Click it and Unblock the Notifications
Notes to Accounts of Shardul Securities Ltd.
Mar 31, 2025
(S) Provisions, contingent liabilities and contingent assets
The Company creates a provision when there is a present obligation as a result of past events and it is probable that
there will be outflow of resources and a reliable estimate of the obligation can be made of the amount of the obligation.
Contingent liabilities are not recognised but are disclosed in the notes to the Standalone Ind AS financial statements. A
disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but
probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of
which the likelihood of outflow of resources is remote, no provision or disclosure is made.
Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer
probable that the outflow of resources would be required to settle the obligation, the provision is reversed.
Contingent assets are not recognised nor disclosed in the Standalone Ind AS financial statements.
(T) Foreign currency translation
The Company''s financial statements are presented in Indian Rupee, which is also the Company''s functional currency.
Initial recognition: Transactions denominated in foreign currencies are recorded at the exchange rate prevailing at the
time of the transaction.
Conversion: Monetary assets and liabilities denominated in foreign currencies at the year end are restated at year end
rates.
Exchange differences: All exchange differences are accounted in the Statement of Profit and Loss.
(U) Employee benefits
1) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12
months after the end of the period in which the employees render the related service are recognised in respect of
employees'' services up to the end of the reporting period and are measured at the amounts expected to be paid when
the liabilities are settled.
2) Post-employment obligations
i) Defined benefit plans
Gratuity:
The Company''s gratuity benefit scheme is a defined benefit plan. The Company''s net obligation in respect of the
gratuity benefit scheme is calculated by estimating the amount of future benefit that employees have earned in
return for their service in the current and prior periods; that benefit is discounted to determine its present value, and
the fair value of any plan assets, if any, is deducted.
The present value of the obligation under such defined benefit plan is determined based on actuarial valuation using
the Projected Accrued Benefit Method (same as Projected Unit Credit Method), which recognises each period of
service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build
up the final obligation.
The obligation is measured at the present value of the estimated future cash flows. The discount rates used for
determining the present value of the obligation under defined benefit plan, are based on the market yields on
Government securities as at the balance sheet date.
Remeasurement of the net defined benefit liability/ asset, which comprise actuarial gains and losses, the return on
plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized
immediately in the balance sheet with a corresponding debit or credit to OCI ( other Comprehensive Income) in the
period in which they occur. Net interest expense and other expenses related to defined benefit plans are recognized
in profit or loss. Remeasurements are not reclassified to profit or loss in subsequent periods.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to
past service or the gain or loss on curtailment is recognized immediately in profit or loss. The Company recognises
gains and losses on the settlement of a defined benefit plan when the settlement occurs.
ii) Defined contribution plans
Provident fund:
Company''s contributions to the recognised provident fund, which is a defined contribution scheme, are charged to
the Statement of Profit and Loss.
(V) Earnings per share
1) Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to owners of the Company by the weighted
average number of equity shares outstanding during the financial year, adjusted for bonus element in equity shares
issued during the year, if any.
2) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into
account the after income tax effect of interest and other financing costs associated with dilutive potential equity
shares, and the weighted average number of additional equity shares that would have been outstanding assuming
the conversion of all dilutive potential equity shares.
(W) Rounding of Amounts
All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakh upto two decimal
points as per the requirements of Schedule III, unless otherwise stated.
(X) Critical estimates and judgments
The Company makes estimates and assumptions that affect the amounts recognised in the Standalone Ind AS financial
statements, and the carrying amounts of assets and liabilities within the next financial year. Estimates and judgments are
continually evaluated and are based on management''s experience and other factors, including expectations of future
events that are believed to be reasonable under the circumstances. Management also makes certain judgments, apart
from those involving estimations, in the process of applying the accounting policies. Judgments that have the most
significant effect on the amounts recognised in the Standalone Ind AS financial statements and estimates that can cause
a significant adjustment to the carrying amount of assets and liabilities within the next financial year include the following:
1) Estimation of fair value of unlisted investments
The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques. The Company uses its judgment to select a variety of methods and make assumptions that are mainly
based on market conditions existing at the end of each reporting period. For details of the key assumptions used
and the impact of changes to these assumptions.
2) Current tax
Provision for current tax is made after taking into consideration benefits admissible under the provisions of the
Income Tax Act, 1961. For the purpose of preparing Income Tax working, the Company has opted for the new
taxation rates u/s 115BAA of the Income Tax Act, 1961.
3) Estimation of fair value of investments property
The Company has carried out the valuation activity to assess fair value of its Investment in land and property.
Accordingly, fair value estimates for investment in land and property is classified as level 3.
The Company has obtained a Valuation Report from valuer to assess fair value of its Investment of property.
(Y) New standards, interpretations, and amendments:
The Ministry of Corporate Affairs (MCA) notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. The MCA notified the Companies
(Indian Accounting Standards) Amendment Rules, 2025 to amend the Companies (Indian Accounting Standards)
Rules, 2015, as below:
Ind AS 21, The Effects of Changes in Foreign Exchange Rates :This amendment is introduced to provide enhanced
guidance on assessing currency exchangeability and estimating exchange rates when currencies are non¬
exchangeable to align with international accounting standards. The effective date for adoption of this amendment is
annual periods beginning on or after April 1, 2025. The Company has evaluated the amendment and there is no
impact on its financial statements.
Further, for the year ended March 31, 2025, MCA has notified Ind AS - 117 Insurance Contracts and amendments
to Ind AS 116 - Leases, relating to sale and leaseback transactions, applicable to the Company w.e.f. April 1,2024.
The Company has reviewed the same and based on its evaluation has determined that it does not have any
significant impact on the Ind AS financial statements
*The Board of directors of the company at its meeting held on 11th November, 2024, recommended the sub-division/split of one fully paid-up equity
share having a face value of Rs. 10/- each into 5 fully paid-up equity shares having a face value of Rs. 2/- each by alteration of capital clause of the
memorandum of association (MOA) subject to the approval of the members of the company. The members of the company approved the sub-division /
split of one fully paid-up equity share of Rs. 10/- each into Five fully paid-up equity share of Rs. 2/- each at the EGM held on 24th December 2024.
Further the record date for split / sub-division of equity shares was 13th January, 2025. Consequent to this, the authorized share capital comprises of
50,00,00,000 equity shares having a face value of Rs. 2/- each aggregating to Rs. 10,000 Lakhs and the paid-up share capital comprises of
8,74,92,165 equity shares having a face value of Rs. 2/- each aggregating to Rs. 1,749.84 lakhs.
(C) Par value per share:
The par value of Equity Shares is Rs.2/-. (Previous year of Rs. 10/- Each)
(D) The rights, preferences and restrictions attached to each class of shares including to restrictions on the distribution of dividends and
repayment of capital:
Equity Shares- The Company has only one class of equity shares. Each holder of equity shares is entitled to one vote per share. The equity
shareholders are entitled to dividend only if dividend in a particular financial year is recommended by the Board of Directors and approved by the
members at the annual general meeting of that year. In case of winding up, if the assets available for distribution are less than the paid up share
capital, then the shortfall will be borne by the members proportionately. Where there is an excess, the same shall be distributed proportionately among
the members.
Nature and purpose of reserve:
a) Capital Reserve
Capital Reserves are mainly the reserves created during business combination for the gain on bargain purchase.
b) Securities Premium
Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes such as issuance of
bonus shares in accordance with the provisions of the Companies Act, 2013.
c) General Reserve
The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by
a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be
reclassified subsequently to profit or loss.
d) Statutory Reserve Fund (As per RBI Guidelines)
Statutory reserve fund is created pursuant to section 45-IC of the Reserve Bank of India Act, 1934 for NBFC Companies. Therefore twenty percent of
the profit after taxation has been transferred to statutory reserve
e) Other Comprehensive Income (OCI)
FVOCI equity investments: The Company has elected to recognise changes in the fair value of certain investments in equity securities in other
comprehensive income. These changes are accumulated within the FVOCI equity investments reserve within equity. The Company transfers amounts
from this reserve to retained earnings when the relevant equity securities are derecognised.
Other Comprehensive Income also represents actuarial gains / (losses) arising on recognition of defined benefit plans.
f) Retained Earnings
Retained earnings or accumulated surplus represents total of all profits retained since Company''s inception. Retained earnings are credited with current
year profits, reduced by losses, if any, dividend payouts, transfers to General reserve or any such other appropriations to specific reserves.
Note 35 Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most
advantageous) market at the measurement date under current market conditions (i.e., an exit price), regardless of whether that price is directly
observable or estimated using a valuation technique.
In order to show how fair values have been derived, financial instruments are classified based on a hierarchy of valuation techniques.
1) Fair value hierarchy:
The Company determines fair value of its financial instruments according to following hierarchy:
Level 1: Category includes financials assets and liabilities that are measured in whole or significant part by reference to published quotes in an
active market.
Level 2: Category includes financials assets and liabilities that are measured using a valuation technique based on assumptions that are
supported by prices from observable current market transactions.
Level 3: Category includes financials assets and liabilities that are measured using valuation techniques based on nonmarket observable
inputs. This means that fair value are determined in whole or in part using a valuation model based on assumptions that are neither
supported by prices from observable current market transactions in the same instrument nor are they based on available market data.
The main asset classes in this category are unlisted equity investments as well as unlisted funds. Company has used discounted cash
flow, comparable company analysis, net asset value method and valuation report of independent valuers where ever possible.
Note 36 Financial risk management
Shardul Securities Limited (âthe Companyâ) is registered as Non-Banking Financial Company (NBFC) as defined under Section 45-IA of the
Reserve Bank of India Act, 1934 (RBI). Itâs a Systemically Important Non-Deposit taking NBFC Company (NBFC-ND-SI).
The Company is exposed to market risk, credit risk, liquidity & interest rate risk and capital management risk. The Companyâs risk management
function is carried out by the Risk Management Committee by evaluating financial risks and the appropriate governance framework for the
Company. The Risk Management Committee provides assurance to the Board that the Companyâs financial risk activities are governed by
appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Companyâs policies
and risk objectives. The major risks are summarised below:
Market Risk:
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market
prices. The Company has quoted investments and investment in bullions which are exposed to fluctuations in stock/Commodity prices.
The company continuously monitors market exposure.The unquoted redeemable non-convertible Preference Shares and unquoted
investment in various funds are measured at fair value through profit or loss. The fair values of these investments are regularly
monitored.
Credit Risk:
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an
obligation. Credit risk arises mainly from loans and advances, and loan commitments arising from such lending activities, but can also
arise from credit enhancement provided, such as financial guarantees, letters of credit, endorsements and acceptances. The
Company has very insignificant exposure to loans given or taken hence exposure to such risk is very negligible. The Financial
Guarantees is given on behalf of wholly owned subsidiary company.
Liquidity and Interest Rate Risk:
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled
by delivering cash or another financial asset. While interest rate risk is the risk that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in market interest rates. The Company manages its liquidity risk by ensuring, as far as
possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without
incurring unacceptable losses or risk to the Companyâs reputation
Currency Risk:
Exchange rate volatility imparts a new dimension to the risk profile of an NBFCâs balance sheets having foreign assets or liabilities.
The Company is not exposed to currency risk as it has no foreign assets or liabilities.
Capital Management Risk:
The Reserve Bank of India (RBI) sets and monitors capital adequacy requirements for the Company from time to time. As per
regulations prescribed by Reserve Bank of India, the Company''s minimum prescribed regulatory capital is holding Net Owned Funds
of Rs. 200 Lakhs. The Companies policies in respect of capital management and allocation are reviewed regularly by the Board of
Directors and hence, increase in capital is planned well in advance to ensure adequate funding for its growth.
