SARASWATI COMMERCIAL (INDIA) LTD. Regd. Off.: 209 - 210, Arcadia Building, 2nd Floor, 195, Nari man Point, Mumbai - 400 021 .
Telephone : 6670 8600 • Fax: 6670 8650 • Email: [email protected] Website: www.saraswaticommcrcial.com • CIN: L51909MHl983PLC l66605
2s1h September, 2018
To, BSE Limited
Corporate Relationship Department
Phiroze Jeejeebhoy Towers,
Dalal Street, Mumbai-400001
Ref: Scrip code: 512020
Dear Si rs,
Sub: Annual Report 2017-2018
Pursuant to Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, we are submitting herewith the Annual Report of the Company for the
financial year_ 2017-2018 approved and adopted by the members at the 35th Annual General
Meeting of the Company held on Thursday, 27'h September, 2018 at 4.30 p.m. at Oricon
House, 6th Floor, 12, K. Dubhash Marg, Fort, Mumbai-400001.
This is for your information and records.
Thanking you
Yours faithfully,
·.'
AVANI SANGHAVI COMPANY SECRETARY & COMPLIANCE OFFICER
saraswati CommerCial (india) limited
2
Corporate inFormationBoard oF direCtors as on 31St March, 2018
Mr. ritesh Zaveri* Non-ExcutiveDirectorMr. V V Sureshkumar Non-ExcutiveDirectorMs. Babita thakar IndependentDirectormr. Ketan desai IndependentDirector
(Mr.RiteshZaveriwasappointedw.e.f.13.11.2017&Mr.HarisinghShyamsukharesignedw.e.f.13.11.2017)
Board Committees
audit CommitteeMs.BabitaThakar-(Chairperson)Mr.RiteshZaveri Mr.KetanDesai
stakeholder relationship CommitteeMs.BabitaThakar-(Chairperson) Mr.RiteshZaveri Mr.KetanDesai
nomination & remuneration CommitteeMs.BabitaThakar-(Chairperson) Mr.RiteshZaveri Mr.KetanDesai
Corporate social responsibility CommitteeMrs.BabitaThakar-(Chairperson) Mr.RiteshZaveri Mr.KetanDesai
risk management CommitteeMr.VVSureshkumar(Chairman) Ms.BabitaThakarMr.RiteshZaveri
asset liability management CommitteeMr.VVSureshkumar(Chairman) Ms.BabitaThakarMr.RiteshZaveriMr.RajivPathak
it strategy Committee {Constituted w.e.f. 28.05.2018}Ms.BabitaThakar-(Chairperson)Mr.SanketBahetiMr.ShamimAhmed(constitutedw.e.f.28.05.2018)
Key managerial personnel Ms.AvaniSanghavi-CompanySecretary&ComplianceOfficerMr.RajivPathak-CEOMs.VaishaliDhuri-CFO
statutory auditorsM/sAjayShobha&Co.CharteredAccountantsA-701,La-Chapelle,EvershineNagar,Malad(West),Mumbai-400064
internal auditorsM/s.RajivAGupta&AssociatesCharteredAccountants1/234/3230,TagoreNagar,Vikhroli(East),Mumbai-400083
seCretarial auditorsM/sNishantJawasa&AssociatesCompanySecretariesA/103,NewAnkurCHSLtd.32BhardawadiLane,OffJ.P.RoadAndheri(West),Mumbai-400058
registrars and share transFer agentsTSRDarashawLimited6-10,HajiMoosaPatrawalaIndustrialEstate,20Dr.EMosesRoad,Mahalaxmi,Mumbai–400011Telephone:66568484,Fax:66568494
BanKersHDFCBankLimitedKotakMahindraBankLimitedCreditAgricoleCorporate&InvestmentBank
registered oFFiCe
209-210,ArcadiaBuilding,2ndFloor,PlotNo.195,NarimanPoint,Mumbai–400021Tel.:022-66708600,Fax:022-66708650
web site: www.saraswaticommercial.com
investors relations email id: [email protected]
Corporate identification numberL51909MH1983PLC166605
stock exchange’s where company’s shares are listedBSELimited
contents Notice...................................................................... 1
Directors’Report................................................... 13
AnnexuretoDirectos’Report
Annexure-1SecretarialAuditReport
(FormNo.MR-3).................................................... 25
Annexure-2ExtractofAnnualReturn
(FormMGT-9)........................................................ 28
ManagementDiscussionAnalysisReport.............. 38
CorporateGovernanceReport.............................. 41
CerificateonCorporateGovernance..................... 56
CodeofConductDeclaration................................ 56
CEO&CFODeclaration.......................................... 57
StandaloneFinancialStatements.......................... 58
ConsolidatedFinancialStatements..................... 103
Annexure-3-AOC1............................................ 139
ProxyForm.......................................................... 141
AttendanceSlip.................................................... 143
35th annual report 2017-18
1
notiCe
notiCeisherebygiventhattheThirtyFifthAnnualGeneralMeetingoftheMembersofsaraswati Commercial (india) LimitedwillbeheldatOriconHouse,6thFloor,12,K.DubhashMarg,Fort,Mumbai-400001onThursday,27thdayofSeptember,2018at4.30P.Mtotransactthefollowingbusiness:
ordinary Business:
1. Toreceive,considerandadopttheAuditedConsolidated&StandaloneBalanceSheetasat31stMarch,2018andStatementofProfit&LossandannexurestheretofortheyearendedonthatdatetogetherwithReportsoftheDirectors’andAuditors’thereon.
2. ToappointaDirector inplaceofMr.VVSureshkumar (holdingDIN:00053859),who retiresby rotationat theensuingAnnualGeneralMeetingandbeingeligible,offershimselfforre-appointment.
as speCial Business:
3. AppointmentofMr.RiteshZaveriasa(Non-Executive)DirectoroftheCompany
Toconsiderandifthoughtfit,topassthefollowingresolutionasanordinary resolution:
“resolVed thatpursuanttotheprovisionsofSections152,161andotherapplicableprovisions, ifany,of theCompaniesAct, 2013 (“theAct”) and the Companies (Appointment andQualificationofDirectors) Rules, 2014(includinganystatutorymodification(s)orre-enactmentthereof,forthetimebeinginforce),Mr.RiteshZaveri(DIN:00054741),whowasappointedasanAdditionalDirectoratthemeetingoftheBoardofDirectorsoftheCompanyheldon13thNovember,2017andwhoholdsofficeassuchuptothedateofthisAnnualGeneralMeetingbeandisherebyappointedasaDirectoroftheCompany;
resolVed Further thatanyofthedirectorofthecompanybeandisherebyauthorizedtodoallsuchacts,deedsandthingsasmayberequiredfortheaboveresolution.”
4. ApprovalofRelatedPartyTransaction:
Toconsiderandifthoughtfit,topass,withorwithoutmodification(s),thefollowingresolutionasanordinary resolution:
“resolVed that in supersessionofall theearlier resolutionspassedby the shareholdersof the companyand pursuanttoprovisionsofSection188andotherapplicableprovisions,ifany,oftheCompaniesAct,2013readwithapplicableRulesunderCompanies(MeetingsofBoardanditsPowers)Rules,2014andsubjecttosuchapprovals,consent,sanctionsandpermissionasmaybenecessary,consentofthemembersoftheCompanybeandisherebyaccordedtoenterintotherelatedpartytransactionbythecompanywithrelatedpartiesuptothemaximumamount(perannum)astabledbelow:
Sr. no.
name of the related party
name of the director/Kmp who is related andnature of their relationship
nature of transaction maximum Value (per annum) (rs. in crores)
1 WinroCommercial(India)Limited
KetanDesai(Director)VaishaliRajeshDhuri(Director)VVSureshkumar(Director)RiteshZaveri(CFO)
Availing&renderingrevolvingloanfacility(floatinginterestrate)
100.00(SanctionedLimit)
2 GeeceeInvestmentsLimited
VaishaliRajeshDhuri(Director)RiteshZaveri(Director)
Availing&Renderingrevolvingloanfacility(floatinginterestrate)
100.00(SanctionedLimit)
saraswati CommerCial (india) limited
2
3 FourDimensionsSecurities(India)Limited
GroupCompany (CommonPromoters)
Renderingrevolvingloanfacility(floatinginterestrate)
100.00(SanctionedLimit)
4 UrudavanInvestment&TradingPrivateLimited
GroupCompany(CommonPromoters)
Renderingrevolvingloanfacility(floatinginterestrate)
100.00(SanctionedLimit)
5 KothariPremisesPrivateLimited
GroupCompany(CommonPromoters)
Renderingrevolvingloanfacility(floatinginterestrate)
100.00(SanctionedLimit)
6 ArciesLaboratoriesLimited
AssociateCompany(CommonPromoters)
Renderingrevolvingloanfacility(floatinginterestrate)
1.00(SanctionedLimit)
7 GTZ(Bombay)PrivateLimited
GroupCompany(CommonPromoters)
Renderingrevolvingloanfacility(floatinginterestrate)
1.00(SanctionedLimit)
8 Sam-Jag-DeepInvestmentsPrivateLimited
GroupCompany(CommonPromoters)
Renderingrevolvingloanfacility(floatinginterestrate)
1.00(SanctionedLimit)
9 KothariVenturesLLP GroupEntity Renderingrevolvingloanfacility(floatinginterestrate)
50.00(SanctionedLimit)
10 ArkayaCommercialPrivateLimited
SubsidiaryCompany(CommonPromoters)
Renderingrevolvingloanfacility(floatinginterestrate)
1.00(SanctionedLimit)
11 FourDimensionsSecurities(India)Limited
GroupCompany(CommonPromoters)
AvailingBrokingServices 1.00(SanctionedLimit)
“resolVed Further thatforthepurposeaforesaid,theBoardand/oranypersondulyauthorisedbythembeandareherebyauthorizedanddoallsuchacts,deeds,mattersandthingsasitmaydeemnecessary.”
place: mumbaidated: 13th august, 2018
For and on behalf of the Board of directors
registered oFFiCe:209-210,ArcadiaBuilding,2ndFloor,195NarimanPoint,Mumbai–400021
sd/-aVani sanghaVi
Company secretary & Compliance officer
35th annual report 2017-18
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notes: 1. a memBer entitled to attend and Vote at the meeting is entitled to appoint proXy/proXies to attend
and on a poll, to Vote instead oF himselF/herselF and the proXy/proXies need not Be a memBer oF the Company. a person can act as proxy on behalf of members not exceeding fifty (50) and holding in the aggregate not more than 10% (ten percent) of the total share capital.
2. Theinstrumentofproxyinordertobeeffective,shouldbedepositedattheRegisteredOfficeofthecompany,dulycompletedandsigned,notlessthan48(fortyeight)hoursbeforethecommencementofthemeeting.Aproxyformissentherewith.ProxiessubmittedonbehalfoftheCompanies,Societiesetc.;mustbesupportedbyanappropriateresolution/authority,asmaybeapplicable.
3. Corporate members are requested to send a duly certified copy of the Board Resolution, authorizing theirrepresentativetoattendandvoteattheAnnualGeneralMeeting.
4. TheMembers/proxiesarerequestedtobringtheircopyoftheAnnualReporttotheMeetingalongwithdulyfilledinAttendanceSlipsforattendingthemeeting.
5. TheMembersarerequestedtosendtheirqueriesatleasttendaysbeforethedateofthemeetingsothatinformationcanbemadeavailableatthemeeting.
6. Membersdesirousofobtainingany informationconcerningtheaccountsandoperationsof theCompanyfor thefinancialyearendedon31stMarch,2018are requested towrite to theCompany,atanearlydate toenable theManagementtokeeptheinformationready.
7. TheRegisterofMembersandShareTransferBooksoftheCompanywillremainclosedfromMonday,24thSeptember,2018toThursday,27thSeptember,2018(bothdaysinclusive)forannualclosing.
8. Members are requested to notify immediately any change in their address / bankmandate to their respectiveDepositoryParticipant (DP) in respectof theirelectronicshareaccountsandto theCompany’sRegistrar&ShareTransferAgenttoM/s.TSRDarashawLimitedat6-10HajiMoosaPatrawalaIndustrialEstate,20Dr.EMossesRoad,Mahalaxmi,Mumbai-400011inrespectoftheirphysicalsharefolios.
9. TheSecuritiesandExchangeBoardof India (SEBI)hasmandated the submissionofPermanentAccountNumber(PAN)byeveryparticipantinsecuritiesmarket.Membersholdingsharesinelectronicformare,therefore,requestedtosubmittheirPANtotheirDepositoryParticipantswithwhomtheyaremaintainingtheirdemataccounts.MembersholdingsharesinphysicalformcansubmittheirPANtotheCompany.
10. investor grievance redressal:TheCompanyhasdesignatedanexclusiveemailidi.e.saraswati.investor@gcvl.intoenableinvestorstoregistertheircomplaints/correspondence,ifany
11. green initiative-Memberswhohavenot registered their e-mail addresses so far are requested to register theire-mailaddressforreceivingallcommunicationincludingAnnualReport,Notices,Circulars,etc.fromtheCompanyelectronically.
12.ElectronicCopyofthe35thAnnualReport(includingtheNotice)ofthecompanyinter-aliaindicatingtheprocessandmannerofe-votingalongwithattendanceslipandProxyFormisbeingsenttoallthememberswhoseE-mailIDsareregisteredwiththecompany/DepositoryParticipant(s)ofthecommunicationpurposes,unlessanymemberhasrequestedforahardcopyofthesame.Formemberswhohavenotregisteredtheire-mailaddress,physicalcopiesoftheAnnualReportisbeingsentinthepermittedmode.
13.Voting through electronic means
I. IncompliancewithprovisionsofSection108oftheCompaniesAct,2013,Rule20oftheCompanies(ManagementandAdministration)Rules,2014asamendedbytheCompanies(ManagementandAdministration)AmendmentRules, 2015 and Regulation 44 of SEBI (ListingObligations andDisclosure Requirements), Regulations, 2015,
saraswati CommerCial (india) limited
4
theCompanyispleasedtoprovidemembersfacilitytoexercisetheirrighttovoteonresolutionsproposedtobeconsideredattheAnnualGeneralMeeting(AGM)byelectronicmeansandthebusinessmaybetransactedthroughe-VotingServices.ThefacilityofcastingthevotesbythemembersusinganelectronicvotingsystemfromaplaceotherthanvenueoftheAGM(“remotee-voting”)willbeprovidedbyNationalSecuritiesDepositoryLimited(NSDL).
II. ThefacilityforvotingthroughballotpapershallbemadeavailableattheAGMandthemembersattendingthemeetingwhohavenotcast theirvotebyremotee-votingshallbeabletoexercisetheir rightat themeetingthroughballotpaper.
III. Thememberswhohavecasttheirvotebyremotee-votingpriortotheAGMmayalsoattendtheAGMbutshallnotbeentitledtocasttheirvoteagain.
IV. Aperson,whosenameisrecordedintheregisterofmembersorintheregisterofbeneficialownersmaintainedbythedepositoriesasonthecut-offdateonlyshallbeentitledtoavailthefacilityofremotee-votingaswellasvotingattheAGMthroughballotpaper.
V. TheChairmanshall,attheAGM,attheendofdiscussionontheresolutionsonwhichvotingistobeheld,allowvotingwiththeassistanceofscrutinizer,byuseof“remotee-voting”or“BallotPaper”or“PolingPaper”forallthosememberswhoarepresentattheAGMbuthavenotcasttheirvotesbyavailingtheremotee-votingfacility.
VI. Theprocessandmannerforremotee-votingareasunder:
The way to vote electronically on NSDL e-Voting system consists of “Two Steps” which are mentioned below:
Step1:Log-intoNSDLe-Votingsystemathttps://www.evoting.nsdl.com/
Step2:CastyourvoteelectronicallyonNSDLe-Votingsystem.
DetailsonStep1ismentionedbelow:
how to log-in to nsdl e-Voting website?
1. Visitthee-VotingwebsiteofNSDL.OpenwebbrowserbytypingthefollowingURL:https://www.evoting.nsdl.com/eitheronaPersonalComputeroronamobile.
2. Once the homepage of e-Voting system is launched, click on the icon “Login”which is available under‘Shareholders’section.
3. Anewscreenwillopen.YouwillhavetoenteryourUserID,yourPasswordandaVerificationCodeasshownonthescreen.
Alternatively, if you are registered for NSDL eservices i.e. IDEAS, you can log-in at https://eservices.nsdl.com/ with your existing IDEAS login. Once you log-in to NSDL eservices after using your log-in credentials, click on e-Voting and you can proceed to Step 2 i.e. Cast your vote electronically.
4. YourUserIDdetailsaregivenbelow:
manner of holding shares i.e. demat (nsdl or Cdsl) or physical
your user id is:
a)ForMemberswhoholdsharesindemataccountwithNSDL.
8CharacterDPIDfollowedby8DigitClientIDForexampleifyourDPIDisIN300***andClientIDis12******thenyouruserIDisIN300***12******.
b)ForMemberswhoholdsharesindemataccountwithCDSL.
16DigitBeneficiaryIDForexampleifyourBeneficiaryIDis12**************thenyouruserIDis12**************
35th annual report 2017-18
5
c)ForMembersholdingsharesinPhysicalForm. EVENNumberfollowedbyFolioNumberregisteredwiththecompanyForexampleiffolionumberis001***andEVENis109459thenuserIDis109459001***
5. Yourpassworddetailsaregivenbelow:
a) Ifyouarealreadyregisteredfore-Voting,thenyoucanuseyourexistingpasswordtologinandcastyourvote.
b) IfyouareusingNSDLe-Votingsystemforthefirsttime,youwillneedtoretrievethe‘initialpassword’whichwascommunicatedtoyou.Onceyouretrieveyour‘initialpassword’,youneedtoenterthe‘initialpassword’andthesystemwillforceyoutochangeyourpassword.
c) Howtoretrieveyour‘initialpassword’?
(i) IfyouremailIDisregisteredinyourdemataccountorwiththecompany,your‘initialpassword’iscommunicatedtoyouonyouremailID.TracetheemailsenttoyoufromNSDLfromyourmailbox.Opentheemailandopentheattachmenti.e.a.pdffile.Openthe.pdffile.Thepasswordtoopenthe.pdffileisyour8digitclientIDforNSDLaccount,last8digitsofclientIDforCDSLaccountorfolionumberforsharesheldinphysicalform.The.pdffilecontainsyour‘UserID’andyour‘initialpassword’.
(ii) If youremail ID isnot registered, your ‘initialpassword’ is communicated toyouonyourpostaladdress.
6. Ifyouareunabletoretrieveorhavenotreceivedthe“Initialpassword”orhaveforgottenyourpassword:
a) Clickon“Forgot user details/password?”(IfyouareholdingsharesinyourdemataccountwithNSDLorCDSL)optionavailableonwww.evoting.nsdl.com.
b) physical user reset password?” (If you are holding shares in physical mode) option available on www.evoting.nsdl.com.
c) Ifyouarestillunabletogetthepasswordbyaforesaidtwooptions,[email protected] mentioning your demat account number/folio number, your PAN, your name and yourregisteredaddress.
7. Afterenteringyourpassword,tickonAgreeto“TermsandConditions”byselectingonthecheckbox.
8. Now,youwillhavetoclickon“Login”button.
9. Afteryouclickonthe“Login”button,Homepageofe-Votingwillopen.
DetailsonStep2isgivenbelow:
how to cast your vote electronically on nsdl e-Voting system?
1. AftersuccessfulloginatStep1,youwillbeabletoseetheHomepageofe-Voting.Clickone-Voting.Then,clickonActiveVotingCycles.
2. AfterclickonActiveVotingCycles,youwillbeabletoseeallthecompanies“EVEN”inwhichyouareholdingsharesandwhosevotingcycleisinactivestatus.
3. Select“EVEN”ofcompanyforwhichyouwishtocastyourvote.
4. Nowyouarereadyfore-VotingastheVotingpageopens.
5. Castyourvotebyselectingappropriateoptionsi.e.assentordissent,verify/modifythenumberofsharesforwhichyouwishtocastyourvoteandclickon“Submit”andalso“Confirm”whenprompted.
6. Uponconfirmation,themessage“Votecastsuccessfully”willbedisplayed.
saraswati CommerCial (india) limited
6
7. Youcanalsotaketheprintoutofthevotescastbyyoubyclickingontheprintoptionontheconfirmationpage.
8. Onceyouconfirmyourvoteontheresolution,youwillnotbeallowedtomodifyyourvote.
VII. Youcanalsoupdateyourmobilenumberande-mailidintheuserprofiledetailsofthefoliowhichmaybeusedforsendingfuturecommunication(s).
VIII.ThevotingrightsofmembersshallbeinproportiontotheirsharesofthepaidupequitysharecapitaloftheCompanyasonthecut-offdateof20thSeptember,2018.
IX. Anyperson,whoacquiressharesoftheCompanyandbecomememberoftheCompanyafterdispatchofthenoticeandholdingsharesasofthecut-offdatei.e.20thSeptember,2018,mayobtaintheloginIDandpasswordbysendingarequestatevoting@nsdl.co.inorIssuer/RTA.
However,ifyouarealreadyregisteredwithNSDLforremotee-votingthenyoucanuseyourexistinguserIDandpasswordforcastingyourvote.Ifyouforgotyourpassword,youcanresetyourpasswordbyusing“Forgot User Details/Password?” or “Physical User Reset Password?”optionavailableonwww.evoting.nsdl.comorcontactNSDLatthefollowingtollfreeno.:1800-222-990.
X. AmembermayparticipateintheAGMevenafterexercisinghisrighttovotethroughremotee-votingbutshallnotbeallowedtovoteagainattheAGM.
