached thereto give the information required by the
Companies Act, 1956, in the manner so required and
give a true and fair view in conformity with the
accounting principles generally accepted in India:-
(a) in the case of Balance Sheet, of the state of
affairs of the Company as at 31st March, 2012;
(b) in the case of Statement of Profit and Loss of the
profit for the year ended on that date and
(c) in the case of Cash Flow Statement, of the cash
flows for the year ended on that date.
For P. K. SAH & ASSOCIATESChartered Accountants
Firm Registration No. 322271E
P. K. Sah, FCAPlace: Kolkata Partner
Dated: 26th May, 2012 Mem. No. 056216
To
The Members of
ASHIKA CREDIT CAPITAL LIMITED
22
ASH
IKA
CRE
DIT
CA
PITA
L LI
MIT
ED
ANNEXURE TO THE AUDITORS’ REPORT - ASHIKA CREDIT CAPITAL LIMITED
[Referred to in our paragraph (3) of our report of even date]
i) (a) The Company, we have been informed, has
maintained proper records showing full particulars,
including quantitative details and situation of its fixed
assets.
(b) As per information and explanations given to us, the
management at reasonable intervals under a phased
programme has physically verified its fixed assets. We
have been informed, no material discrepancies have
been found on such physical verifications.
(c) During the year, the Company has not disposed off
any part of its fixed assets.
ii) Since there is no Inventory as on the balance sheet date,
sub clauses (a) to (c) of clause (ii) of the said Order are
not applicable.
iii) (a) The Company has granted unsecured loans to four
companies covered in the Register maintained under
Section 301 of the Companies Act, 1956. The
maximum amounts involved during the year was
Rs.1,085 lacs and year end balance is Rs. 116 lacs.
(b) In our opinion, the rate of interest and other terms
and conditions of such unsecured loans are prima-
facie not pre-judicial to the interest of the Company;
(c) No specific terms for repayment of the above loans
had been stipulated, but the same were stated to be
repayable on demand by the party. Interest on the
above is regularly received by the Company.
(d) There are no overdue amount in excess of Rs. 1 lac in
respect loans granted to respect of such loans
granted by the Company;
(e) The Company has not taken loans from any
companies covered in the Register maintained under
section 301 of the Companies Act, 1956, accordingly
sub clauses (e) to (g) to clause (iii) of the said Order
are not applicable to the Company.
iv) In our opinion and according to the information and
explanations given to us, there exists an adequate internal
control system commensurate with the size of the
Company and the nature of its business for purchase of
inventories and for sale of goods and services. We have
not observed any continuing failure to correct major
weaknesses in internal control system of the Company.
During the year there are no transactions of purchases of
fixed assets.
v) (a) According to the information and explanations given
to us, we are of the opinion that the particulars of all
contracts or arrangements that need to be entered
into the register maintained under Section 301 of the
Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and
explanations given to us, where each of such
transactions is in excess of Rs.5 Lacs in respect of any
party, the transactions have been made at prices
which are, prima-facie, reasonable having regard to
the prevailing market prices at the relevant time
except that in respect of sale of services, for which
comparable quotations are not available and in
respect of which we are unable to comment.
vi) In our opinion and according to the information and
explanations given to us, the Company has not accepted
any deposit from the public within the meaning of the
section 58A and 58AA or any other relevant provisions of
the Companies Act, 1956 and the Companies (Acceptance
of Deposits) Rules, 1975 with regard to the deposit
accepted from the public.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) Since the Company is not engaged in any manufacturing
activities, the clause relating to maintenance of cost
records under clause (d) of sub-section (1) of Section 209
of the Act is not applicable to the Company.
ix) (a) According to the records of the Company and
explanations given to us the Company is generally
regular in depositing undisputed dues payable in
respect of Provident Fund, Investors Education and
Protection Fund, Employees State Insurance, Income
Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess or any other material statutory dues,
with the appropriate authorities during the year.
23
AN
NU
AL
REPO
RT 2
011-
12
There is no undisputed amount payable in respect of
such statutory dues which have remained
outstanding as at the Balance Sheet date for a period
more than six months from the date become payable.
(b) According to the information and explanations given
to us, there are no dues of Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty or
Cess, which have not been deposited as on 31st
March, 2012 on account of any dispute.
x) The Company does not have any accumulated losses at
the end of the financial year and it has not incurred cash
losses in such financial year and in the immediately
preceding financial year.
xi) The Company has not borrowed from financial institutions
or banks or by issue of debentures as such clause (xi) of
the said Order is not applicable.
xii) In our opinion and according to the information and
explanations given to us, the Company has maintained
adequate documents and records in cases where the
Company has granted loans on the basis of security by
way of pledge of shares and securities.
xiii) Clause (xiii) of the Order is not applicable to the Company
as the Company is not a chit fund Company or
nidhi/mutual benefit fund/society.
xiv) The Company has maintained proper records of
transactions and contracts in respect of dealing and
trading in shares, securities etc. and timely entries have
been made therein. The Company in its own name has
held the aforesaid securities, except to the extent of the
exemption granted under Section 49 of the Companies
Act, 1956.
xv) The Company has not given any guarantee for loans taken
by others from bank or financial institutions.
xvi) According to the information and explanations given to
us, in our opinion, the Company have neither obtained
nor applied any term loans during the year.
xvii) According to the information and explanations given to
us, and on an overall examination of the balance sheet of
the Company, we report that no funds raised on short-
term basis have, prima facie, been used for long-term
investment.
xviii)The Company has not made preferential allotment of
shares to parties and Companies covered in the Register
maintained under Section 301 of the Act, accordingly
clause (xviii) of the said Order is not applicable to the
Company.
xix) The Company has not issued any debentures. Accordingly
clause (xix) of the said Order is not applicable.
xx) The Company has not raised any money by public issues
during the year under review.
xxi) To the best of our knowledge and belief and according to
the information and explanations given to us, no fraud on
or by the Company has been noticed or reported during the
year.