The Companyâs objective is to maintain appropriate levels of capital to support its business strategy taking into account the regulatory,
economic and commercial environment. The Company aims to maintain a strong capital base to support the risks inherent to its
business and growth strategies. The Company endeavors to maintain a higher capital base than the mandated regulatory capital at all
times. No changes have been made to the objectives, policies and processes from the previous years. However, they are under
constant review by the Board.
Ind AS 109 outlines a âthree-stageâ model for impairment based on changes in credit quality since initial recognition as summarised
below, The objective of the impairment requirements is to recognise lifetime expected credit losses for all financial instruments for
which there have been significant increases in credit risk since initial recognition - whether assessed on an individual or collective
basis - considering all reasonable and supportable information, including that which is forward-looking.
A financial instrument that is not credit-impaired on initial recognition is classified in âStage 1â and has its credit risk continuously
monitored by the Company.
If significant increases in credit risk (âSICRâ) since initial recognition is identified, the financial instrument is moved to âStage 2â but is
not yet deemed to be credit-impaired.
If the financial instrument is credit-impaired, the financial instrument is then moved to âStage 3â. Financial instruments in Stage 1 have
their ECL measured at an amount equal to 12 month ECLs. Instruments in Stages 2 or 3 have their ECL measured based on expected
credit losses on a lifetime basis. Purchased or originated credit-impaired financial assets are those financial assets that are credit
impaired on initial recognition. Their ECL is always measured on a lifetime basis (Stage 3).
The measurement of ECL is calculated using three main components: (i) Probability of Default (PD) (ii) Loss Given Default (LGD) and
(iii) the Exposure At Default (EAD).
The 12 month ECL is calculated by multiplying the 12 month PD, LGD and the EAD. The 12 month and lifetime PDs represent the PD
occurring over the next 12 months and the remaining maturity of the instrument respectively. The EAD represents the expected
balance at default, taking into account the repayment of principal and interest from the balance sheet date to the default event together
with any expected drawdowns of committed facilities. The LGD represents expected losses on the EAD given the event of default,
taking into account, among other attributes, the mitigating effect of collateral value at the time it is expected to be realised and the time
value of money.
i) Probability of default (PD) represents the likelihood of a borrower defaulting on its financial obligation, either over the next 12 months
(12M PD), or over the remaining lifetime (Lifetime PD) of the obligation.
ii) Exposure At default (EAD) is the total amount of an asset the entity is exposed to at the time of default. EAD is defined based on
the characteristics of the asset. EAD is dependent on the outstanding exposure of an asset, sanctioned amount of a loan and credit
conversion factor for non-funded exposures.
iii) Loss given default (LGD) It is the part of an asset that is lost provided the asset default. The recovery rate is derived as a ratio of
discounted value of recovery cash flows (incorporating the recovery time) to total exposure amount at the time of default. Recovery
rate is calculated for each segment separately. Loss given default is computed as (1 - recovery rate) in percentage terms.
The Company assesses when a significant increase in credit risk has occurred based on quantitative and qualitative assessments.
Exposures are considered to have resulted in a significant increase in credit risk and are moved to Stage 2 when:
i. Quantitative test: Accounts that are 30 calendar days or more past due move to Stage 2 automatically. Accounts that are 90
calendar days or more past due move to Stage 3 automatically.
ii. Qualitative test: Accounts that meet the portfolioâs âhigh riskâ criteria and are subject to closer credit monitoring. High risk customers
may not be in arrears but either through an event or an observed behavior exhibit credit distress.
iii. Reversal in Stages: Exposures will move back to Stage 2 or Stage 1 respectively, once they no longer meet the quantitative criteria
set out above. For exposures classified using the qualitative test, when they no longer meet the criteria for a significant increase in
credit risk.
Collateral and other credit enhancements:
The Company employs a range of policies and practices to mitigate credit risk.
Write-off policy:
The Company writes off financial assets, in whole or in part, when it has exhausted all practical recovery efforts and has concluded
there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include (i) ceasing
enforcement activity and (ii) where the Companyâs recovery method is foreclosing on collateral and the value of the collateral is such
that there is no reasonable expectation of recovering in full.
Notes:
All quoted investments measured at FVPL have been included in less than 1 month bucket considering its liquidity. All unquoted equity
shares / funds including investment in subsidiaries & all quoted investments measured at FVOCI have been included in ''Over 5 years''.
a The maturity pattern has been prepared in line with various regulations issued by RBI from time to time, best practices & based upon
best estimate of the management with regard to the timing of various cash flows.
The classification of Assets and Liabilities into current and non-current is carried out based on their residual maturity profile as per
requirement of Schedule III to the Companies Act, 2013. The above maturity pattern of assets and liabilities has been prepared by the
b Company after taking into consideration guidelines for Maturity Profile - Liquidity given under master directions issued by RBI, best
practices and best estimate of the Assets-Liability Committee /management with regard to the timing of various cash flows.
Note 45 Leases:
The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control
the use of an identified asset for a period of time in exchange for consideration.
i) As a Lessee
The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value
assets. The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term
of 12 months or less from the commencement date and do not contain a purchase option). Lease payments on short-term leases are
recognized as and when due.
ii) As a Lessor
Leases for which the Company is a lessor is classified as finance lease or operating lease. Whenever the terms of the lease transfer
substantially all the risks and rewards of ownership to the lessee, the lease contract is classified as finance lease. All other leases is
classified as operating lease. For Operating Lease, lease rentals are recognised on a straight line basis over the term of lease.
Note 46 The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility
and the same has been operated throughout the year for all relevant transactions recorded in the software. Further, during the year there
were no instances of the audit trail feature being tampered and the audit trail has been preserved by the Company as per the statutory
requirements for record retention.
Note 47 Additional Regulatory information as per amendments in Schedule III of Companies Act, 2013
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding
any Benami property.
(ii) There are no balances outstanding on account of any transaction with companies struck off under section 248 of the Companies Act, 2013
or section 560 of Companies Act, 1956.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries)
with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company
(Ultimate Beneficiaries) or;
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding
(whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party
(Ultimate Beneficiaries) or;
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(vii) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions
of the Income Tax Act, 1961).
(viii) The Company has borrowed from banks and financial institutions for specific purpose during the financial year. This Loan are not in the
nature of working capital loans which is generally issued against the security of current assets.
(ix) There is no immovable property whose title deeds are not held in the name of the Company.
(x) There are no loans or advances in the nature of loans that are granted to promoters, directors, key managerial personnel (KMPs) and the
related parties either severally or jointly with any other person, that are: a) Repayable on demand or b) Without specifying any terms or
period of repayment.
(xi) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies
(Restriction on number of Layers) Rules, 2017.
(xii) The Company is not declared wilful defaulter by any bank or financial Institution or other lender.
N t Since the Company is systemically important non-deposit taking NBFC (NBFC-ND-SI), the ratios prescribed under division III of schedule III
o e are not applicable.
Note 49 Previous year''s figures have been regrouped, rearranged and / or reclassified wherever necessary.
Note 1. The Company does not have any customer interface and thus there are no complaints received by the company from customers and from the offices of
Ombudsman during the year ended 31 st March 2025 and 31 st March 2024.
As per our report of even date attached For and on behalf of the Board of Directors
For Akkad Mehta & Co. LLP
Chartered Accountants Devesh D Chaturvedi
ICAI Firm Registration No : 100259W/W100384 (Chairman) (DIN 00004793)
Yogendra Chaturvedi
(Executive Director) (DIN 00013613)
Nirav Mehta
Partner Daya Bhalia
Membership No. 152552 (Exec Director & Co Secretary) (DIN 07049483)
Lalit Shah
(Director) (DIN 08473788)
Devesh Vasavada
(Director) (DIN 00273128)
Seshagiri
(Director) (DIN 10774559)
Vishnu Dutt
(Director) (DIN 06702812)
Viraf Katrak
(CEO)
Place :- Mumbai Tarun Chaturvedi
Date :- May 28, 2025 (CFO)
Mar 31, 2024
(S) Provisions, contingent liabilities and contingent assets
The Company creates a provision when there is a present obligation as a result of past events and it is probable that there will be outflow of resources and a reliable estimate of the obligation can be made of the amount of the obligation. Contingent liabilities are not recognised but are disclosed in the notes to the Standalone Ind AS financial statements. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.
Contingent assets are not recognised nor disclosed in the Standalone Ind AS financial statements.
(T) Foreign currency translation
The Companyâs financial statements are presented in Indian Rupee, which is also the Companyâs functional currency. Initial recognition: Transactions denominated in foreign currencies are recorded at the exchange rate prevailing at the time of the transaction.
Conversion: Monetary assets and liabilities denominated in foreign currencies at the year end are restated at year end rates.
Exchange differences: All exchange differences are accounted in the Statement of Profit and Loss.
(U) Employee benefits
1) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employeesâ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled.
2) Post-employment obligations
i) Defined benefit plans Gratuity:
The Companyâs gratuity benefit scheme is a defined benefit plan. The Companyâs net obligation in respect of the gratuity benefit scheme is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any plan assets, if any, is deducted.
The present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the Projected Accrued Benefit Method (same as Projected Unit Credit Method), which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining the present value of the obligation under defined benefit plan, are based on the market yields on Government securities as at the balance sheet date.
Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.
Actuarial gains and losses are recognised immediately in the Statement of Profit and Loss.
ii) Defined contribution plans Provident fund:
Companyâs contributions to the recognised provident fund, which is a defined contribution scheme, are charged to the Statement of Profit and Loss.
(V) Earnings per share
1) Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to owners of the Company by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus element in equity shares issued during the year, if any.
2) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.
(W) Rounding of Amounts
All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakh upto two decimal points as per the requirements of Schedule III, unless otherwise stated.
(X) Critical estimates and judgments
The Company makes estimates and assumptions that affect the amounts recognised in the Standalone Ind AS financial statements, and the carrying amounts of assets and liabilities within the next financial year. Estimates and judgments are continually evaluated and are based on managementâs experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Management also makes certain judgments, apart from those involving estimations, in the process of applying the accounting policies. Judgments that have the most significant effect on the amounts recognised in the Standalone Ind AS financial statements and estimates that can cause a significant adjustment to the carrying amount of assets and liabilities within the next financial year include the following:
1) Estimation of fair value of unlisted investments
The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The Company uses its judgment to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period. For details of the key assumptions used and the impact of changes to these assumptions.
2) Current tax
Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. For the purpose of preparing Income Tax working, the Company has opted for the new taxation rates u/s 115BAA of the Income Tax Act, 1961.
3) Estimation of fair value of investments property
The Company has carried out the valuation activity to assess fair value of its Investment in land and property. Accordingly, fair value estimates for investment in land and property is classified as level 3.
The Company has obtained a Valuation Report from valuer to assess fair value of its Investment of property.
Nature and purpose of reserve:
a) Capital Reserve
Capital Reserves are mainly the reserves created during business combination for the gain on bargain purchase.
b) Securities Premium
Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.
c) General Reserve
The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.
d) Statutory Reserve Fund (As per RBI Guidelines)
Statutory reserve fund is created pursuant to section 45-IC of the Reserve Bank of India Act, 1934 for NBFC Companies.
e) Other Comprehensive Income (OCI)
FVOCI equity investments: The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the FVOCI equity investments reserve within equity. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised.