XI. TheChairmanshall,attheAGM,attheendofdiscussionontheresolutionsonwhichvotingistobeheld,allowvotingwiththeassistanceofscrutinizer,byuseof“remotee-voting”or“BallotPaper”or“PolingPaper”forallthosememberswhoarepresentattheAGMbuthavenotcasttheirvotesbyavailingtheremotee-votingfacility.
general instructions:
a. Thee-votingperiodcommencesonMonday,24thSeptember,2018(09:00a.m.IST)andendsonWednesday,26thSeptember,2018(5:00p.m.IST).Duringthisperiod,shareholdersoftheCompanyholdingshareseitherinphysicalformorindematerializedform,asonthecut-offdateof20thSeptember,2018,maycasttheirvoteelectronically.Thee-votingmoduleshallalsobedisabledbyNSDLforvotingthereafter.Oncethevoteonaresolutioniscastbytheshareholder,theshareholdershallnotbeallowedtochangeitsubsequently.
b. Since the Company is required to providemembers the facility to cast their vote by electronicmeans,shareholdersoftheCompany,holdingshareseitherinphysicalformorindematerializedform,asonthecut-offdateof20thSeptember,2018,andnotcastingtheirvoteelectronically,mayonlycasttheirvoteattheAnnualGeneralMeeting.
c. Mr.NishantJawasa,PracticingCompanySecretary(MembershipNo.FCS6557),hasbeenappointedastheScrutinizertoscrutinizethee-votingprocessinafairandtransparentmanner.
d. TheScrutinizershall,withinaperiodnotexceedingthree(3)workingdaysfromtheconclusionofthee-votingperiod,unlockthevotesinthepresenceofatleasttwo(2)witnesses,notintheemploymentoftheCompanyandmakeaScrutinizer’sReportofthevotescastinfavoroforagainst,ifany;forthwithtotheChairmanoftheCompany.
e. TheScrutinizershall,aftertheconclusionofvotingattheGeneralMeeting,firstcountthevotescastattheMeetingandunblockthevotescastthroughremotee-votinginthepresenceofatleasttwowitnessesnotintheemploymentoftheCompanyandshallmakenotlaterthanthreedaysoftheconclusionoftheAGMaConsolidatedScrutinizer’sReportofthetotalvotescastinfavouroragainstandinvalidvotesifany,forthwithto theChairmanof theCompanyor thepersonauthorizedbyhim,who shall countersign the sameanddeclaretheresultofthevotingforthwith.
f. Institutionalshareholders(i.e.otherthanindividuals,HUF,NRIetc.)arerequiredtosendscannedcopy(PDF/JPGFormat)oftherelevantBoardResolution/Authorityletteretc.withattestedspecimensignatureofthe
35th annual report 2017-18
7
dulyauthorizedsignatory(ies)whoareauthorizedtovote,totheScrutinizerbye-mailtonjawasa@[email protected].
g. Itisstronglyrecommendednottoshareyourpasswordwithanyotherpersonandtakeutmostcaretokeepyourpasswordconfidential.Logintothee-votingwebsitewillbedisableduponfiveunsuccessfulattemptsto key in the correctpassword. In suchanevent, youwill need togo through the “ForgotUserDetails/Password?” or “Physical User Reset Password?” option available onwww.evoting.nsdl.com to reset thepassword.
h. Incaseofanyqueries,youmayrefertheFrequentlyAskedQuestions(FAQs)forShareholdersande-votingusermanualforShareholdersavailableatthedownloadsectionofwww.evoting.nsdl.comorcallontollfreeno.:[email protected]
TheScrutinizerwillsubmithisreporttotheChairmanaftercompletionofthescrutiny.TheresultofthevotingontheResolutionsattheMeetingshallbeannouncedbytheChairmanoranyotherpersonauthorizedbyhimimmediatelyaftertheresultsaredeclared.
TheresultsdeclaredalongwiththeScrutinizer’sreport,willbepostedonthewebsiteoftheCompanywww.saraswaticommercial.comandonthewebsiteofNSDL immediatelyafter thedeclarationof theresultby theChairmanoranypersonauthorisedbyhimandcommunicatedtotheStockExchanges.
14. memBers holding eQuity shares in eleCtroniC Form and proXies thereoF, are reQuested to Bring their dp id and Client id For identiFiCation.
saraswati CommerCial (india) limited
8
anneXure to the notiCeeXplanatory statement pursuant to the seCtion 102 oF the Companies aCt, 2013
item no. 2
BriefResumeofpersonproposedtobere-appointedasDirectoroftheCompanyattheAnnualGeneralMeeting:
Name Mr.VVSureshkumar
Age 60years
Qualification BachelordegreeincommerceandhasalsodoneDiplomainMarketingandManagement
NatureofExpertise Marketing,InvestmentandTrading
Terms&ConditionofAppointment/Reappointment Retirebyrotation
Experience Experienceofover33YearsinthefieldofMarketing,InvestmentandTrading
DateofAppointment 14.08.2017
NameofCompaniesinwhichalsoholdsDirectorship •GeeceeVenturesLimited•ArciesLaboratoriesLimited•GeeceeFincapLimited•MountainSideAgriculturePrivateLimited•RosyAgriculturePrivateLimited•WinroCommercial(India)Limited•GeeceeNirmaanLLP
NameoftheCompaniesinCommitteesofwhichholdsmembership/chairmanship
•winro Commercial (india) limitedStakeholderRelationshipCommittee-MemberNomination&RemunerationCommittee-MemberCorporateSocialResponsibilityCommittee-ChairmanRiskManagementCommittee-ChairmanAssetLiabilityManagementCommittee-Chairman
•geecee Fincap limitedNomination&RemunerationCommittee–MemberAssetLiabilityManagementCommittee–MemberRiskManagementCommittee–ChairmanCreditCommittee–MemberLendingCommittee-Member
ShareholdinginSaraswatiCommercial(India)Limited 228EquityShares
RelationshipwithotherDirectors,ManagersandotherKMP
NA
No.ofBoardMeetingattended 4
TheBoardofDirectorsrecommendstheresolutionsetforthinitemNo.2forapprovaloftheMembers.
Noneof theDirectors andKeyManagerial Personnel of the company and their relatives is concernedor interested,financialorotherwise,inpassingtheresolution.
item no. 3
Mr.HarisinghShyamsukhawhowasNon-executiveDirectoroftheCompanytenderedhisresignationw.e.f.13.11.2017.InaccordancewiththeprovisionsofSection161oftheCompaniesAct,2013&basedontherecommendationoftheNomination&RemunerationCommittee,Mr.RiteshZaveri (DIN:00054741)wasappointedasanAdditionalDirectorontheBoardoftheCompanywitheffectfrom13.11.2017toholdofficeuptothedateoftheensuingAnnualGeneral
35th annual report 2017-18
9
Meeting.
Mr.RiteshZaveriisnotrelatedtoanyotherDirectorandKeyManagerialPersonneloftheCompany.
NoneoftheDirectors,KeyManagerialPersonnelandtheirrelativesotherthanMr.RiteshZaveriandhisrelativesare,inanyway,concernedorinterestedinthesaidresolutions.
BriefResumeofpersonproposedtobeappointedasDirectoroftheCompanyattheAnnualGeneralMeeting:
Name Mr.RiteshZaveri
Age 44years
Qualification&NatureofExpertise B.Com
Experience Experience of over 19 years in the field of Accounting andFinance
DateofAppointment 13.11.2017
NameofCompaniesinwhichalsoholdsDirectorship •GeeceeInvestmentsLimited•GTZ(Bombay)PrivateLimited•YashviFarmsAndPlantationPrivateLimited•SandeepFarmingPrivateLimited
Name of the Companies in Committees of which holdsmembership/chairpersonship
•geecee investments limitedNomination&RemunerationCommittee-ChairmanRiskManagementCommittee-MemberAssetLiabilityManagementCommittee-ChairmanCorporateSocialResponsibilityCommittee-Member
ShareholdinginSaraswatiCommercial(India)Limited NIL
RelationshipwithotherDirectors,ManagersandotherKMP NA
TheBoardofDirectorsrecommendstheresolutionsetforthinitemNo.3forapprovaloftheMembers.
Noneof theDirectors andKeyManagerial Personnel of the company and their relatives is concernedor interested,financialorotherwise,inpassingtheresolution.
item no. 4
TheprovisionsofSection188(1)oftheCompaniesAct,2013thatgoverntheRelatedPartyTransactions,requiresthatforenteringintoanycontractorarrangementasmentionedhereinbelowwiththerelatedparty,theCompanymustobtainpriorapprovaloftheBoardofDirectorsandincaseoftheCompanyrenderingservicesexceeding10percentofthenetworth,priorapprovaloftheshareholdersbywayofaresolutionmustbeobtained:
1. Sale,purchaseorsupplyofanygoodsormaterials;
2. Sellingorotherwisedisposingof,orbuying,propertyofanykind;
3. Leasingofpropertyofanykind;
4. Availingorrenderingofanyservices;
5. Appointmentofanyagentforpurchasesorsaleofgoods,materials,servicesorproperty;
6. Suchrelatedparty’sappointmenttoanyofficeorplaceofprofitinthecompany,itssubsidiarycompanyorassociatecompanyand
7. Underwritingthesubscriptionofanysecuritiesorderivativesthereof,oftheCompany.
Inthe lightofprovisionsof theCompaniesAct,2013,theBoardofDirectorsofyourCompanyhasapprovedthe
saraswati CommerCial (india) limited
10
proposedtransactionsalongwithlimitthatyourCompanymayenterintowiththerelatedparties(asdefinedundersection2(76)oftheCompaniesAct,2013).
Further,theprovisotosection188alsostatesthatnothinginsection188(1)willapplytoanytransactionenteredintoby the company in its ordinary courseof business andat arm’s lengthbasis. The transactionspertaining torenderingofrevolvingloanfacilityareinordinarycourseofbusinessandatarm’slengthbutexceedthethresholdlimitsprescribedandthusasapracticeofgoodcomplianceapprovalofmembersisrequiredtobesought.
TheparticularsofthetransactionpursuanttotheprovisionsofSection188andtheCompanies(MeetingsofBoardanditsPowers)Rules,2014areasunder:
name of the related party
nature of relation-ship
name of director(s) or Kmp who is/are related and nature of relationship
nature of contracts / arrangements / transactions
Material terms of the contracts/arrange-ments/ transactions
monetary Value
are the trans-actions in the ordinary course of business
whether the transactions have been approved by the audit Committee and the Board of directors of the Company
WinroCommercial(India)Limited
CommonDirector/KMP
KetanDesai(Director)VaishaliDhuri(Director)VVSureshkumar(Director)RiteshZaveri(CFO)
Availing&renderingrevolvingloanfacility(floatinginterestrate)
Tobedeterminedonanarm’slengthbasis
Maximumupto100.00crores
Yes Yes
GeeceeInvestmentsLimited
CommonDirector/KMP
VaishaliDhuri(Director)RiteshZaveri(Director)
Availing&Renderingrevolvingloanfacility(floatinginterestrate)
Tobedeterminedonanarm’slengthbasis
Maximumupto100.00crores
Yes Yes
FourDimensionsSecurities(India)Limited
GroupCompany
GroupCompany(CommonPromoters)
Renderingrevolvingloanfacilityandavailingbrokingservices
Tobedeterminedonanarm’slengthbasis
• Loan-Maximumupto100.00crores• Brokerageupto1Crore
Yes Yes
UrudavanInvestment&TradingPrivateLimited
GroupCompany
GroupCompany(CommonPromoters)
Renderingrevolvingloanfacility(floatinginterestrate)
Tobedeterminedonanarm’slengthbasis
Maximumupto100.00crores
Yes Yes
KothariPremisesPrivateLimited
GroupCompany
GroupCompany(CommonPromoters)
Renderingrevolvingloanfacility(floatinginterestrate)
Tobedeterminedonanarm’slengthbasis
Maximumupto100.00crores
Yes Yes
35th annual report 2017-18
11
ArciesLaboratoriesLimited
AssociateCompany
AssociateCompany(CommonPromoters)
Renderingrevolvingloanfacility(floatinginterestrate)
Tobedeterminedonanarm’slengthbasis
Maximumupto1.00crores
Yes Yes
GTZ(Bombay)PrivateLimited
GroupCompany
GroupCompany(CommonPromoters)
Renderingrevolvingloanfacility(floatinginterestrate)
Tobedeterminedonanarm’slengthbasis
Maximumupto1.00crores
Yes Yes
Sam-Jag-DeepInvestmentsPrivateLimited
GroupCompany
GroupCompany(CommonPromoters)
Renderingrevolvingloanfacility(floatinginterestrate)
Tobedeterminedonanarm’slengthbasis
Maximumupto1.00crores
Yes Yes
KothariVenturesLLP
GroupEntity
GroupEntity Renderingrevolvingloanfacility(floatinginterestrate)
Tobedeterminedonanarm’slengthbasis
Maximumupto50crores
Yes Yes
ArkayaCommercialPrivateLimited
SubsidiaryCompany
SubsidiaryCompany(CommonPromoters)
Renderingrevolvingloanfacility(floatinginterestrate)
Tobedeterminedonanarm’slengthbasis
Maximumupto1.00crores
Yes Yes
Thedetailsrequiredpursuanttoclause1.2.5ofSecretarialStandard2(SS2)pertainingtotheextentofshareholdingofthePromoter,andofalltheRelativesofPromoterofthecompanyholdingmorethan2%interestisasfollows:
Sr. no.
name of the promoter holding more than 2 % in the related party
name of Company % of holding
1 AshwinKumarKothari WinroCommercial(India)Limited 2.28
UrudavanInvestmentandTradingPrivateLimited 2.56
2. RohitKothari ArciesLaboratoriesLimited 24.95
GTZ(Bombay)PrivateLimited 30.00
Sam-Jag-DeepInvestmentsPrivateLimited 34.00
KothariVenturesLLP 25.00
3. AshwinKumarKothari(HUF) Sam-Jag-DeepInvestmentsPrivateLimited 6.00
4. AshwinKumarKothari(S)(HUF) Sam-Jag-DeepInvestmentsPrivateLimited 5.80
5. PannalalCKothari(HUF) GeeceeInvestmentsLimited 2.30
UrudavanInvestmentandTradingPrivateLimited 28.21
Sam-Jag-DeepInvestmentsPrivateLimited 8.00
saraswati CommerCial (india) limited
12
6. FourDimensionsSecurities(India)Limited
WinroCommercial(India)Limited 25.95
GeeceeInvestmentsLimited 5.10
KothariPremisesPrivateLimited 99.00
KothariVenturesLLP 50.00
7. WinroCommercial(India)Limited
GeeceeInvestmentsLimited 40.47
FourDimensionsSecurities(India)Limited 39.52
ArkayaCommercialPrivateLimited 20.82
8. FourDimensionsCommoditiesPrivateLimited
GeeceeInvestmentsLimited 5.14
9. GeeceeInvestmentsLimited WinroCommercial(India)Limited 8.79
UrudavanInvestmentandTradingPrivateLimited 48.50
Sam-Jag-DeepInvestmentsPrivateLimited 4.00
ArkayaCommercialPrivateLimited 17.35
Themembersarefurtherinformedthatnomember/softheCompanybeingarelatedpartyorhavinganyinterestintheresolutionassetoutatitemNo.4shallbeentitledtovoteonthisordinaryresolution.
TheBoardofDirectorsrecommendstheresolutionsetforthinitemNo.4forapprovaloftheMembers.
Except Promoters/ Directors/ KMPs/ Relatives mentioned above, no other Promoters, Directors or Key ManagerialPersonnelsortheirrelatives,isconcernedorinterested,financiallyorotherwise,inpassingofthisresolution.
For and on behalf of the Board of directors
place: mumbaidated: 13th august, 2018
sd/-aVani sanghaVi
Company secretary & Compliance officer
35th annual report 2017-18
13
direCtors’ reportTheMembers,
YourDirectors'havepleasureinpresentingthe35thAnnualReportontheoperationsoftheCompanytogetherwiththeAuditedAccountsfortheyearended31stMarch,2018.
1. FinanCial highlights: (amount in lacs)
particulars Standalone consolidated{Consolidation with subsidiar-
ies & associate}
year ended 31.03.2018
year ended 31.03.2017
year ended 31.03.2018
year ended 31.03.2017
Revenuefromoperationsandotherincome 1637.59 1075.10 1638.00 1075.10
ProfitbeforeFinanceCost,Depreciation,Ex-traordinaryitemsandTax
1401.80 801.13 1401.40 800.73
Less:Financecost 33.65 284.01 33.68 284.01
Less:Depreciation 2.26 3.18 2.26 3.18
ProfitbeforeTax 1365.89 513.94 1365.46 513.54
Add/(Less):ProvisionforTaxation
a)Current - 24.83 0.06 24.83
b)MATCreditEntitlement (200.26) - (200.26) -
b)CurrentTaxexpenserelatingtoprioryears 0.02 17.69 0.02 17.69
c)DeferredTax(Expenses)/Income (30.52) (50.98) (30.52) (50.98)
NetProfitafterTaxationbeforeshareprofit/lossofassociate&minorityinterest
1596.65 522.40 1596.16 522.01
Add:Shareinlossofassociatefortheyear - - - -
Less:Shareofprofit/(loss)attributabletoMinorityInterest
- - (0.19) (0.15)
NetProfitfortheyear 1596.65 522.40 1596.35 522.16
BalancebroughtforwardfromPreviousYear 8299.97 2477.64 8295.98 2473.57
Less:TransferredtoReservesU/s45ICofRBIAct
319.33 104.48 319.33 104.48
Add:TransferredfromAroniCommercialsLimitedpursuanttotheSchemeofAmalga-mation
- 5404.41 - 5404.41
Add:ShareinaccumulatedlossofMinorityInterest
- - - 0.09
Add:ShareinaccumulatedPre-acquisitionloss
- - - 0.23
BalanceCarriedtobalancesheet 9577.29 8299.97 9573.00 8295.98
Note:Previousyear’sfigureshavebeenregrouped/reclassifiedwherevernecessarytocorrespondwiththecurrentyear’sclassification/disclosure.
saraswati CommerCial (india) limited
14
2. diVidend:
YourDirectorsdonotrecommendanydividendfortheyearendedon31stMarch2018withaviewtoconservetheresourcesforfuture.
3. transFer oF unClaimed diVidend to inVestor eduCation and proteCtion Fund:
TheprovisionsofSection125(2)oftheCompaniesAct,2013donotapplyastherewasnodividenddeclaredandpaidlastyear.
4. operations, perFormanCe and state oF Company’s aFFairs:
• Revenues–Standalone:
Duringtheyearended31stMarch,2018,yourCompanyachievedatotal incomeaggregatingtoRs.1637.59Lacs.AfterprovidingforDepreciationandFinanceCharges,theCompanyhasregisteredaprofitbeforetaxofRs.1365.89Lacs.Aftermakingprovisionfortaxinrespectofcurrentyear,theprofitaftertaxisofRs.1596.65lakhshasbeencarriedtotheBalancesheet.TheCompanymaintainsadequateinternalcontrolsystemscoveringallitsoperationalareas.YourDirectorsareputtingintheireffortsandarehopefulofimprovedworkingduringtheyearstocome.
• Revenues–Consolidated:
TheCompanyhasconsolidateditsfinancialstatementsrelatedtotheCompany,itsSubsidiariesanditsAssociates.TheConsolidatedFinancialStatementshavebeenpreparedinaccordancewithAccountingStandard23(AS23)“AccountingforInvestmentsinAssociatesinConsolidatedFinancialStatements”,AccountingStandard21(AS21)“ConsolidatedFinancialStatements”,aspersection129(3)oftheCompaniesAct,2013andspecifiedunderSection133oftheCompaniesAct,2013,readwithRule7oftheCompanies(Accounts)Rules,2014byusing“EquityMethod.”
Duringtheyearended31stMarch,2018,yourCompanyachievedatotalincomeaggregatingtoRs.1638lacs.AfterprovidingforDepreciationandFinanceCharges,theCompanyhasregisteredaprofitbeforetaxofRs.1365.46lacs.Aftermakingprovisionfortaxinrespectofcurrentyear,theprofitaftertaxisofRs.1596.35lacshasbeencarriedtotheConsolidatedBalancesheet.
5. transFer to reserVe:
TheCompanyhastransferredRs.319.33LakhstoReservesu/s45ICofRBIAct.
6. Change in the nature oF Business, iF any
TherewerenochangesinnatureofthebusinessoftheCompanydoneduringtheyear.
7. suBsidiaries, Joint Ventures and assoCiates:
• Subsidiaries:
Thefollowingcompaniesarethesubsidiaries:
sr. no. name of the subsidiaries % of holding
1 SareshwarTradingandFinancePvt.Ltd. 60.77
2 ArkayaCommercialPrivateLimited 61.83
• associates:
Thefollowingcompanyistheassociate:
sr. no. name of the associate % of holding
1 ArciesLaboratoriesLimited 31.03
35th annual report 2017-18
15
Financial highlights of subsidiaries & associates:
(Amt:inLakhs,exceptforEPS)
particulars sareshwar trading and Finance
private limited
arkaya Commercial
private limited
arcies Laboratories
Limited
year ended 31st march, 2018 {standalone figures}
Revenuefromoperations&otherIncome 0.40 - 0.01
Profit/(Loss)beforeTax 0.30 (0.73) (2.99)
ProvisionforTax 0.06 - (0.04)
NetProfitafterTaxation 0.24 (0.73) (2.95)
EPS–Basic 0.16 (2.77) (36.59)
-Diluted 0.16 (2.77) (36.59)
• Joint Ventures:
ThecompanyhasnoJointventures.
PursuanttoSection129(3)oftheCompaniesAct,2013readwiththeRules(5)oftheCompanies(Accounts)Rules,2014thesalientfeatureofFinancialStatementofAssociatesinFormAOC1whichformspartofFinancialStatementsas(“annexure 3”).
8. direCtors & Key managerial personnel:
independent director
PursuanttotheprovisionsoftheSection149oftheCompaniesAct,2013,thefollowingNon-ExecutiveDirectorsareappointedasIndependentDirectors:-
sr. no. name of the director date of appointment
1 Ms.BabitaThakar 26.07.2014
2 Mr.KetanDesai 13.02.2015
The above IndependentDirectors of the Companyhave submitted a declaration that theymeet the criteria ofIndependenceasprovidedinSection149(6)oftheCompaniesAct,2013,andthesamehavebeenconsideredandtakenonrecordbytheBoard.
women director
IntermsoftheprovisionofSection149oftheCompaniesAct,2013andRegulation17(1)ofSEBI(LODR)Regulation,2015acompanyshallhaveatleastonewomendirectorontheboardofthecompany.YourCompanyhasappointedMs.BabitaThakaron26thJuly,2014.
Key managerial personnel
PursuanttotheprovisionsofSection203oftheCompaniesAct,2013,theKeyManagerialPersonnelofthecompanyareasfollows:
sr. no. name designation
1 Ms.AvaniSanghavi CompanySecretary&Complianceofficer
2 Mr.RajivPathak CEO
4 Ms.VaishaliDhuri CFO
saraswati CommerCial (india) limited
16
appointment / resignation of directors
Mr.VVSureshkumar,DirectoroftheCompanyretiresbyrotationandbeingeligible,offershimselfforre-appointmentattheensuingAnnualGeneralMeeting.
Mr. Harisingh Shyamsukh, Non-executive Director resigned from the Directorship of the Company w.e.f. 13th
November2017.
TheBoardofDirectorsonrecomentationofnominationandremunerationcommitteeappointedMr.RiteshZaveri(DIN:00054741)asanadditional(Non-Executive)Directorw.e.f.13thNovember2017.
9. direCtors’ responsiBility statement:
PursuanttotherequirementsofSection134(3)(c)oftheCompaniesAct,2013,yourDirectorsconfirmthefollowing:
• thatinthepreparationoftheannualaccounts,theapplicableaccountingstandardshavebeenfollowedalongwithproperexplanationrelatingtomaterialdepartures;
• thattheDirectorshaveselectedsuchaccountingpoliciesandappliedthemconsistentlyandmadejudgmentsandestimatesthatarereasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsoftheCompanyasat31stMarch,2018andoftheprofitandlossoftheCompanyfortheyearendedonthatdate;
• thattheDirectorshavetakenproperandsufficientcareforthemaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheCompaniesAct,2013,forsafeguardingtheassetsoftheCompanyandforpreventinganddetectingfraudandotherirregularities;
• thatthedirectorshadpreparedtheannualaccountsonagoingconcernbasis.