For P. K. SAH & ASSOCIATESChartered Accountants
Firm Registration No. 322271E
P. K. Sah, FCAPlace: Kolkata Partner
Dated: 26th May, 2012 Mem. No. 056216
24
ASH
IKA
CRE
DIT
CA
PITA
L LI
MIT
ED
Balance Sheet as at 31st March, 2012 (Amount in Rupees)
Note As at As atNo. 31 March, 2012 31 March, 2011
EQUITY AND LIABILITIESShareholders' FundsShare Capital 3 69,964,955 69,964,955 Reserves and Surplus 4 240,217,525 232,408,640
310,182,480 302,373,595 Non- Current LiabilitiesDeferred Tax Liabilities (Net) 5 317,850 367,167 Long Term Provisions 6 194,286 71,921
512,136 439,088 Current LiabilitiesTrade Payables 7 201,799 153,611 Other Current Liabilities 7 278,857 702,477 Short Term Provisions 6 304,924 52,923
785,580 909,011 Total 311,480,196 303,721,694 ASSETSNon-Current AssetsFixed Assets
– Tangible Assets 8 4,634,829 4,856,966 Non- Current Investments 9 141,134,741 181,721,706 Long Term Loans & Advances 10 21,809,568 99,568 Other Non - Current Assets 11 21,882,026 12,300
189,461,164 186,690,540 Current AssetsInventories 12 – 34,401,671 Trade Receivables 13 4,714,894 12,516,107 Cash & Bank Balances 14 6,491,172 41,569,421 Short Term Loans & Advances 10 110,812,966 23,335,022 Other Current Assets 11 – 5,208,933
122,019,032 117,031,154 Total 311,480,196 303,721,694 Summary of Significant Accounting Policies 1.1The accompanying notes are an integral part of the Financial Statements
For and on behalf of the Board
In terms of our attached report of even date
For, P. K. SAH & ASSOCIATES,
Chartered Accountants
P. K. Sah, FCA Pawan Jain Daulat Jain Anju Mundhra
Partner Managing Director Director Company Secretary
Mem. No. 056216
Place : Kolkata
Date : 26th May, 2012
25
AN
NU
AL
REPO
RT 2
011-
12
Statement of profit and loss for the year ended 31 March, 2012 (Amount in Rupees)
Note Year ended Year endedNo. 31 March, 2012 31 March, 2011
INCOME
Revenue from Operations 15 64,433,753 71,275,035
Other Income 16 8,447,042 8,348,430
72,880,795 79,623,465
EXPENSES
Purchase of traded goods 9,941,885 59,222,048
(Increase) / decrease of inventories of traded goods 17 34,401,671 (34,401,671)
Loss from Derivatives in Shares & Commodities /
Intra day Trading in Shares 11,986,882 34,461,413
Loss on sale of non current Investments – 9,625,171
Employee Benefit Expenses 18 2,854,464 3,188,519
Other Expenses 19 1,887,122 1,479,738
Contingent Provision against Standard Assets 224,051 52,923
61,296,075 73,628,141
PROFIT BEFORE DEPRECIATION & TAX 11,584,720 5,995,324
LESS : Depreciation 222,137 199,526
PROFIT BEFORE TAX 11,362,583 5,795,798
LESS : Tax Expenses
– Current Tax
Current year - expense 3,603,015 5,078,066
Prior year - expense – 5,324
– Deferred Tax liabilities /(assets) (49,317) 136,399
PROFIT FOR THE YEAR 7,808,885 576,009
Basic and Diluted Earnings per Equity Share of Rs. 10 each 20 1.12 0.08
Summary of Significant Accounting Policies 1.1
The accompanying notes are an integral part of the Financial Statements
For and on behalf of the Board
In terms of our attached report of even date
For, P. K. SAH & ASSOCIATES,
Chartered Accountants
P. K. Sah, FCA Pawan Jain Daulat Jain Anju Mundhra
Partner Managing Director Director Company Secretary
Mem. No. 056216
Place : Kolkata
Date : 26th May, 2012
26
ASH
IKA
CRE
DIT
CA
PITA
L LI
MIT
ED
Cash Flow Statement for the year ended 31 March, 2012 (Amount in Rupees)
Year ended Year ended
31 March, 2012 31 March, 2011
A. CASH FLOW FROM OPERATING ACTIVITIES:
Net Profit Before Tax 11,362,583 5,795,798
Adjustments for :
Depreciation on Fixed Assets 222,137 199,526
Contingent Provision against Standard Assets 224,051 52,923
Provision for Gratuity 110,608 25,996
Provision for Privilege / Sick Leave 11,757 –
(Profit) / Loss on sale of non- current Investsments (6,042,853) 9,625,171
Unamortised Expenses Written Off 872,100 –
Irrecoverable Advances Written Off 55,050 –
Acturial Gain on Gratuity – (31,899)
Interest on Investments in Govt. Securities (49,200) (49,200)
Interest on non - current deposits with banks (791,327) –
Dividend on non - current investments – (3,068,750)
Operating Profit Before Working Capital Changes 5,974,906 12,549,565
Adjustments for :
Increase / (Decrease) in Trade Payables 48,188 –
Increase / (Decrease) in Other Current Liabilities (423,620) 427,923
(Increase) / Decrease in Inventories 34,401,671 (34,401,671)
(Increase) / Decrease in Trade Receivables 7,801,213 62,545,785
(Increase) / Decrease in Long Term Loans & Advances (21,710,000) –
(Increase) / Decrease in Short Term Loans & Advances (88,995,312.00) (21,184,516)
(Increase) / Decrease in Other Non - Current Assets (21,869,727) –
(Increase) / Decrease in Other Current Assets 4,336,833 (4,336,832)
Cash Generated/ (Used) From Operations (80,435,848) 15,600,254
Adjustments for :
Direct Tax Paid (2,112,747) (5,932,592)
Net Cash From Operating Activities (82,548,595) 9,667,662
B. CASH FLOW FROM INVESTING ACTIVITIES:
Add / (Less) :
Unpaid Dividend Account (see note below) 34,953 10,782
Purchase of Fixed Assets – (346,112.00)
Sale of Non - Current Investments 453,426,311 1,084,211,688
Purchase of Non- Current Investments (406,796,493) (1,057,752,557)
Interest on Investments in Govt. Securities 49,200 49,200
Interest on non - current deposits with banks 791,327 –
Dividend on non - current investments – 3,068,750
Net Cash from Investing Activities 47,505,298 29,241,751
27
AN
NU
AL
REPO
RT 2
011-
12
For and on behalf of the Board
In terms of our attached report of even date
For, P. K. SAH & ASSOCIATES,
Chartered Accountants
P. K. Sah, FCA Pawan Jain Daulat Jain Anju Mundhra
Partner Managing Director Director Company Secretary
Mem. No. 056216
Place : Kolkata
Date : 26th May, 2012
Cash Flow Statement (Contd.) for the year ended 31 March, 2012 (Amount in Rupees)
Year ended Year ended
31 March, 2012 31 March, 2011
C. CASH FLOW FROM FINANCING ACTIVITIES:
Add / (Less) :
Unamortised Share Issue Expenses – (872,100)
Net Cash Used In Financing Activities – (872,100)
Net Increase /(Decrease) in Cash and Cash Equivalents (A+B+C) (35,043,296) 38,037,313
Cash and Cash Equivalents at the Beginning of the Year 41,403,033 3,365,720
Cash and Cash Equivalents at the End of the Year 6,359,737 41,403,033
Notes :
(a) Cash and Cash Equivalent at the end of the year 6,491,172 41,569,421
Less : Balance in Current Accounts held for Unpaid Dividend 131,435 166,388
6,359,737 41,403,033
(b) Previous year's figures have been regrouped/rearraged whereever necessary to
conform to the current year's classification.
28
ASH
IKA
CRE
DIT
CA
PITA
L LI
MIT
ED
Notes to financial statements as at and for the year ended 31 March, 2012
Ashika Credit Capital Limited (the Company) is a public limited Company domiciled in India and incorporated under the CompaniesAct’1956. Its shares are listed and traded on The Calcutta Stock Exchange Limited since 20th September, 2000 and also tradedunder the “permitted securities” category at the nationwide platform of BSE Ltd. since 11th November, 2011. The Company is RBIRegistered non-deposit taking Non-Banking Financial Company carrying on NBFI activities. It is mainly engaged in the business offinancing, providing loans and advances and investment and trading in shares and securities.