Other Comprehensive Income also represents actuarial gains / (losses) arising on recognition of defined benefit plans.
f) Retained Earnings
Retained earnings represents the surplus/(deficit) in profit and loss account and appropriations.
Note 34 Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (i.e., an exit price), regardless of whether that price is directly observable or estimated using a valuation technique.
In order to show how fair values have been derived, financial instruments are classified based on a hierarchy of valuation techniques.
1) Fair value hierarchy:
The Company determines fair value of its financial instruments according to following hierarchy:
Category includes financials assets and liabilities that are measured in whole or significant part by reference to published quotes in : an active market.
Category includes financials assets and liabilities that are measured using a valuation technique based on assumptions that are : supported by prices from observable current market transactions.
Category includes financials assets and liabilities that are measured using valuation techniques based on nonmarket observable inputs. This means that fair value are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available : market data. The main asset classes in this category are unlisted equity investments as well as unlisted funds. Company has used discounted cash flow, comparable company analysis, net asset value method and valuation report of independent valuers where ever possible.
Note 35 Financial risk management
Shardul Securities Limited (âthe Company'') is registered as Non-Banking Financial Company (NBFC) as defined under Section 45-IA of the Reserve Bank of India Act, 1934 (RBI). It''s a Non-Systemically Important Non-Deposit taking NBFC Company.
The Company is exposed to market risk, credit risk, liquidity & interest rate risk and capital management risk. The Company''s risk management function is carried out by the Risk Management Committee by evaluating financial risks and the appropriate governance framework for the Company. The Risk Management Committee provides assurance to the Board that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The major risks are summarised below:
Market Risk:
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. The Company has quoted investments and investment in bullions which are exposed to fluctuations in stock prices. The company continuously monitors market exposure and, in appropriate cases, also uses various derivative instruments as a hedging mechanism to limit volatility. The unquoted redeemable non-convertible Preference Shares and unquoted investment in various funds are measured at fair value through profit or loss. The fair values of these investments are regularly monitored.
Credit Risk:
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Credit risk arises mainly from loans and advances, and loan commitments arising from such lending activities, but can also arise from credit enhancement provided, such as financial guarantees, letters of credit, endorsements and acceptances. The Company has very insignificant exposure to loans given or taken hence exposure to such risk is very negligible.
Credit risk is one of the major risk for the Company''s business, management therefore carefully manages its exposure to credit risk. This risk is comprehensively addressed both at the strategic level and at the client level. There is a framework with risk oversight being provided by the Risk Management. During the year the Company has adopted the Ind AS while identifying and providing for the Expected Credit Losses (ECL). Regular portfolio risk analysis is done various financial and policy parameters for making required changes in the credit policy as a proactive approach to risk management. The assessment of credit risk of a portfolio of assets entails further estimations as to the likelihood of defaults occurring, of the associated loss ratios and of default correlations. The Company measures credit risk using Probability of Default (PD), Exposure at Default (EAD) and Loss Given Default (LGD). This is similar to the approach used for the purposes of measuring Expected Credit Loss (ECL) under Ind AS 109.
Liquidity and Interest Rate Risk:
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. While interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to liquidity or interest rate risk, however the Management is continuously evaluating the risks, if any.
The Company is exposed to liquidity risk principally, as a result of lending and investment for periods which may differ from those of its funding sources. Treasury teams actively manage asset liability positions in compliance with the ALM policy of the company laid down in accordance overall guidelines issued by RBI in the Asset Liability Management (ALM) framework.
The Company may be impacted by volatility in interest rates in India which could cause its margins to decline and profitability to shrink. It is exposed to interest rate risk, both as a result of lending at fixed interest rates and for reset periods which may differ from those of its funding sources. The Company seeks to match its interest rate positions of assets and liabilities to minimize interest rate risk. Further, an interest rate sensitivity gap report is prepared by classifying all rate sensitive assets and rate sensitive liabilities into various time period categories The difference in the amount of rate sensitive assets and rate sensitive liabilities maturing or being re-priced in any time period category, gives an indication of the extent of exposure to the risk of potential changes in the margins on new or re-priced assets and liabilities Interest rate risk is measured on a bi -annual basis and filed with regulator.
Currency Risk:
Exchange rate volatility imparts a new dimension to the risk profile of an NBFC''s balance sheets having foreign assets or liabilities. The Company is not exposed to currency risk as it has no foreign assets or liabilities.
Capital Management Risk:
The Reserve Bank of India (RBI) sets and monitors capital adequacy requirements for the Company from time to time. As per regulations prescribed by Reserve Bank of India, the Company''s minimum prescribed regulatory capital is holding Net Owned Funds of Rs. 200 Lakh. The Companies policies in respect of capital management and allocation are reviewed regularly by the Board of Directors and hence, increase in capital is planned well in advance to ensure adequate funding for its growth.
Ind AS 109 outlines a âthree-stage'' model for impairment based on changes in credit quality since initial recognition as summarised below, The objective of the impairment requirements is to recognise lifetime expected credit losses for all financial instruments for which there have been significant increases in credit risk since initial recognition - whether assessed on an individual or collective basis - considering all reasonable and supportable information, including that which is forward-looking.
A financial instrument that is not credit-impaired on initial recognition is classified in âStage 1'' and has its credit risk continuously monitored by the Company.
If significant increases in credit risk (âSICR'') since initial recognition is identified, the financial instrument is moved to âStage 2'' but is not yet deemed to be credit-impaired.
If the financial instrument is credit-impaired, the financial instrument is then moved to âStage 3''. Financial instruments in Stage 1 have their ECL measured at an amount equal to 12 month ECLs. Instruments in Stages 2 or 3 have their ECL measured based on expected credit losses on a lifetime basis. Purchased or originated credit-impaired financial assets are those financial assets that are credit impaired on initial recognition. Their ECL is always measured on a lifetime basis (Stage 3).
The measurement of ECL is calculated using three main components: (i) Probability of Default (PD) (ii) Loss Given Default (LGD) and (iii) the Exposure At Default (EAD).
The 12 month ECL is calculated by multiplying the 12 month PD, LGD and the EAD. The 12 month and lifetime PDs represent the PD occurring over the next 12 months and the remaining maturity of the instrument respectively. The EAD represents the expected balance at default, taking into account the repayment of principal and interest from the balance sheet date to the default event together with any expected drawdowns of committed facilities. The LGD represents expected losses on the EAD given the event of default, taking into account, among other attributes, the mitigating effect of collateral value at the time it is expected to be realised and the time value of money.
i) Probability of default (PD) represents the likelihood of a borrower defaulting on its financial obligation, either over the next 12 months (12M PD), or over the remaining lifetime (Lifetime PD) of the obligation.
ii) Exposure At default (EAD) is the total amount of an asset the entity is exposed to at the time of default. EAD is defined based on the characteristics of the asset. EAD is dependent on the outstanding exposure of an asset, sanctioned amount of a loan and credit conversion factor for non-funded exposures.
iii) Loss given default (LGD) It is the part of an asset that is lost provided the asset default. The recovery rate is derived as a ratio of discounted value of recovery cash flows (incorporating the recovery time) to total exposure amount at the time of default. Recovery rate is calculated for each segment separately. Loss given default is computed as (1 - recovery rate) in percentage terms.
The Company assesses when a significant increase in credit risk has occurred based on quantitative and qualitative assessments. Exposures are considered to have resulted in a significant increase in credit risk and are moved to Stage 2 when:
i. Quantitative test: Accounts that are 30 calendar days or more past due move to Stage 2 automatically. Accounts that are 90 calendar days or more past due move to Stage 3 automatically.
ii. Qualitative test: Accounts that meet the portfolio''s âhigh risk'' criteria and are subject to closer credit monitoring. High risk customers may not be in arrears but either through an event or an observed behavior exhibit credit distress.
iii. Reversal in Stages: Exposures will move back to Stage 2 or Stage 1 respectively, once they no longer meet the quantitative criteria set out above. For exposures classified using the qualitative test, when they no longer meet the criteria for a significant increase in credit risk.
Collateral and other credit enhancements:
The Company employs a range of policies and practices to mitigate credit risk. The most common of these is accepting collateral for funds advanced. The principal collateral types for loans and advances are:
i) Charges over business assets such as premises, inventory and accounts receivable; and
ii) Charges over financial instruments such as debt securities and equities.
Longer-term finance and lending to corporate entities are generally secured.
The Company''s policies regarding obtaining collateral have not significantly changed during the reporting period and there has been no significant change in the overall quality of the collateral held by the Company since the prior period.
The Company closely monitors collateral held for financial assets considered to be credit-impaired, as it becomes more likely that the Company will take possession of collateral to mitigate potential credit losses. Financial assets that are credit-impaired and related collateral held in order to mitigate potential losses.
Write-off policy:
The Company writes off financial assets, in whole or in part, when it has exhausted all practical recovery efforts and has concluded there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include (i) ceasing enforcement activity and (ii) where the Company''s recovery method is foreclosing on collateral and the value of the collateral is such that there is no reasonable expectation of recovering in full.
Note 39 Capital management:
The Company''s objective is to maintain appropriate levels of capital to support its business strategy taking into account the regulatory, economic and commercial environment. The Company aims to maintain a strong capital base to support the risks inherent to its business and growth strategies. The Company endeavors to maintain a higher capital base than the mandated regulatory capital at all times. No changes have been made to the objectives, policies and processes from the previous years. However, they are under constant review by the Board.
The Company''s assessment of capital requirement is aligned to its planned growth which forms part of an annual operating plan which is approved by the Board and also a long range strategy. These growth plans are aligned to assessment of risks- which include credit, liquidity and interest rate.
The Company monitors its capital regularly, and hence, increase in capital is planned well in advance to ensure adequate funding for its growth.
Note 43 Disputed Tax Liabilities:
The Income-Tax assessments of the company have been completed. The disputed demands outstanding is Rs. 1307.03 Lakh against which company has paid/adjusted Rs. Nil Lakh under protest. Based on the decision of the Appellate Authorities and the interpretations of the relevant provisions, the company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.
Note 44 Pronouncements issued but not effective:
a) The Code on Social Security, 2020
The Parliament of India has approved the Code on Social Security, 2020 (the Code) which may impact the contributions by the Company towards gratuity and other statutory dues payable to employee . The Code has been published in the Gazette of India however, the effective date has not yet been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective, if any.
b) Newly issued standards
There were no standards notified by the Ministry of Corporate Affairs (MCA) during the year ended March 31, 2024.
c) Amendments in prevailing standards but not effective
Ministry of Corporate Affairs (MCA) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31,2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015. The effective date for adoption of these amendments is annual period beginning on or after April 1, 2023. The significant amendments are as below:
i) Ind AS 1 - Presentation of Financial Statements
This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies. The Company has evaluated the amendment and the impact of the amendment is insignificant on its financial statements.
ii) Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors
This amendment has introduced a definition of âaccounting estimates'' and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates. The Company has evaluated the amendment and the impact of the amendment is insignificant on its financial statements.
iii) Ind AS 12 - Income Taxes
This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. The Company has evaluated the amendment and the impact of the amendment is insignificant on its financial statements.
Note 45
CSR Expenditure include expenditure related to Corporate Social Responsibility as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof: Rs. Nil Lakh (P.Y. Rs. Nil Lakh).
Gross amount required to be spent as per aforesaid provision is Rs. Nil Lakh.