• that thedirectors have laid down internal financial controls to be followedby the company and that suchinternalfinancialcontrolsareadequateandareoperatingeffectivelyand;
• thatthedirectorshavedevisedpropersystemstoensurecompliancewiththeprovisionsofallapplicablelawsandthatsuchsystemsareadequateandoperatingeffectively.
10. Committees oF the Board:
TheCompanyhasvariousCommitteeswhichhavebeenconstitutedasapartofgoodcorporategovernancepracticesandthesameareincompliancewiththerequirementsoftherelevantprovisionsofapplicablelawsandstatutes.
YourCompanyhasanadequatelyqualifiedAuditCommittee.Thedetailsofthesameareasfollows:
• audit Committee:
TheAuditCommitteecomprisesofMs.BabitaThakar-IndependentDirector,Mr.KetanDesai-IndependentDirectorandMr.RiteshZaveri–NonExecutiveDirector.
TherecommendationsoftheAuditCommitteeweredulyapprovedandacceptedbytheBoardduringtheyearunderreview.
TheotherCommitteesoftheBoardare:
i. NominationandRemunerationCommittee
ii. StakeholdersRelationshipCommittee
iii. CorporateSocialResponsibilityCommittee
iv. RiskManagementCommittee
v. AssetLiabilityManagementCommittee
vi. ITStrategyCommittee
Thedetailswithrespecttothecomposition,powers,roles,termsofreference,MeetingsheldandattendanceoftheDirectorsatsuchMeetingsoftherelevantCommitteesaregivenindetailintheReportonCorporateGovernanceoftheCompanywhichformspartofthisAnnualReport.
35th annual report 2017-18
17
11. nomination and remuneration poliCy:
TheBoardofDirectorshasframedapolicywhichlaysdownaframeworkinrelationtoremunerationofDirectors,KeyManagerialPersonnelandSeniorManagementoftheCompany.ThispolicyalsolaysdowncriteriaforselectionandappointmentofBoardMembers.
ThepolicyisuploadedontheCompany’swebsiteatwww.saraswaticommercial.com.
12. statutory auditors:
TheStatutoryAuditorsoftheCompany,M/s.AjayShobha&Co., (FRN:317031E);,CharteredAccountants,havebeenappointedby the shareholdersat the34thAnnualGeneralMeetingof theCompany toholdofficetill theconclusionofthe39thAnnualGeneralMeeting.
IntermsoftheprovisionsrelatingtostatutoryauditorsformingpartoftheCompaniesAmendmentAct,2017,notifiedonMay7,2018,ratificationofappointmentofStatutoryAuditorsateveryAGMisnomorealegalrequirement.Accordingly,theNoticeconveningtheensuingAGMdoesnotcontainanyresolutiononratificationofappointmentofStatutoryAuditors.However,M/s.AjayShobha&Co.hasconfirmedthattheyareeligibletocontinueasStatutoryAuditorsoftheCompanytoauditthebooksofaccountsoftheCompanyfortheFinancialYearending31stMarch,2019andaccordinglytheywillcontinuetobetheStatutoryAuditorsoftheCompanyforFinancialYearending31st
March,2019.
TheNotestothefinancialstatementreferredtointheAuditorsReportareself-explanatoryanddoesnotcallforanyfurthercomments.TheAuditors’Reportdoesnotcontainanyqualification,reservationoradverseremark.TheAuditorsReportisenclosedwiththefinancialstatementsinthisAnnualReport.
13. Cost audit and maintananCe oF Cost reCords:
TheCostAuditasspecifiedbytheCentralGovernmentunderSub-Section(1)ofSection148oftheCompaniesAct,2013,isnotrequiredandaccordinglynosuchcostaccountsandrecordsaremadeandmaintainedbytheCompany.
14. disClosure as per seXual harrassment oF women at worKplaCe (preVention, prohiBition and redressal) aCt, 2013:
The Companyhas zero tolerance for sexual harassment atworkplace and has adopted a policy on prevention,prohibitionandredressalofsexualharassmentatworkplaceinlinewiththeprovisionsofSexualHarassmentofWomenatWorkplace(Prevention,ProhibitionandRedressal)Act,2013andtherulesframedthereunder.Duringthefinancialyear2017-18,theCompanyhasnotreceivedanycomplaintsonsexualharassmentandnocomplaintisremainingpendingason31stMarch,2018.Thepolicyonprevention,prohibitionandredressalofsexualharassmentatworkplacecanbeaccessedonthewebsiteofthecompany-www.saraswaticommercial.com
Further,theprovisionsrelatingtotheconstitutionofInternalComplaintsCommitteeundertheSexualHarassmentofWomenatWorkplace(Prevention,ProhibitionandRedressal)Act,2013isnotapplicabletothecompanybeingtheemployeeslessthan10.Thecompanyshallcomplytowardsthesameastheprovisionsbecomeapplicable.
15. seCretarial auditor:
Pursuant to the provisions of Section 204 of the Act and the Companies (Appointment and Remuneration ofManagerial Personnel) Rules 2014, the Board had appointed M/s. Nishant Jawasa and Associates, PracticingCompanySecretaries,toundertakethesecretarialauditoftheCompanyforthefinancialyear2017-18
ThereportoftheSecretarialAuditorisenclosedas(“annexure 1”)andformspartofthisreport.TheSecretarialAuditReportdoesnotcontainanyqualification,reservationoradverseremark.
16. puBliC deposits:
TheCompanyhasnotacceptedanydepositfromthepublicunderChapterVoftheCompaniesAct,2013orunderthecorrespondingprovisionsofSection58AoftheCompaniesAct,1956andassuch,noamountonaccountofprincipalorinterestondepositsfrompublicwasoutstandingasonthedateofbalancesheet.
saraswati CommerCial (india) limited
18
17. ConserVation oF energy, teChnology aBsorption and Foreign eXChange earnings and outgo:
A]Conservation of energy and technology absorption:
i) Thestep takenor impactsonconversationofenergy–TheoperationofyourCompanyarenotenergyintensive.However,adequatemeasureshavebeeninitiatedforconservationofenergy.
ii) ThestepstakenbytheCompanyforutilizingalternativesourcesofenergy–thoughtheoperationsoftheCompanyarenotenergyintensive,theCompanyshallexplorealternativesourcesofenergy,asandwhennecessityarises.
iii) Thecapitalinvestmentonenergyconservationequipments-NIL
B]Foreign exchange earnings & outgo:(rs. in lacs)
partiCulars 2017-2018 2016-2017
ForeignExchangeEarning Nil Nil
ForeignExchangeOutgo Nil Nil
C]technology absorption:
a. TheeffortsmadetowardsTechnologyAbsorption:None
b. Thebenefitsderivedlikeproductimprovement,costreduction,productdevelopment:NotApplicable
c. TheExpenditureincurredinResearch&Development:Nil
18. partiCulars oF employees:
TheCompanydoesnothaveanyemployeeinreceiptofremunerationequaltoorexceedingthelimitsprescribedunder197 (12)of theCompaniesAct,2013, readwith rules5(2)and5(3)of theCompanies (AppointmentandRemunerationofManagerialPersonnel)Rules,2014.
19. partiCulars oF remuneration
TheinformationrequiredunderSection197(12)oftheCompaniesAct,2013andtheRulesmadethere-under,inrespectoftheemployeesofthecompany
a) Theratiooftheremunerationofeachdirectortothemedianremunerationoftheemployeeofthecompanyforthefinancialyear:
NoremunerationisbeenpaidtotheDirectorsofthecompany.HowevertheIndependentDirectorsarepaidsittingfeesforattendingthemeetingoftheBoardandcommitteesandthedetailsofthesamearefurnishedinFormMGT-9.
b) Thepercentageof increase in remunerationof eachDirector, Chief ExecutiveOfficer (CEO), Chief FinancialOfficer(CFO)andCompanySecretary(CS)ifany,inthefinancialyear-
NoremunerationisbeenpaidtotheDirectorsofthecompany.
name of the person % of increase
RajivPathak(CEO) 20.17%
VaishaliDhuri(CFO) 17.17%
AvaniSanghavi(CS) --
c) Thepercentageincreaseinthemedianremunerationofemployeesinthefinancialyear–15.16%
d) Thenumberofpermanentemployeesontherollsofcompanyason31stMarch,2018–9(nine)
35th annual report 2017-18
19
e) Averagepercentileincreasealreadymadeinthesalariesofemployeesotherthanthemanagerialpersonnelinthelastfinancialyearanditscomparisonwiththepercentileincreaseinthemanagerialremunerationandjustificationthereofandpointout if thereareanyexceptionalcircumstancesfor increase inthemanagerialremuneration:
The average increase in salaries of employees other than managerial personnel in 2017-18 was 15.57%. Percentageincreaseinthemanagerialremunerationfortheyearwas18.67%
f) Thekeyparametersforanyvariablecomponentofremunerationavailedbythedirectors:
Novariablecomponentofremunerationhasbeenavailedbythedirectors.
g) AffirmationthattheremunerationisaspertheremunerationpolicyoftheCompany:
TheCompany’s remunerationpolicy is drivenby the success andperformanceof the individual employeesand the Company. Through the compensation package, the Company endeavor to attract, retain developandmotivateahighperformancestaff.TheCompanyfollowsacompensationmixoffixedpay,benefitsandperformance based variable pay. Individual performance pay is determined by business performance andthe performance of the individualsmeasured through the annual appraisal process, The Company affirmsremunerationisaspertheremunerationpolicyofthecompany.
h) DetailsPertainingtoremunerationasrequiredunderSection197(12)oftheCompaniesAct,2013readwithRule5(2)and(3)oftheCompanies(Appointment&RemunerationofManagerialPersonnel)Rules,2014andformingpartofthedirectorsreportfortheyearended31stMarch,2018.
AsrequiredunderRule5(2)theCompanydoesnothaveanyemployeeswho:
(i) if employed throughout thefinancial year,was in receiptof remuneration for that yearwhich, in theaggregatewasnotlessthan1Croreand2Lakhrupees;
(ii) ifemployedforapartofthefinancialyearwereinreceiptofremunerationofnotlessthan8LakhandFiftyThousandpermonth;
(iii) ifemployedthroughoutthefinancialyearorpartthereof,was inreceiptofremuneration inthatyearwhich, in theaggregate,oras thecasemaybe,ata ratewhich, in theaggregate, is inexcessof thatdrawnbythemanagingdirectororwhole-timedirectorormanagerandholdsbyhimselforalongwithhisspouseanddependentchildren,notlessthantwopercentoftheequitysharesofthecompany.
DetailsoftoptenemployeesintermsofremunerationdrawnasperRule5(2)areasfollows:
name andage of theemployeeand % ofequity sharesheld
designa-tionofemployee
Qualifi-cations & experience
date of com-mence-mentof employ-ment
Gross remuner-ationreceived(perannum)
Otherterms &condi-tions
nature ofemploy-ment,whethercontrac-tualor oth-erwise
nature ofduties of theemploy-ees
the lastemploy-mentheld by suchemployeebefore joiningthe com-pany.
relation-shipwithotherdirectors of the Company
RajivPathakAge:38Years%ofsharesheld:NIL
CEO Qualifica-tion:CAExperience:11Years
13.02.2015 3,415,737 AsperAppoint-mentletter
Non- contrac-tual
LooksafterInvest-ments
DolatCap-italMarketPrivateLimited
Thereisnorela-tionshipwithanyDirector.
saraswati CommerCial (india) limited
20
SanketBahetiAge:27Years%ofsharesheld:NIL
Analyst Qualifica-tion:MBAExperience:3Years
08.03.2015 1,593,950 AsperAppoint-mentletter
Non- contrac-tual
LooksafterResearchAnalysis
-- Thereisnorela-tionshipwithanyDirectors.
VaishaliDhuriAge:47Years%ofsharesheld:NIL
CFO Qualifica-tion:BSCExperience:16Years
13.02.2015 976,143 AsperAppoint-mentletter
Non- contrac-tual
LooksafterAccounts&Taxa-tion
D.L.Mehta&Co.
Thereisnorela-tionshipwithanyDirectors.
AnoopChaturvediAge:59Years%ofsharesheld:NIL
Officer Qualifica-tion:MCOMExperience:35Years
01.04.2017 873,952 AsperAppoint-mentletter
Non- contrac-tual
LooksafterAc-counts
AroniCom-mercialsLimited
Thereisnorela-tionshipwithanyDirectors
GajendraPawarAge:45Years%ofsharesheld:NIL
AdminManager
Qualifica-tion:UnderGrad-uateExperience:24Years
01.04.2017 588,909 AsperAppoint-mentletter
Non- contrac-tual
LooksafterAdmin-work
AroniCom-mercialsLimited
Thereisnorela-tionshipwithanyDirectors
KSPremanandAge:53Years%ofsharesheld:NIL
SecretarytoDirectors
Qualifica-tion:UnderGraduateExperience:25Years
01.04.2017 985,780 AsperAppoint-mentletter
Non- contrac-tual
Secre-tarialwork&Adminis-tration
AroniCom-mercialsLimited
Thereisnorela-tionshipwithanyDirectors
NiravShahAge:35Years%ofsharesheld:NIL
ResearchAssociate
Qualifica-tion:BCOM,CFAExperience:10Years
01.04.2017 3,185,272 AsperAppoint-mentletter
Non- contrac-tual
LooksafterInvest-ment
AroniCom-mercialsLimited
Thereisnorela-tionshipwithanyDirectors
AvaniSanghaviAge:31Years%ofsharesheld:NIL
CompanySecretary
Qualifica-tion:CS,B.comExperience:7Years
14.08.2017 482,586 AsperAppoint-mentletter
Non- contrac-tual
Looksaf-terSec-retarialcompli-ances
FirstWinnerIndustriesLimited
Thereisnorela-tionshipwithanyDirectors.
NileshBhoirAge:28Years%ofsharesheld:NIL
BackOf-ficeAssis-tant
Qualifica-tion:UnderGrad-uateExperience:6Years
14.09.2017 93,443 AsperAppoint-mentletter
Non- contrac-tual
BackOfficeWork
RasanaIn-ternationalPrivateLimited
Thereisnorela-tionshipwithanyDirectors
20. eXtraCt oF annual return:
ThedetailsformingpartofextractoftheAnnualReturninformMGT-9arequiredunderSection92oftheCompaniesAct,2013,isincludedinthisreportas(“annexure-2”)andformsanintegralpartofthisReport.
21. partiCulars oF loans giVen, inVestments made, gurantees giVen and seCurities proVided:
ThedetailsofLoans,GuaranteesandInvestmentsmadearegivenintheNotestotheFinancialStatements.However,
35th annual report 2017-18
21
provisionsofSection186ofCompaniesAct,2013exceptSubsection(1),arenotapplicabletothecompany.
22. independent direCtors’ deClaration:
Ms.BabitaThakarandMr.KetanDesaiwhoareIndependentDirectors,havesubmittedadeclarationthateachofthemmeetsthecriteriaofindependenceasprovidedinSub-section(6)ofSection149oftheCompaniesAct,2013.
Further, therehasbeenno change in the circumstanceswhichmay affect their status as independentdirectorduringtheyear.
23. Familiarisation programme For independent direCtors:
TheCompanyhasfamiliarizeditsindependentDirectorstoprovideinsightsintotheCompanyandtoenablethemtounderstandtheCompany’sbusinessindepth,tofamiliarizethemwiththeprocessesandfunctionariesoftheCompanytoassisttheminunderstandingtheirrolesandresponsibilities.Further,theIndependentDirectorsareprovidedwithopportunity to interactwiththeManagementof theCompanyandhelpthemtounderstandtheCompany’sstrategy,theirroles,rights,responsibilitiesintheCompany,natureoftheindustryinwhichthecompanyoperates,businessmodelofthecompanyandsuchotherareasasmayarisefromtimetotimethroughvariousprogrammes.
ThesaidprogramwasconductedforthefamiliarizationofIndependentdirectors.Thedetailsofthesamecanfoundonthewebsiteofthecompany–www.saraswaticommercial.com.
24. Corporate goVernanCe:
AreportonCorporateGovernanceisincludedasapartofthisAnnualReport.CertificatefromM/s.NishantJawasa&Associates,CompanySecretariesinpracticeconfirmingthecompliancewiththeconditionsofCorporateGovernanceasstipulatedunderRegulation27ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015isincludedasapartofthisreport.
25. disClosures:
• related party transaCtions:
Thetransactionsenteredwiththerelatedpartieswereinordinarycourseofbusinessandatarm’slengthandthustheprovisionsofSection188(1)oftheCompaniesAct,2013isnotapplicabletothecompanysubsequentlyFormAOC-2isnotrequired.ThedetailsofRelatedPartyTransactionsareprovidedintheFinancialStatementsoftheCompany.
• Ceo and CFo CertiFiCation:
TheChiefExecutiveOfficerandtheChiefFinancialOfficeroftheCompanyhavegivenaCertificatetotheBoardascontemplatedinRegulation17oftheListingRegulations.
• Code oF ConduCt:
TheBoardofDirectorshavelaid-downa“CodeofConduct”(Code)foralltheBoardMembersandtheseniormanagementpersonneloftheCompanyandthesameCodeispostedontheWebsiteoftheCompany–www.saraswaticommercial.com or accessed through the following link – http://www.saraswaticommercial.com/policies/CODE-OF-CONDUCT.pdf
AnnualdeclarationisobtainedfromeverypersoncoveredbytheCode.
• management disCussion and analysis report:
ManagementDiscussion andAnalysis report as stipulated in Regulation34 and ScheduleV of SEBI (ListingObligationsandDisclosureRequirements)Regulations,2015ispresentedinaseparatesectionformingpartofthisAnnualReport.
saraswati CommerCial (india) limited
22
• poliCies and programmes:
TheSEBI (ListingObligationsandDisclosureRequirements)Regulations, 2015mandated the formulationofcertainpoliciesforalllistedcompanies.Allsuchpolicieswhichareapplicabletothecompanyareavailableonourwebsite(http://www.saraswaticommercial.com/policies-and-code.asp).ThepoliciesarereviewedbytheBoardandupdatedbasedonneedandnewcompliancerequirements.
Thepoliciesandprogrammesadoptedbythecompanyalongwiththeirweblinksareasfollows:
Sr. no.
name of the policy web link
1 DocumentRetentionandArchivalPolicy
http://www.saraswaticommercial.com/policies/Document-Retention-Archival-Policy_Saraswati.pdf
2 PolicyfordeterminationofMateriality
http://www.saraswaticommercial.com/policies/Policy-for-Determination-of-Materiality_Saraswati.pdf
3 Policyonpreventionofsexualharassment
http://www.saraswaticommercial.com/policies/Policy%20On%20Prevention%20of%20Sexual%20Harassment.pdf
4 Nomination&RemunerationPolicy
http://www.saraswaticommercial.com/policies/NOMINATION%20AND%20REMUNERATION%20POLICY-SCIL.pdf
5 CSRPolicy http://www.saraswaticommercial.com/policies/CSR%20Policy_SARASWATI.pdf
6 VigilMechanismPolicy http://www.saraswaticommercial.com/policies/Vigil-Mechanism-policy-SCIL.pdf
7 RelatedPartyTransactionPolicy
http://www.saraswaticommercial.com/policies/Related%20Party%20Transaction%20Policy.pdf
8 FamiliarisationProgrammeforIndependentDirectors
http://www.saraswaticommercial.com/policies/Details_of_Familiarisation_Programme_15.12.2017.pdf
26. numBer oF meetings oF the Board, annual general meeting and eXtra ordinary general meetings:
Duringtheyear,Eight(9)meetingsoftheBoardofDirectorswereheld.ThemaximumtimegapbetweenanytwoMeetingswasnotmorethanonehundredandtwentydays.TheseMeetingswerewellattended.
The34thAnnualGeneralMeeting(AGM)oftheCompanywasheldon28thSeptember,2017.However,Duringtheyearunderreview,noExtraordinaryGeneralMeeting(EGM)wereheld.
DetailedinformationontheMeetingsoftheBoard,itsCommittees,theAGMandEGMisincludedintheReportonCorporateGovernance,whichformspartofthisAnnualReport.
27. internal FinanCial Controls:
TheCompanyhasinplaceadequateinternalfinancialcontrolswithreferencetofinancialstatements.Duringtheyear,suchcontrolsweretestedandnoreportablematerialweaknessinthedesignoroperationwasobserved.
ReportontheInternalFinancialControlsunderclause(i)ofSub-section3ofSection143oftheCompaniesAct,2013(“theAct”)formspartofthisAnnualReportas“annexure-a”totheAuditorsReport.
28. insuranCe:
ThecompanyhasadequatelyinsuredallitsAssetsandproperties.
35th annual report 2017-18
23
29. Corporate soCial responsiBility:
TheBoardofDirectorsconstitutedaCorporateSocialResponsibility(CSR)CommitteeconsistingofthreeDirectorsoutofwhichone is IndependentDirector. TheBoardofDirectorsat itsmeetingheldon12thAugust,2015hasadoptedandapprovedtheCSRpolicyasrecommendedbytheCSRCommittee.
The provisions of Section 135 of the Companies Act, 2013 i.e Corporate Social Responsibility, the rulesmadethereunderreadwithScheduleVIIthereto,isnotapplicabletotheCompanythereforetheCompanyhasnotspentanyamountinthecurrentyeartowardsCorporateSocialResponsibility.HoweverinthepreviousyeartheCompanyhadspentRs.27LacstowardsCorporateSocialResponsibility.
Thepolicy isavailableonthewebsiteoftheCompanyatwww.saraswaticommercial.com
30. Board eValuation:
The performance evaluation of the Independent Directorswas completed. The performance evaluation of theChairmanandtheNon-IndependentDirectorwascarriedoutbytheIndependentDirectors.TheBoardofDirectorsexpressedtheirsatisfactionwiththeevaluationprocess.
TheNominationandRemunerationCommitteeandtheBoardofDirectorshavelaiddowncriteriaforperformanceevaluationofDirectors,Chairperson,BoardLevelCommitteesandBoardasawholeandalsotheevaluationprocessforthesame.TheperformancesofthemembersoftheBoard,theBoardlevelCommitteesandtheBoardasawholewereevaluatedatthemeetingoftheIndependentDirectorsheldon15thDecember,2017.TheBoardofDirectorsexpressedtheirsatisfactionwiththeevaluationprocess.
31. Vigil meChanism poliCy
TheCompanyhasaVigilMechanism/WhistleBlowerpolicytoreportgenuineconcernsorgrievancespursuanttoSection177ofCompaniesAct,2013andRegulation22oftheListingRegulations,2015.TheVigilMechanism/WhistleBlowerpolicyhasbeenpostedonthewebsiteoftheCompanywww.saraswaticommercial.com.