Note 01 Company Information
1.1 Significant Accounting Policies i) Basis of Accounting
The Financial statements are prepared under the historical cost convention on accrual basis of accounting. These are presentedin accordance with the Generally Accepted Accounting Principles as acceptable in India, provisions of the Companies Act, 1956,Accounting Standards notified by the Central Government under the Companies (Accounting Standards) Rules, 2006 and theguidelines issued by the Reserve Bank of India, wherever applicable.
ii) Use of EstimatesThe preparation of the financial statements are in conformity with the accounting standards generally accepted in India andrequires the management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosureof contingent liabilities as at the date of the financial statement and reported amounts of revenues and expenses for the year.Management believes that the estimates used in the preparation of the financial statement are prudent and reasonable. Actualresults could differ from these estimates.
iii) Revenue Recognitiona) Revenue from sale of goods is recognised when the substantial risk and reward of ownership are transferred to the buyer.
b) Transactions in respect of dealing in securities are recognised on trade dates.
c) Fees-based income is accounted based on the stage of completion of assignment, when there is reasonable certainty of itsultimate realisation/collection.
d) Interest income from financing activities and others is recognised on and accrual basis except in the case of non-performingassets where it is recognised, upon realisation, as per Prudential Norms of Reserve Bank of India.
e) Dividend income is recognised when the Company’s right to receive dividend is established.
f) All other incomes are accounted for on accrual basis.
iv) Fixed AssetsTangible Fixed Assets are stated at cost, less accumulated depreciation thereon. Cost comprises of purchase price, duties, taxesand incidental expenses related to the acquisition and installation of the assets.
v) Depreciation on Fixed AssetsDepreciation on tangible fixed assets is provided on Straight Line Method (S.L.M) at the rates specified in the Schedule XIV ofthe Companies Act, 1956. Depreciation on addition to the fixed assets is provided on pro-rata basis from the date the asset isavailable for use. Depreciation on sale/deduction from fixed asset is provided for, to the date of sale/deduction, as the case maybe.
vi) Impairment of Fixed AssetsThe carrying amounts of the assets are reviewed at each balance sheet date to ascertain if there is any indication of impairmentbased on external or internal factors. An asset is treated as impaired when carrying cost of asset exceeds its recoverable amount.An impairment loss is charged to the profit and loss account in the year in which an asset is identified as impaired. Theimpairment loss recognised in prior accounting period, if any, is reversed if there has been a change in the estimate of therecoverable amount.
vii) InvestmentsInvestments that are readily realisable and intended to be held for not more than a year are classified as current investments.Current investments are carried at lower of cost and fair value determined on an individual investment basis. All other
29
AN
NU
AL
REPO
RT 2
011-
12
Notes to financial statements (Contd.) as at and for the year ended 31 March, 2012
Note 01.1 Significant Accounting Policies(Contd.)investments are classified as long-term investments, which are considered at ‘cost’ on individual investment basis, unless thereis a decline in the value other than temporary, in which case adequate provision is made against the diminution in the valueof such investments.
viii) InventoriesInventories of commodities are stated at lower of cost or net realisable value. Cost comprises of cost of purchase and other costsincurred in bringing the inventories to their respective present location and condition.
Cost is determined on FIFO basis.
ix) Shares, Commodities Derivatives Initial margin and margin paid over and above initial margin, for entering into a contract for derivatives which are released onfinal settlement/squaring up of the underlying contract, are disclosed under Loans and Advances.
Derivatives are marked-to-market on a daily basis. Debit or Credit Balance, representing the net amount paid or received onthe basis of movement in the price of derivatives till the balance sheet date, are disclosed under Receivables or Current Liabilities,respectively.
Profit / Loss on open position of derivatives as on the balance sheet date is accounted for as follows:
Credit balance in the Mark-to-Market margin, being the anticipated profit is ignored and no credit for the same is taken in theProfit and Loss Account.
Debit balance in the Mark-to-Market, being the anticipated loss is adjusted in the Profit and Loss Account.
x) Prior Period and Extra Ordinary ItemsPrior period and extra ordinary items having material impact on the financial affairs of the Company are disclosed separately.
xi) Earnings per ShareBasic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by theweighted average number of equity shares outstanding during the period.
Diluted earnings per share is calculated by adjustment of all the effects of dilutive potential equity shares from the net profitor loss for the period attributed to equity shareholders and the weighted average numbers of shares outstanding during theperiod.
xii) TaxationTax expenses comprise of current and deferred tax. Current tax is determined as the amount of tax payable in respect of taxableincome for the period under the provisions of the Income Tax Act 1961.
Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference betweentaxable incomes and accounting income that originate in one period and are capable of reversible in one or more subsequentperiods. Deferred tax assets are recognised and carried forward only to the extent there is reasonable certainty that sufficientfuture taxable income will be available against which such deferred tax asset item will be realised. If the Company has carryforward unabsorbed depreciation and tax losses, deferred tax assets are recognised only to the extent there is virtual certaintysupported by convincing evidence that sufficient taxable income will be available against which such deferred tax assets canbe realised.
xiii) Retirement Benefits:a) Employment benefits in the form of Provident Fund are defined contribution plans and the Company’s contribution, paid
or payable during the year, are charged to Profit and Loss Account.
b) Gratuity liability is a defined benefit plan and is provided for on the basis of actuarial valuation on projected units creditmethod at the Balance Sheet date.
c) Long Term compensated leave are provided for based on actuarial valuation as per projected unit credit method at theBalance Sheet date.
d) Actuarial gain/losses are charges to the profit and loss account and are not deferred.
30
ASH
IKA
CRE
DIT
CA
PITA
L LI
MIT
ED
Notes to financial statements (Contd.) as at and for the year ended 31 March, 2012
Note 01.1 Significant Accounting Policies(Contd.)xiv) Provisions, Contingent Liabilities and Contingent Assets
A provision is recognised when the Company has present legal or constructive obligation, as a result of past events, for whichit is probable that an outflow of economic benefits will be required to settle the obligation and reliable estimate can be madefor the amount of the obligation. Contingent liabilities are not recognised but disclosed by way of notes to the accounts.Contingent assets are neither recognised nor disclosed in the financial statements.
Presentation and disclosure of financial statementsDuring the year ended 31st March 2012, the revised Schedule VI under the Companies Act 1956 has become applicable to theCompany, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impactrecognition and measurement principles followed for preparation of financial statements. However, it has significant impact onpresentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures inaccordance with the requirements applicable in the current year.
Leave Benefits EmployeesTill previous year the Company followed the policy to pay sick leave and privilege leave benefit to employees on year to year basis.From 1st April, 2011 the Company has changed its policy not to pay on year to year basis and instead accumulate the same to bepaid at the time retirement or termination, as the case may be. The above change in policy does not have any material impact tothe profit and loss position vis-à-vis state of affairs of the Company.
a) Terms / rights attached to Equity SharesThe Company has only one class of equity shares having par value of Rs.10/- per share. All these shares have the same right withrespect to payment of dividend , repayment of capital and voting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of theCompany, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity sharesheld by the shareholders.
Note 02 Change in Accounting Policies
(Amount in Rupees)As at As at
31 March, 2012 31 March, 2011
Authorised Shares2,02,50,000 (P.Y. 2,02,50,000) Equity Shares of Rs.10/- each 202,500,000 202,500,000 Issued Shares 70,01,000 (P.Y. 70,01,000) Equity Shares of Rs.10/- each 70,010,000 70,010,000 Subscribed and Fully Paid Up Shares69,94,826 (P.Y. 69,94,826) Equity Shares of Rs.10/- each 69,948,260 69,948,260 Add : Forfeited Shares 16,695 16,695
69,964,955 69,964,955
Note 03 Share capital
31
AN
NU
AL
REPO
RT 2
011-
12
Notes to financial statements (Contd.) as at and for the year ended 31 March, 2012
(Amount in Rupees)As at As at
31 March, 2012 31 March, 2011
Securities Premium AccountBalance as per last financial statements (A) 209,187,000 209,187,000Statutory Reserves U/s 45IC of the RBI Act, 1934Balance as per last financial statements 5,706,334 5,591,132 Add : Transferred from surplus in the statement of profit and loss 1,561,777 115,202
(B) 7,268,111 5,706,334 Surplus in the statement of Profit and LossBalance as per last financial statements 17,515,306 17,070,765 Add : Profit during the year 7,808,885 576,009 Less : Transfer to Statutory Reserves U/s 45IC of the RBI Act, 1934 1,561,777 115,202 Less : T.D.S. to the extent not refundable written off – 16,266
(C) 23,762,414 17,515,306 (A+B+C) 240,217,525 232,408,640
Note 04 Reserves and surplus
(Amount in Rupees)As at As at
31 March, 2012 31 March, 2011
Deferred Tax LiabilitiesDifference between tax depreciation and book depreciation on fixed assets (A) 463,469 389,391Deferred Tax AssetsProvision of Gratuity 56,401 22,224 Provision for Privilege / Sick Leave 3,633 –Contingent Provision against Standard Assets 85,585 –
(B) 145,619 22,224 Deferred Tax Liabilities (Net) (A-B) 317,850 367,167
Note 05 Deferred tax liabilities (net)
(Amount in Rupees)
Note 03 Share capital (Contd.)