Note 46
The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the provison to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled. The Company, in respect of financial year commencing on 1 April 2023 has used an accounting software "TallyPrime 4.0" for maintaining its books of account.The Company has migrated to a new accounting software âTally Prime (Edit log) 4.0'' only for some part of the year which maintains the audit trail (edit log).
Note 47 Other Statutory Information - General
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
(ii) There are no balances outstanding on account of any transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or;
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or;
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(vii) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
(viii) The Company has borrowed from banks and financial institutions for specific purpose during the financial year. This Loan are not in the nature of working capital loans which is generally issued against the security of current assets.
(ix) There is no immovable property whose title deeds are not held in the name of the Company.
(x) There are no loans or advances in the nature of loans that are granted to promoters, directors, key managerial personnel
(KMPs) and the related parties either severally or jointly with any other person, that are: a) Repayable on demand or b) Without specifying any terms or period of repayment.
(xi) The Company does not have borrowings from banks or financial institutions on the basis of security of current assets.
(xii) The Company is not declared wilful defaulter by any bank or financial Institution or other lender.
Note 48 Since the Company is non-systemically important non-deposit taking NBFC, the ratios prescribed under division III of schedule III are not applicable.
Note 49 Previous year''s figures have been regrouped, rearranged and / or reclassified wherever necessary.
As per our report of even date For and on behalf of the Board of Directors
For Akkad Mehta & Co. LLP
Chartered Accountants Yogendra Chaturvedi
ICAI Firm Registration No : 100259W/W100384 (Executive Director & CEO) (DIN 00013613)
Daya Bhalia
(Exec Director & Co Secretary) (DIN 07049483)
Nirav Mehta Charul Abuwala
Partner (Director) (DIN 00071142)
Membership No. 152552 Lalit Shah
(Director) (DIN 08473788)
Devesh Vasavada (Director) (DIN 00273128)
Viraf Katrak
(CEO)
Place :- Mumbai Tarun Chaturvedi
Date :- May 30, 2024 (CFO)
Mar 31, 2023
1. No trade or other receivables are due from directors or other officers of the Company either severally or jointly with any other person. Nor any trade or other receivables are due from firms or private companies respectively in which any director is a partner, a director or a member.
2. Impairment loss allowance recognised on trade and other receivables is Rs. Nil Lakh (Previous year: Rs. Nil Lakh)
3. Ageing: # All Trade Receivables are outstanding for a period of less than 6 months from the due date of payment.
(C) Par value per share:
The par value of Equity Shares is Rs.10/-.
(D) The rights, preferences and restrictions attached to each class of shares including to restrictions on the distribution of dividends and repayment of capital:
Equity Shares- The Company has only one class of equity shares. Each holder of equity shares is entitled to one vote per share. The equity shareholders are entitled to dividend only if dividend in a particular financial year is recommended by the Board of Directors and approved by the members at the annual general meeting of that year. In case of winding up, if the assets available for distribution are less than the paid up share capital, then the shortfall will be borne by the members proportionately. Where there is an excess, the same shall be distributed proportionately among the members.
(E) Details of Shares held by Holding or Ultimate Holding Company (including their Subsidiary or Associates)
Shares Held Nil (P.Y. Nil)
Nature and purpose of reserve:
a) Capital Reserve
Capital Reserves are mainly the reserves created during business combination for the gain on bargain purchase.
b) Securities Premium
Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.
c) General Reserve
The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.
d) Statutory Reserve Fund (As per RBI Guidelines)
Statutory reserve fund is created pursuant to section 45-IC of the Reserve Bank of India Act, 1934 for NBFC Companies.
e) Other Comprehensive Income (OCI)
FVOCI equity investments: The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the FVOCI equity investments reserve within equity. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised.
Other Comprehensive Income also represents actuarial gains / (losses) arising on recognition of defined benefit plans.
f) Retained Earnings
Retained earnings represents the surplus/(deficit) in profit and loss account and appropriations.
Note 30 Employee Benefits
The Company has classified the various benefits provided to employees as under:
(A) Defined contribution plans
The Company has a defined contribution plan in respect of provident fund. Contributions are made to provident fund in India for employees as per regulations. The contributions are made to registered provident fund administered by the Government. The obligation of the company is limited to the amount contributed and it has no further contractual nor any constructive obligation.
(B) Defined Benefit Plans:
Gratuity:
The employees'' gratuity fund scheme managed by LIC (insurer) is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Accrued Benefit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined obligation calculated with the projected unit credit method at the end of reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (i.e., an exit price), regardless of whether that price is directly observable or estimated using a valuation technique.
In order to show how fair values have been derived, financial instruments are classified based on a hierarchy of valuation techniques.
1) Fair value hierarchy:
The Company determines fair value of its financial instruments according to following hierarchy:
Category includes financials assets and liabilities that are measured in whole or significant part by reference to published quotes in : an active market.
Category includes financials assets and liabilities that are measured using a valuation technique based on assumptions that are : supported by prices from observable current market transactions.
Category includes financials assets and liabilities that are measured using valuation techniques based on nonmarket observable inputs. This means that fair value are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. The main asset classes in this category are unlisted equity investments as well as unlisted funds. Company has used discounted cash flow, comparable company analysis, net asset value method and valuation report of independent valuers where ever possible.
Fair value of cash and cash equivalents, bank balances, trade & other receivables, other financial assets, trade payables and other financial liabilities approximate their carrying amounts largely due to current maturities of these instruments. Accordingly, fair value hierarchy for these financial instruments have not been presented above.
Note 35 Financial risk management
Shardul Securities Limited (âthe Company'') is registered as Non-Banking Financial Company (NBFC) as defined under Section 45-IA of the Reserve Bank of India Act, 1934 (RBI). It''s a Non-Systemically Important Non-Deposit taking NBFC Company.
The Company is exposed to market risk, credit risk, liquidity & interest rate risk and capital management risk. The Company''s risk management function is carried out by the Risk Management Committee by evaluating financial risks and the appropriate governance framework for the Company. The Risk Management Committee provides assurance to the Board that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The major risks are summarised below:
Market Risk:
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. The Company has quoted investments and investment in bullions which are exposed to fluctuations in stock prices. The company continuously monitors market exposure and, in appropriate cases, also uses various derivative instruments as a hedging mechanism to limit volatility. The unquoted redeemable non-convertible Preference Shares and unquoted investment in various funds are measured at fair value through profit or loss. The fair values of these investments are regularly monitored.
Credit Risk:
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Credit risk arises mainly from loans and advances, and loan commitments arising from such lending activities, but can also arise from credit enhancement provided, such as financial guarantees, letters of credit, endorsements and acceptances. The Company has very insignificant exposure to loans given or taken hence exposure to such risk is very negligible.
Credit risk is one of the major risk for the Company''s business, management therefore carefully manages its exposure to credit risk. This risk is comprehensively addressed both at the strategic level and at the client level. There is a framework with risk oversight being provided by the Risk Management. During the year the Company has adopted the Ind AS while identifying and providing for the Expected Credit Losses (ECL). Regular portfolio risk analysis is done various financial and policy parameters for making required changes in the credit policy as a proactive approach to risk management. The assessment of credit risk of a portfolio of assets entails further estimations as to the likelihood of defaults occurring, of the associated loss ratios and of default correlations. The Company measures credit risk using Probability of Default (PD), Exposure at Default (EAD) and Loss Given Default (LGD). This is similar to the approach used for the purposes of measuring Expected Credit Loss (ECL) under Ind AS 109.
Liquidity and Interest Rate Risk:
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. While interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to liquidity or interest rate risk, however the Management is continuously evaluating the risks, if any.
The Company is exposed to liquidity risk principally, as a result of lending and investment for periods which may differ from those of its funding sources. Treasury teams actively manage asset liability positions in compliance with the ALM policy of the company laid down in accordance overall guidelines issued by RBI in the Asset Liability Management (ALM) framework.
The Company may be impacted by volatility in interest rates in India which could cause its margins to decline and profitability to shrink. It is exposed to interest rate risk, both as a result of lending at fixed interest rates and for reset periods which may differ from those of its funding sources. The Company seeks to match its interest rate positions of assets and liabilities to minimize interest rate risk. Further, an interest rate sensitivity gap report is prepared by classifying all rate sensitive assets and rate sensitive liabilities into various time period categories The difference in the amount of rate sensitive assets and rate sensitive liabilities maturing or being re-priced in any time period category, gives an indication of the extent of exposure to the risk of potential changes in the margins on new or re-priced assets and liabilities Interest rate risk is measured on a bi -annual basis and filed with regulator.
Currency Risk:
Exchange rate volatility imparts a new dimension to the risk profile of an NBFC''s balance sheets having foreign assets or liabilities. The Company is not exposed to currency risk as it has no foreign assets or liabilities.
Capital Management Risk:
The Reserve Bank of India (RBI) sets and monitors capital adequacy requirements for the Company from time to time. As per regulations prescribed by Reserve Bank of India, the Company''s minimum prescribed regulatory capital is holding Net Owned Funds of Rs. 200 Lakh. The Companies policies in respect of capital management and allocation are reviewed regularly by the Board of Directors and hence, increase in capital is planned well in advance to ensure adequate funding for its growth.
Ind AS 109 outlines a âthree-stage'' model for impairment based on changes in credit quality since initial recognition as summarised below, The objective of the impairment requirements is to recognise lifetime expected credit losses for all financial instruments for which there have been significant increases in credit risk since initial recognition - whether assessed on an individual or collective basis - considering all reasonable and supportable information, including that which is forward-looking.
A financial instrument that is not credit-impaired on initial recognition is classified in âStage 1'' and has its credit risk continuously monitored by the Company.
If significant increases in credit risk (âSICR'') since initial recognition is identified, the financial instrument is moved to âStage 2'' but is not yet deemed to be credit-impaired.
If the financial instrument is credit-impaired, the financial instrument is then moved to âStage 3''. Financial instruments in Stage 1 have their ECL measured at an amount equal to 12 month ECLs. Instruments in Stages 2 or 3 have their ECL measured based on expected credit losses on a lifetime basis. Purchased or originated credit-impaired financial assets are those financial assets that are credit impaired on initial recognition. Their ECL is always measured on a lifetime basis (Stage 3).
The measurement of ECL is calculated using three main components: (i) Probability of Default (PD) (ii) Loss Given Default (LGD) and (iii) the Exposure At Default (EAD).
The 12 month ECL is calculated by multiplying the 12 month PD, LGD and the EAD. The 12 month and lifetime PDs represent the PD occurring over the next 12 months and the remaining maturity of the instrument respectively. The EAD represents the expected balance at default, taking into account the repayment of principal and interest from the balance sheet date to the default event together with any expected drawdowns of committed facilities. The LGD represents expected losses on the EAD given the event of default, taking into account, among other attributes, the mitigating effect of collateral value at the time it is expected to be realised and the time value of money.
i) Probability of default (PD) represents the likelihood of a borrower defaulting on its financial obligation, either over the next 12 months (12M PD), or over the remaining lifetime (Lifetime PD) of the obligation.
ii) Exposure At default (EAD) is the total amount of an asset the entity is exposed to at the time of default. EAD is defined based on the characteristics of the asset. EAD is dependent on the outstanding exposure of an asset, sanctioned amount of a loan and credit conversion factor for non-funded exposures.
iii) Loss given default (LGD) It is the part of an asset that is lost provided the asset default. The recovery rate is derived as a ratio of discounted value of recovery cash flows (incorporating the recovery time) to total exposure amount at the time of default. Recovery rate is calculated for each segment separately. Loss given default is computed as (1 - recovery rate) in percentage terms.