32. material Changes and Commitments aFFeCting the FinanCial position oF the Company:
Buyback of equity shares:
BoardofDirectorsobservedthattheequitysharesofCompanywereinfrequentlytradedontheBSElimitingtheopportunityfortheshareholderstobuyandsellequitysharesoftheCompany.AlsotheCompanyhadsurpluscashportionofwhichtheBoardwantedtoreturntoitsShareholders.
AlsotheBoardofDirectorsoftheCompanywasoftheviewthatthebuybackofEquitySharesshallalsoprovideanopportunitytoshareholderstooffertheirEquitySharestotheCompanyresultinginimprovementinfinancialratiosandmaximizationofoverallshareholders’value.Thereforetheyattheirmeetingheldon7thDecember,2017announcedtheBuybackupto60,000fullypaid-upequitysharesoftheCompanyoffacevalue`10/-representingup to 5.82%of the total numberof Equity Shares of theCompany, fromall the equity shareholders/beneficialowners of theCompanywhoholds Equity Shares as on the recorddate i.e. Friday, 22nd December, 2017, on aproportionatebasis, throughthetenderofferusingstockexchangemechanism,atapriceof`978/-perEquityShareforanaggregatemaximumamountofupto`5,86,80,000/-excludingtransactioncostssuchasbrokerage,securitiestransactiontax,goodsandservicetax,stampduty,etc.
ThetotalnumberofEquitySharesboughtbackundertheBuybackwere29,665EquityShares,atapriceof`978/-perEquityShare,amountingto`2,90,12,370/-excludingTransactionCost.
TheCompanyreceivedtheapprovalforbuybackofEquitySharesfromSEBIon2ndJanuary,2018andcompletedtheprocesson9thFebruary,2018.
PostbuybackthesharecapitaloftheCompanyreducedto`1,00,09,280/-EquitySharesfrom`1,03,05,930/-
saraswati CommerCial (india) limited
24
33. general:
YourDirectorsstatethatnodisclosureorreportingisrequiredinrespectofthefollowingitemsastherewerenotransactionsontheseitemsduringtheyearunderthereview:
1. DetailsrelatingtodepositscoveredunderChapterVoftheAct.
2. Issueofequityshareswithdifferentialrightsastodividend,votingorotherwise.
3. Issueofshare(includingsweatequityshares)toemployeesoftheCompanyunderanyscheme.
4. NoneoftheDirectorsofthecompanyreceivesanyremunerationorcommissionfromtheCompanyaswellasfromanyofitssubsidiaries.
5. NosignificantormaterialorderswerepassedbytheRegulatorsorCourtsorTribunalswhichimpactthegoingconcernstatusandCompany’soperationsinfuture.
34. aCKnowledgements:
YourDirectorstakethisopportunitytoexpresstheirgratitudeforthesupportandco-operationfromtheInvestors,BanksandStatutoryAuthorities.YourDirectorsexpresstheirdeepappreciationtotheCompany’semployeesatalllevelsfortheirunstintedeffortsandvaluablecontributionsduringtheyear
For and on behalf of the Board of directors
place: mumbaidated: 13th august, 2018
sd/-V V Sureshkumar
directordin: 00053859
35th annual report 2017-18
25
anneXures to the direCtors' report anneXure 1
Form no. mr-3
seCretarial audit reportFor the FinanCial year ended 31st March, 2018
[Pursuanttosection204(1)oftheCompaniesAct,2013andruleNo.9oftheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014]
To,TheMembers,saraswati Commercial (india) limited
Wehaveconductedthesecretarialauditofthecomplianceofapplicablestatutoryprovisionsandtheadherencetogoodcorporatepracticesbysaraswati Commercial (india) limited (hereinaftercalled theCompany).SecretarialAuditwasconductedinamannerthatprovidedusareasonablebasisforevaluatingthecorporateconducts/statutorycompliancesandexpressingouropinionthereon.
Basedonour verificationof theCompany’sbooks, papers,minutebooks, formsand returnsfiled andother recordsmaintained by the company and also the information provided by the Company, its officers, agents and authorizedrepresentativesduringtheconductofsecretarialaudit,Weherebyreportthatinouropinion,thecompanyhas,duringtheauditperiodcovering thefinancial yearendedon31stMarch,2018compliedwith thestatutoryprovisions listedhereunderandalsothattheCompanyhasproperBoard-processesandcompliance-mechanisminplacetotheextent,inthemannerandsubjecttothereportingmadehereinafter:
We have examined the books, papers,minute books, forms and returns filed and other recordsmaintained by theCompanyforthefinancialyearendedon31stMarch,2018accordingtotheprovisionsof:
(i) TheCompaniesAct,2013(theAct)andtherulesmadethereunder;
(ii) TheSecuritiesContracts(Regulation)Act,1956(‘SCRA’)andtherulesmadethereunder;
(iii) TheDepositoriesAct,1996andtheRegulationsandBye-lawsframedthereunder.
(iv) ThefollowingRegulationsandGuidelinesprescribedundertheSecuritiesandExchangeBoardofIndiaAct,1992(‘SEBIAct’):-
a) TheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011;
b) TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,2015;
c) TheSecuritiesandExchangeBoardofIndia(RegistrarstoanIssueandShareTransferAgents)Regulations,1993regardingtheCompaniesActanddealingwithclient;
d) The Securities and Exchange Board of India (ListingObligations and Disclosure Requirements) Regulations,2015;
e) TheSecuritiesandExchangeBoardofIndia(BuybackofSecurities)Regulations,1998
(v) OtherlawsapplicablespecificallytotheCompanynamely:
a) ReserveBankofIndiaAct,1934totheextentitisapplicabilityforaNon-BankingFinanceCompany
We report that during the period under review the Company has complied with the provisions of the Act, Rules,Regulations,Guidelines,Standards,etc.mentionedabove.
Wefurtherreportthat,therewasnoactions/eventsinpursuanceof:
a) Foreign ExchangeManagementAct, 1999and the rules and regulationsmade thereunder to theextentofForeignDirectInvestment,OverseasDirectInvestmentandExternalCommercialBorrowings
b) TheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2009
saraswati CommerCial (india) limited
26
c) TheSecuritiesandExchangeBoardof India (EmployeeStockOptionSchemeandEmployeeStockPurchaseScheme)Guidelines,1999
d) TheSecuritiesandExchangeBoardofIndia(IssueandListingofDebtSecurities)Regulations,2008
e) TheSecuritiesandExchangeBoardofIndia(DelistingofEquityShares)Regulations,2009
requiringcompliancethereofbytheCompanyduringthefinancialyear.
Wehavealsoexaminedcompliancewiththeapplicableclausesofthefollowing:
(i) SecretarialStandardsissuedbytheInstituteofCompanySecretariesofIndia
(ii) TheListingAgreementsenteredintobytheCompanywithTheStockExchanges.
WefurtherreportthatbasedontheinformationprovidedbytheCompany,itsofficerandauthorizedrepresentativesduring the conductofAudit, andalso reviewof thequarterly compliances reportby respectivedepartmental head/CompanySecretary takenon recordby theBoardofDirectorsof theCompany, inouropinionadequate systemandprocessesandcontrolmechanismexistsintheCompanytomonitorandensurecompliancewithapplicablegenerallawslikelabourlaws.
WefurtherreportthatthecompliancebytheCompanyofapplicablefinanciallawslikedirectandindirecttaxlaws,hasnotbeenreviewed in thisaudit since thesamehavebeensubject to reviewbystatutoryfinancialauditorandotherdesignatedprofessionals.
WefurtherreportthattheBoardofDirectorsoftheCompanyisconstitutedwithproperbalanceofExecutiveDirectorsandNon-ExecutiveDirectorsandIndependentDirectors.ThechangesinthecompositionoftheBoardofDirectorsthattookplaceduringtheperiodunderreviewwerecarriedoutincompliancewiththeprovisionsoftheAct.
AdequatenoticeisgiventoalldirectorstoscheduletheBoardMeetings,agendaanddetailednotesonagendaweresentatleastsevendaysinadvance,andasystemexistsforseekingandobtainingfurtherinformationandclarificationsontheagendaitemsbeforethemeetingandformeaningfulparticipationatthemeeting.
AspertheminutesofthemeetingsoftheBoardofDirectorsandcommitteesthereofalldecisionswereunanimousandnodissentingviewshavebeenrecorded.
We further report that there are adequate systemsandprocesses in the company commensuratewith the size andoperationsofthecompanytomonitorandensurecompliancewithapplicablelaws,rules,regulationsandguidelines.
We further report thatduring theauditperiod therewasnoother specificevents/action inpursuanceof theabovereferred laws, rules, regulations, guidelines, etc., having amajority bearing on the Company’s affairs other than asmentionedbelow:
1. Companyhasboughtback29665equitysharesduringtheperiodunderaudit.
Note:ThisreportistobereadwithourletterofevendatewhichisannexedasAnnexureAandformsanintegralpartofthisreport.
place: mumbai date: 13th august, 2018
For nishant Jawasa & associatesCompany secretaries
sd/-nishant Jawasa
proprietorFCs-6557
C.p. no. 6993
35th annual report 2017-18
27
anneXure aTo,TheMembers,saraswati Commercial (india) limited
OurSecretarialAuditReportofevendateistobereadalongwiththisletter.
1. Thecomplianceofprovisionsofalllaws,rules,regulations,standardsapplicabletoSaraswatiCommercial(India) Limited (the ‘Company’) is theresponsibilityof themanagementof theCompany.Ourexaminationwas limitedtotheverificationofrecordsandproceduresontestcheckbasisforthepurposeofissueoftheSecretarialAuditReport.
2. Maintenance of secretarial and other records of applicable laws is the responsibility of the management oftheCompany.Ourresponsibility is to issueSecretarialAuditReport,basedontheauditof therelevant recordsmaintainedandfurnishedtousbytheCompany,alongwithexplanationswheresorequired.
3. Wehavefollowedtheauditpracticesandprocessesaswereappropriatetoobtainreasonableassuranceaboutthecorrectnessofthecontentsofthesecretarialandotherlegalrecords,legalcompliancemechanismandcorporateconduct. The verificationwas done on test check basis to ensure that correct facts are reflected in secretarialrecordsproducedtous.Webelievethattheprocessesandpracticeswefollowed,providesareasonablebasisforouropinionforthepurposeofissueoftheSecretarialAuditReport.
4. We have not verified the correctness and appropriateness of financial records and Books of Accounts of theCompany.
5. Whereverrequired,wehaveobtainedthemanagementrepresentationaboutthecomplianceof laws,rulesandregulationsandmajoreventsduringtheauditperiod.
6. TheSecretarialAuditReportisneitheranassuranceastothefutureviabilityoftheCompanynoroftheefficacyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany.
place: mumbai date: 13th august, 2018
For nishant Jawasa & associatesCompany secretaries
sd/-nishant Jawasa
proprietorFCs-6557
C.p. no. 6993
saraswati CommerCial (india) limited
28
iii partiCulars oF holding , suBsidiary & assoCiate Companies
Sl no
name & address of the Company Cin/gln holding/ suBsidiary/ aSSOciatE
% oF SharES held
appliCaBle seCtion
1 arkaya Commercials private limited209-210,ArcadiaBuilding,2ndFloor,195,NarimanPoint,Mumbai-400021
U65999MH1994PTC295909 SubsidiaryCompany
61.83 2(87)oftheCompaniesAct,2013
2 sareshwar trading and Finance private Limited 209-210,ArcadiaBuilding,2ndFloor,195,NarimanPoint,Mumbai-400021
U51900MH1996PTC096829 SubsidiaryCompany
60.77 2(87)oftheCompaniesAct,2013
3 arcies laboratories limited 19,WesternIndiaHouse,2ndFloor,SirP.MRoad,Fort,Mumbai400001
U24200MH1945PLC004429 AssociateCompany
31.03 2(6)oftheCompaniesAct,2013
anneXure 2
Form no. mgt 9
eXtraCt oF annual returnas on financial year ended on 31.03.2018
pursuant to section 92 (3) of the Companies act, 2013 and rule 12(1) of the Company (management & administration ) rules, 2014.
i registration & other details:
i Cin l51909mh1983plC166605
ii registration date 24/01/1983
iii name of the Company saraswati Commercial (india) limited
iv Category/sub-category of the Company Company limited by shares / indian non- government Company
v address of the registered office & contact details
209-210, arcadia Building, 2nd Floor, 195, nariman point, mumbai - 400021.tel: 022 66708600/ Fax: 022 66708650
vi whether listed company yes
vii name , address & contact details of the registrar & transfer agent, if any.
m/s. tsr darashaw limited 6-10, haji moosa patrawala industrial estate, 20, dr. e. moses road, mahalaxmi, mumbai - 400011. tel: 022 6656 8484, Fax: 022 6656 8494
ii prinCipal Business aCtiVities oF the Company
Allthebusinessactivitiescontributing10%ormoreofthetotalturnoverofthecompanyshallbestated
SL no
name & description of main products/services niC Code of the product /service
% to total turnover of the company
I Investment,tradinginsharesandsecuritiesandlendingactivites
6499 100%
35th annual report 2017-18
29
Category of shareholers no.of shares held at the beginning of the year i.e 01.04.2017
no.of shares held at the end of the year i.e 31.03.2018
% change during
the year
demat physical total % of total
Shares
demat physical total % of total
Shares
a. promoters
(a) Individuals/HinduUndividedFamily
308,680 0 308,680 48.23 292,268 0 292,268 29.20 -19.03
(b) CentralGovernment/StateGovernments(s)
0 0 0 0.00 0 0 0 0.00 0.00
(c) BodiesCorporate 171,320 0 171,320 26.77 423,682 0 423,682 42.33 15.56
(d) FinancialInstitutions/Banks
0 0 0 0.00 0 0 0 0.00 0.00
(e) AnyOther(specify) 0 0 0 0.00 0 0 0 0.00 0.00
sub-total (a) (1) 480,000 0 480,000 75.00 715,950 0 715,950 71.53 -3.47
(2) Foreign
(a) Individuals(Non-ResidentIndividuals/ForeignIndividuals)
0 0 0 0.00 22,000 0 22,000 2.20 2.20
(b) BodiesCorporate 0 0 0 0.00 0 0 0 0.00 0.00
(c) Institutions 0 0 0 0.00 0 0 0 0.00 0.00
(d) QualifiedForeignInvestor
0 0 0 0.00 0 0 0 0.00 0.00
(e) AnyOther(specify) 0 0 0 0.00 0 0 0 0.00 0.00
sub-total (a) (2) 0 0 0 0.00 22,000 0 22,000 2.20 2.20
total shareholding of promoter and promoter group (a)
480,000 0 480,000 75.00 737,950 0 737,950 73.73 -1.27
(B) public shareholding
(1) institutions
(a) MutualFunds/UTI 0 0 0 0.00 0 0 0 0.00 0.00
(b) FinancialInstitutions/Banks
0 0 0 0.00 0 0 0 0.00 0.00
(c) CentalGovernment/StateGovernments(s)
0 0 0 0.00 0 0 0 0.00 0.00
(d) VentureCapitalFunds 0 0 0 0.00 0 0 0 0.00 0.00
(e) InsuranceCompanies 0 0 0 0.00 0 0 0 0.00 0.00
(f) ForeignInstitutionalInvestors
0 0 0 0.00 0 0 0 0.00 0.00
(g) ForeignVentureCapitalInvestors
0 0 0 0.00 0 0 0 0.00 0.00
iV. shareholding pattern (eQuity share Capital BreaKup as % oF total eQuity)
i) Category-wise share holding
saraswati CommerCial (india) limited
30
Category of shareholers no.of shares held at the beginning of the year i.e 01.04.2017
no.of shares held at the end of the year i.e 31.03.2018
% change during
the year
demat physical total % of total
Shares
demat physical total % of total
Shares
(h) QualifiedForeignInvestor
0 0 0 0.00 0 0 0 0.00 0.00
(i) ForeignPortfolioInvestors(Corporate)
0 0 0 0.00 0 0 0 0.00 0.00
(j) AnyOther(specify) 0 0 0 0.00 0 0 0 0.00 0.00
sub-total (B) (1) 0 0 0 0.00 0 0 0 0.00 0.00
(2) non-institutions
(a) BodiesCorporate
i.Indian 89,180 57,000 146,180 22.84 106,662 52,988 159,650 15.95 -6.89
ii.Overseas 0 0 0 0.00 0 0 0 0.00 0.00
(b) Individuals-
i IndividualshareholdersholdingnominalsharecapitaluptoRs.1lakh
0 13,820 13,820 2.16 34,953 24,653 59,606 5.96 3.80
ii IndividualshareholdersholdingnominalsharecapitalinexcessofRs.1lakh
0 0 0 0.00 41,050 0 41,050 4.10 4.10
(c) AnyOther(specify)
i NonResidentIndians(NRIs)
0 0 0 0.00 813 0 813 0.08 0.08
ii HUF 0 0 0 0.00 1,314 0 1314 0.13 0.13
iii ClearingMembers 0 0 0 0.00 545 0 545 0.05 0.05
sub-total (B) (2) 89,180 70,820 160,000 25.00 185,337 77,641 262,978 26.27 1.27
total public shareholding (B) = (B)(1)+(B)(2)
89,180 70,820 160,000 25.00 185,337 77,641 262,978 26.27 1.27
total (a)+(B) 569,180 70,820 640,000 100.00 923,287 77,641 1,000,928 100.00 0.00
(C) SharesheldbyCustodiansandagainstwhichDepositoryReceiptshavebeenissued
0 0 0 0.00 0 0 0 0.00 0.00
grand total (a)+(B)+(C) 569,180 70,820 640,000 100.00 923,287 77,641 1,000,928 100.00 0.00
DuringtheyeartheCompanyundertookthetwomajorevents:
(i)TheCompanyallotted390593equityshareson29thMay,2017pursuanttotheSchemeofAmalgamationtotheshareholdersofAroniCommercialsLimitedandthepaidupsahrecapitaloftheCompanyaftermergerwasRs.10,305,930/-.
(ii)On7thDecember2017theCompanyannouncesthebuybackofequitysharesandon7thFebruary,2018theCompanyboughtback29665equityshares.PostbuybackthepaidupcapitaloftheCompanyisRs.10,009,280/-.
35th annual report 2017-18
31
ii) share holding of promoters
Sl no
shareholder’s name shareholding at the beginning of the year 01.04.2017
shareholding at the end of the year 31.03.2018
% change in share-holding
during the year
no.of Shares
% of total Shares of the
company
% of Shares
pledged/encum-bered
to total shares
no.of Shares
% of total Shares of the
company
% of Shares
pledged/encum-bered
to total shares
1 AshwinKumarKothari 64500 10.08 0 61081 6.10 0 -3.98
2 AshwinKumarKothari(smaller)(HUF)
63000 9.84 0 59366 5.93 0 -3.91
3 AshwinKumarKothari(HUF)
63000 9.84 0 59343 5.93 0 -3.91
4 PannaLalCKothariHuf 53050 8.29 0 50979 5.09 0 -3.20
5 RohitKothari 44630 6.97 0 42141 4.21 0 -2.76
6 MeenaAKothari 20500 3.20 0 19347 1.93 0 -1.27
7 HarisinghShyamsukha 0 0.00 0 11 0.00 0 0.00
8 NiyatiMehta 0 0.00 0 22000 2.20 0 2.20
9 WinroCommercial(India)Limited
104970 16.40 0 177584 17.74 0 1.34
10 FourDimensionsSecurities(India)Limited
33900 5.30 0 205787 20.56 0 15.26
11 FourDimensionsCommoditiesPrivateLimited
31000 4.84 0 31000 3.10 0 -1.75
12 Sam-Jag-DeepInvestmentsPrivateLimited
1450 0.23 0 1450 0.14 0 -0.08
13 GeeceeInvestmentsLimited
0 0.00 0 7861 0.79 0 0.79
total 480,000 75.00 0.00 737,950 73.73 0 -1.27
iii) Change in promoter’s shareholding
Sl no
particulars date Shareholding Cummulative Shareholding during the
yearno.of Shares
% of total Shares of the
company
no.of Shares
% of total Shares of the
company1 AshwinKumarKothari
Atthebeginningoftheyear 01.04.2017 64500 10.08 64500 10.08IncreaseduringtheyearpursuanttoMerger
29.05.2017 349 0.03 64849 6.29
Decreaseduringtheyearpursuanttobuyback
07.02.2018 3768 0.38 61081 6.10
AttheEndoftheyear 31.03.2018 - - 61081 6.10
saraswati CommerCial (india) limited
32
Sl no
particulars date Shareholding Cummulative Shareholding during the
yearno.of Shares
% of total Shares of the
company
no.of Shares
% of total Shares of the
company
2 AshwinKumarKothari(smaller)(HUF) 01.04.2017 63000 9.84 63000 9.84
IncreaseduringtheyearpursuanttoMerger
29.05.2017 29 0.00 63029 6.12
Decreaseduringtheyearpursuanttobuyback
07.02.2018 3663 0.36 59366 5.93
AttheEndoftheyear 31.03.2018 - - 59366 5.93
3 AshwinKumarKothari(HUF) 01.04.2017 63000 9.84 63000 9.84
IncreaseduringtheyearpursuanttoMerger
29.05.2017 6 0.00 63006 6.11
Decreaseduringtheyearpursuanttobuyback
07.02.2018 3663 0.36 59343 5.93
AttheEndoftheyear 31.03.2018 - - 59343 5.93
4 PannaLalCKothariHuf 01.04.2017 53050 8.29 53050 8.29
IncreaseduringtheyearpursuanttoMerger
29.05.2017 1075 0.10 54125 5.25
Decreaseduringtheyearpursuanttobuyback
07.02.2018 3146 0.31 50979 5.09
AttheEndoftheyear 31.03.2018 - - 50979 5.09
5 RohitKothari 01.04.2017 44630 6.97 44630 6.97
IncreaseduringtheyearpursuanttoMerger
29.05.2017 112 0.01 44742 4.34
Decreaseduringtheyearpursuanttobuyback
07.02.2018 2601 0.26 42141 4.21
AttheEndoftheyear 31.03.2018 - - 42141 4.21
6 MeenaAKothari 01.04.2017 20500 3.20 20500 3.20
IncreaseduringtheyearpursuanttoMerger
29.05.2017 40 0.00 20540 1.99
Decreaseduringtheyearpursuanttobuyback
07.02.2018 1193 0.12 19347 1.93
AttheEndoftheyear 31.03.2018 - - 19347 1.93
7 HarisinghShyamsukha 01.04.2018 0 0.00 0 0.00
IncreaseduringtheyearpursuanttoMerger
29.05.2017 11 0.00 11 0.00
Decreaseduringtheyearpursuanttobuyback
07.02.2018 0 0.00 11 0.00
AttheEndoftheyear 31.03.2018 - - 11 0.00
35th annual report 2017-18
33
Sl no
particulars date Shareholding Cummulative Shareholding during the
yearno.of Shares
% of total Shares of the
company
no.of Shares
% of total Shares of the
company
8 NiyatiMehta 01.04.2017 0 0.00 0 0.00
IncreaseduringtheyearpursuanttoMerger
29.05.2017 22000 2.13 22000 2.13
Decreaseduringtheyearpursuanttobuyback
07.02.2018 0 0.00 22000 2.20
AttheEndoftheyear 31.03.2018 - - 22000 2.20
9 WinroCommercial(India)Limited 01.04.2017 104970 16.40 104970 16.40
IncreaseduringtheyearpursuanttoMerger
29.05.2017 72614 7.05 177584 17.23
Decreaseduringtheyearpursuanttobuyback
07.02.2018 0 0.00 177584 17.74
AttheEndoftheyear 31.03.2018 - - 177584 17.74
10 FourDimensionsSecurities(India)Limited 01.04.2017 33900 5.30 33900 5.30
IncreaseduringtheyearpursuanttoMerger
29.05.2017 171887 16.68 205787 19.97
Decreaseduringtheyearpursuanttobuyback
07.02.2018 0 0.00 205787 20.56
AttheEndoftheyear 31.03.2018 - - 205787 20.56
11 FourDimensionsCommoditiesPrivateLimited
01.04.2017 31000 4.84 31000 4.84
IncreaseduringtheyearpursuanttoMerger
29.05.2017 0 0.00 31000 3.01
Decreaseduringtheyearpursuanttobuyback
07.02.2018 0 0.00 31000 3.10
AttheEndoftheyear 31.03.2018 - - 31000 3.10
12 Sam-Jag-DeepInvestmentsPrivateLimited 01.04.2017 1450 0.23 1450 0.23
IncreaseduringtheyearpursuanttoMerger
29.05.2017 0 0.00 1450 0.14
Decreaseduringtheyearpursuanttobuyback
07.02.2018 0 0.00 1450 0.14
AttheEndoftheyear 31.03.2018 - - 1450 0.14
13 GeeceeInvestmentsLimited 01.04.2017 0 0.00 0 0.00
IncreaseduringtheyearpursuanttoMerger
29.05.2017 7861 0.76 7861 0.76
Decreaseduringtheyearpursuanttobuyback
07.02.2018 0 0.00 7861 0.79
AttheEndoftheyear 31.03.2018 - - 7861 0.79
saraswati CommerCial (india) limited
34
iv) shareholding pattern of top ten shareholders (other than directors, promoters & holders of gdrs and adrs)
Sr. no.