As at 31 March, 2012 As at 31 March, 2011Name of the Shareholder Nos. % holding Nos. % holding
in the class in the class
Equity Shares of Rs.10/- each fully paid up
Pawan Jain (HUF) 1,719,320 24.58 1,719,320 24.58
Daulat Jain (HUF) 769,375 11.00 769,375 11.00
Ashika Hedge Fund Pvt. Ltd. 600,000 8.58 600,000 8.58
Ashika Share Trading Pvt. Ltd. 500,000 7.15 500,000 7.15
PR Yyapaar Ltd. 500,000 7.15 500,000 7.15
Withal Commercial Pvt. Ltd. 400,000 5.72 400,000 5.72
b) Details of shareholders holding more than 5% shares in the Company
32
ASH
IKA
CRE
DIT
CA
PITA
L LI
MIT
ED
Notes to financial statements (Contd.) as at and for the year ended 31 March, 2012
(Amount in Rupees)
Note 06 provisions
Long - Term Short - TermAs at As at As at As at
31 March 2012 31 March 2011 31 March 2012 31 March 2011
Provision for Employees Benefits
Provision for Gratuity 182,529 71,921 – –
Provision for Previlege / Sick Leave 11,757 – – –
(A) 194,286 71,921 – –
Others
Contingent Provision against Standard Assets – – 276,974 52,923
Provision for Income Tax (net of payment) – – 27,950 –
(B) – – 304,924 52,923
(A+B) 194,286 71,921 304,924 52,923
(Amount in Rupees)As at As at
31 March, 2012 31 March, 2011
Trade Payables– Outstanding dues to Micro Enterprises & Small Enterprises – –– Others 201,799 153,611
201,799 153,611 Other Current LiabilitiesUnpaid Dividend 131,613 166,438 Statutory Dues 100,547 452,026 Advance from Others 46,697 84,013
278,857 702,477
Note 07 trade payables and other current liabilities
Note 08 Fixed assets
Particulars GROSS BLOCK (at Cost) DEPRECIATION NET BLOCK
As at 1st Additions/ Withdrawals/ As at 31st As at 1st For the Deduction/ As at 31st As at 31st As at 31st
April, 2011 Adjustments Adjustments March 2012 April, 2011 Year Adjustments March 2012 March 2012 March 2011
TANGIBLE ASSETS
Buildings 3,931,029 – – 3,931,029 212,812 64,076 – 276,888 3,654,141 3,718,217
Plant & Equipments
Computers & Printers 979,795 – – 979,795 635,493 56,105 – 691,598 288,197 344,302
Vehicles 1,073,220 – – 1,073,220 278,773 101,956 – 380,729 692,491 794,447
Total 5,984,044 – – 5,984,044 1,127,078 222,137 – 1,349,215 4,634,829 4,856,966
Total of Previous Year 5,637,932 346,112 – 5,984,044 927,552 199,526 – 1,127,078 4,856,966 4,710,380
Notes: (i) Depreciation has been provided on Straight Line Method (S.L.M) at the rates specified in schedule -XIV to the Companies Act,1956 on pro-rata basis.
(ii) Building includes premises with gross value of Rs. 33,04,919/-, pending title registration.
(Amount in Rupees)
33
AN
NU
AL
REPO
RT 2
011-
12
Notes to financial statements (Contd.) as at and for the year ended 31 March, 2012
(Amount in Rupees)As at As at
31 March, 2012 31 March, 2011
Non Trade InvestmentsInvestments in Equity Instruments Shares of Rs. 10/- each fully paid up (Quoted)Nil (P.Y. 18,000) Sh. J. Kumar Infraprojects Ltd. – 4,860,401 Nil (P.Y. 63,091) Sh. Parekh Aluminex Ltd. – 17,925,527 Nil (P.Y. 37,046) Sh. Prakash Steelage Ltd. – 5,306,335 50000 (P.Y. 1,75,000) Sh. Shree Ganesh Jewellery House Ltd. 5,995,035 27,162,726
(A) 5,995,035 55,254,989 Shares at Rs. 10/- each fully paid up (Unquoted) 1200000 (P.Y. 1200000) Sh. Ashika Global Securities Ltd 120,000,000 120,000,000 47000 (P.Y. 47000) Sh. Ashika Properties Pvt. Ltd. 4,700,000 4,700,000
(B) 124,700,000 124,700,000 Investment in Government Securities (Unquoted)12.3% Government of India Stocks (C) 468,000 468,000Investment in Units of Exchange Traded Funds - (Quoted)3839 (P.Y. 700 ) units in Benchmark Mutual Funds -Gold Benchmark Exchange Traded Schems (D) 9,971,706 1,298,717
(A+B+C+D) 141,134,741 181,721,706Aggregate Amount of Quoted Investments - At Cost 15,966,741 56,553,706
- At Market value 14,580,679 54,211,951 Aggregate Amount of Unquoted Investments - At Cost 125,168,000 125,168,000
Note 09 Non-current investments (AT COST)
(Amount in Rupees)
Note 10 Loans & Advances
Long - Term Short - TermAs at As at As at As at
31 March 2012 31 March 2011 31 March 2012 31 March 2011
Security Deposits, Unsecured considered good 99,568 99,568 – –
Loans to related parties, Unsecured considered good – – 11,643,754 –
Margin Deposits with related parties, Unsecured considered good 21,710,000 – – –
Loan to Others
Secured, Considered Good – – 50,377,260 –
Unsecured, Considered Good – – 48,768,575 21,169,095
Other Loans & Advances
Prepaid Income Tax (net of provision for tax) – – – 1,462,318
Advances to Employees – – – 620,000
Service Tax Input Credit – – 9,956 8,111
Prepaid Expenses – – 13,421 20,448
Others – – – 55,050
21,809,568 99,568 110,812,966 23,335,022
34
ASH
IKA
CRE
DIT
CA
PITA
L LI
MIT
ED
Notes to financial statements (Contd.) as at and for the year ended 31 March, 2012
(Amount in Rupees)Amount due as on Amount due as on
31 March, 2012 31 March, 2011
Loans and advances to related parties includes due from companies in which director(s) are interestedLoans Ashika Business Private Ltd. 10,420,345 –Ashika Share Trading Private Ltd. 1,223,409 –
11,643,754 –Margin Deposits Paid Ashika Stock Broking Ltd. 20,210,000 –Ashika Commodities & Derivatives Pvt. Ltd. 1,500,000 –
21,710,000 –Advances to Employees includesDue from a Officer * – 110,000
* Since resigned
Note 10 Loans & Advances (Contd.)