The Company assesses when a significant increase in credit risk has occurred based on quantitative and qualitative assessments. Exposures are considered to have resulted in a significant increase in credit risk and are moved to Stage 2 when:
i. Quantitative test: Accounts that are 30 calendar days or more past due move to Stage 2 automatically. Accounts that are 90 calendar days or more past due move to Stage 3 automatically.
ii. Qualitative test: Accounts that meet the portfolio''s âhigh risk'' criteria and are subject to closer credit monitoring. High risk customers may not be in arrears but either through an event or an observed behavior exhibit credit distress.
iii. Reversal in Stages: Exposures will move back to Stage 2 or Stage 1 respectively, once they no longer meet the quantitative criteria set out above. For exposures classified using the qualitative test, when they no longer meet the criteria for a significant increase in credit risk.
Collateral and other credit enhancements:
The Company employs a range of policies and practices to mitigate credit risk. The most common of these is accepting collateral for funds advanced. The principal collateral types for loans and advances are:
i) Charges over business assets such as premises, inventory and accounts receivable; and
ii) Charges over financial instruments such as debt securities and equities.
Longer-term finance and lending to corporate entities are generally secured.
The Company''s policies regarding obtaining collateral have not significantly changed during the reporting period and there has been no significant change in the overall quality of the collateral held by the Company since the prior period.
The Company closely monitors collateral held for financial assets considered to be credit-impaired, as it becomes more likely that the Company will take possession of collateral to mitigate potential credit losses. Financial assets that are credit-impaired and related collateral held in order to mitigate potential losses.
Write-off policy:
The Company writes off financial assets, in whole or in part, when it has exhausted all practical recovery efforts and has concluded there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include (i) ceasing enforcement activity and (ii) where the Company''s recovery method is foreclosing on collateral and the value of the collateral is such that there is no reasonable expectation of recovering in full.
(v) Stock Ratios:
(a) As at 31st March, 2023 The Commercial Papers issued by the Company - Nil.
(b) As at 31st March, 2023 Outstanding Non-Convertible Debentures with original maturity of less than one year - Nil.
(c) Other short-term liabilities, if any as a % of total public funds, total liabilities and total assets - Nil.
(vi) Institutional Set-up for Liquidity Risk Management
The Company''s risk management function is carried out by the Risk Management Committee by evaluating financial risks and the appropriate governance framework for the Company. The Risk Management Committee provides assurance to the Board that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives.
Notes:
(a) All quoted investments measured at FVPL have been included in less than 1 month bucket considering its liquidity. All unquoted equity shares / funds including investment in subsidiaries & all quoted investments measured at FVOCI have been included in ''Over 5 years''. The maturity pattern has been prepared in line with various regulations issued by RBI from time to time, best practices & based upon best estimate of the management with regard to the timing of various cash flows.
(b) The classification of Assets and Liabilities into current and non-current is carried out based on their residual maturity profile as per requirement of Schedule III to the Companies Act, 2013. The above maturity pattern of assets and liabilities has been prepared by the Company after taking into consideration guidelines for Maturity Profile - Liquidity given under master directions issued by RBI, best practices and best estimate of the Assets-Liability Committee /management with regard to the timing of various cash flows.
Note 39 Capital management:
The Company''s objective is to maintain appropriate levels of capital to support its business strategy taking into account the regulatory, economic and commercial environment. The Company aims to maintain a strong capital base to support the risks inherent to its business and growth strategies. The Company endeavors to maintain a higher capital base than the mandated regulatory capital at all times. No changes have been made to the objectives, policies and processes from the previous years. However, they are under constant review by the Board.
The Company''s assessment of capital requirement is aligned to its planned growth which forms part of an annual operating plan which is approved by the Board and also a long range strategy. These growth plans are aligned to assessment of risks- which include credit, liquidity and interest rate.
The Company monitors its capital regularly, and hence, increase in capital is planned well in advance to ensure adequate funding for its growth.
Note 43 Disputed Tax Liabilities:
The Income-Tax assessments of the company have been completed. The disputed demands outstanding is Rs. 863.42 Lakh against which company has paid/adjusted Rs. Nil Lakh under protest. Based on the decision of the Appellate Authorities and the interpretations of the relevant provisions, the company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.
Note 44 Pronouncements issued but not effective:
a) The Code on Social Security, 2020
The Parliament of India has approved the Code on Social Security, 2020 (the Code) which may impact the contributions by the Company towards gratuity and other statutory dues payable to employee . The Code has been published in the Gazette of India however, the effective date has not yet been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective, if any.
b) Newly issued standards
There were no standards notified by the Ministry of Corporate Affairs (MCA) during the year ended March 31, 2023.
c) Amendments in prevailing standards but not effective
Ministry of Corporate Affairs (MCA) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015. The effective date for adoption of these amendments is annual period beginning on or after April 1, 2023. The significant amendments are as below:
i) Ind AS 1 - Presentation of Financial Statements
This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies. The Company has evaluated the amendment and the impact of the amendment is insignificant on its financial statements.
ii) Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors
This amendment has introduced a definition of ''accounting estimates'' and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates. The Company has evaluated the amendment and the impact of the amendment is insignificant on its financial statements.
iii) Ind AS 12 - Income Taxes
This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. The Company has evaluated the amendment and the impact of the amendment is insignificant on its financial statements.
Note 45
CSR Expenditure include expenditure related to Corporate Social Responsibility as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof: Rs. Nil Lakh (P.Y. Rs. Nil Lakh).
Gross amount required to be spent as per aforesaid provision is Rs. Nil Lakh.
Note 46 Other Statutory Information - General
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
(ii) There are no balances outstanding on account of any transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or;
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or;
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(vii) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
(viii) The Company has not borrowed from banks and financial institutions for any specific purpose during the financial year.
(ix) There is no immovable property whose title deeds are not held in the name of the Company.
(x) There are no loans or advances in the nature of loans that are granted to promoters, directors, key managerial personnel
(KMPs) and the related parties either severally or jointly with any other person, that are: a) Repayable on demand or b) Without specifying any terms or period of repayment.
(xi) The Company does not have borrowings from banks or financial institutions on the basis of security of current assets.
(xii) The Company is not declared wilful defaulter by any bank or financial Institution or other lender.
Note 47 Since the Company is non-systemically important non-deposit taking NBFC, the ratios prescribed under division III of schedule III are not applicable.
Note 48 Previous year''s figures have been regrouped, rearranged and / or reclassified wherever necessary.
Mar 31, 2018
(A) Par value per share:
The par value of Equity Shares is Rs.10/-.
(B) The rights, preferences and restrictions attaching to each class of shares including to restrictions on the distribution of dividends and repayment of capital:
Equity Shares- The Company has only one class of equity shares. Each holder of equity shares is entitled to one vote per share. The equity shareholders are entitled to dividend only if dividend in a particular financial year is recommended by the Board of Directors and approved by the members at the annual general meeting of that year. In case of winding up, if the assets available for distribution are less than the paid up share capital, then the shortfall will be borne by the members proportionately. Where there is an excess, the same shall be distributed proportionatley among the members.
Note 1
The Company has followed the Reserve Bank of India Guidelines applicable to the Non Banking Financial Companies in respect of prudential norms for Income Recognition, Assets Classification and Capital Adequacy.
Note 2
The Company has followed Accounting Standard 15(revised), Accounting for Retirement benefits.
i) Contribution to Provident Fund of Rs. 1.60 Lakh (P. Y Rs. 1.40 lakh) is charged to the Statement of Profit and Loss as per applicable law / rules.
ii) The Company has taken Group Gratuity scheme of Life Insurance Corporation of India for Gratuity payable to the employees. Liability for the year end obligation, based on an actuarial valuation as per the projected unit credit method as at the reporting date, is charged to the Statement of Profit and Loss. And accordingly Provision for the gratuity liability amounting to Rs. 0.04 Lakh (P.Y Rs. 0.04 lakh) has been made during the year by the company based on the valuation report of the Life Insurance Corporation (Actuarial Valuer).
iii) The Company belongs to an industry which faces a high attrition rate and hence the leave balance accrued is either availed or fully paid off.
Note 3
Directors Remuneration :
Salary to Executive Directors as under (include under the head payment to employees):
Information relating to the payment to Executive Directors does not include payment for gratuity, which is provided for group of employees on an overall basis and as per the actuarial valuation report of the Life Insurance Corporation of India.
During the year, remuneration paid to the directors are within the prescribed limit of section 196,197 & 203 read with Schedule V of the Companies Act, 2013.
Note 4
The Company is mainly engaged in the business of Investment Activities in India. All activities of the Company revolve around this main business, and as such, there are no separate reportable segments as per Accounting Standard (AS) 17 on âSegment Reportingâ.
*Bank Guarantee of Rs 1,500 Lakh is executed by the Shriyam Broking Intermediary Limited (SBIL), the subsidiary company and backed up by the Company in the form of Corporate Guarantee. Out of that Rs 1,141.27 Lakh is backed up by FD & Lien of Shares held as Investments by SBIL and exposure to the extent of Balance of Rs 358.73 Lakh remains as contingent with the Company.
Note 5
Disputed Tax Liabilities:
The Income-Tax assessments of the company have been completed up to the assessment year 2015-16.The disputed demand outstanding up to the said assessment year is Rs. 27.58 Lakh against which company has paid Rs. 4.39 Lakh under protest. Based on the decision of the Appellate Authorities and the interpretations of the relevant provisions, the company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.
Note 6
MAT credit entitlement of Rs. 359.91 Lakh as per the returns filed upto assessment year 2017-18 is not considered in absence of certainty of encashment considering companyâs substantial exposure to equity market.
Note 7
CSR Expenditure include expenditure related to Corporate Social Responsibility as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof: Rs. 7.60 Lakh (P.Y. Rs. 13.75 Lakh).
Gross amount required to be spent as per aforesaid provision is Rs. 7.55 Lakh.
Note 8
Details of Loans given, Investments made, Guarantees given and Securities provided during the year covered under Section 186(4) of the Companies Act, 2013:
i) Loans given by company to body corporates as at 31st March, 2018 - (Refer Note No. 14.1)
ii) Investment made by Company as at 31st March, 2018 - (Refer Note No. 9)
Note 9
Unhedge foreign currency exposure as at 31st March, 2018 is Rs. Nil (P.Y. Rs. Nil)
Note 10
Previous yearâs figures have been regrouped, rearranged and / or reclassified wherever necessary.
Note 11
Disclosure of details as required by Revised Para 13 of Non Banking financial Companies Prudential Norms (Reserve Bank) Directions, 2007, earlier Para 9BB of Non Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998.
Notes :
1 As defined in point xix of paragraph 3 of Chapter -2 of these Directions.
2 Provisioning norms shall be applicable as prescribed in these Directions.
3 All Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation of investments and other assets as also assets acquired in satisfaction of debt. However, market value in respect of quoted investments and break up / fair value / NAV in respect of unquoted investments shall be disclosed irrespective of whether they are classified as long term or current in (5) above.