name of the shareholder date no of shares % of total shares of the
company
Cummlative Shares
during the year
% of total shares of the
company during the
year
1 angular trading pvt ltd
Atthebeginningoftheyear 01.04.2017 31,966 4.99 31,966 4.99
Attheendoftheyear 31.03.2018 - - 31,966 3.19
2 g r n Finsec private limited
Atthebeginningoftheyear 01.04.2017 31,964 4.99 31,964 4.99
Attheendoftheyear 31.03.2018 - - 31,964 3.19
3 Kamal Visaria
Atthebeginningoftheyear 01.04.2017 0 0.00 0 0.00
Increase 25.08.2017 20,000 1.94 20,000 1.94
Attheendoftheyear 31.03.2018 - - 20,000 2.00
4 luv Kush projects limited
Atthebeginningoftheyear 01.04.2017 20,000 3.13 20,000 3.13
Attheendoftheyear 31.03.2018 - - 20,000 2.00
5 marco private limited
Atthebeginningoftheyear 01.04.2017 0 0.00 0 0.00
Increase 14.07.2017 19,136 1.86 19,136 1.86
Attheendoftheyear 31.03.2018 - - 19,136 1.91
6 panchmukhi properties limited
Atthebeginningoftheyear 01.04.2017 12,000 1.88 12,000 1.88
Attheendoftheyear 31.03.2018 - - 12,000 1.20
7 akash Bhanshali
Atthebeginningoftheyear 01.04.2017 0 0.00 0 0.00
Increase 14.07.2017 10,525 1.02 10,525 1.02
Attheendoftheyear 31.03.2018 - - 10,525 1.05
8 Lata Bhanshali
Atthebeginningoftheyear 01.04.2017 0 0.00 0 0.00
Increase 14.07.2017 10,525 1.02 10,525 1.02
Attheendoftheyear 31.03.2018 - - 10,525 1.05
9 Bihariji Commercial limited
Atthebeginningoftheyear 01.04.2017 10,000 1.56 10,000 1.56
Attheendoftheyear 31.03.2018 - - 10,000 1.00
10 ananta Jewels private limited
Atthebeginningoftheyear 01.04.2017 0 0.00 0 0.00
Increase 14.07.2017 9,006 0.87 9,006 0.87
Attheendoftheyear 31.03.2018 - - 9,006 0.90
35th annual report 2017-18
35
(v) shareholding of directors & Key managerial personnel
Sr. no.
For each of the directors & Kmp Shareholding at the beginning of the year
Cumulative shareholding during the year
no.of shares % of total shares of the
company
no of shares % of total shares of the
company1 Mr. V V Sureshkumar
Atthebeginningoftheyear 0 0.00 0 0.00IncreaseduetoMerger 228 0.02 228 0.02Attheendoftheyear - - 228 0.02
Note:NootherDirectororKeyManagerialPersonnelholdsanyshareintheCompany.
V indeBtedness
indebtedness of the Company including interest outstanding/accrued but not due for payment
particulars secured loans excluding deposits
unsecured Loans
deposits total indebtedness
indebtness at the beginning of the financial yeari)PrincipalAmount 80,000,000 - - 80,000,000ii)Interestduebutnotpaid - - - - iii)Interestaccruedbutnotdue 106,520 2,813,613 - 2,920,133total (i+ii+iii) 80,106,520 2,813,613 - 82,920,133 Change in indebtedness during the financial yearAdditions 2,379,986,704 660,558,515 - 3,040,545,219Reduction 2,460,093,224 344,893,613 - 2,804,986,837net Change (80,106,520) 315,664,902 - 235,558,382 indebtedness at the end of the financial yeari)PrincipalAmount - 318,100,000 - 318,100,000ii)Interestduebutnotpaid - - - - iii)Interestaccruedbutnotdue - 378,515 - 378,515total (i+ii+iii) - 318,478,515 - 318,478,515
Vi remuneration oF direCtors and Key managerial personnel
a. remuneration to managing director, whole time director and/or manager: not applicable
Sr. no.
particulars of remuneration name of the md/wtd/Manager
total amount
1 Grosssalary(a)Salaryasperprovisionscontainedinsection17(1)ofthe
IncomeTax.1961.- - -
(b)Valueofperquisitesu/s17(2)oftheIncometaxAct,1961 - - -(c)Profitsinlieuofsalaryundersection17(3)oftheIncomeTax
Act,1961- - -
2 Stockoption - - -3 SweatEquity - - -4 Commission - - -
as%ofprofit - - -others(specify) - - -
5 Others,pleasespecify - - -total (a) - - -Ceiling as per the act - - -
saraswati CommerCial (india) limited
36
c. remuneration to Key managerial personnel other than md / manager / wtd
Sr. no.
particulars of remuneration Key managerial personnel
1 gross salary rajiv pathak
cEO
avani Sanghavi Company secretary
Vaishali dhuri CFo
total
(a)Salaryasperprovisionscontainedinsection17(1)oftheIncomeTaxAct,1961.
3,393,425 481,055 948,870 4,823,350
(b)Valueofperquisitesu/s17(2)oftheIncomeTaxAct,1961
- - - -
(c)Profitsinlieuofsalaryundersection17(3)oftheIncomeTaxAct,1961
- - - -
2 StockOption - - - -
3 SweatEquity - - - -
4 Commission - - - -
as%ofprofit - - - -
others,specify - - - -
5 Others,pleasespecify ConveyanceReimbursement - 1,531 10,279 11,810
TelephoneReimbursement - - 3,608 3,608
MedicalInsurancePremium 22,312 - 13,386 35,698
total 3,415,737 482,586 976,143 4,874,466
B. remuneration to other directors:
Sr. no.
particulars of remuneration name of the directors total amount (in rs.)
1 IndependentDirectors Babita thakar Ketan desai
(a)Feeforattendingboardcommitteemeetings 9500 7500 17000
(b)Commission - - -
(c)Others,pleasespecify - - -
total (1) 9500 7500 17000
2 OtherNonExecutiveDirectors - - -
(a)Feeforattendingboardcommitteemeetings - - -
(b)Commission - - -
(c)Others,pleasespecify. - - -
total (2) - - -
total (B)=(1+2) 9500 7500 17000
total managerial remuneration within the limits of Companies act, 2013.
35th annual report 2017-18
37
Vii penalties/punishment/Comppounding oF oFFenCes
type section of the
Companies act
Brief description
details of penalty/punish-ment/
Compound-ing fees imposed
authority (rd/nClt/
Court)
appeall made if
any (give details)
a. Company
Penalty - - - - -
Punishment - - - - -
Compounding - - - - -
B. direCtors
Penalty - - - - -
Punishment - - - - -
Compounding - - - - -
C. other oFFiCers in deFault
Penalty - - - - -
Punishment - - - - -
Compounding - - - - -
saraswati CommerCial (india) limited
38
management disCussion and analysis report(a) industry structure and developments
Theyear2017-18sawlargescalereforminitiativescomeintofull force.GoodsandServiceTax(GST)wasrolledoutonscheduledon1stJuly2018.Thiscreatedasinglemarketforprovidersofgoodsandservices.AsingletaxontransactionswillaidGDPgrowthbyreducingthecostofdoingbusiness.TheIndianeconomypostedagrowthof 6.6% in FY2017-18 compared to 7.1% in FY2016-17, as thefirst roundof effects of demonetisation and theimplementationofGSTplayedout.However,ahostofotherpolicies,implementedduringandbeforeFY2017-18–suchasconstitutionofNationalCompanyLawTribunal(NCLT),theInsolvencyandBankruptcyCode,reformsintherealestatesectorintheformofRERA,allowingofFDIinvariousindustries,fast-trackingofprojectclearances,variousmeasuresforfinancialinclusion,etc.-areexpectedtopropelgrowthupwards,goingforward.
TheGovernmentforecasteconomicGDPgrowthslowingto6.5%from7.1%inpreviousyearmainlydrivenbytheissuesrelatedtoGSTimplementationandthepoorperformanceofagricultureandmanufacturingsector.ThusIndiacontinuedtowitnesssteadyeconomicgrowthdespiteavolatileinternalandweakexternalenvironment.TheGDPgrowthisexpectedtobouncebackto7-7.5%inFY2019.
Non-BankingFinanceCompanies (NBFCs)arean integralpartof thecountry’sfinancial systembecauseof theircomplementaryaswellascompetitiverole.Theyactasacriticallinkintheoverallfinancialsystemcateringtoalargemarketofnichecustomers.NBFCsareregulatedbytheReserveBankofIndia(RBI)almostatparwithbanks.Alltheprudentialnormsforassetclassification,incomerecognition,provisioningetc.,areapplicabletoNBFCsinIndia.
(b) opportunities and threats
IndianEconomyprovidesexcellentgrowthopportunitiesastheincreasedthrusttopower,road,ports,telecomandotherurban infrastructureprojectswill createapositiveenvironment for the InvestmentandFinancialServicesIndustryinIndia.Further,growthofservicesectoralsopresentsnewopportunitiesforInvestmentandFinancialServicesIndustryinIndia.
Theyear2017hasbeenagreatoneforequityinvestorswiththebenchmarkSensexandNiftygiving28%returns.Though the overall returnsmay not be that great in year 2018, investors would keep getting individual stockopportunities that could yieldmuch higher returns. Riding high on the surge in equities during July, India hasemergedasthebestperformingmarketamonglargestockmarketsintheworldduring2018.TheIndianmarketsgained10%year-to-date inrupeeterms,whichwasmuchhigherthankeystockmarketssuchasUS,ChinaandJapan.Markets,accordingtoanalysts,willwatchoutforearningsupgradesforcompaniesfollowingnormalisationofeeconomicconditionspostGST,demonetisationandRERArelateddisruptions.
Also,theIndianmarkethadaneventfulyearwiththeimplementationofGSTduringthesecondquarterofFY2017-18andthereintroductionoflongtermcapitalgainstaxintheBudgetfor2018-2019,presentedinFebruary2018.
(c) segment-wise or product-wise performance
TheCompany’sbusinessactivityprimarilyfallswithinaFinancingandInvestmentactivities.Hence,therearenoadditional disclosures required under “Accounting Standard - 17 ‘Segment Reporting’. The Company operatesprimarilyinIndia;hencethereisnoothersignificantgeographicalsegmentthatrequiresdisclosure.
ThegrossrevenueearnedfromsuchFinancingandInvestmentactivities isRs.1637.59LacsascomparedtoRs.1075.10Lacsinthepreviousyear.
(d) Outlook
TheoutlookfortheongoingfiscalyearFY2018-19andbeyondremainsmoderatelyoptimistic.Economicgrowth
35th annual report 2017-18
39
duringtheinitialpartoftheyearunderreviewwasweigheddownbyeffectsofdemonetizationandimplementationissuesrelatedtoGST.
Your Company Saraswati Commercial (India) Limited has become a Systematically Important NBFC As on 31stMarch,2017.AlthoughtheIndividualassetsizeofthecompanyislessthan500crores.However,onthegroupasawholehascrossedtheassetsizeof500crores.ThecompanyisfollowingprudentialnormswhichareapplicabletoSystematicallyImportantNBFC.
ThecompanyisengagedinthebusinessofInvestmentandTradinginSharesandSecuritiesandLendingActivities.The revenue of the company is generated from Trading in shares and Securities, Lending Activities and otheroperatingrevenues.
The Company continues to explore the possibilities of expansion in its activities and will make the necessaryinvestmentswhenattractiveopportunitiesarise.
(e) risks and Concerns
TheCompanyisexposedtothemarketriskandcreditrisk.Itisfurtherexposedtoriskofeconomiccycle.ProfitabilityofNBFCsisexpectedtoremainunderpressureforawhileashavingmigratedtoaminimumNPArecognitionof4monthsoverduefrom5monthsoverdueintheFY2016-2017,themovementwouldneedtobeto3monthsoverdue innextfinancial year.Thecompanymanages these risksby remainingveryconservativeand followingrequisiteriskmanagementpractices.
(f) internal Control systems and their adequacy:
Asapartoftheefforttoevaluatetheeffectivenessoftheinternalcontrolsystems,yourCompany’sinternalauditsystemreviewsallthecontrolmeasuresonaperiodicbasisandrecommendsimprovements,whereverappropriate.TheCompanyhas inplace adequate internal control systemsandprocedures commensuratewith the size andnature of its business. These systems and procedures provide reasonable assurance ofmaintenance of properaccountingrecords,reliabilityoffinancialinformation,protectionofresourcesandsafeguardingofassetsagainstunauthorizeduse.Themanagementregularlyreviewstheinternalcontrolsystemsandprocedures.
(g) discussions on Financial performance with respect to operational performance: (Rs.inLacs)
highlights 2017-2018 2016-2017 % change
RevenuefromOperationsandotherincome 1637.59 1075.10 52.32
ProfitbeforeInterest,DepreciationandTax 1401.80 801.13 74.98
Financecost 33.65 284.01 (88.15)
Depreciation 2.26 3.18 (28.93)
ProvisionforTaxation(IncludingDeferredTax&MAT) (230.76) (8.46) 2827.66
NetProfitafterTax 1596.65 522.40 205.64
EarningsperShare(inRs.) 165.60 81.63 102.87
(h) Buyback of equity shares
TheBoardofDirectorsoftheCompanyhadannouncedtheBuybackupto60,000fullypaid-upequitysharesoftheCompanyoffacevalueRs.10/-representingupto5.82%ofthetotalnumberofEquitySharesoftheCompanyatitsmeetingheldon7thDecember,2017atapriceofRs.978/-perEquityShareforanaggregatemaximumamountofuptoRs.5,86,80,000/-excludingtransactioncostssuchasbrokerage,securitiestransactiontax,goodsandservicetax,stampduty,etc.Outofwhich29,665EquityShareswasboughtbackatapriceofRs.978/-perEquityShare,amountingtoRs.2,90,12,370/-excludingTransactionCost.
saraswati CommerCial (india) limited
40
Alltheequityshareholdersholdingthesharesasonrecorddatei.e.Friday,22ndDecember,2017,wereallowedtotendertheirsharesusingstockexchangemechanismintheschemeofbuyback.
TheCompanyreceivedtheapprovalforbuybackofEquitySharesfromSEBIon2ndJanuary,2018andcompletedtheprocessofon9thFebruary,2018.
PostbuybackthesharecapitaloftheCompanyreducedtoRs.1,00,09,280/-EquitySharesfromRs.1,03,05,930/-.
(i) human resource development
TheCompanybelievesthatthehumanresourcesarevitalresourceingivingthecompanyacompetitiveedgeinthecurrentbusinessenvironment.Thecompany’sphilosophyistoprovidecongenialworkenvironment,performanceoriented work culture, knowledge acquisition/dissemination, creativity and responsibility. As in the past, thecompanyenjoyedcordialrelationswiththeemployeesatalllevels.
(j) Cautionary statements
StatementsinthisreportonManagementDiscussionandAnalysisdescribingtheCompany`sobjectives,projections,estimates and expectations may be “forward looking statements” within the meaning of applicable laws andregulations.Actualresultsmightdiffersubstantiallyormateriallyfromthoseexpressedorimpliedduetoriskanduncertainties.TheserisksanduncertaintiesincludesignificantchangesinpoliticalandeconomicalconditionsinIndiaandinternationally,volatilityininterestratesandinthesecuritiesmarket,newregulationsandGovernmentpoliciesthatmayimpactthecompany’sbusinessaswellastheabilitytoimplementstrategies.TheCompanyassumesnoresponsibilitynorisunderanyobligationtopubliclyamend,modifyorreviseanyforwardlookingstatementsonthebasisofanysubsequentdevelopments,informationorevents.
35th annual report 2017-18
41
Corporate goVernanCe report(A) Company’s philosophy on Code of Corporate governance
ThephilosophyofgovernancehasbeendeeplyrootedinthecultureoftheCompanyoveralongperiodoftime.TheCompanycontinuestodelivervalueto itsvariousstakeholders.ThepracticeofresponsiblegovernancehasenabledtheCompanytomaintainsustainability,whilemeetingtheexpectationsofallstakeholdersandthesocietyatlarge.BesidescomplyingwithRegulation34oftheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015(“ListingRegulations”)theCompanyhasadoptedvariouspracticesand set reasonable standards for conductingbusiness. TheCompany endeavours to improveupon aspects liketransparency,professionalism,accountabilityandfairdisclosures,onanongoingbasisandtakesnecessarystepstowardsgrowthandenhancingvalueforitsshareholders.
TheCompanyhascompliedwithalltheregulationsstipulatedbytheSecuritiesExchangeBoardofIndia(SEBI)intheListingRegulations.
goVernanCe struCture
TheCompany’sGovernancestructureconsistsof
• BoardofDirectors
• CommitteesofBoard
• TheManagement
(B) Board of directors
(i) Board Composition
The composition of the Board is in conformity with Regulation 17(1) of Listing Regulation as well as theCompanies Act, 2013. The Company has a well-balanced Board of Directors with members from diversebackgroundswho have experience and expertise in various fields and it has optimal combination of Non-ExecutiveandIndependentDirectors.AsonthedateofreporttheBoardcomprisedofFourNon–ExecutiveDirectorsofwhichtwoareIndependentDirectors.TheChairmanoftheBoardisaNon-ExecutiveDirector.
TheconstitutionoftheBoardisasgivenbelow:
director executive/non-executive/ independent
number of other
directorships* Committeememberships#
Committee Chairmanships#
Mr.VVSureshkumar Non-ExecutiveDirector 4 1 0
Mr.KetanDesai Non-Executive,IndependentDirector
1 2 1
Ms.BabitaThakar Non–ExecutiveIndependentDirector
0 0 0
Mr.RiteshZaveri Non-ExecutiveDirector 1 0 0
*OtherDirectorshipsexcludeDirectorshipsheld inPrivateLimitedCompaniesand inSaraswatiCommercial(India)Limited(SCIL).
#CommitteeofDirectorsincludesAuditCommitteeandStakeholderRelationshipCommitteeofDirectorsonly.CommitteeMembershipdoesnotincludeMembershipinCommitteeofDirectorsofSCIL.
(ii) Board meetings and attendance of directors
TheBoardmeetsatleastonceinaquartertoconsideramongstotherbusinesstheperformanceoftheCompanyandquarterlyfinancialresults.Whennecessary,additionalmeetingsareheld.TheBoardmeetingsaregenerally
saraswati CommerCial (india) limited
42
heldat theRegisteredOfficeof theCompanyatMumbai.Agenda foreachmeetingalongwithexplanatorynotesaredraftedanddistributedwellinadvancetotheDirectors.EveryBoardMemberisfreetosuggesttheinclusionofitemsontheagenda.
Nine(9)BoardMeetingwereheldduringtheyearended31stMarch,2018.ThedatesofsuchBoardMeetingsare 03.04.2017, 29.04.2017, 09.05.2017, 29.05.2017, 24.07.2017, 14.08.2017, 13.11.2017, 07.12.2017 &12.02.2018.
TheTablehereundergivestheattendancerecordoftheDirectorsattheBoardMeetingsheldduring2017-18andthelastAGM:
name of the directors number of Board meetings held
number of Board meetings attended
whether attended last aGM
Mr.HarisinghShyamsukha** 9 7 Yes
Mr.AnilRajan* 9 4 NA
Mr.KetanDesai 9 9 No
Ms.BabitaThakar 9 9 Yes
Mr.VVSureshkumar* 9 4 Yes
Mr.RiteshZaveri** 9 3 NA
*Mr.VVSureshkumarwasappointedw.e.f.14.08.2017&Mr.AnilRajanwasresignedw.e.f.10.08.2017. **Mr.RiteshZaveriwasappointedw.e.f.13.11.2017&Mr.HarisinghShyamsukhawasresignedw.e.f.13.11.2017.
All theDirectorshave informedtheCompanyperiodicallyabout theirDirectorshipandMembershipon theBoard/CommitteesoftheBoardofothercompanies.NoneofthedirectorsarerelatedwithanydirectorsoftheBoard.
(iii) shares held by non-executive directors as on 31st march, 2018
name of the non-executive director equity shares held (no.)
Ms.BabitaTHakar NIL
Mr.KetanDesai NIL
Mr.RiteshZaveri NIL
Mr.VVSureshkumar 228
(iv) Familiarisation programme for independent directors:
TheCompanyhasfamiliarizeditsindependentDirectorstoprovideinsightsintotheCompanyandtoenablethemtounderstandtheCompany’sbusinessindepth,tofamiliarizethemwiththeprocessesandfunctionariesof the Company to assist them in understanding their roles and responsibilities. Further, the IndependentDirectorsareprovidedwithopportunitytointeractwiththeManagementoftheCompanyandhelpthemtounderstandtheCompany’sstrategy,theirroles,rights,responsibilitiesintheCompany,natureoftheindustryinwhichthecompanyoperates,businessmodelofthecompanyandsuchotherareasasmayarisefromtimetotimethroughvariousprogrammes.