(Amount in Rupees)
Note 11 Other assets
Non - Current Assets Current AssetsAs at As at As at As at
31 March 2012 31 March 2011 31 March 2012 31 March 2011
Unsecured, considered good
Non- Current Deposits with Bank (see note 14 ) 20,000,000 – – –
Interest Accrued but not due :
On Govt. Securities 12,300 12,300 – –
On Fixed Deposits 712,195 – – –
On Margin Deposits 1,157,531 – – –
On Others – – – 4,336,833
Unamortised Expenses – – – 872,100
21,882,026 12,300 – 5,208,933
Non current bank balance of Rs. 20,000,000 are pledged in favour of Ashika Stock Broking Ltd, a related party for tradingexposures in derivatives.
(Amount in Rupees)As at As at
31 March, 2012 31 March, 2011
Traded Goods – 34,401,671
Note 12 inventories (valued at lower of cost or net realisable value)
35
AN
NU
AL
REPO
RT 2
011-
12
Notes to financial statements (Contd.) as at and for the year ended 31 March, 2012
(Amount in Rupees)As at As at
31 March, 2012 31 March, 2011
Outstanding for a period exceding six months from the date they are due for payment – –Other ReceivablesSecured, considered good – –Unsecured, considered good 4,714,894 12,516,107
4,714,894 12,516,107 Other Receivables represents due from related party in which director(s) are interestedAshika Stock Broking Ltd. 4,714,894 2,759,118 Ashika Commodities & Derivatives Pvt. Ltd. – 9,756,989
4,714,894 12,516,107
Note 13 Trade receivables
(Amount in Rupees)As at As at
31 March, 2012 31 March, 2011
Cash and Cash EquivalentsBalances with Banks – In Current Accounts 5,783,194 36,827,261 – In Unpaid Dividend Accounts 131,435 166,388 Cheques in Hand – 3,747,345 Cash in Hand 576,543 828,427
(A) 6,491,172 41,569,421 Other Bank BalancesDeposits with original maturity more than twelve months 20,000,000 –Less : Amount disclosed under non - current assets (see note 11 ) (20,000,000) –
(B) – –(A+B) 6,491,172 41,569,421
Of the above, the balances that meet the definition of cash and cash equivalents as per AS -3 Cash Flow Statement is Rs. 6,359,737(P.Y. 41,403,033)
Note 14 cash & bank balances
(Amount in Rupees)Year ended Year ended
31 March, 2012 31 March, 2011
Sale of Traded Goods 45,334,190 25,492,899 Income from Financing Activities – Interest on Loans Granted 11,169,563 782,136 Income from Other Non Financing Activities – Advisory Services/ Fee Income 7,930,000 45,000,000
64,433,753 71,275,035 Details of Sale of Traded goodsCaster Seed 17,143,175 25,492,899 Cotton Wash Oil 28,191,015 –
45,334,190 25,492,899
Note 15 revenue from operations
36
ASH
IKA
CRE
DIT
CA
PITA
L LI
MIT
ED
Notes to financial statements (Contd.) as at and for the year ended 31 March, 2012
(Amount in Rupees)Year ended Year ended
31 March, 2012 31 March, 2011
Interest Income– On Investment in Govt. Securities 49,200 49,200 – On Non Current Deposits with Banks 791,327 –– On Money Deposits 1,286,146 4,818,703 – On Income Tax Refunds – 2,126,673 111,891 4,979,794
Dividend on Non- Current Investments – 3,068,750 Profit on Sale of Non - Current Investments 6,042,853 –Other Non - Operating IncomeRent 240,000 240,000 Licence Fees 37,316 27,987 Acturial Gain on Gratuity – 31,899 Miscellaneous Income 200 –
8,447,042 8,348,430
Note 16 Other income
(Amount in Rupees)Year ended Year ended
31 March, 2012 31 March, 2011
Inventories at the beginning of the year 34,401,671 –Less : Inventories at the end of the year – 34,401,671
34,401,671 (34,401,671)(a) Details of purchases of Traded goods
Caster Seed – 24,820,377 Cotton Wash Oil 9,941,885 34,401,671
9,941,885 59,222,048 (b) Details of Inventories
Caster Seed – 17,665,761 Cotton Wash Oil – 16,735,910
– 34,401,671
Note 17 (increase) / decrease of inventories of traded goods
(Amount in Rupees)Year ended Year ended
31 March, 2012 31 March, 2011
Salary, Bonus & Other Allowances 2,557,204 3,091,661 Employer's Contribution to Provident Fund 160,658 47,619 Gratuity 110,608 25,996 Privilege / Sick Leave 11,757 –Staff Welfare Expenses 14,237 23,243
2,854,464 3,188,519
Note 18 Employee Benefit expenses
37
AN
NU
AL
REPO
RT 2
011-
12
Notes to financial statements (Contd.) as at and for the year ended 31 March, 2012
(Amount in Rupees)Year ended Year ended
31 March, 2012 31 March, 2011
Maintenance Charges 47,940 49,440 Electricity Charges 15,984 15,984 Insurance Charges 18,108 29,629 Rates & Taxes 17,502 18,062 Advertisement 51,742 13,561 Travelling & Conveyance 108,574 162,827 Postage & Courier 6,085 16,320 Motor Car Expenses 118,412 160,455 Telephone / Mobile Expenses 3,926 4,774 Printing & Stationary 38,553 50,305 Professional Fees 20,050 123,945 Fees & Subscriptions 80,147 47,144 Filling Fees 1,500 502,000 Directors' Sitting Fees 110,000 119,000 Auditors' Remuneration (see note - 21) 106,545 114,708 Miscellenous Expenditure 97,481 50,620 Bank Charges & Commission 14,847 964 Unamortised Expenses Written Off 872,100 –Bad Debts 102,576 –Irrecoverable Advances Written Off 55,050 –
1,887,122 1,479,738
Note 19 Other expenses
(Amount in Rupees)Year ended Year ended
31 March, 2012 31 March, 2011
Profit after Tax (Rs.) 7,808,885 576,009 Weighted average number of Equity Shares (Nos.) 6,994,826 6,994,826 Nominal value of Equity Shares (Rs.) 10 10 Basic and Diluted Earnings per Share (Rs.) 1.12 0.08
Note: Earning per share are done in accordance with the Accounting Standard (AS) - 20 issued by ICAI
Note 20 Earnings per share (eps)
(Amount in Rupees)Year ended Year ended
31 March, 2012 31 March, 2011
– For Statutory Audit 60,000 60,000 – For Tax Audit 15,000 15,000 – For Other Services 31,545 * 39,708
106,545 114,708
* Excludes Rs. 2,20,600/- paid for services related to Issue of Shares, debited to unamortised Share Issue Expenses
Note 21 Auditors’ remuneration (Net of Service Tax Input Credit)
38
ASH
IKA
CRE
DIT
CA
PITA
L LI
MIT
ED
Notes to financial statements (Contd.) as at and for the year ended 31 March, 2012
(Amount in Rupees)Year ended Year ended
31 March, 2012 31 March, 2011
Bank Guarantee (jointly with two other guarantors) in favour of M/s Ashika Stock – 10,00,00,000/-Broking Limited, Company in which two of the directors are interested. Aggregate value.
Note 22 Contingent Liabilities not provided for in respect of:
(Amount in Rupees)Year ended Year ended
31 March, 2012 31 March, 2011
Outstanding DerivativesContract Value – Share Derivatives 91,178,953/- –
Note 23 Details of outstanding derivatives :
Note 24
The Company has not received any memorandum (as required to be filled by the suppliers with the notified authority under the Micro,Small and Medium Enterprises Development Act, 2006) claiming their status as on 31st March, 2012 as micro, small or mediumenterprise. Consequently the amount paid/payable to these parties during the year is Nil. (P.Y. Nil).
