Provisions:
A provision is recognized when the company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
Cash & Cash Equivalents:
Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and fixed deposits.
Current / Non Current Classification
An asset shall be classified as current when it satisfies any of the following criteria:—
(a) it is expected to be realized in, or is intended for sale or consumption in, the company's normal operating cycle;
(b) it is held primarily for the purpose of being traded;
(c) it is expected to be realized within twelve months after the reporting date; or
(d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.
All other assets shall be classified as non-current.
A liability shall be classified as current when it satisfies any of the following criteria:—
(a) it is expected to be settled in the company's normal operating cycle;
(b) it is held primarily for the purpose of being traded;
(c) it is due to be settled within twelve months after the reporting date; or
(d) the company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.
All other liabilities shall be classified as non-current.
27. The Company provides Portfolio Management Services (PMS) to its clients. Transactions on account of PMS activities are carried out exclusively on behalf of PMS clients. Therefore, assets and liabilities arising out of the above effectively belong to the PMS clients and hence are not reflected in the Company's accounts. Management fees earned/expenditure incurred by the Company from this activity is accounted for on an accrual basis.
28. The Share Application Money for an amount of Rs. 216.69 Lakhs (Previous Year Rs. 216.69 Lakhs) is outstanding for a period of 264 months as at date of Balance Sheet date, for which the financial statements are in the process of being obtained. The Company has already initiated legal proceedings against the other party for recovery of the said application money along with interest thereon, under Section 138 of the Negotiable Instruments Act, 1881. At present, the matter is pending for hearing before the Hon'ble High Court at Mumbai.
29. Long-term Deposits which were given to M/s. Shree Rama Polysynth Private Ltd and M/s. Vimpsan Investments Private Ltd, upto total aggregate amount of Rs. 530.00 lakhs are still outstanding as at March 31, 2024. Since the Company is not in the receipt of any interest on the said deposits since long period, the Company has not accounted any interest income on such deposits in the financial statement. The Company is in the process to initiate legal proceedings against them for recovery of the said deposits.
30. In the matter of M/s. Shree Rama Multitech Limited (SRML) in relation to recovery of outstanding rental income/license fee from SRML, the Hon'ble High Court, Mumbai had passed the order/decree in favor of the company during the period October 2019. Although the company is yet to receive the rental Income from SRML. Later, the Company filed the execution application in the Small Cause Court during the period April 2022 in Mumbai for recovering the pending rental income/license fee amount from SRML. The Hon'ble Small Cause Court, Mumbai vide its order/decree dated December 7, 2022 shifted the said matter to the Hon'ble Civil Court, Gandhinagar for execution to recover the outstanding rental income/license fee. At present, the matter is pending for hearing before the Hon'ble Civil Court, Gandhinagar
31. In the matter of Mr. Hiten Parmar regarding receivable of the outstanding amount, the Company had filed the case in the month of October 2015 before the panel of arbitrators of National Stock Exchange of India Limited (NSE). The panel of arbitrators of NSE has considered the matter and passed the arbitral in favour of the Company on April 12, 2016. The panel of arbitrators directed Mr. Hiten Parmar to pay to the Company Rs. 55,85,544.87/- within 30 days from the date of receipt of award. However, the Company has not received any such amount till date from Mr. Hiten Parmar. The Company has initiated legal action and filed the suit against Mr. Hiten Parmar in the Hon'ble District Court, Surat (‘the Court') for recovery of the arbitral award amount. At present, the matter is pending for hearing before the Court. Further, the Company are in process of simultaneously filing a complaint with Economic Offence Wing (EOW) Mumbai in the aforesaid matter.
32. The Hon'ble Supreme Court of India on September 21, 2023 passed their final order/verdict in favour of the Company and quashed/set aside the Securities Appellate Tribunal's (“SAT”) Order dated 08th March, 2017 (and consequently, the WTM's Order of Securities and Exchange Board of India dated 13th May, 2015) pertaining to the suspension of certificate of registration of the Company as a stock broker at National Stock Exchange of India Limited (Old SEBI Registration No. INB230600030) for a period of one month.
34. Segment Information
For management purposes, the Company is organized into two segments - Fee based and Investment/Trading In Stock. The Company has considered these two divisions as its business segments.