ThesaidprogramwasconductedforthefamiliarizationofIndependentdirectors.Thedetailsofthesamecanbefoundonthewebsiteofthecompany–www.saraswaticommercial.com&throughthefollowinglink:
http://www.saraswaticommercial.com/policies/Details_of_Familiarisation_Programme_15.12.2017.pdf
35th annual report 2017-18
43
(C) Board Committees
Toenablebetterandmorefocusedattentionontheaffairsofthecorporation,theBoarddelegateparticularmatterstothecommitteesetupforthepurpose.ThecommitteespreparethegroundworkfordecisionmakingandreportatthesubsequentBoardmeeting.Currently,theBoardhasfollowingCommittees–
1. AuditCommittee
2. StakeholderRelationshipCommittee.
3. NominationandRemunerationCommittee
4. CorporateSocialResponsibilityCommittee
5. RiskManagementCommittee
6. AssetLiabilityManagementCommittee
7. ITStrategyCommittee*
* AspertheMasterDirection-InformationTechnologyFrameworkfortheNBFCSectordated8thJune,2017(Ref.MasterDirectionDNBS.PPD.No.04/66.15.001/2016-17),NBFC’sarerequiredtoformITStrategyCommitteeonorbefore30th June,2018.ThereforetheBoardconstitutedthe ITStrategyCommitteeon28thMay,2018.ThesaidCommitteewillberesponsibleforreviewandamendtheITstrategiesinlinewiththecorporatestrategies,Boardpolicyreviews,cybersecurityarrangementsandanyothermatterrelatedtoITGovernance.
TheBoardisresponsiblefortheconstitution,co-optingandfixingthetermsofreferenceforCommitteemembersofthesaidCommittees.
(i) audit Committee
ThetermsofreferenceoftheAuditCommitteeare inaccordancewiththeprovisionsofSection177oftheCompaniesAct,2013readwiththeCompanies(MeetingsofBoardanditsPowers)Rules,2014andRegulation18readwithPartCofScheduleIIofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015interaliaincludesthefollowing:
a) OversightoftheCompany’sfinancialreportingprocessandthedisclosureof itsfinancial informationtoensurethatthefinancialstatementiscorrect,sufficientandcredible;
b) Recommendationforappointment,remunerationandtermsofappointmentofauditorsoftheCompany;
c) Approvalofpaymenttostatutoryauditorsforanyotherservicesrenderedbythestatutoryauditors;
d) Reviewing and examining,with themanagement, the annual financial statements and auditor’s reportthereonbeforesubmissiontotheboardforapproval,withparticularreferenceto:
i. MattersrequiredtobeincludedintheDirector’sResponsibilityStatementtobeincludedintheBoard’sReportintermsofclause(c)ofSub-section3ofSection134oftheCompaniesAct,2013;
ii. Changes,ifany,inaccountingpoliciesandpracticesandreasonsforthesame;
iii. Majoraccountingentriesinvolvingestimatesbasedontheexerciseofjudgmentbymanagement;
iv. Significantadjustmentsmadeinthefinancialstatementsarisingoutofauditfindings;
v. Compliancewithlistingandotherlegalrequirementsrelatingtofinancialstatements;
vi. Disclosureofanyrelatedpartytransactions;
vii. Modifiedopinion(s)inthedraftauditreport;
saraswati CommerCial (india) limited
44
e) reviewing,withthemanagement,thequarterlyfinancialstatementsbeforesubmissiontotheboardforapproval;
f) reviewing,with themanagement, the statementofuses /applicationof funds raised throughan issue(publicissue,rightsissue,preferentialissue,etc.),thestatementoffundsutilizedforpurposesotherthanthosestatedintheofferdocument/prospectus/noticeandthereportsubmittedbythemonitoringagencymonitoringtheutilisationofproceedsofapublicorrightsissue,andmakingappropriaterecommendationstotheboardtotakeupstepsinthismatter;
g) reviewingandmonitoringtheauditor‘sindependenceandperformance,andeffectivenessofauditprocess;
h) approvaloranysubsequentmodificationoftransactionsofthelistedentitywithrelatedparties;
i) scrutinyofinter-corporateloansandinvestments;
j) valuationofundertakingsorassetsofthelistedentity,whereveritisnecessary;
k) evaluationofinternalfinancialcontrolsandriskmanagementsystems;
l) reviewing,withthemanagement,performanceofstatutoryandinternalauditors,adequacyoftheinternalcontrolsystems;
m) reviewing the adequacy of internal audit function, if any, including the structure of the internal auditdepartment,staffingandseniorityoftheofficialheadingthedepartment,reportingstructurecoverageandfrequencyofinternalaudit;
n) discussionwithinternalauditorsofanysignificantfindingsandfollowupthereon;
o) reviewingthefindingsofanyinternal investigationsbytheinternalauditorsintomatterswherethereissuspectedfraudorirregularityorafailureofinternalcontrolsystemsofamaterialnatureandreportingthemattertotheboard;
p) discussionwithstatutoryauditorsbeforetheauditcommences,aboutthenatureandscopeofauditaswellaspost-auditdiscussiontoascertainanyareaofconcern
q) to look into the reasons for substantial defaults in the payment to the depositors, debenture holders,shareholders(incaseofnon-paymentofdeclareddividends)andcreditors;
r) toreviewthefunctioningofthewhistleblowermechanism;
s) approval of appointment of chief financial officer after assessing the qualifications, experience andbackground,etc.ofthecandidate;
t) Carryingoutanyotherfunctionasismentionedinthetermsofreferenceoftheauditcommittee.
Theauditcommitteeshallmandatorilyreviewthefollowinginformation:
1. managementdiscussionandanalysisoffinancialconditionandresultsofoperations;
2. statementofsignificantrelatedpartytransactions(asdefinedbytheauditcommittee),submittedbymanagement;
3. managementletters/lettersofinternalcontrolweaknessesissuedbythestatutoryauditors;
4. internalauditreportsrelatingtointernalcontrolweaknesses;and
5. theappointment,removalandtermsofremunerationofthechiefinternalauditorshallbesubjecttoreviewbytheauditcommittee.
6. statementofdeviations:
(a) quarterlystatementofdeviation(s)includingreportofmonitoringagency,ifapplicable,submittedtostockexchange(s)intermsofRegulation32(1).
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(b) annualstatementoffundsutilizedforpurposesotherthanthosestatedintheofferdocument/prospectus/noticeintermsofRegulation32(7).
Composition of the audit Committee
TheAuditCommitteecomprisesofthreeNon-ExecutiveDirectorsofwhichtwoareIndependentDirectors.ThequorumfortheAuditCommitteeMeetingistwomemberswithatleast2IndependentDirectors.
ThecompositionoftheAuditCommitteeisasfollows:
1. Ms.BabitaThakar-Chairperson(Non-ExecutiveIndependentDirector)
2. Mr.RiteshZaveri-Member(Non-ExecutiveDirector)
3. Mr.KetanDesai -Member(Non-ExecutiveIndependentDirector)
audit Committee meetings and attendance during the financial year ended 31st march, 2018
Duringthefinancialyearended31stMarch,2018,Five(5)AuditCommitteeMeetingswereheldon29thMay,2017,14thAugust2017,13thNovember,2017,7thDecember,2017and12thFebruary,2018.ThetablehereundergivestheattendancerecordoftheAuditCommitteemembers.
name of the member no. of meetings held
no. of meetings attended
Ms.BabitaThakar 5 5
Mr.HarisinghShyamsukha* 5 3
Mr.KetanDesai 5 5
Mr.RiteshZaveri* 5 2
*Mr.RiteshZaveriwasappointedw.e.f.13thNovember,2017&Mr.HarisinghShyamsukharesignedw.e.f.13th November,2017.
(ii) stakeholder relationship Committee:
TheStakeholderRelationshipCommitteeisheadedbyaNon-ExecutiveIndependentDirectorandconsistedofthefollowingmembersasondateofthisreport:
Composition:
1. Ms.BabitaThakar-Chairperson(Non-ExecutiveIndependentDirector)
2. Mr.RiteshZaveri-Member(Non-ExecutiveDirector)
3. Mr.KetanDesai-Member(Non-ExecutiveIndependentDirector)
Ms.AvaniSanghaviistheCompanySecretary&ComplianceOfficeroftheCompany.TheCompanyappointed“TSRDarashawPrivateLimited.”asitsRegistrarandShareTransferAgentfortheredressalofinvestor’sgrievanceandsharetransferprocess.TheRTAhasacteduponallvalidsharetransfersreceivedduringtheyear2017-2018.
DuringtheFinancialYearended31stMarch,2018,theaforesaidCommitteemet4timesdated29thMay,2017,14thAugust2017,13thNovember,2017&12thFebruary,2018.
Members no. of meetings
heldno. of meetings
attended
Ms.BabitaThakar 4 4
Mr.HarisinghShyamsukha* 4 3
Mr.KetanDesai 4 4
Mr.RiteshZaveri* 4 1
*Mr.RiteshZaveriwasappointedw.e.f.13thNovember,2017&Mr.HarisinghShyamsukharesignedw.e.f.13th November,2017.
saraswati CommerCial (india) limited
46
scope of the shareholders relationship Committee:
TheStakeholders’RelationshipCommitteedealswithmattersrelatingtoshareholders/investorsgrievancesviz.non-receiptofAnnualReports,non-receiptofdeclaredDividendanditsredressaletc.
details of shareholders’ complaints received, not solved and pending during the Financial year ended 31st march, 2018:
NumberofShareholders’Complaintsreceivedduringthefinancialyear1stApril,2017to31stMarch,2018:NIL
Numberofcomplaintsnotresolvedtothesatisfactionofshareholders:NIL
NumberofpendingshareTransfers/complaints:NIL
(iii) nomination and remuneration Committee
TheNomination&RemunerationCommitteeisheadedbyaNon-ExecutiveIndependentDirectorandconsistedofthefollowingmembersasondateofthisreport:
Composition:
1.Ms.BabitaThakar-Chairperson(Non-ExecutiveIndependentDirector)
2.Mr.RiteshZaveri-Member(Non-ExecutiveDirector)
3.Mr.KetanDesai-Member(Non-ExecutiveIndependentDirector)
Thepowers,roleandtermsofreferenceoftheNomination&RemunerationCommitteecoverstheareasascontemplatedunderRegulation19readwithPartDofScheduleIIofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015andSection178oftheCompaniesAct,2013,besidesothertermsasmaybereferredtobytheBoardofDirectors.
terms of reference:
Thisincludes:
• Formulationofcriteriafordeterminingqualifications,positiveattributesandindependenceofadirector;
• Recommending to the Board a policy, relating to the remuneration for the directors, key managerialpersonnelandotheremployees;
• FormulationofcriteriaforevaluationofIndependentDirectorsandtheBoard;
• DevisingapolicyonBoarddiversityandidentificationofpersonswhoarequalifiedtobecomedirectorsandwhomaybeappointedinseniormanagementinaccordancewiththecriterialaiddown;andrecommendtotheBoardtheirappointmentandremoval.
TheaforesaidCommitteemet3timesdated14thAugust2017,13thNovember,2017&12thFebruary,2018,duringtheFinancialYearfrom1stApril,2017to31stMarch,2018.
Members no. of meetings
heldno. of meetings
attended
Ms.BabitaThakar 3 3
Mr.HarisinghShyamsukha* 3 2
Mr.KetanDesai 3 3
Mr.RiteshZaveri* 3 1
*Mr.RiteshZaveriwasappointedw.e.f.13thNovember,2017&Mr.HarisinghShyamsukharesignedw.e.f.13th November,2017.
remuneration of directors:
The Remuneration policy of your Company is a comprehensive policywhich is competitive, in consonancewith the industry practices and rewards good performance of the employees of the Company. The policy
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ensuresequality,fairnessandconsistencyinrewardingtheemployeesonthebasisofperformanceagainstsetobjectives.TheCompanyendeavorstoattract,retain,developandmotivateahighperformanceworkforce.TheCompanyfollowsacompensationmixoffixedandvariablepay.Individualperformancepayisdeterminedbybusinessperformanceandtheperformanceoftheindividualsmeasuredthroughtheannualappraisalprocess.
On recommendation of the Nomination & Remuneration Committee, the Board in its meeting held on 13thNovember,2017,decidedtopaythesittingfeestotheNon-ExecutiveIndependentDirectorsoftheCompany,Rs.1000/-forattendingtheBoardMeetingandRs.500/-forattendingCommitteeMeetingswithimmediateeffect.Furthernoneofthedirectorswerepaidanyremunerationduringtheyear2017-2018.Presently,theCompanydoesnothaveanystockoptionplanorperformancelinkedincentivesforitsdirectors.
(iv) Corporate social responsibility Committee
The Corporate Social Responsibility (CSR) Committee i s headed by Mrs. Babita Thakar, Non-ExecutiveIndependentDirectorandconsistedofthefollowingmembersasondateofthisreport:
Composition:
1. Ms.BabitaThakar-Chairperson(Non-ExecutiveIndependentDirector)
2. Mr.RiteshZaveri-Member(Non-ExecutiveDirector)
3. Mr.KetanDesai-Member(Non-ExecutiveIndependentDirector)
TheaforesaidCommitteemet3timesdated14thAugust2017,13thNovember,2017&12thFebruary,2018,duringtheFinancialYearfrom1stApril,2017to31stMarch,2018.
Members no. of meetings
heldno. of meetings
attended
Ms.BabitaThakar 3 3
Mr.HarisinghShyamsukha* 3 2
Mr.KetanDesai 3 3
Mr.RiteshZaveri* 3 1
*Mr.RiteshZaveriwasappointedw.e.f.13thNovember,2017&Mr.HarisinghShyamsukharesignedw.e.f.13th November,2017.
(v) risk management Committee
As per NBFCs - Corporate Governance (Reserve Bank) Directions, an NBFC is required to constitute a RiskManagementCommittee(RMC)tomanagetheintegratedrisk.TheCompanyhasaRMCandaPolicytoensuresustainablebusinessgrowthwithstabilityandtopromoteapro-activeapproachinreporting,evaluatingandresolvingrisksassociatedwiththebusiness.
TheRiskManagementcommitteei s headedbyMr.VVSureshkumar,Non-ExecutiveDirectorandconsistedofthefollowingmembers:
Composition:
1. Mr.VVSureshkumar-Chairman(Non-ExecutiveDirector)
2. Mr.RiteshZaveri-Member(Non-ExecutiveDirector)
3. Ms.BabitaThakar-Member(Non-ExecutiveIndependentDirector)
TheaforesaidCommitteemet4timesdated24th July, 2017,14thAugust2017,13thNovember, 2017&12th February,2018,duringtheFinancialYearfrom1stApril,2017to31stMarch,2018.
saraswati CommerCial (india) limited
48
Members no. of meetings
heldno. of meetings
attended
Mr.AnilRajan* 4 1
Mr.HarisinghShyamsukha** 4 3
Ms.BabitaThakar 4 4
Mr.VVSureshkumar* 4 2
Mr.RiteshZaveri** 4 1
*Mr.VVSureshkumarwasappointedw.e.f.14thAugust2017&Mr.AnilRajanresignedw.e.f.10thAugust2017.**Mr.RiteshZaveriwasappointedw.e.f.13thNovember,2017&Mr.HarisinghShyamsukharesignedw.e.f.13th November,2017.
TheRiskManagementcommitteeisresponsibleforframing,implementingandmonitoringtheriskmanagementplan for the Company, overseeing themanagement of the integrated riskwhich includes liquidity risk andinterestraterisk.
terms of reference of risk management Committee includes the following:
• ToensurethattheriskmanagementprocessandcultureareembodiedthroughouttheCompany;
• Oversee the Company’s risk exposures, risk/return and proposed improvements to the Group`s riskManagementframeworkanditsriskappetite,strategy,principles,policiesandstandards;
• ToprovideadequateinformationtotheBoardonkeyriskmanagementmatters;
• Toidentifynewstrategyriskincludingcorporatematter;
• Toreviewtheriskmanagementplanandensureitseffectiveness.
(vi) asset liability management Committee
TheAssetLiabilityManagementCommitteeoftheCompanyisentrustedwiththetaskofreviewingtheassetliabilitymismatchesandtoreporttotheBoardwithrespectthereto.
TheAssetLiabilityManagementcommitteei s headedbyMr.VVSureshkumar,Non-ExecutiveDirectorandconsistedofthefollowingmembers:
Composition:
1. Mr.VVSureshkumar-Chairman(Non-ExecutiveDirector)
2. Mr.RiteshZaveri-Member(Non-ExecutiveDirector)
3. Ms.BabitaThakar-Member(Non-ExecutiveIndependentDirector)
4. Mr.RajivPathak-Member(ChiefExecutiveOfficer)
TheaforesaidCommitteemet4timesdated24th July, 2017,14thAugust2017,13thNovember, 2017&12th February,2018,duringtheFinancialYearfrom1stApril,2017to31stMarch,2018.
Members no. of meetings
heldno. of meetings
attended
Mr.AnilRajan* 4 1
Mr.HarisinghShyamsukha** 4 3
Ms.BabitaThakar 4 4
Mr.VVSureshkumar* 4 2
Mr.RiteshZaveri** 4 1
Mr.RajivPathak 4 4
*Mr.VVSureshkumarwasappointedw.e.f.14.08.2017&Mr.AnilRajanresignedw.e.f.10.08.2017.**Mr.RiteshZaveriwasappointedw.e.f.13thNovember,2017&Mr.HarisinghShyamsukharesignedw.e.f.13th November,2017.
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role of asset liability management Committee:
• ReviewingtheeffectsofvariouspossiblechangesinthemarketconditionsrelatedtotheBalanceSheetandrecommendtheactionneededtoadheretotheCompany’sinternallimits.
• ArticulatingthecurrentinterestrateviewoftheCompanyanddecidingthefuturebusinessstrategyonthisview.
• Toensurethatallactivitiesarewithintheoverallregulatoryframeworkandgovernmentregulation.
• ToconsiderthesignificanceofALMofanychangesincustomerbehaviorandformulateappropriateactions.
independent direCtor meeting
ThefollowingareIndependentDirectorsoftheCompany:
1. Ms.BabitaThakar
2. Mr.KetanDesai
TheIndependentDirectorsmetonceduringthefinancialyearviz.on15thDecember,2017inter-alia,toconsider
–theperformanceforNon-IndependentDirectorsandtheBoardasawhole.
–theperformanceoftheChairmanoftheCompany.
–assessingthequality,quantityandtimelinessofflowofinformation.
TheweblinkwheredetailsofFamiliarizationprogrammesareimpartedtoIndependentDirectorsisathttp://www.saraswaticommercial.com/policies/Details_of_Familiarisation_Programme_15.12.2017.pdf
(d) general Body meetings:
DetailsoflastGeneralMeetingsheldinlastthree yearsaregivenhereunder
particulars year date Venue time details of special resolution
32ndAGM 2014-2015 25/09/2015 OriconHouse,6thFloor,12,K.DubhashMarg,Fort,Mumbai-400001
2.00p.m. NoSpecialResolution
33rdAGM 2015-2016 27/09/2016 OriconHouse,6thFloor,12,K.DubhashMarg,Fort,Mumbai-400001
3.00p.m. NoSpecialResolution
CourtConvenedMeeting
2016-2017 10/11/2016 OriconHouse,6thFloor,12,K.DubhashMarg,Fort,Mumbai-400001
3.00p.m. •ApprovaloftheSchemeofAmalgamationofAroniCommercialsLimited(TransferorCompany)withSaraswatiCommercial(India)Limited(TransfereeCompany)
34thAGM 2016-2017 28/09/2017 OriconHouse,6thFloor,12,K.DubhashMarg,Fort,Mumbai-400001
4.30p.m. •Increasetheborrowinglimitundersection180(1)(c)oftheCompaniesAct,2013
postal ballots - procedure & results
No Special Resolution requiring postal ballot was placed before the last Annual General Meeting. No specialresolutionisbeingproposedfortheensuingAnnualGeneralMeetingforbeingpassedthroughpostalballot.
saraswati CommerCial (india) limited
50
Duringtheyear31.03.2017,pursuanttotheprovisionsoftheSection110oftheCompaniesAct,2013,readwithCompanies(ManagementandAdministration)Rules,2014,theCompanyhaspassedcertainresolutionsthroughPostalBallot,asperthedetailsmentionedbelow:
TheCompanyasperthePostalBallotnoticedated5thOctober,2016,passedSpecialResolutionsforapprovalofSchemeofAmalgamationofAroniCommercialsLimited(“TransferorCompany”)withSaraswatiCommercial(India)Limited(“TransfereeCompany”orApplicantCompany).
TheCompanyhadappointedMr.NishantJawasa,PracticingCompanySecretaryasScrutinizertoconductthePostalBallotprocessinaffairandtransparentmanner.
details of Voting patterns
agenda – to approve the scheme of amalgamation of aroni Commercials limited (transferor Company) with saraswati Commercial (india) limited (transferee Company)
resolution required: (ordinary/ special)
majority of the public Category of equity shareholders assenting to the resolution.
whether promoter/ promoter group are interested in the agenda/resolution?
yes, however the promoter and promoter have not voted on the proposed resolution.
Category mode of Voting
no. of shares held
no. of votes polled
% of Votespolled
no. ofVotes – in favour
no. of Votes – against
% of Votes in favour on votes polled
% of votes against on votes polled
(1) (2) (3)=[(2)/(1)]* 100
(4) (5) (6)=[(4)/(2)]*100
(7)=[(5)/(2)]*100
promoter and promoter group
e-Voting
480000
- - - - - -
poll- n.a. - - - - - -
postal Ballot
- - - - - -
total - - - - - -
public- institution s
e-Voting
0
- - - - - -
poll- n.a. - - - - - -
postal Ballot
- - - - - -
total - - - - - -
public- non institution s
e-Voting
160000
99190 61.99% 99190 NIL 100% NIL
poll- n.a. - - - - - -
postal Ballot
- - - - - -
total 99190 61.99% 99190 NIL 100% NIL
total 640000 99190 15.50% 99190 nil 100% nil
(e) disclosures:
(i) related party transactions:
NoneofthetransactionswithanyoftherelatedpartieswereinconflictwiththeinterestoftheCompany.
TransactionswiththerelatedpartiesaredisclosedinNoteNo.26tothe‘NotesonAccounts’annexedtotheFinancialStatementsfortheyearunderreview.WeblinkofthepolicyondealinginrelatedpartytransactionsformsthepartofDirectors’Report.
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(ii) Compliances by the Company:
Thereisnonon-compliancebytheCompanyoranypenalties,stricturesimposedbytheStockExchange,SEBIoranyotherstatutoryauthorityonanymatterrelatedtocapitalmarkets,duringthelastthreeyears/period.