Note 25 Segment reporting
Segment information for the year ended 31st March, 2012. Primary Segment information (by business segment)
Note: a) The Company operates in only one geographic segment i.e. ‘within India’ and hence no separate information for geographic
segment vide disclosure is required.
b) Segment revenue, results, assets and liabilities include amounts identifiable to each segment and amounts allocated on areasonable basis.
c) The accounting policies adopted for segment reporting are in line with the accounting policies adopted for preparation offinancial information as disclosed in note no. 1.1
Sl. No. Particulars Investment and Commodity TotalFinancing Activities Trading Activities
1) Segment Revenue 27,269,089 45,334,190 72,603,2792) Segment Result 15,874,784 195,505 16,070,289
Less: Unallocated expenses (net of income) 4,707,706Profit before tax 11,362,583Less: Tax expenses 3,553,698Profit after tax 7,808,885
3) Segment Assets 300,231,250 – 300,231,250Unallocated corporate assets 11,248,946Total assets 311,480,196
4) Segment Liabilities 276,974 – 276,974Unallocated corporate liabilities 311,203,222Total liabilities 311,480,196
5) Depreciation 222,1376) Non-Cash Expenditure other than Depreciation 1,225,898
39
AN
NU
AL
REPO
RT 2
011-
12
Notes to financial statements (Contd.) as at and for the year ended 31 March, 2012
(Amount in Rupees)Year ended Year ended
31 March, 2012 31 March, 2011
i) Net Employee Expense /(benefit)Current service cost 26,641 20,006Interest cost on benefit obligation 10,178 5,990Expected return on plan assets – –Net Actuarial (gain) /loss recognised in the year 73,789 (31,899)Total employer expense recognised in Profit and Loss Account 1,10,608 (5,903)
ii) Net Assets/(Liability) recognised in balance sheetDefined Benefit Obligation 1,82,529 71,921Fair value of Plan Assets – –Benefit Asset/(Liability) (1,82,529) (71,921)
iii) Movement in benefit liabilityOpening defined benefit obligation 71,921 77,824Current service cost 26,641 20,006Interest cost 10,178 5,990Benefits paid – –Actuarial (gains)/losses on obligation 73,789 (31,899)
iv) The principal actuarial assumptions are as followsDiscount rate 8.00% 8.00%Salary increase 5.00% 5.00%Withdrawal rates Varying between 2% and 1% per annum depending
upon the duration and age of the employees.v) The estimates of future salary increases considered in actuarial valuation,
take account of inflation, seniority, promotion and other relevant factor, such as supply and demand in the employment market.
vi) Other DisclosuresBenefits 2011-12 2010-11 2009-10 2008-09 2007-08Defined Benefit Obligation 1,82,529 71,921 77,824 1,66,849 –Plan Assets – – – – –Surplus/( Deficit ) (1,82,529) (71,921) (77,824) (1,66,849) –Experience Gain/(Loss) (73,789) 31,899 1,14,981 11,725 –
Note 26 Employee Benefits:
(a) Defined Contribution PlansContribution to Regional Provident Fund Authority charged to Profit and Loss Account during the year is Rs.160,658/- (P.Y. Rs. 47,619/-).
(b) Defined Benefit Plans (i) Gratuity :
The Company has provided for gratuity liability based on actuarial valuation done as per the projected unit method. Thescheme is unfunded.
The following tables summarise the components of net benefit expenses recognised in the Profit and Loss Account andamounts recognised in the balance sheet for the respective plan.
40
ASH
IKA
CRE
DIT
CA
PITA
L LI
MIT
ED
Notes to financial statements (Contd.) as at and for the year ended 31 March, 2012
Note 26 Employee Benefits (Contd.)
ii) Privilege Leave Benefits to Employees:The Company has provided for Leave benefits liability based on actuarial valuation done as per the projected unit method. Thescheme is unfunded.
The following tables summarise the components of net benefit expenses recognised in the Profit & Loss Account and amountsrecognised in the balance sheet for the respective plan.
(Amount in Rupees)Year ended Year ended
31 March, 2012 31 March, 2011
i) Net Employee Expense /(benefit)Current service cost 4,356 –Interest cost on benefit obligation 407 –Expected return on plan assets – –Net Actuarial (gain) /loss recognised in the year 5,414 –Total employer expense recognised in Profit and Loss Account 10,177 –
ii) Benefit Asset/(Liability)Defined Benefit Obligation 10,177 –Fair value of Plan Assets – –Benefit Asset/(Liability) (10,177)
iii) Movement in benefit liabilityOpening defined benefit obligation – –Current service cost 4,356 –Interest cost 407 –Benefits paid – –Actuarial (gains)/losses on obligation 5,414 –
iv) The principal actuarial assumptions are as followsDiscount rate 8.00% –Salary increase 5.00% –Withdrawal rates Varying between 2% and 1% per annum depending
upon the duration and age of the employees.v) The estimates of future salary increases considered in actuarial valuation,
take account of inflation, seniority, promotion and other relevant factor, such as supply and demand in the employment market.
vi) Other DisclosuresBenefits 2011-12 2010-11 2009-10 2008-09 2007-08Defined Benefit Obligation 10,177 – – – –Plan Assets – – – – –Surplus / ( Deficit ) (10,177) – – – –Experience Gain / (Loss) (5,414) – – – –
41
AN
NU
AL
REPO
RT 2
011-
12
Notes to financial statements (Contd.) as at and for the year ended 31 March, 2012
Note 26 Employee Benefits (Contd.)
iii) Sick Leave to Employees:The Company has provided for Leave benefits liability based on actuarial valuation done as per the projected unit method. Thescheme is unfunded.
The following tables summarise the components of net benefit expenses recognised in the Profit and Loss Account and amountsrecognised in the balance sheet for the respective plan:
(Amount in Rupees)Year ended Year ended
31 March, 2012 31 March, 2011
i) Net Employee Expense /(benefit)Current service cost 645 –Interest cost on benefit obligation 63 –Expected return on plan assets – –Net Actuarial (gain) /loss recognised in the year 872 –Total employer expense recognised in Profit and Loss Account 1,580 –
ii) Benefit Asset/(Liability)Defined Benefit Obligation 1,580 –Fair value of Plan Assets – –Benefit Asset/(Liability) (1,580)
iii) Movement in benefit liabilityOpening defined benefit obligation – –Current service cost 645 –Interest cost 63 –Benefits paid – –Actuarial (gains)/losses on obligation 872 –
iv) The principal actuarial assumptions are as followsDiscount rate 7.50% –Salary increase 5.00% –Withdrawal rates Varying between 2% and 1% per annum depending
upon the duration and age of the employees.v) The estimates of future salary increases considered in actuarial valuation,
take account of inflation, seniority, promotion and other relevant factor, such as supply and demand in the employment market.
vi) Other DisclosuresBenefits 2011-12 2010-11 2009-10 2008-09 2007-08Defined Benefit Obligation 1,580 – – – –Plan Assets – – – – –Surplus / ( Deficit ) (1,580) – – – –Experience Gain / (Loss) (872) – – – –
42
ASH
IKA
CRE
DIT
CA
PITA
L LI
MIT
ED
Notes to financial statements (Contd.) as at and for the year ended 31 March, 2012
Note 27 Related parties Disclosures
Related parties disclosures, as stipulated by Accounting Standard – 18- Related Party Disclosures, issued by ICAI, are given below:
a) List of Related Parties:
i) Key Management Personnel: Mr. Pawan Jain, Managing Director.Mr. Daulat Jain, Director.
ii) Enterprises owned by Key Management Personnel or their Relatives:Ashika Stock Broking Ltd. Ashika Global Securities Ltd.Ashika Capital Ltd.Ashika Commodities & Derivatives Pvt. Ltd.Ashika Global Finance Pvt. Ltd.Ashika Logistics Pvt. Ltd. (formerly Ashika Insurance Broking& Risk Management Pvt Ltd) Ashika Venture Capital Pvt. Ltd.Ashika Business Pvt. Ltd. (formerly Ashika Forex Services Pvt Ltd)Ashika Share Trading Pvt. Ltd.Ashika Hedge Fund Pvt. Ltd.Ashika Properties Pvt. Ltd.Ashika Technology Pvt. Ltd.Ashika Minerals India Pvt. Ltd. (formerly Ashika Wealth Management Pvt Ltd)
b) Transactions with Related PartiesAggregate Related Party Transactions as at 31st March, 2012 (Transactions have been taken place on arm’s length basis.)