The Fee based division provides financial advisory services relating to mergers and acquisitions, equity and debt issue management, portfolio management and broking.
Investment and Stock division carries out trading, investing and speculation activities in capital markets (debt and equity) for the Company.
Fixed assets used in the Company's business are not identified to any of the reportable segments, as these are used interchangeably between segments and hence the fixed assets and depreciation are not allocated to any of the reportable segments.
As the entire business operations of the Company are conducted only in India, the Company has not reported any secondary segment information.
35. Earnings per share:
The Company reports basic and diluted earnings per share in accordance with Ind AS -33 - Earnings Per Share.
Basic earnings per share are computed by dividing the net profit after tax attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.
Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue equity shares were exercised or converted during the year. Diluted earnings per share are computed by dividing the net profit after tax by the weighted average number of equity shares and dilutive potential equity shares outstanding at year-end.
37. As per information and explanation received there are no dues payable to Small Scale Industrial Undertakings as at March 31, 2024.
38. Transaction in foreign currency: (In Thousand)
Foreign Travel Expenses - Rs. 532.89 (Previous year Rs. 41.61).
Foreign Currency Income - Rs. 13,025.76 (Previous year Rs. 3,100.00).
39. Debtors include: (In Thousand)
(i) Due from a firm in which a director is interested as partner - Rs. Nil (Previous year Rs. Nil )
(ii) Due from relatives and Enterprises controlled by the relatives of the Key Management Personnel Rs. 7,630.87
(iii) The above dues have arisen in the normal course of business.
40. The creditors are largely from receipt of margin money from the clients while the debtors reflect the pattern of settlement period, wherein year-end date falls within to be settled period.
41. Managerial Remuneration:
(i) Remuneration to Managing Director (In Thousands)
Salary and Other Allowances : Rs. 4,925.00 (P.Y. Rs. 3,693.75)
(ii) Sitting fees to other Directors : Rs. 95.00 (P.Y. Rs. 145.00)
42. Liability for Employee benefits has been determined by an actuary, appointed for the purpose, in conformity with the principles set out in the Indian Accounting Standard 19 ( Ind AS 19) the details of which are as hereunder.
Note:-
Gratuity is payable as per company's scheme as detailed in the report.
Actuarial Gain/ Loss are recognized in the period of occurrence under other Comprehensive Income (OCI)
All above reported figures of OCI are gross of taxation.
Salary escalation & attrition rate are considered as advised by the company; they appear to be in line with the industry practice considering promotion and demand & supply of the employees.
Maturity Analysis of Benefit payments is undiscounted cash flows considering future salary, attrition & death in respective year for members as mentioned above.
Average Expected Future Service represents Estimated Term of Post- Employment Benefit Obligation.
Value of asset provided by the client is considered as fair value of plan asset for the period of reporting as same is not evaluated by us.
13. Contingent Liabilities: -
i) Contingent Liabilities on account of disputed cases pending before various authorities of Income Tax Act is annexed below. No provision has been made in the books of accounts as the outcome is still awaited:
ii) Preference dividends are in arrears from F.Y 2008-09 to F.Y.2020-21 as aggregating to Rs. 2.49 Crores.
iii) TDS defaults showing on TDS traces website for the various Financial Years as on 31st March 2024 has been reviewed and there is no possible demand arising due to that. The Company is under process of rectifying the defaults by revising the TDS returns.
44. The figures for the previous period have been regrouped, rearranged or reclassified wherever necessary to conform to the current period's presentation.
See accompanying notes ( 1 to 44 ) to the Financial Statements.
As per our report attached of even date.
For Aniket Kulkarni & Associates For and on behalf of the Board of Directors
Chartered Accountants Khandwala Securities Limited
FRN No. 130521W
Aniket Kulkarni Homiar N. Vakil Paresh J. Khandwala
Proprietor Chairman Managing Director
Mem. No: 127246 DIN: 05210178 DIN: 00112678
Pranav Khandwala Abhishek Joshi
Whole-Time Director/ CFO Company Secretary
DIN:00519113
Place :- Mumbai Place :- Mumbai
Date : - 18th May, 2024 Date : - 18th May, 2024
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