(iii) whistle Blower policy:
TheCompanyhasformulatedaVigilMechanism/WhistleBlowerPolicywithaviewtoprovideamechanismforDirectorsandemployeestoapproachtheAuditCommitteeoranymemberofAuditCommittee.DuringtheyearunderreviewnoemployeewasdeniedaccesstothechairpersonofAuditCommittee.ThesaidpolicyhasbeenalsoputuponthewebsiteoftheCompanyatwww.saraswaticommercial.com&theweblinkofthesaidpolicyformsthepartofDirectors’Report
(iv) Compliance with the mandatory requirements and implementation of the non-mandatory requirements:
TheCompanyhascompliedwiththemandatoryrequirementoftheCorporateGovernanceasstipulatedunderRegulation27oftheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations, 2015. The Company has not implemented the non-mandatory requirements except statedotherwiseinthisAnnualReport.
(v) policy on material subsidiaries:
TheCompanyhasapolicyfordeterminingmaterialsubsidiarieswhichisdisclosedinitswebsiteatthefollowinglink:
http://www.saraswaticommercial.com/policies/Policy-for-Determination-of-Materiality_Saraswati.pdf
(F) means of Communication:
(i) ThequarterlyresultsoftheCompanyarepublishedinthreenewspapersincompliancewithRegulation47oftheSEBI(LODR)Regulations,2015;
(ii) Thequarterlyresultswerepublishedinthefollowingnewspapers:
1. FinancialExpress(Nationwideedition)
2. BusinessStandared(Nationwideedition)
3. MumbaiLakshadeep(inMumbai)
ThequarterlyresultsaswellastheproceedingsoftheAnnualGeneralMeetingwereuploadedontheportalofBSELimitedi.e.listing.bseindia.comimmediatelyaftertheconclusionoftherespectivemeetings.
TheresultsarealsodisplayedontheCompany’swebsiteatwww.saraswaticommercial.com
(iii) AspertheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015allperiodical information, including the statutoryfilingsanddisclosures, are sent toBSE Limited.ThefilingsrequiredtobemadeunderthesameforeachquarterarealsofiledonBSEListingCentre.
(iv) Nopresentationsweremadetotheinstitutionalinvestorsortoanalystsduringtheyearunderreview.
(v) redressal of investor grievances through seBi Complaints redressal system (sCores)
SCORES(SEBIComplaintsandRedressalSystem)isacentralizedwebbasedgrievanceredressalsystemlaunchedbySEBI(http://scores.gov.in).SCORESprovideaplatformforaggrievedinvestors,whosegrievances,pertainingtosecuritiesmarket,remainunresolvedbytheconcernedlistedcompanyorregisteredintermediaryafteradirectapproach.ThisenablesthemarketintermediariesandlistedCompaniestocheckthecomplaintsonlinefrominvestors,redresssuchcomplaintsandreportredressalonline.AlltheactivitiesstartingfromlodgingofacomplainttillitsclosurebySEBIwouldbehandledinanautomatedenvironmentandthecomplainantcanviewthestatusofhiscomplaintonline.Aninvestor,whoisnotfamiliarwithSCORESordoesnothaveaccessto
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52
SCORES,canlodgecomplaintsinphysicalformatanyoftheofficesofSEBI.SuchcomplaintswouldbescannedandalsouploadedinSCORESforprocessing.
(g) general shareholders’ information:
(i) CIN L51909MH1983PLC166605
(ii) Date,timeandvenueofAnnualGeneralMeetingofShareholders
27thSeptember,2018,4.30P.M.OriconHouse,6thFloor,12,K.DubhashMarg,Fort,Mumbai-400001
(iii) FinancialYear/FinancialCalendar ThefinancialyearofthecompanystartsfromApril1standendsonMarch31stofthesucceedingyear.
(iv) Datesofbookclosures Monday,24thSeptember2018toThursday,27thSeptember2018(bothdaysinclusive)
(v)RegisteredOffice 209-210,ArcadiaBuilding,2ndFloor,PlotNo.195,Nariman
Point,Mumbai–400021Tel.No.:022–66388600/66708600FaxNo.:022–66388610/66708650
(vi) Listingonstockexchanges TheEquitySharesoftheCompanyarelistedon:-BSELimited-AnnualListingFeesasprescribedhasbeenpaidtothesaidStockExchangefortheyear2018–2019.
(vii) StockExchangeCode 512020(BSELimited)
(viii) stock market price data
MonthlyhighandlowattheBombayStockExchangeLimitedforfinancialyearended31stMarch,2018:
Month high rs. low rs. Bse sensex (Closing)
April2017 8.40 8.40 29,918.40
May2017 8.40 8.40 31,145.80
June2017 8.40 8.40 30,921.61
July2017 8.73 8.40 32,514.94
August2017 9.52 8.90 31,730.49
September2017 10.48 9.99 31,283.72
October2017 11.55 11.00 33,213.13
November2017 12.72 12.12 33,149.35
December2017 14.71 13.35 34,056.83
January2018 14.71 14.71 35,965.02
February2018 15.44 15.44 34,184.04
March2018 16.20 16.20 32,968.68
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53
(ix) performance in comparison to Bse sensex:
0.005,000.0010,000.0015,000.0020,000.0025,000.0030,000.0035,000.0040,000.00
0
5
10
15
20
Apr
-17
May
-17
Jun-17
Jul-1
7
Aug
-17
Sep-17
Oct
-17
Nov
-17
Dec
-17
Jan-18
Feb-18
Mar
-18
Bse
sens
ex
pric
e
Month
price v/s Bse sensex
High(Rs) Low(Rs) Sensex(closing)
(x) registrar and share transfer agents:
tsr darashaw limited
6-10,HajiMoosaPatrawalaInd.Estate,
20,Dr.E.MosesRoad,
Nr.FamousStudio,Mahalaxmi
Mumbai–400001
(xi) share transfer system:
Transfers in physical forms are generally registered by Registrar and Share Transfer Agents (RTA),M/s. TSRDarashawLimitedwithinaperiodof30daysof receiptofdocumentscomplete inall respect. Invalidsharetransfers are returned within a period of 15 days from the date of receipt. The Stakeholder RelationshipCommitteeoftheCompanymeetsasoftenasrequired.
TheSecuritiesandExchangeBoardofIndia(‘SEBI’)videitsnotificationdated8thJune,2018amendedtheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,whichmandatesthattransferofsecuritieswitheffectfrom5thDecember,2018wouldbeindematerializedformthroughthedepositoriesonly.PursuanttothesaidnotificationtheCompanyisinprocessofsendingtheremindertoalltheshareholdersholdingthesharesinphysicalformtoconverttheirsharesintodematerializedform.
(xii) distribution of shareholding as on 31st march, 2018:
no. of equity shares held Shareholders Shares
number % to total Shareholders
number % to total Capital
1-5000 916 97.14 48,300 4.83
5001-10,000 9 0.95 67,884 6.78
10,001-20,000 7 0.74 1,11,533 11.14
20,001-30,000 1 0.11 22,000 2.20
saraswati CommerCial (india) limited
54
no. of equity shares held Shareholders Shares
number % to total Shareholders
number % to total Capital
30,001-40,000 3 0.32 94,930 9.48
40,001-50,000 1 0.11 42,141 4.21
50,001–1,00,000 4 0.42 2,30,769 23.06
1,00,001&above 2 0.21 3,83,371 38.30
943 100.00 10,00,928 100.00
(xiii) Categories of shareholding as on 31st march, 2018:
CategoryShareholders Shares
number % to total
Shareholders number
% to total Capital
promoters holding
IndianPromoters 12 1.27 715950 71.53
ForeignPromoters 1 0.11 22000 2.20
Totalofpromoterholding 13 1.38 737950 73.73
non- promoter holding
InstitutionalInvestors 0 0.00 0 0.00
FIIs 0 0.00 0 0.00
Others 0 0.00 0 0.00
CorporateBodies 18 1.91 159650 15.95
IndianPublic 874 92.68 100656 10.06
NRIs/OCBs 8 0.85 813 0.08
ClearingMember 7 0.74 545 0.05
HUF 23 2.44 1314 0.13
Totalofnon-promoterholding 930 98.62 262978 26.27
Grand total 943 100.00 1000928 100.00
(xiv) dematerialisation of shares and liquidity
ISINforDematerializationisINE967G01019
NameofDepository Positionason31.03.18(No.of
shares)
%ofTotalIssuedCapital
NSDL 830197 82.94%
CDSL 93090 9.30%
Physical 77641 7.76%
TotalNo.ofshares 1000928 100%
reconciliation of share Capital audit report
AsstipulatedbySEBI,aqualifiedPracticingCompanySecretarycarriesoutSecretarialAudittoreconcilethetotal admitted capital with National Securities Depository Limited (NSDL) and Central Depository Services(India)Limited(CDSL)andthetotal issuedand listedcapital.Theaudit iscarriedouteveryquarterandthe
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55
reportthereonissubmittedtothestockexchangewheretheCompany’ssharesarelisted.TheauditconfirmsthatthetotallistedandPaid-upCapitalisinagreementwiththeaggregateofthetotalnumberofsharesindematerializedform(heldwithNSDLandCDSL)andtotalnumberofsharesinphysicalform.
M/s.NishantJawasa&Associates,CompanySecretaryinPracticecarriedoutShareCapitalaudittoreconcilethetotaladmittedequitysharecapitalwiththeNSDLandCDSLandtotalissuedandlistedequitysharecapital.
(xv) outstanding gdrs/adrs/warrants or any Convertible instruments, conversion date and likely impact on equity.
TherearenoGDR/ADR/WarrantoranyConvertibleInstrumentspendingconversionoranyotherinstrumentlikelytoimpacttheequitysharecapitaloftheCompany.
(xvi) plant location:
TheCompanydoesnothaveanyplant.
(xvii) address for Correspondence: registrar & share transfer agent
tsr darashaw limited6-10,HajiMoosaPatrawalaInd.Estate,20,Dr.E.MosesRoad,Nr.FamousStudio,Mahalaxmi,Mumbai–400001TelNo:(022)66178543,FaxNo:(022)Email-id:[email protected]
avani Sanghavi
CompanySecretary&ComplianceOfficerSaraswatiCommercial(India)Limited209-210ArcadiaBuilding,2ndfloor,195,NarimanPoint,Mumbai-4000021.Phone:(022)66708600Email:[email protected]
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CertiFiCate on Corporate goVernanCeTo,TheMembersofsaraswati Commercial (india) limited
1. WehaveexaminedthecomplianceofconditionsofCorporateGovernancebysaraswati Commercial (india) limited (“theCompany”),fortheyearendedon31stMarch,2018,asstipulatedinRegulations17to27andClauses(b)to(i)ofRegulation46(2)andparagraphsC,DandEofScheduleVoftheSEBIListingRegulations.
2. ThecomplianceofconditionsofCorporateGovernanceistheresponsibilityoftheManagement.Ourexaminationwaslimitedtoareviewoftheproceduresandimplementationthereof,adoptedbytheCompanyforensuringthecomplianceoftheconditionsofCorporateGovernance.ItisneitheranauditnoranexpressionofopiniononthefinancialstatementsoftheCompany.
3. InouropinionandtothebestofourinformationandaccordingtoourexaminationoftherelevantrecordsandtheexplanationsgiventousandtherepresentationsmadebytheDirectorsandtheManagement,wecertifythattheCompanyhascompliedwiththeconditionsofCorporateGovernanceasstipulatedinregulation17to27andclauses(b)to(i)ofRegulation46(2)andparagraphsC,DandEofScheduleVoftheSEBIListingRegulationsfortheyearended31stMarch,2018.
4. WestatethatsuchcomplianceisneitheranassuranceastothefutureviabilityoftheCompanynoroftheefficiencyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany.
For and on behalf of nishant Jawasa & associates
Company secretaries
place: mumbaidated: 13th august, 2018
sd/-nishant Jawasa
proprietorFCs no.: 6557
ConFirmation CertiFiCate regarding ComplianCe By Board memBers and senior management personnel with the Company’s Code oF ConduCttothe Board of directorssaraswati Commercial (india) limited
IconfirmthattheCompanyhasreceivedfromthemembersoftheBoardandSeniorManagementteamoftheCompany,declarationsofcompliancewiththeCodeofConductasapplicabletothemduringthefinancialyearended31stMarch,2018.
place: mumbaidated: 28th may, 2018
sd/-rajiv pathak
cEO
35th annual report 2017-18
57
ConFirmation CertiFiCatetothe Memberssaraswati Commercial (india) limited
I confirm that theCompanyhas received fromall theDirectors, a declarationof compliance in accordancewith theprovisionsofSection165oftheCompaniesAct,2013andRegulation25(1)&26(1)SEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,forthefinancialyearended31stMarch,2018.
place: mumbaidated: 28th august, 2018
sd/-rajiv pathak
cEO
Ceo & CFo CertiFiCationtothe Board of directorssaraswati Commercial (india) limited
(a) Wehavereviewedfinancialstatementsandthecashflowstatementfortheyearended31stMarch,2018andthattothebestoftheirknowledgeandbelief:
(i) these statements do not contain any materially untrue statement or omit any material fact or containstatementsthatmightbemisleading;
(ii) thesestatementstogetherpresentatrueandfairviewofthecompany’saffairsandareincompliancewithexistingaccountingstandards,applicablelawsandregulations.
(b) Thereare,tothebestoftheirknowledgeandbelief,notransactionsenteredintobythecompanyduringtheyearwhicharefraudulent,illegalorviolativeofthecompany’scodeofconduct.
(c) WeacceptresponsibilityforestablishingandmaintaininginternalcontrolsforfinancialreportingandthatwehaveevaluatedtheeffectivenessofinternalcontrolsystemsofthecompanypertainingtofinancialreportingandwehavedisclosedtotheauditorsandtheAuditCommittee,deficienciesinthedesignoroperationofsuchinternalcontrols,ifany,ofwhichweareawareandthestepswehavetakenorproposetotaketorectifythesedeficiencies.
(d) wehaveindicatedtotheauditorsandtheAuditcommittee
(i) significantchangesininternalcontroloverfinancialreportingifanyduringtheyear;
(ii) significantchangesinaccountingpoliciesduringtheyearandthatthesamehavebeendisclosedinthenotestothefinancialstatementsifany;and
(iii) instancesof significant fraudofwhichwehavebecomeawareand the involvement therein, ifany,of themanagementoranemployeehavingasignificantroleinthecompany’sinternalcontrolsystemoverfinancialreporting.
place: mumbaidate: 28th may, 2018
sd/-Vaishali dhuri
Chief Financial officer
sd/-rajiv pathak
Chief executive officer
saraswati CommerCial (india) limited
58
independent auditors’ reportto the memBers oF
saraswati CommerCial (india) limited
report on the standalone Financial statements
Wehave audited the accompanying standalone financial statements ofsaraswati CommerCial (india) limited,whichcomprisetheBalanceSheetasat31stMarch2018,theStatementofProfitandLoss,CashFlowStatementfortheyearended,andasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.
management’s responsibility for the standalone Financial statements
TheCompany’sBoardofDirectors isresponsibleforthemattersstated insection134(5)oftheCompaniesAct,2013withrespecttothepreparationofthesestandalonefinancialstatementsthatgiveatrueandfairviewofthefinancialposition,financialperformanceandcashflowsoftheCompanyinaccordancewiththeaccountingprinciplesgenerallyaccepted in India, includingtheAccountingStandardsreferredunderSection133of theAct, readwithRule7of theCompanies(Accounts)Rules,2014.ThisresponsibilityalsoincludesthemaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionoftheActforsafeguardingoftheassetsoftheCompanyandforpreventinganddetectingthefraudsandotherirregularities;selectionandapplicationofappropriateaccountingpolicies;makingjudgmentsandestimatesthatarereasonableandprudent;anddesign,implementationandmaintenanceofinternalfinancialcontrol,thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentationoftheStandalone financialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.
auditor’s responsibility
OurresponsibilityistoexpressanopinionontheseStandalone financialstatementsbasedonouraudit.
Wehave taken intoaccount theprovisionsof theAct, theaccountingandauditingstandardsandMatterswhicharerequiredtobeincludedintheauditreportundertheprovisionsoftheActandtheRulesmadethereunder.
WeconductedourauditinaccordancewiththeStandardsonAuditingspecifiedundersection143(10)oftheAct.ThoseStandards require that we comply with ethical requirements and plan and perform the audit to obtain reasonableassuranceaboutwhethertheStandalone financialstatementsarefreefrommaterialmisstatement.
AnauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresintheStandalone financialstatements.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementoftheStandalone financialstatements,whetherduetofraudorerror. Inmakingthoseriskassessments,theauditorconsidersinternalfinancialcontrolrelevanttotheCompany’spreparationoftheStandalone financial statements that give true and fair view in order to design audit procedures that are appropriate in thecircumstances.AnauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessoftheaccountingestimatesmadebyCompany’sDirectors,aswellasevaluatingtheoverallpresentationoftheStandalone financialstatements.
WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheStandalone financialstatements.
opinion
Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theaforesaidstandalonefinancialstatements,givetheinformationrequiredbytheActinthemannersorequiredandgiveatrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndia;
a) InthecaseoftheBalanceSheet,ofthestateofaffairsoftheCompanyasat31stMarch,2018.
b) InthecaseoftheStatementofProfitandLoss,ofthe‘profit’fortheyearendedonthatdate;and
c) InthecaseoftheCashFlowStatement,ofthecashflowsfortheyearendedonthatdate.
35th annual report 2017-18
59
report on other legal and regulatory requirements
1. AsrequiredbytheCompanies(Auditor’sReport)Order,2016(“theOrder”) issuedbytheCentralGovernmentofIndiaintermsofsub-section(11)ofsection143oftheAct,wegiveintheAnnexure‘A’astatementonthemattersspecifiedintheparagraph3and4oftheOrder,totheextentapplicable.
2. Asrequiredbysection143(3)oftheAct,wereportthat:
a) Wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesofouraudit.
b) Inouropinion,properbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofarasappearsfromourexaminationofthosebooks.
c) TheBalanceSheet,theStatementofProfitandLoss,andCashFlowStatementdealtwithbythisReportareinagreementwiththebooksofaccount.
d) Inouropinion,theaforesaidstandalonefinancialstatementscomplywiththeAccountingStandardsspecifiedunderSection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.
e) Onthebasisofwrittenrepresentationsreceivedfromthedirectorsason31stMarch,2018,takenonrecordbytheBoardofDirectors,noneofthedirectorsisdisqualifiedason31stMarch,2018,frombeingappointedasadirectorintermsofSection164(2)oftheAct.
f) WithrespecttotheadequacyoftheinternalfinancialcontrolsoverfinancialreportingoftheCompanyandtheoperatingeffectivenessofsuchcontrols,refertooverseparatereportin‘AnnexureB’;and
g) WithrespecttotheothermattersincludedintheAuditor’sReportinaccordancewithRule11oftheCompanies(Audit and Auditors) Rules, 2014 in our opinion and to our best of our information and according to theexplanationsgiventous:
i. The Company has disclosed the impact of pending litigations on its financial position in its Standalone financialstatements–ReferNote.25.1totheStandalone financialstatements.
ii. TheCompanydidnothaveanylong-termcontractsincludingderivativescontractsforwhichtherewereanymaterialforeseeablelosses.
iii. TherewerenoamountsrequiredtobetransferredtotheInvestorEducationandProtectionFundbytheCompany.
For aJay shoBha & Co.Firm registration no.317031E
Chartered aCCountants
place : mumbaidate: 28th may, 2018
sd/-aJay gupta
partnermemBership no. 053071
saraswati CommerCial (india) limited
60
anneXure ’a’ to the independent auditors’ report The Annexure referred to in our Independent Auditors’ Report to themembers of the Company on the standalonefinancialstatementsfortheyearended31stMarch2018,wereportthat:
1. (a) TheCompanyhasmaintainedproperrecordsshowingfullparticularsincludingquantitativedetailsandsituationofFixedAssets.
(b)Aspertheinformationandexplanationsgiventousphysicalverificationoffixedassetshasbeencarriedoutonceduringtheyearandnomaterialdiscrepancieswerenoticedonsuchverification.Inouropinion,thefrequencyofverificationisreasonable,havingregardtothesizeofthecompanyandnatureofitsbusiness.
(c) Accordingtotheinformationandexplanationsgiventousandonthebasisofourexaminationoftherecordsofthecompany,thetitledeedsofimmovablepropertiesareheldinthenameofthecompany.
2. TheInventoryconsistsofequitysharesandmutualfundunitsheldindematerializedform,MutualFundStatementandphysicalcertificates.TheCompanyverifiesthebalancesinDepositoryParticipantAccount,MutualFundstatementsandphysicalcertificateswithBooksatregular interval. Inouropinionthefrequencyofverificationisreasonable.Onthebasisofourexaminationofinventoryrecords,inouropinionthecompanyismaintainingproperrecordsofinventoryandthereisnomaterialdiscrepanciesnoticed.
3. TheCompanyhasgrantedunsecuredloanstocompaniescoveredintheRegistermaintainedundersection189oftheAct.
a. Accordingtotheinformationandexplanationsgiventousandbasedontheauditproceduresconductedbyus,weareoftheopinionthat,thetermsandconditionsoftheaforesaidloansgrantedbytheCompany,whichhasbeenrepaidduringtheperiod,werenotprejudicialtotheinterestoftheCompany.
b. Inrespectoftheaforesaidloans,thereceiptsofprincipalandinterestwereregular.
c. In respect of the aforesaid loans, no overdue amount of loans granted to companies listed in the registermaintainedunderSecon189oftheAct.
4. Inouropinionandaccordingtotheinformationandexplanationsgiventous,thecompanyhascompliedwiththeprovisionsof section185and I86of theCompaniesAct, 2013 in respectof loans, investments, guarantees, andsecurity.
5. InouropinionandaccordingtotheinformationandexplanationsgiventoustheCompanyhasnotacceptedanydepositsfromthepublicandhencethedirectivesissuedbytheReserveBankofIndiaandtheprovisionsofSections73to76oranyotherrelevantprovisionsoftheActandtheCompanies(AcceptanceofDeposit)Rules,2015withregardtothedepositsacceptedfromthepublicarenotapplicable.
6. Asinformedtous,themaintenanceofCostRecordshasnotbeenspecifiedbytheCentralGovernmentundersub-section(1)ofSection148oftheAct,inrespectoftheactivitiescarriedonbythecompany.