Enterprises owned by Key
Management Personnel or Key Management Personnel Total
their Relatives
Transaction Balance Transaction Balance Transaction Balance
Value Outstanding Value Outstanding Value Outstanding
as on 31 as on 31 as on 31
March 2012 March 2012 March 2012
Loans Granted
Ashika Stock Broking Ltd. 50,000,000 – – – 50,000,000 –
(–) (–) (–) (–) (–) (–)
Ashika Share Trading Pvt Ltd 67,500,000 1,223,409 – – 67,500,000 1,223,409
(–) (–) (–) (–) (–) (–)
Ashika Technology Pvt Ltd 6,300,000 – – – 6,300,000 –
(–) (–) (–) (–) (–) (–)
Ashika Business Pvt Ltd 61,000,000 10,420,345 – – 61,000,000 10,420,345
(–) (–) (–) (–) (–) (–)
Debtors for Stock /
Commodities Market Transactions
Ashika Stock Broking Ltd. 4,694,834 – – – 4,694,834 –
(2,759,118) (–) (–) (–) (2,759,118) (–)
Ashika Commodities & Derivatives Pvt. Ltd. – – – – – –
(9,756,989) (–) (–) (–) (9,756,989) (–)
43
AN
NU
AL
REPO
RT 2
011-
12
Notes to financial statements (Contd.) as at and for the year ended 31 March, 2012
Note 27 Related parties Disclosures (Contd.)
b) Transactions with Related Parties (Contd.)
Enterprises owned by Key
Management Personnel or Key Management Personnel Total
their Relatives
Transaction Balance Transaction Balance Transaction Balance
Value Outstanding Value Outstanding Value Outstanding
as on 31 as on 31 as on 31
March 2012 March 2012 March 2012
Margin Money Paid
Ashika Commodities & Derivatives Pvt. Ltd. 2,700,000 1,500,000 – – 2,700,000 1,500,000
(4,100,000) (–) (–) (–) (4,100,000) (–)
Ashika Stock Broking Ltd. 223,210,000 20,210,000 – – 243,210,000 40,210,000
(235,500,000) (–) (–) (–) (235,500,000) (–)
Reimbursement of Expenses
Ashika Stock Broking Ltd. – – – – – –
(18,984) (–) (–) (–) (18,984) (–)
Pawan Jain – – – – – –
(–) (–) (16,500) (–) (16,500) (–)
Advance License Fees Received
Ashika Stock Broking Ltd. – 4,169 – – – 4,169
(10,000) (7,501) (–) (–) (10,000) (7,501)
Ashika Global Securities Ltd. – 4,169 – – – 4,169
(10,000) (7,501) (–) (–) (10,000) (7,501)
Ashika Capital Ltd. – 4,169 – – – 4,169
(10,000) (7,501) (–) (–) (10,000) (7,501)
Ashika Commodities & Derivatives Pvt. Ltd. – 4,169 – – – 4,169
(10,000) (7,501) (–) (–) (10,000) (7,501)
Ashika Global Finance Pvt. Ltd. – 4,169 – – – 4,169
(10,000) (7,501) (–) (–) (10,000) (7,501)
Ashika Logistics Pvt. Ltd – 4,169 – – – 4,169
(10,000) (7,501) (–) (–) (10,000) (7,501)
Ashika Venture Capital Pvt. Ltd. – 4,169 – – – 4,169
(10,000) (7,501) (–) (–) (10,000) (7,501)
Ashika Business Pvt. Ltd – 4,169 – – – 4,169
(10,000) (7,501) (–) (–) (10,000) (7,501)
Ashika Share Trading Pvt. Ltd. – 4,169 – – – 4,169
(10,000) (7,501) (–) (–) (10,000) (7,501)
Ashika Hedge Fund Pvt. Ltd. – 4,169 – – – 4,169
(10,000) (7,501) (–) (–) (10,000) (7,501)
Ashika Properties Pvt. Ltd. – 4,169 – – – 4,169
(10,000) (7,501) (–) (–) (10,000) (7,501)
Ashika Technology Pvt. Ltd. – 419 – – – 419
(1,000) (751) (–) (–) (1,000) (751)
Ashika Minerals India Pvt. Ltd. – 419 – – – 419
(1,000) (751) (–) (–) (1,000) (751)
Commodities Market Transactions
Ashika Commodities & Derivatives Pvt. Ltd.
Sales 45,344,190 – – – 45,344,190 –
(25,492,899) (–) (–) (–) (25,492,899) (–)
44
ASH
IKA
CRE
DIT
CA
PITA
L LI
MIT
ED
Notes to financial statements (Contd.) as at and for the year ended 31 March, 2012
Note 27 Related parties Disclosures (Contd.)
b) Transactions with Related Parties (Contd.)
Enterprises owned by Key
Management Personnel or Key Management Personnel Total
their Relatives
Transaction Balance Transaction Balance Transaction Balance
Value Outstanding Value Outstanding Value Outstanding
as on 31 as on 31 as on 31
March 2012 March 2012 March 2012
Purchases 9,941,885 – ` – 9,941,885 –
(59,222,048) (–) (–) (–) (59,222,048) (–)
Loss from Derivatives in Commodities 753,548 – ` – 753,548 –
(43,338) (–) (–) (–) (43,338) (–)
Stock Market Transactions
Ashika Stock Broking Ltd.
Purchase of Investments 406,796,493 – – – 406,796,493 –
(460,752,557) (–) (–) (–) (460,752,557) (–)
Sale of Investments 453,426,311 – – – 453,426,311 –
(485,406,536) (–) (–) (–) (485,406,536) (–)
Loss from Derivatives/Intraday Trading in Shares 11,233,334 – – – 11,233,334 –
(34,418,075) (–) (–) (–) (34,418,075) (–)
Income from Advisory Services/ Fee Income
Ashika Capital Ltd. 7,930,000 – – – 7,930,000 –
(41,250,000) (–) (–) (–) (41,250,000) (–)
Ashika Stock Broking Ltd. – – – – – –
(3,750,000) (–) (–) (–) (3,750,000) (–)
Interest on Loans Received
Ashika Stock Broking Ltd. 2,125,479 – – – 2,125,479 –
(–) (–) (–) (–) (–) (–)
Ashika Share Trading Pvt Ltd 1,359,344 – – – 1,359,344 –
(–) (–) (–) (–) (–) (–)
Ashika Technology Pvt Ltd 76,783 – – – 76,783 –
(–) (–) (–) (–) (–) (–)
Ashika Business Pvt Ltd 819,543 – – – 819,543 –
(–) (–) (–) (–) (–) (–)
Interest on Securities Margin
Ashika Commodities & Derivatives Pvt. Ltd. – – – – – (–)
(4,818,703) (4,336,833) (–) (–) (4,818,703) (4,336,833)
Interest on Margin Money
Ashika Stock Broking Ltd. 11,95,409 1,075,868 – – 11,95,409 1,075,868
(–) (–) (–) (–) (–) (–)
Ashika Commodities & Derivatives Pvt. Ltd. 90,737 81,663 – – 90,737 81,663
(–) (–) (–) (–) (–) (–)
Rent Received
Ashika Stock Broking Ltd. 240,000 20,060 – – 240,000 20,060
(240,000) (–) (–) (–) (240,000) (–)
45
AN
NU
AL
REPO
RT 2
011-
12
Notes to financial statements (Contd.) as at and for the year ended 31 March, 2012
Note 27 Related parties Disclosures (Contd.)
b) Transactions with Related Parties (Contd.)