Mar 31, 2016
Note 1
In the opinion of the Board, the Current Assets, Loans & Advances are approximately of the value stated, if realized in the ordinary course of business. The provisions of all known liabilities are adequate and neither in excess of or nor short of the amounts reasonably necessary
Note 2
Related Party Disclosures:
List of related parties with whom transactions have taken place during the year:
i) Subsidiary :
Shriyam Broking Intermediary Limited.
ii) Key Managerial Personnel:
Mr. R. Sundaresan - Executive Chairman
Mr. Yogendra Chaturvedi - Executive Director (w.e.f. 05/02/2016)
Ms. Monika Agrawal - Executive Director & Co Secretary
Mr. Saurabh Chaturvedi - CFO
iii) Transactions during the year with related parties. (Reimbursement of expenses has not been treated as related party transactions.
Significant Related Party Transactions during the year:
3. Payment and provision for remuneration and services, includes Rs. 9.80 lacs as Salary paid to Shri R. Sundaresan, Executive Director, Rs. 0.70 lacs as Salary paid to Mr Yogendra Chaturvedi, Executive Director, Rs. 10.72 lacs as Salary paid to Ms Monika Agrawal, Executive Director & Company Secretary and Rs. 10.62 lacs paid to Shri Saurabh Chaturvedi, CFO.
4. Expenses for Trading Activities includes Rs 5.50 lacs paid to Shriyam Broking Intermediary Ltd. Subsidiary Company.
Note 5
In the opinion of the management, the Company is mainly engaged in the business of Investment Activities and all other activities of the Company revolve around the main business, and as such, there are no separate reportable segments as per Accounting Standard (AS) 17 on âSegment Reportingâ.
Note 6
Disclosure of loans / advances and investments in its own shares by the listed companies, their subsidiary, associates etc. (as certified by the management)
(Figures in bracket indicate figures of previous year).
Note 7
The Company has followed Accounting Standard 15(revised), Accounting for Retirement benefits.
- Contribution to Provident Fund of Rs. 1.13 lacs is charged to the Statement of Profit and Loss as per applicable law / rules.
- The Company has taken Group Gratuity scheme of Life Insurance Corporation of India for gratuity payable to the employees. Liability for the year end obligation, based on an actuarial valuation as per the projected unit credit method as at the reporting date, is charged to the Statement of Profit and Loss. And accordingly Provision for the gratuity liability amounting to Rs. 0.96 lacs has been made during the year by the company based on the valuation report of the Life Insurance Corporation (Actuarial Valuer).
- The Company belongs to an industry which faces a high attrition rate and hence the leave balance accrued is either availed or fully paid off.
Directors Remuneration :
Salary to Executive Directors as under (include under the head payment to employees):-
Shri R. Sundaresan Rs. 9.80 Lacs ( P.Y. Rs. 6.50 Lacs )
Shri Yogendra Chaturvedi Rs. 0.70 Lacs ( P.Y. Rs. Nil )
Ms. Monika Agrawal Rs. 10.72 Lacs ( P.Y. Rs. 9.50 Lacs )
Information relating to the payment to Executive Directors does not include payment for gratuity, which is provided for group of employees on an overall basis and as per the actuarial valuation report of the Life Insurance Corporation of India.
During the year, remuneration paid to the directors are within the prescribed limit of section 196,197 & 203 read with Schedule V of the Companies Act, 2013.
Note 8
During the year under review, Company has transferred some of its Stock in trade into Investments at cost. There is no impact on the Statement of Profit and Loss for the said transfers.
MAT credit entitlement of Rs. 363.81 lacs as per the returns filed up to assessment year 2015 - 16 is not considered in absence of certainty of encashment considering company''s substantial exposure to equity market.
Note 9
There is no dues to Micro, Small & Medium Enterprises for the year under review.
Note 10
Previous year''s figures have been regrouped, rearranged and / or reclassified wherever necessary.
Note 11
Disclosure of details as required by Revised Para 13 of Non Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 2007, earlier Para 9BB of Non Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998.
Mar 31, 2015
1. The Company has followed the Reserve Bank of India Guidelines
applicable to the Non Banking Financial Companies in respect of
prudential norms for Income Recognition, Assets Classification and
Capital Adequacy.
2. In the opinion of the Board, the Current Assets, Loans & Advances are
approximately of the value stated, if realised in the ordinary course
of business. The provisions of all known liabilities are adequate and
neither in excess of or nor short of the amounts reasonably necessary.
3. Related Party Disclosures:
List of related parties with whom transactions have taken place during
the year:
i) Subsidiary :
Shriyam Broking Intermediary Limited.
ii) Group Cos or Firms/Associate Co Chaturvedi & Shah
Antique Finance Pvt Ltd (upto 29/03/15)
iii) Key Managerial Personnel:
Mr R. Sundaresan - Executive Director
Ms Monika Agarwal - Executive Director & Company Secretary
w.e.f. 11/02/15
Mr Saurabh Chaturvedi - CFO
4. Significant Related Party Transactions during the year:
1. Payment and provision for remuneration and services, includes Rs.
6.50 lacs as Salary paid to Shri R. Sundaresan, Executive Director, Rs.
9.50 lacs as Salary paid to Ms Monika Agarwal, Executive Director &
Company Secretary and Rs. 10.00 lacs paid to Shri Saurabh Chaturvedi,
CFO.
2. Expenses for Trading Activities includes Rs 8.10 lacs paid to
Shriyam Broking Intermediary Ltd. Subsidiary Company.
3. Income from Compensation includes Rs. 96.00 lacs received from
Chaturvedi & Shah, and Rs. 1.00 Lac from Antique Finance Pvt Ltd.
(Excluding Service Tax).
5. In the opinion of the management, the Company is mainly engaged in
the business of Investment Activities and all other activities of the
Company revolve around the main business, and as such, there are no
separate reportable segments as per Accounting Standard (AS) 17 on
"Segment Reporting".
6. The Company has followed Accounting Standard 15(revised), Accounting
for Retirement benefits.
* Contribution to Provident Fund of Rs. 0.93 lacs is charged to the
Statement of Profit and Loss as per applicable law / rules.
* The Company has taken Group Gratuity scheme of Life Insurance
Corporation of India for gratuity payable to the employees. Liability
for the year end obligation, based on an actuarial valuation as per the
projected unit credit method as at the reporting date, is charged to
the Statement of Profit and Loss and accordingly Provision for the
gratuity liability amounting to Rs. 0.02 lacs has been made during the
year by the company based on the valuation report of the Life Insurance
Corporation (Actuarial Valuer).
* The Company belongs to an industry which faces a high attrition rate
and hence the leave balance accrued is either availed or fully paid
off.
7. Directors Remuneration :
Salary to Executive Directors as under (include under the head payment
to employees):-
Shri R. Sundaresan Rs. 6.50 Lacs ( P.Y. Rs. 6.50 Lacs )
Ms. Monika Agarwal Rs. 9.50 Lacs (w.e.f. 11/02/2015)
8. Information relating to the payment to Executive Directors does not
include payment for gratuity, which is provided for group of employees
on an overall basis and as per the actuarial valuation report of the
Life Insurance Corporation of India.
9. During the year, remuneration paid to the directors are within the
prescribed limit of section 196,197 & 203 read with Schedule V of the
Companies Act, 2013.
10. The Reserve Bank of India (RBI) vide its Notification No. DNBS.
223/CGM (US) - 2011 dated 17th January 2011 has issued directions to
all NBFC's to make provision of 0.25% against standard assets with
immediate effect. Accordingly, the company has made reversal of
provision of Rs. (3.93) Lacs during the year against standard assets
which has been charged to Statement of Profit & Loss. The above
provision is treated as Tier II Capital.
11. Contingent Liabilities:
(Rs. in Lacs
Particulars As at As at
31st March, 31st March,
2015 2014
Allotment money & Calls unpaid on 98.19 98.19
partly paid shares / Debentures
12. The Company has filed appeal with the Commissioner of Income Tax -
Appeals - 8 for AY 2012 - 13 for disputed tax refund of Rs. 3,61,172/-
arose on account of disallowance u/s 14A.
13. MAT credit entitlement of Rs. 252.81 lacs as per the returns filed
upto assessment year 2014 - 15 is not considered in absence of
certainty of encashment considering substantial exposure to equity
market.
14. Company has applied the estimated useful lives of its fixed assets
w.e.f. 01/04/2014 as per Schedule II of the Companies Act, 2013.
Accordingly, depreciation for the Year ended 31st March, 2015 is higher
by Rs.4.69 lacs respectively. The written down value of Fixed Assets
whose lives have expired as at 1st April, 2014 have been adjusted net
of tax, in the opening balance of Profit and Loss account amounting to
Rs. 30.55 Lacs and against deferred tax amounting to Rs. 15.74 Lacs.
15. Under the Micro, Small and Medium Enterprises Development Act, 2006,
certain disclosures are required to be made relating to Micro, Small
and Medium Enterprises. The Company is in the process of compiling
relevant information from its suppliers about their coverage under the
Act. Since the relevant information is not readily available, no
disclosures have been made in the Accounts. note 32
16. Previous year's figures have been regrouped, rearranged and / or
reclassified wherever necessary.
Mar 31, 2014
Note 1
The Company has followed the Reserve Bank of India Guidelines
applicable to the Non Banking Financial Companies in respect of
prudential norms for Income Recognition, Assets Classification and
Capital Adequacy.
Note 2
In the opinion of the Board, the Current Assets, Loans & Advances are
approximately of the value stated, if realised in the ordinary course
of business. The provisions of all known liabilities are adequate and
neither in excess of or nor short of the amounts reasonably necessary.
Note 3
Related Party Disclosures:
List of related parties with whom transactions have taken place during
the year: i) Subsidiary:
Shriyam Broking Intermediary Limited, ii) Associates/ Group Cos or
Firms:
Antique Finance Private Limited
Chaturvedi & Shah i i i) Key Managerial Personnel:
Shri R. Sundaresan - Executive Director
Shri Saurabh Chaturvedi - CFO
iv) Transactions during the year with related parties. (Reimbursement
of expenses has not been treated as related party transactions.)
Significant Related Party Transactions during the year:
1. Payment and provision for remuneration and services, includes Rs.
6.50 lacs as Salary paid to Shri R. Sundaresan Executive Director, and
Rs. 8.29 lacs paid to Shri Saurabh Chaturvedi CFO.
2. Expenses for Trading Activities includes Rs 3.98 lacs paidtoShriyam
Broking Intermediary Ltd. Subsidiary Company & Rs. 0.28 lacs paid to
Antique Stock Broking Ltd, subsidiary of Antique Finance Pvt Ltd. an
Associate Company.
3. Income from Compensation includes Rs. 63.00 lacs received from
Chaturvedi & Shah, a Associate Firm.(Excluding Service Tax).
Note 4
In the opinion of the management, the Company is mainly engaged in the
business of Investment Activities and all other activities of the
Company revolve around the main business, and as such, there are no
separate reportable segments as per Accounting Standard (AS) 17 on
"Segment Reporting".
Note 5
Disclosure of loans / advances and investments in its own shares by the
listed companies, their subsidiary, associates etc. (as certified by
the management)
Note 6
The Company has followed Accounting Standard 15(revised), Accounting
for Retirement benefits.
Contribution to Provident Fund of Rs. 0.64 lacs is charged to the
Statement of Profit and Loss as per applicable law / rules.
The Company has taken Group Gratuity scheme of Life Insurance
Corporation of India for gratuity payable to the employees. Liability
for the year end obligation, based on an actuarial valuation as per the
projected unit credit method as at the reporting date, is charged to
the Statement of Profit and Loss. And accordingly Provision for the
gratuity liability amounting to Rs. 0.02 lacs has been made during the
year by the company based on the valuation report of the Life Insurance
Corporation (Actuarial Valuer).