Enterprises owned by Key
Management Personnel or Key Management Personnel Total
their Relatives
Transaction Balance Transaction Balance Transaction Balance
Value Outstanding Value Outstanding Value Outstanding
as on 31 as on 31 as on 31
March 2012 March 2012 March 2012
Other Expenses on Commodities Transactions
Ashika Commodities & Derivatives Pvt. Ltd. 41,581 – – – 41,581 –
(–) (–) (–) (–) (–) (–)
Director's Remuneration
Pawan Jain – – 1,500,000 – 1,500,000 –
(–) (–) (1500,000) (–) (1500,000) (–)
Director's Meeting Fees
Daulat Jain – – 20,000 – 20,000 –
(–) (–) (13,000) (–) (13,000) (–)
Demat Charges Paid
Ashika Stock Broking Ltd. 3,345 2,266 – – 3,345 2,266
(2,101) (215) (–) (–) (2,101) (215)
Notes: Figures in brackets represent figures of previous year.
28. None of the Fixed Assets of the Company are considered impaired as on the Balance Sheet date.
29. Foreign Currency Transactions : Nil (P.Y. Nil)
30. Schedule in terms of Paragraph 13 of Non-Banking Financial (Non Deposit Accepting or Holding) Companies Prudential Norms(Reserve Bank) Directions, 2007 is annexed hereto separately.
31. The Revised Schedule VI has become effective from 1st April, 2011 for the preparation of financial statements. This hassignificantly impacted the disclosure and presentation made in the financial statements. Previous years’ figures have beenregrouped/ reclassified wherever necessary to correspond with the current years’ classification / disclosure.
Signature to note 1 - 31
For and on behalf of the Board
In terms of our attached report of even date
For, P. K. SAH & ASSOCIATES,
Chartered Accountants
P. K. Sah, FCA Pawan Jain Daulat Jain Anju Mundhra
Partner Managing Director Director Company Secretary
Mem. No. 056216
Place : Kolkata
Date : 26th May, 2012
46
ASH
IKA
CRE
DIT
CA
PITA
L LI
MIT
ED
Schedule to the Balance Sheet of Non-Deposit Taking Non-Banking Financial Company(as required in terms of paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms(Reserve Bank) Directions, 2007)
(Rs. in Lakhs)Particulars
Liabilities Side Amount Amountout standing overdue
1. Loans and advances availed by the non-banking financial company inclusive of Interest accrued thereon but not paid :
(a) Debentures : Secured – –
Unsecured – –
(other than falling within the Meaning of public deposits) – –
(b) Deferred Credits – –
(c) Term Loans – –
(d) Inter-corporate loans and borrowing – –
(e) Commercial Paper – –
(f) Other Loans (Specify nature) – –
Assets Side Amount Outstanding
2. Break-up of Loans and Advance including bills Receivables [other than those included in (4) below]
(a) Secured –
(b) Unsecured 1,325
3. Break up of Leased Assets and stock on hire and other assets counting towards AFC activities
(i) Lease assets including lease rentals under Sundry debtors:
(a) Financial Lease –
(b) Operating Lease –
(ii) Stock on hire including hire charges under Sundry debtors:
(a) Assets on hire –
(b) Repossessed Assets –
(iii) Other loans counting towards AFC activities
(a) Loans where assets have been repossessed –
(b) Loans other than (a) above
4. Break-up of Investments
Current Investments
1. Quoted :
(i) Shares : (a) Equity –
(b) Preference –
(ii) Debentures and Bonds –
(iii) Units of Mutual Funds –
(iv) Government Securities –
(v) Others (please specify) –
47
AN
NU
AL
REPO
RT 2
011-
12
(Rs. in Lakhs)Assets Side Amount Outstanding
2. Unquoted :
(i) Shares : (a) Equity –
(b) Preference –
(ii) Debentures and Bonds –
(iii) Units of Mutual Funds –
(iv) Government Securities –
(v) Others (please specify) –
Long Term Investments :
1. Quoted :
(i) Shares : (a) Equity 60
(b) Preference –
(ii) Debentures and Bonds –
(iii) Units of Mutual Funds 100
(iv) Government Securities –
(v) Others (please specify) –
2. Unquoted :
(i) Shares : (a) Equity 1,247
(b) Preference –
(ii) Debentures and Bonds –
(iii) Units of Mutual Funds –
(iv) Government Securities 4
(v) Others (Immovable Property) –
Category Amount Net of Provisions
Secured Unsecured Total
1. Related Parties
(a) Subsidiaries – – –
(b) Companies in the same group - 334 334
(c) Other related parties – – –
2. Other than related parties – 991 992
Total : – 1,325 1,325
5. Borrower group-wise classification of assets Financed as in (2) and (3) above
48
ASH
IKA
CRE
DIT
CA
PITA
L LI
MIT
ED
Category Market Value / Book Value Break up or fair (Net of Provisions)
Value or NAV
1. Related Parties
(a) Subsidiaries – –
(b) Companies in the same group 1,247 * 1,247
(c) Other related parties – –
2. Other than related parties 150 164
Total 1,397 1,411
* represents the investments in unquoted equity shares which are taken at their respective book value in absence of availability ofbreak-up value as on 31st March, 2012 of the investee companies.
6. Investor group-wise classification of all investments (current and long term) in shares and securities (both quoted and unquoted)
Particulars Amount
(i) Gross Non-Performing Assets
(a) Related Parties –
(b) Other than related parties –
(ii) Net Non-Performing Assets
(a) Related Parties –
(b) Other than related parties –
(iii) Assets acquired in satisfaction of debt –
7. Other Information
For and on behalf of the Board
Pawan Jain Daulat Jain Anju Mundhra
Managing Director Director Company Secretary
Place : Kolkata
Date : 26th May, 2012
A PRODUCT
Ashika Credit CapitalLimited is Eastern India’sfastest-growing financialservices provider. Strengthening its businessduring the downturn. Readying for the nextindustry rebound.
Across the pages…
BUSINESS OVERVIEW
02 From the Chairman’s desk
04 Business drivers
05 Corporate information
STATUTORY REPORTS
06 Directors’ Report
09 Corporate Governance Report
19 Management discussion and analysis
FINANCIAL STATEMENTS
21 Auditors’ Report
24 Balance Sheet
25 Profit and Loss Account
26 Cash Flow Statement
28 Notes to Financial Statement
Investingsafely.
Growingfirmly.
Net income (Rs. lacs)
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
Operating profit (Rs. lacs)
82.25
190.5383.39
796.23
728.81
2600.87
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
15.0458.74
22.0540.97
59.95113.63
Ashika CreditCapital Limited
19th Annual report
2011-12Trinity, 226/1, A.J.C.Bose Road, 7th floor, Kolkata – 700020
Phone: (033) 22839952/40102500, Fax: (033) 22891555
Email: [email protected]
Website: www.ashikagroup.com