The Company belongs to an industry which faces a high attrition rate
and hence the leave balance accrued is either availed or fully paid
off.
Note 7
Directors Remuneration :
Salary to Executive Directors as under (include under the head payment
to employees):-
Shri R. Sundaresan Rs. 6.50 Lacs ( P.Y. Rs. 6.50 Lacs )
Information relating to the payment to Executive Directors does not
include payment for gratuity, which is provided for group of employees
on an overall basis and as per the actuarial valuation report of the
Life Insurance Corporation of India.
During the year, remuneration paid to the directors are within the
prescribed limit in the Part II of Schedule XIII of the Companies Act,
1956.
The company is of the opinion that the computation of net profit under
section 349 of the Companies Act, 1956 is not required to be made as no
commission is paid / payable to the Directors for the year ended 31st
March, 2014.
Note 8
The Reserve Bank of India (RBI) vide its Notification No. DNBS. 223/CGM
(US) - 2011 dated 17th January 2011 has issued directions to all NBFC''s
to make provision of 0.25% against standard assets with immediate
effect. Accordingly, the company has made provision of Rs. 2.37 Lacs
during the year against standard assets which has been charged to
Statement of Profit & Loss. The above provision is treated as Tier II
Capital.
Note 9
Contingent Liabilities: (Rs. in Lacs)
Particulars As at As at
31st March, 2014 31st March, 2013
Allotment money & Calls unpaid
on partly paid shares/
Debentures 98.19 101.06
Note 10
Under the Micro, Small and Medium Enterprises Development Act, 2006,
certain disclosures are required to be made relating to Micro, Small
and Medium Enterprises. The Company is in the process of compiling
relevant information from its suppliers about their coverage under the
Act. Since the relevant information is not readily available, no
disclosures have been made in the Accounts.
Note 11
Previous year''s figures have been regrouped, rearranged and /or
reclassified wherever necessary.
Note 12
Disclosure of details as required by Revised Para 13 of Non Banking
Financial Companies Prudential Norms (Reserve Bank) Directions, 2007,
earlier Para 9BB of Non Banking Financial Companies Prudential Norms
(Reserve Bank) Directions, 1998.
Statement Pursuant To Section 212 Of The Companies act, 1956 relating
To Companies Interest in the Subsidiary Company
a) Name of subsidiary Company : Shiryam Broking Intermediary limited
b) Date from which it became subsidiary : September 27, 1994
c) Number of shares held by Shardul Securities Limited with its nominee
in the subsidiary as at 31/3/2013 : 1,00,00,000 Equity Shares of rs.
10/- each.
d) Extent of interest of holding Company in the subsidiary as at
31/03/2013 : 100%
e) Net aggregate amount of the subsidiary Company''s profit/(loss)
i For the subsidiary Company''s year ended 31/03/2014 : rs. (0.81) lacs
ii For the previous fnancial years since it became a subsidiary : rs.
3,132.14 lacs
f) Net aggregate amount of the subsidiary Company''s profit/loss dealt
with in the Company''s accounts : Not applicable
i For subsidiary Company''s year ended 31/03/2013 : Nil
ii For the previous Financial year since it became subsidiary : Nil
Mar 31, 2013
Note 1
The Company has followed the Reserve Bank of India Guidelines
applicable to the Non Banking Financial Companies in respect of
prudential norms for Income Recognition, Assets Classification and
Capital Adequacy.
Note 2
In the opinion of the Board, the Current Assets, Loans & Advances are
approximately of the value stated, if realised in the ordinary course
of business. The provisions of all known liabilities are adequate and
neither in excess of or nor short of the amounts reasonably necessary.
Note 3
Related Party Disclosures:
List of related parties with whom transactions have taken place during
the year : i) Subsidiary :
Shriyam Broking Intermediary Limited.
Shardul Energy Limited (Up to 23rd November, 2012) ii) Associates /
Group Cos or Firms:
Antique Finance Private Limited
Chaturvedi & Shah iii) Key Managerial Personnel:
Shri R. Sundaresan - Executive Director
Shri K M Shah - Director
Shri Saurabh Chaturvedi - CFO
Note 4
In the opinion of the management, the Company is mainly engaged in the
business of Investment Activities and all other activities of the
Company revolve around the main business, and as such, there are no
separate reportable segments.
Note 5
Disclosure of loans / advances and investments in its own shares by the
listed companies, their subsidiary, associates etc. (as certified by
the management)
Note 6
The Company has followed Accounting Standard 15(revised), Accounting
for Retirement benefits.
- Contribution to Provident Fund of Rs. 0.64 lacs is charged to the
Statement of Profit and Loss as per applicable law / rules.
- The Company has taken Group Gratuity scheme of Life Insurance
Corporation of India for gratuity payable to the employees. Liability
for the year end obligation, based on an actuarial valuation as per the
projected unit credit method as at the reporting date, is charged to
the Statement of Profit and Loss. And accordingly Provision for the
gratuity liability amounting to Rs. 0.02 lacs has been made during the
year by the company based on the valuation report of the Life Insurance
Corporation (Actuarial Valuer).
- The Company belongs to an industry which faces a high attrition rate
and hence the leave balance accrued is either availed or fully paid
off.
Note 7
Directors Remuneration :
Salary to Executive Directors as under (include under the head payment
to employees) :-
Shri R. Sundaresan Rs. 6.50 Lacs ( P.Y. Rs. 6.50 Lacs )
Information relating to the payment to Executive Directors does not
include payment for gratuity, which is provided for group of employees
on an overall basis and as per the actuarial valuation report of the
Life Insurance Corporation of India.
During the year, remuneration paid to the directors are within the
prescribed limit in the Part II of Schedule XIII of the Companies Act,
1956.
The company is of the opinion that the computation of net profit under
section 349 of the Companies Act, 1956 is not required to be made as no
commission is paid / payable to the Directors for the year ended 31st
March, 2013.
Note 8
During the year under review, Company has transferred its Investment
into Stock in trade at cost as on 1st October,2012 and Stock in trade
into Investment at cost as on 23rd October,2012.There is no impact on
the Statement of Profit and Loss for the said transfers.
Note 9
The Reserve Bank of India (RBI) vide its Notification No. DNBS. 223/CGM
(US) - 2011 dated 17th January 2011 has issued directions to all NBFC''s
to make provision of 0.25% against standard assets with immediate
effect. Accordingly, the company has made provision of Rs. (0.56) Lacs
during the year against standard assets which has been charged to
Statement of Profit & Loss. The above provision is treated as Tier II
Capital.
Note 10
During the year under review your company sold its entire investment of
5,00,000 fully paid of equity shares of Rs 10/- each held at par in its
wholly owned subsidiary named Shardul Energy Limited and consequently
the mentioned subsidiary has ceased to be wholly owned subsidiary of
the Company with effect from 23rd November 2012.
Note 11
Contingent Liabilities:
(Rs. in Lacs)
Particulars As at 31st March, 2013 As at 31st March, 2012
Allotment money & Calls
unpaid on partly paid
shares / debentures 101.06 98.19
Note 12
Under the Micro, Small and Medium Enterprises Development Act, 2006,
certain disclosures are required to be made relating to Micro, Small
and Medium Enterprises. The Company is in the process of compiling
relevant information from its suppliers about their coverage under the
Act. Since the relevant information is not readily available, no
disclosures have been made in the Accounts.
Note 13
Previous year''s figures have been regrouped, rearranged and / or
reclassified wherever necessary.
Note 14
Disclosure of details as required by Revised Para 13 of Non Banking
Financial Companies Prudential Norms (Reserve Bank) Directions, 2007,
earlier Para 9BB of Non Banking Financial Companies Prudential Norms
(Reserve Bank) Directions, 1998.
Mar 31, 2012
(A) The rights, preferences and restrictions attaching to each class of
shares
Equity Shares- The Company has only one class of equity shares. Each
holder of equity shares is entitled to one vote per share. The equity
shareholders are entitled to dividend only if dividend in a particular
financial year is recommended by the Board of Directors and approved by
the members at the annual general meeting of that year. In case of
winding up, if the assets available for distribution are less than the
paid up share capital, then the shortfall will be borne by the members
proportionately. Where there is an excess, the same shall be
distributed proportionately among the members.
Notes:
Office Premises includes :
a) 15 shares of Rs. 50/- each of Tulsiani Chamber Prem i ses Co-op.
Soci ety Limited.
b) 5 shares of Rs. 50/- each of Parekh Vora Chamber Premises Co-op.
Society Limited.
c) 10 shares of Rs. 50/- each of Laxmi Finance & Leasing Companies
Commercial Premises Co-op. Society Limited.
NOTE 1 -
The Company has followed the Reserve Bank of India Guidelines
applicable to the Non Banking Financial Companies in respect of
prudential norms for Income Recognition, Assets Classification and
Capital Adequacy.
NOTE 2 -
In the opinion of the Board, the Current Assets, Loans & Advances are
approximately of the value stated, if realised in the ordinary course
of business. The provisions of all known liabilities are adequate and
neither in excess of or nor short of the amounts reasonably necessary.
(Figures in bracket indicate figures of previous year).
Significant Related Party Transactions during the year:
1. Payment and provision for remuneration and services, includes Rs.
6.50 lacs as Salary paid to Shri R. Sundaresan Executive Director, and
Rs. 6.00 lacs paid to Shri Saurabh Chaturvedi CFO.
2. Expenses for Trading Activities paid/(Refunded) (Net) includes Rs
3.43 lacs paid to Shriyam Broking Intermediary Ltd. Subsidiary Co. &
Rs. 0.07 lacs paid to Antique Stock Broking Ltd, subsidiary of Antique
Finance Pvt Ltd.
3. Income from Compensation includes Rs. 30.00 lacs received from
Shriyam Broking Intermediary Ltd, a subsidiary Company.(Excluding
Service Tax).
NOTE 3 -
In the opinion of the management, the Company is mainly engaged in the
business of Investment Activities and all other activities of the
Company revolve around the main business, and as such, there are no
separate reportable segments.
NOTE 4-
Disclosure of loans / advances and investments in its own shares by the
listed companies, their subsidiaries, associates etc. (as certified by
the management)
NOTE 5-
The Company has followed Accounting Standard 15(revised), Accounting
for Retirement benefits.
- Contribution to Provident Fund of Rs. 0.64 lacs is charged to the
Statement of Profit and Loss as per applicable law / rules.
- The Company has taken Group Gratuity scheme of Life Insurance
Corporation of India for gratuity payable to the employees. Liability
for the year end obligation, based on an actuarial valuation as per the
projected unit credit method as at the reporting date, is charged to
the Statement of Profit and Loss. And accordingly Provision for the
gratuity liability amounting to Rs. 0.02 lacs has been made during the
year by the company based on the valuation report of the Life Insurance
Corporation (Actuarial Valuer).
- The Company belongs to an industry which faces a high attrition
rate and hence the leave balance accrued is either availed or fully
paid off.
NOTE 6 -
Directors Remuneration :
Salary to Executive Directors as under (include under the head payment
to employees):- Shri R. Sundaresan Rs. 6.50 Lacs ( P.Y. Rs. 6.00 Lacs )
Information relating to the payment to Executive Directors does not
include payment for gratuity, which is provided for group of employees
on an overall basis and as per the actuarial valuation report of the
Life Insurance Corporation of India.
During the year, remuneration paid to the directors are within the
prescribed limit in the Part II of Schedule XIII of the Companies Act,
1956.
The company is of the opinion that the computation of net profit under
section 349 of the Companies Act, 1956 is not required to be made as no
commission is paid / payable to the Directors for the year ended 31st
March, 2012.
NOTE 7 -
The Reserve Bank of India (RBI) vide its Notification No. DNBS. 223/CGM
(US) - 2011 dated 17th January 2011 has issued directions to all NBFC's
to make provision of 0.25% against standard assets with immediate
effect. Accordingly, the company has made provision of Rs.1.30 Lacs
during the year against standard assets which has been charged to
Profit & Loss Account. The above provision is treated as Tier II
Capital.
NOTE 8 -
Contingent Liabilities: (Rs. in Lacs)
Particulars As at 31st
March, 2012 As at 31st
March, 2011
Allotment money & Calls unpaid on partly
paid shares / Debentures 98.19 98.19
NOTE 9 -
Under the Micro, Small and Medium Enterprises Development Act, 2006,
certain disclosures are required to be made relating to Micro, Small
and Medium Enterprises. The Company is in the process of compiling
relevant information from its suppliers about their coverage under the
Act. Since the relevant information is not readily available, no
disclosures have been made in the Accounts.
NOTE 10 -
Previous year's figures have been regrouped, rearranged and / or
reclassified wherever necessary.
NOTE 11-
Disclosure of details as required by Revised Para 13 of Non Banking
Financial Companies Prudential Norms (Reserve Bank) Directions, 2007,
earlier Para 9BB of Non Banking Financial Companies Prudential Norms
(Reserve Bank) Directions, 1998.
Mar 31, 2011
(A) The Company has followed the Reserve Bank of India Guidelines
applicable to the Non Banking Financial Companies in respect of
prudential norms for Income Recognition, Assets Classification and
Capital Adequacy.
(B) In the opinion of the Board, the Current Assets, Loans & Advances
are approximately of the value stated, if realised in the ordinary
course of business. The provisions of all known liabilities are
adequate and neither in excess of or nor short of the amounts
reasonably necessary.
(C) Related Party Disclosures:
List of related parties with whom transactions have taken place during
the year:
i) Subsidiaries :
Shriyam Broking Intermediary Limited.
Shardul Energy Limited.
(Formerly known as Shardul Commodities International Limited)
ii) Associates / Group Cos/Firms :
Antique Finance Private Limited
Chaturvedi & Shah Consulting Pvt Ltd.
Chaturvedi & Shah
iii) Key Managerial Personnel:
Shri R. Sundaresan - Executive Director
Shri Saurabh Chaturvedi - CFO
Significant Related Party Transactions during the year:
1. Payment and provision for remuneration and services, includes Rs.
6.00 lacs as Salary paid to Shri R. Sundaresan Executive Director and
Rs. 4.82 lacs paid to Shri Saurabh Chaturvedi CFO.
2. Expenses for Trading Activities paid/(Refunded) (Net) includes Rs
4.89 lacs paid to Shriyam Broking Intermediary Ltd. Subsidiary Co. &
Rs. 2.20 lacs paid to Antique Stock Broking Ltd an Associate Company.
3. Income from Compensation includes Rs. 60.00 lacs received from
Shriyam Broking Intermediary Ltd, a subsidiary Company.(Excluding
Service Tax).
(D) In the opinion of the management, the Company is mainly engaged in
the business of Investment Activities and all other activities of the
Company revolve around the main business, and as such, there are no
separate reportable segments.
(E) The Company has followed Accounting Standard 15 (revised),
Accounting for Retirement Benefits.
- Contribution to Provident Fund of Rs. 61,248/- is charged to the
Statement of Profit and Loss as per applicable law / rules.
- The Company has taken Group Gratuity scheme of Life Insurance
Corporation of India for gratuity payable to the employees. Liability
for the year end obligation, based on an actuarial valuation as per the
projected unit credit method as at the reporting date, is charged to
the Statement of Profit and Loss. And accordingly Provision for the
gratuity liability amounting to Rs. 0.02 lacs has been made during the
year by the company based on the valuation report of the Life Insurance
Corporation (Actuarial Valuer).
- The Company belongs to an industry which faces a high attrition rate
and hence the leave balance accrued is either availed or fully paid
off.
(F) Directors Remuneration :
Salary to Executive Directors as under (include under the head payment
to employees):-
Shri R. Sundaresan Rs. 6.00 Lacs ( P. Y. Rs. 6.00 Lacs)
Information relating to the payment to Executive Directors does not
include payment for gratuity, which is provided for group of employees
on an overall basis and as per the actuarial valuation report of the
Life Insurance Corporation of India.
During the year, remuneration paid to the directors are within the
prescribed limit in the Part II of Schedule XIII of the Companies Act,
1956.
The company is of the opinion that the computation of net profit under
section 349 of the Companies Act, 1956 is not required to be made as no
commission is paid / payable to the Directors for the year ended 31st
March, 2011.
(G) The Reserve Bank of India (RBI) vide its Notification No. DNBS.
223/CGM (US) - 2011 dated 17th January 2011 has issued directions to
all NBFC's to make provision of 0.25% against standard assets with
immediate effect. Accordingly, the company has made provision of
Rs.0.83 Lacs during the year against standard assets which has been
charged to Profit & Loss Account. The above provision is treated as
Tier II Capital.
(H) Disclosure of details as required by Revised Para 13 of Non Banking
Financial Companies Prudential Norms (Reserve Bank) Directions, 2007,
earlier Para 9BB of Non Banking Financial Companies Prudential Norms
(Reserve Bank) Directions, 1998.
(I) Contingent Liabilities: (Rs. in Lacs)
Particulars As at As at
31st March, 2011 31st March, 2010
Allotment money & Calls unpaid on
partly paid shares / Debentures 98.19 98.19
Capital Commitment - 6.50
Income Tax disputed liability for
the A.Y. Ã 2007 Ã 2008 pending
with CIT (appeals). - 12.10
(J) Under the Micro, Small and Medium Enterprises Development Act,
2006, certain disclosures are required to be made relating to Micro,
Small and Medium Enterprises. The Company is in the process of
compiling relevant information from its suppliers about their coverage
under the Act. Since the relevant information is not readily available,
no disclosures have been made in the Accounts.
(Q) Previous year's figures have been regrouped, rearranged and / or
reclassified wherever necessary.
Mar 31, 2010
(A) The Company has followed the Reserve Bank of India Guidelines
applicable to the Non Banking Financial Companies in respect of
prudential norms for Income Recognition, Assets Classification and
Capital Adequacy.
Significant Related Party Transactions during the year:
1. Investment sold during the year includes Rs. 976.00 Lacs shares of
Antique Stock Broking Ltd to Antique Finance Pvt Ltd.
2. Payment and provision for remuneration and services, includes Rs.
6.50 lacs as Salary paid to Shri R. Sundaresan Executive Director, and
Rs. 3.36 lacs paid to Shri Saurabh Chaturvedi CFO.
3. Expenses for Trading Activities paid/(Refunded) (Net) includes Rs
3.47 lacs paid to Shriyam Broking Intermediary Ltd. Subsidiary Co. &
Rs. 3.88 lacs paid to Antique Stock Broking Ltd. Associate Co.
4. Income from Compensation includes Rs. 15.00 lacs received from
Shriyam Broking Intermediary Ltd, subsidiary Co.
(B) In the opinion of the management, the Company is mainly engaged in
the business of Investment Activities and all other activities of the
Company revolve around the main business, and as such, there are no
separate reportable segments.
(C) Directors Remuneration :
Salary to Executive Directors as under (include under the head payment
to employees):- Shri R. Sundaresan Rs. 6.50 Lacs ( P.Y. Rs. 6.50 Lacs )
Information relating to the payment to Executive Directors does not
include payment for gratuity, which is provided for group of employees
on an overall basis and as per the actuarial valuation report of the
Life Insurance Corporation of India.
During the year, remuneration paid to the directors are within the
prescribed limit in the Part II of Schedule XIII of the Companies Act,
1956.
The company is of the opinion that the computation of net profit under
section 349 of the Companies Act, 1956 is not required to be made as no
commission is paid / payable to the Directors for the year ended 31st
March, 2010.
(D) Under the Micro, Small and Medium Enterprises Development Act,
2006, certain disclosures are required to be made relating to Micro,
Small and Medium Enterprises. The Company is in the process of
compiling relevant information from its suppliers about their coverage
under the Act. Since the relevant information is not readily available,
no disclosures have been made in the Accounts.
(E) Contingent Liabilities:
(Rs. in Lacs)
Particulars As at As at
31st March, 2010 31st March, 2009
Allotment money & Calls unpaid
on partly paid shares /
Debentures 98.19 98.19
Capital Commitment 6.50 6.50
Income Tax disputed liability for
the A.Y. - 2007 - 2008 pending with
CIT (appeals). 12.10 -
(F) Previous years figures have been regrouped, rearranged and / or
reclassified wherever necessary.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article
More Information on Shardul Securities Ltd.
-
Shardul Securities Ltd. Tools
- Bulk Deals
- Block Deals
-
Shardul Securities Ltd. Company Details
- Company Profile
- Company History
- Management Team
- Capital Structure
- Product Mix
- Banker/Auditor/Registrar
-
Company History
- BSE Price History
-
Shardul Securities Ltd. Key Financial Ratios
- Ratios
-
Shardul Securities Ltd. Results
- Quarterly Results
- Half Yearly Results
- Nine Months Results
- Annual Results
-
Shardul Securities Ltd. Financial Data
- Audited Results
- Cash Flow
- Balance Sheet
-
Shardul Securities Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
-
Shardul Securities Ltd. Corporate Announcements
- Book Closure
- Dividend
- Board Meetings
- Change of Name
-
Stocks To Buy Today, Dec 19: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Friday -
Stocks To Buy Today, Dec 18: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Thursday -
Stocks To Buy Today, Dec 17: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Wednesday -
Stocks To Buy Today, Dec 16: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Tuesday -
India Stock Market Weekly Review: Nifty and Sensex Fall as Caution Spreads -
Stocks To Buy Today, Dec 15: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Monday
-
Stocks To Buy Today, Dec 12: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Friday -
Market Outlook 2026: Kotak Securities Sees Nifty 50 at 30,000; THESE 4 Sectors Lead Rally, Gold To Stay Strong -
Stocks To Buy Today, Dec 10: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Wednesday -
D-Street Bleeds For 2nd Day! Sensex Slumps 678 Pts; Nifty Cracks 25,800; Why Stock Market Is Falling Today? -
Stocks To Buy Today, Dec 9: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Tuesday -
Stocks To Buy Today, Dec 8: Top 4 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Monday -
Stock Market Alert! Major Pre-Open Session Change From Dec 8: Full Timings, Rules & All You Need To Know -
Bank Nifty Surges: RBI’s 25 bps Rate Cut Triggers Strong Upside in Major Banking Stocks -
Closing Bell: Sensex Ends 158 pts Higher, Nifty Climbs Above 26,000; Hero MotoCorp, HAL Up 2% Each -
Stocks To Buy Today, Dec 4: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Thursday
-
Block for 8 hours
-
Block for 12 hours
-
Block for 24 hours
-
Don't block
Sign in with Google- Male
- Female
- Others
- Under 18
- 18 to 25
- 26 to 35
- 36 to 45
- 45 to 55
- 55+