7. a) Accordingtotheinformationandexplanationsgiventousandtherecordsexaminedbyus,thecompanyisregularindepositingwithappropriateauthoritiesundisputedstatutoryduesincludingprovidentfund,employeesstateinsurance,income-tax,sales-tax,servicetax,goodsandservicetax,dutyofcustoms,dutyexcise,valueaddedtax,cessandotherstatutorydueswhereverapplicable.
b) Accordingtotheinformationandexplanationsgiventous,noundisputedamountspayableinrespectofincometax,salestax,wealthtax,servicetax,goodsandservicetax,customduty,exciseduty,cesswereinarrearsasat31stMarch2018foraperiodofmorethansixmonthsfromthedatetheybecamepayable.
c) Accordingtotheinformationandexplanationsgiventous,thefollowingdueshavenotbeendepositedbythecompanyonaccountofdispute:
35th annual report 2017-18
61
AroniCommercialsLimited-TransferorCompany
Sr. no.
name of the statue
nature of the due amount (rs)
period to which the amount relates
Forum where the dispute is pending
amount paid under protest/ refund adjusted
1 MadhyaPradeshSalesTaxAct
SaleTaxLiabilitiesduetorejectionof“C”Form&Pending“C”Forms
80,22,602 AY1996-97 TheDeputycommissionerofcommercialTaxhasRedirectedcasetoAssessingOfficersforReassessment
NIL
2. IncometaxAct,1961
Demandraisedu/s143(3)ofIncomeTaxAct,1961
72,107 AY2010-11 CIT(A)Ordergivingeffectispending
NIL
3. IncometaxAct,1961
Rectificationu/s154r.w.s143(3)dated10thFebruary,2015
2,90,483 AY2012-13 Rectificationfiledu/s154ofincometaxAct,1961
2,18,052
8 Onthebasisofourexaminationandaccordingtotheinformationandexplanationsgiventous,thecompanyhasnotdefaultedinrepaymentoftheduestoabankwithrespecttoitsborrowingsortofinancialinstitutionanddebentureholders.
9 Basedupontheauditproceduresperformedandtheinformationandexplanationsgivenbythemanagement,thecompanyhasnot raisedmoneysbywayof initial public offeror furtherpublic offer includingdebt instruments.However,theCompanyhasusedthetermLoansforthepurposeforwhichitwastaken.
10 Basedupontheauditproceduresperformedandtheinformationandexplanationsgivenbythemanagement,wereportthatnofraudbytheCompanyoronthecompanybyitsofficersoremployeeshasbeennoticedorreportedduringtheyear.
11 Asperinformationandexplanationsgivenbythemanagement,Companyhascompliedtheprovisionsofsection197ofCompaniesAct,2013.
12 Inouropinion,theCompanyisnotaNidhiCompany.Therefore,theprovisionofclause(xii)ofparagraph3oftheOrderisnotapplicabletotheCompany.
13 Inouropinion,alltransactionswiththerelatedpartiesareincompliancewithsection177and188ofCompaniesAct,2013andthedetailshavebeendisclosedintheStandaloneFinancialStatementsasrequiredbytheapplicableaccountingstandards.
14 Based upon the audit procedures performed and the information and explanations given by themanagement,thecompanyhasnotmadeanypreferentialallotmentorprivateplacementofsharesorfullyorpartlyconvertibledebenturesduringtheyearunderreview.Accordingly,theprovisionofclause(xiv)ofparagraph3oftheOrderisnotapplicabletotheCompanyandhencenotcommentedupon.
15 Basedupontheauditproceduresperformedandtheinformationandexplanationsgivenbythemanagement,thecompanyhasnotenteredintoanynon-cashtransactionswithdirectorsorpersonsconnectedwithhim.Accordingly,theprovisionofclause(xv)ofparagraph3oftheOrderisnotapplicabletotheCompanyandhencenotcommentedupon.
16 Thecompanyisrequiredtoberegisteredundersection45IAoftheReserveBankofIndiaAct,1934andhasobtainedregistrationvideregistrationno.13.01860dated27thApril,2007.
For aJay shoBha & Co.Firm registration no.317031e
Chartered aCCountants
place : mumbaidate: 28th may, 2018
sd/-aJay gupta
partnermemBership no. 053071
saraswati CommerCial (india) limited
62
anneXure “B” to the independent auditor’s report oF eVen date on the standalone FinanCial statements oF saraswati CommerCial (india) limitedreport on the internal Financial Controls under Clause (i) of sub-section 3 of section 143 of the Companies act, 2013 (“the act”)
WehaveauditedtheinternalfinancialcontrolsoverfinancialreportingofSARASWATICOMMERCIAL(INDIA)LIMITED.(“TheCompany”)asof31stMarch,2018 in conjunctionwithourauditof the standalonefinancial statementsof theCompanyfortheyearendedonthatdate.
management’s responsibility for internal Financial Controls
TheCompany’smanagement is responsible forestablishingandmaintaining internalfinancial controlsbasedon“theinternalcontroloverfinancial reportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia”.Theseresponsibilitiesincludethedesign,implementationandmaintenanceofadequateinternalfinancialcontrolsthatwereoperatingeffectivelyforensuringtheorderlyandefficientconductofits business, including adherence to company’spolicies, the safeguardingof its assets, thepreventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheCompaniesAct,2013.
auditors’ responsibility
Ourresponsibility istoexpressanopinionontheCompany’s internalfinancialcontrolsoverfinancialreportingbasedonouraudit.Weconductedouraudit inaccordancewith theGuidanceNoteonAuditof Internal FinancialControlsOverFinancialReporting(the“GuidanceNote”)andtheStandardsonAuditingprescribedundersection143(10)oftheCompaniesAct,2013,totheextentapplicabletoanauditofinternalfinancialcontrols,bothapplicabletoanauditofInternalFinancialControlsand,bothissuedbytheInstituteofCharteredAccountantsofIndia.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetheradequateinternalfinancialcontrolsoverfinancialreportingwasestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialrespects.
Ourauditinvolvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternalfinancialcontrolssystemoverfinancialreportingandtheiroperatingeffectiveness.Ourauditofinternalfinancialcontrolsoverfinancialreportingincludedobtaininganunderstandingofinternalfinancialcontrolsoverfinancialreporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessof internalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.
WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheCompany’sinternalfinancialcontrolssystemoverfinancialreporting.
meaning of internal Financial Controls over Financial reporting
Acompany’s internalfinancial controloverfinancial reporting isaprocessdesigned toprovidereasonableassuranceregarding the reliability of financial reporting and the preparation of financial statements for external purposes inaccordancewithgenerallyacceptedaccountingprinciples.Acompany’sinternalfinancialcontroloverfinancialreportingincludesthosepoliciesandproceduresthat(1)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsofthecompany;(2)providereasonableassurancethattransactions are recorded as necessary to permit preparation of financial statements in accordance with generallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewith authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingpreventionortimelydetectionofunauthorisedacquisition,use,ordispositionofthecompany’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.
35th annual report 2017-18
63
inherent limitations of internal Financial Controls over Financial reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility ofcollusionorimpropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmayoccurandnotbedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiodsaresubjecttotheriskthattheinternalfinancialcontroloverfinancialreportingmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.
opinion
Inouropinion,theCompanyhas,inallmaterialrespects,anadequateinternalfinancialcontrolssystemoverfinancialreportingandsuchinternalfinancialcontrolsoverfinancialreportingwereoperatingeffectivelyasat31stMarch,2018,basedon,“the internalcontroloverfinancial reportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponents of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia”.
For aJay shoBha & Co.Firm registration no.317031e
Chartered aCCountants
place : mumbaidate: 28th may, 2018
sd/-aJay gupta
partnermemBership no. 053071
saraswati CommerCial (india) limited
64
standalone BalanCe sheet as at 31st marCh, 2018particulars note
no.as at 31st
march, 2018 as at 31st
march, 2017 rs rs
a eQuity and liaBilities1 shareholders’ funds
(a) Sharecapital 3 10,009,280 6,400,000(b) Reservesandsurplus 4 1,281,658,340 1,150,709,449
1,291,667,620 1,157,109,4492 shares pending allotment - 3,905,930
3 non-current liabilities(a) Long-termprovisions 5 1,442,264 2,001,848
4 Current liabilities(a) Shorttermborrowings 6 318,100,000 80,000,000(b) TradePayables
totaloutstandingduesof:(i)MicroenterprisesandSmallenterprises - (ii)Creditorsotherthanmicroenterprisesand
Smallenterprises 7 454,510 77,276,540
(c) Othercurrentliabilities 8 2,497,629 6,691,596(d) Short-termprovisions 9 1,091,303 893,225
322,143,442 164,861,361tOtaL 1,615,253,326 1,327,878,588 B aSSEtS
1 non-current assets(a) Fixedassets
Property,plantandequipment 10 757,778 791,908(b) Non-currentinvestments 11 868,997,618 947,413,409(c) Deferredtaxassets(net) 12 27,945,800 24,894,208(d) Long-termloansandadvances 13 31,012,647 10,114,626
928,713,843 983,214,1512 current assets
(a) Currentinvestments 14 324,116,100 24,557,680(b) Inventories 15 65,163,057 11,636,701(c) Tradereceivables 16 - 26,742,245(d) CashandBankbalance 17 3,106,868 16,238,189(e) Short-termloansandadvances 18 286,025,805 253,430,884(f) Othercurrentassets 19 8,127,653 12,058,738
686,539,483 344,664,437tOtaL 1,615,253,326 1,327,878,588
significant accounting policies 1&2the accompanying notes are an integral part of the standaloneFinancial statements
in terms of our report attached. For and on behalf of the Board of directors
For m/s aJay shoBha & Co.CharteredAccountantsFirmReg.No:317031E
sd/-V. V. Suresh kumar DirectorDIN:00053859
sd/-ritesh ZaveriDirectorDIN:00054741
sd/-ajay guptaPartnerMembershipNo.053071
sd/-Vaishali rajesh dhuri ChiefFinancialOfficer
sd/-avani SanghaviCompanySecretary
Place:MumbaiDate:28thMay,2018
35th annual report 2017-18
65
standalone statement oF proFit and loss For the year ended 31st March, 2018particulars note
no. For the year ended
31st march, 2018 For the year ended
31st march, 2017
rs rs
1 revenue
Revenuefromoperations 20 8,216,585 64,389,355
Otherincome 21 155,542,599 43,120,613
total revenue 163,759,184 107,509,968
2 expenses
(a)Employeebenefitsexpense 22 12,443,387 14,895,345
(b)Financecosts 23 3,365,481 28,400,690
(c)Depreciationandamortisationexpense 10 226,067 318,466
(d)Otherexpenses 24 11,135,593 12,501,188
total expenses 27,170,528 56,115,689
3 profit before exceptional and extraordinary items and tax (1 - 2) 136,588,656 51,394,279
4 Exceptionalitems - -
5 profit before extraordinary items and tax (3 + 4) 136,588,656 51,394,279
6 Extraordinaryitems - -
7 profit before tax (5 + 6) 136,588,656 51,394,279
8 tax expense:
(a)Currenttaxexpenseforcurrentyear - 2,483,000
(b)MATCreditEntitlement (20,026,428) -
(c)Currenttaxexpenserelatingtoprioryears 2,065 1,768,637
net current tax expense (20,024,363) 4,251,637
Deferredtax 12 (3,051,592) (5,097,833)
(23,075,955) (846,196)
9 profit for the year (7 - 8) 159,664,611 52,240,475
10 earnings per share (of rs. 10/- each) 26.3
(a)Basic 165.60 81.63
(b)Diluted 165.60 50.69
significant accounting policies 1&2
the accompanying notes are an integral part of the standaloneFinancial statements
in terms of our report attached. For and on behalf of the Board of directors
For m/s aJay shoBha & Co.CharteredAccountantsFirmReg.No:317031E
sd/-V. V. Suresh kumar DirectorDIN:00053859
sd/-ritesh ZaveriDirectorDIN:00054741
sd/-ajay guptaPartnerMembershipNo.053071
sd/-Vaishali rajesh dhuri ChiefFinancialOfficer
sd/-avani SanghaviCompanySecretary
Place:MumbaiDate:28thMay,2018
saraswati CommerCial (india) limited
66
particulars For the year ended For the year ended
31st march, 2018
31st march, 2018
31st march, 2017
31st march, 2017
rs rs rs rs
a. Cash flow from operating activities
NetProfitbeforeextraordinaryitemsandtax 136,588,656 51,394,279
Adjustments for:
Depreciation 226,067 318,466
Financecosts 3,365,481 28,400,690
ProvisionforLeaveSalary (559,584) 339,523
ReductiononrestatethevalueofCurrentInvestment 2,246,631 10,086,929
ProvisionforStandardassets 198,078 779,684
InterestonIncomeTaxRefund (378,293) (172,096)
Dividendincome (155,101,549) (42,522,957)
SundryBalancewrittenoff - 5,000,001
ProvisionindiminishinginthevalueofInvestment 887,535 -
Longtermcapital(profit)/LossfromVentureFund (873,051) 3,701,289
Gainonsaleofinvestments(net) (147,447,337) (297,436,023) (84,507,617) (78,576,088)
operating profit / (loss) before working capital changes (160,847,367) (27,181,809)
Changes in working capital:
Adjustments for (increase) / decrease in operating assets:
Inventories (53,526,356) 146,215,822
Tradereceivables 26,742,245 35,241,831
Short-termloansandadvances (22,007,154) (75,380,768)
Long-termloansandadvances (871,593) 43,850
Othercurrentassets 3,931,085 3,626,420
Adjustments for increase / (decrease) in operating liabilities:
Short-termBorrowings 238,100,000 (342,282,033)
Tradepayables (76,822,030) 77,276,540
Othercurrentliabilities (4,193,967) (43,916,099)
Long-termprovisions - 774,392
Short-termprovisions - 111,352,230 - (198,400,045)
(49,495,137) (225,581,854)
Cashflowfromextraordinaryitems - -
Cash generated from operations (49,495,137) (225,581,854)
Netincometaxpaid (10,211,539) (369,793)
net cash flow from / (used in) operating activities (a) (59,706,676) (225,951,647)
standalone Cash Flow statement For the year ended 31st marCh, 2018
35th annual report 2017-18
67
particulars For the year ended For the year ended
31st march, 2018
31st march, 2018
31st march, 2017
31st march, 2017
rs rs rs rs
B. Cash flow from investing activities
Capitalexpenditureonfixedassets,includingcapitaladvances (191,937) -
Purchase&Saleoflong-terminvestments
-Purchased (3,443,456,322) (4,797,582,835)
-Proceedsfromsale 3,367,512,416 5,023,905,141
Receivedcallmoneyonunpaid10%RedeemablePreferenceShares (12,500) -
Dividendreceived 155,101,549 78,953,206 42,522,957 268,845,264
Cashflowfromextraordinaryitems - -
net cash flow from / (used in) investing activities (B) 78,953,206 268,845,264
c. Cash flow from financing activities
Financecost (3,365,481) (28,137,661)
BuybackofEquityShares (29,012,370) -
net cash flow from / (used in) financing activities (C) (32,377,851) (28,137,661)
net increase / (decrease) in Cash and cash equivalents (a+B+C) (13,131,321) 14,755,956
Cashandcashequivalentsatthebeginningoftheyear 15,862,575 863,259
CashandCashEquivalentsreceivedonAmalgamation - 243,360
Cash and cash equivalents at the end of the year 2,731,254 15,862,575
Cash and cash equivalents at the end of the year *
*Comprises:
(a)Cashonhand 60,796 236,940
(b)Balanceswithbanks
(i)Incurrentaccounts 2,670,458 15,625,635
2,731,254 15,862,575
the accompanying notes are an integral part of the standalone Financial statements
in terms of our report attached. For and on behalf of the Board of directors
For m/s aJay shoBha & Co.CharteredAccountantsFirmReg.No:317031E
sd/-V. V. Suresh kumar DirectorDIN:00053859
sd/-ritesh ZaveriDirectorDIN:00054741
sd/-ajay guptaPartnerMembershipNo.053071
sd/-Vaishali rajesh dhuri ChiefFinancialOfficer
sd/-avani SanghaviCompanySecretary
Place:MumbaiDate:28thMay,2018
saraswati CommerCial (india) limited
68
notes Forming part oF the standalone FinanCial statements signiFiCant aCCounting poliCies
1 Corporate information
SaraswatiCommercial(India)Limited(TheCompany)isincorporatedundertheprovisionofCompaniesAct,1956.TheCompanyisNonBankingFinancialCompany(NonDeposittaking)registeredwithReserveBankof India.TheCompanyisengagedinthebusinessofinvestmentandtradinginsharesandsecurities&LendingActivities.
2 significant accounting policies
The significant accounting policies have been predominantly presented below in the order of the AccountingStandardsspecifiedundersection133ofCompaniesAct,2013,readwithRule7oftheCompanies(Accounts)Rule,2014asamendedandtheCompanies(AccountingStandards)AmendmentRules,2016andotherrelevantprovisionofCompaniesAct,2013.Theaccountingpoliciesadoptedinthepreparationofthefinancialstatementsareconsistentwiththosefollowedinthepreviousyear.
2.1 Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared in accordancewith the Generally AcceptedAccountingPrinciplesinIndia(IndianGAAP)tocomplywithAccountingStandardsspecifiedunderSection133oftheCompaniesAct,2013,readwithRule7oftheCompanies(Accounts)Rules,2014asamendedandtheCompanies(AccountingStandards)AmendmentRules,2016andtherelevantprovisionsoftheCompaniesAct,2013.Thefinancialstatementshavebeenpreparedonaccrualbasisunderthehistoricalcostconvention.Theaccountingpoliciesadoptedinthepreparationofthefinancialstatementsareconsistentwiththosefollowedin the previous year. TheCompany follows the Systemically ImportantNon-Banking Financial (Non-DepositAcceptingorHolding)CompaniesPrudentialNorms(ReserveBank)Directions,2016.
Assetsandliabilitiesareclassifiedascurrentifitisexpectedtorealiseorsettlewithin12monthsafterBalanceSheetdate.
2.2 use of estimates
ThepreparationofthefinancialstatementsinconformitywithIndianGAAPrequirestheManagementtomakeestimatesandassumptionsconsideredinthereportedamountsofassetsandliabilities(includingcontingentliabilities)andthereportedincomeandexpensesduringtheyear.TheManagementbelievesthattheestimatesusedinpreparationofthefinancialstatementsareprudentandreasonable.Futureresultscoulddifferduetotheseestimatesandthedifferencesbetweentheactualresultsandtheestimatesarerecognisedintheperiodsinwhichtheresultsareknown/materialised.
2.3 inventories
InventoriesarevaluedatlowerofcostorNetRealisableValue.
2.4 Cash and cash equivalents
Cashcomprisescashonhandanddemanddepositswithbanks.Cashequivalentsareshort-termbalances(withanoriginalmaturityofthreemonthsorlessfromthedateofacquisition),highlyliquidinvestmentsthatarereadilyconvertibleintoknownamountsofcashandwhicharesubjecttoinsignificantriskofchangesinvalue.
2.5 Cash flow statement
Cashflowsarereportedusingtheindirectmethod,wherebyprofit/(loss)beforeextraordinaryitemsandtaxisadjustedfortheeffectsoftransactionsofnon-cashnatureandanydeferralsoraccrualsofpastorfuturecashreceiptsorpayments.Thecashflows fromoperating, investingandfinancingactivitiesof theCompanyaresegregatedbasedontheavailableinformation.
2.6 depreciation
Depreciation on FixedAssets is provided to the extent of depreciable amount on theWrittenDownValue(WDV)Method.DepreciationisprovidedbasedonusefullifeoftheassetsasprescribedinScheduleIItotheCompaniesAct,2013.
35th annual report 2017-18
69
2.7 revenue recognition
Termsof incomeandexpenditureare recognizedonaccrualbasisexcept in caseofnon-performingassets,whereitisrecognizeduponrealization,asperRBIguidelines.
2.8 other income
Interestincomeisaccountedonaccrualbasis.Dividendincomeisaccountedforwhentherighttoreceiveitisestablished.
2.9 property, plant and equipment
Property, plant and equipments are carried at cost less accumulated depreciation. Cost comprises of thepurchasepriceandanyotherattributableexpenditureofbringing theasset to itsworkingcondition for itsintendeduse.
2.10 investments
InvestmentsareclassifiedintoCurrentandNon-currentInvestments.CurrentInvestmentsarestatedatlowerof cost and fair value. Non-current Investments are stated at cost. A provision for diminution ismade torecogniseadecline,otherthantemporary,inthevalueofNon-currentInvestments.Whendisposingofapartoftheholdingofanindividualinvestment,thecarryingamounttobeallocatedtothatpartisdeterminedonthebasisoftheFirstinFirstOurMethodamountofthetotalholdingoftheinvestment.
2.11 employee benefits
Asnumberofemployeesworkingincompanyarelessthanten,provisionforgratuityasperAccountingStandard15issuedbyInstituteofCharteredAccountantsofIndiadoesnotapplytothecompany.
ThecompanyhasmadeprovisionforLeaveSalaryontheactualbalanceleavesoftheemployees.
2.12 segment reporting
Asthecompany’sbusinessactivityfallswithinsinglesegmentviz.NBFCActivitiesthedisclosurerequirementsofAccountingStandard17“SegmentReporting”issuedbyInstituteofCharteredAccountantsofIndiaisnotapplicable.
2.13 earnings per share
BasicandDilutedearningspershareiscomputedbydividingtheprofit/(loss)aftertax(includingtheposttaxeffectofextraordinaryitems,ifany)bytheweightedaveragenumberofequitysharesoutstandingduringtheyear.
2.14 taxes on income
ProvisionforcurrenttaxismadeandretainedintheaccountsonthebasisofestimatedtaxliabilityaspertheapplicableprovisionsoftheIncomeTaxAct1961.
Deferredtaxfortimingdifferencesbetweentaxprofits&bookprofitsisaccountedbyusingthetaxrates&lawsthathavebeenenactedorsubstantiallyenactedasoftheBalanceSheetdate.DeferredtaxassetsinrespectofunabsorbedLossesarerecognisedtotheextentthereisreasonablecertaintythattheseassetscanberealisedinfuture.
2.15 Future / option Contracts:-
Equity/Indexfuturesaremarked-to-marketonadailybasis.MarktoMarketGains/(losses)arerecognizedaspertheGuidanceNoteon“accountingforDerivativeContracts(2015)” issuedbyTheInstituteofCharteredAccountantsofIndia.
2.16 provisions and contingencies
ThesearedisclosedbywayofnotesontheBalancesheet.Provisionismadeintheaccountsinrespectofthosecontingencieswhicharelikelytomaterialiseintoliabilitiesaftertheyearend,tillthefinalisationofaccountsandhavematerialeffectonthepositionstatedintheBalancesheet.
saraswati CommerCial (india) limited
70
note 3 - shareholder’s Funds - share Capital
particulars as at 31st march, 2018 as at 31st march, 2017
number rs number rs
authorised
EquitySharesofRs.10each 8,250,000 82,500,000 8,250,000 82,500,000
issued,subscribed & paid up
EquitySharesofRs.10each 1,000,928 10,009,280 640,000 6,400,000
(of the above 7,90,593 Shares were allottedpursuanttotheSchemeofAmalgamation,withoutpaymentbeingreceivedincash.)
total 1,000,928 10,009,280 640,000 6,400,000
rights of equity shareholders
TheCompanyhasonlyoneclassofEquityShareshavingparvalueofRs.10.Eachholderofequitysharesisentitledtoonevotepershare.IntheeventofliquidationoftheCompany,theholderofequityshareswillbeingentitledtoreceiveanyoftheremainingassetsofthecompany,afterdistributionofallpreferentialamount.
reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:
particulars equity shares equity shares
number rs number rs
Sharesoutstandingatthebeginningoftheyear 640,000 6,400,000 640,000 6,400,000
Add:SharesIssuedduringtheyear(ReferNote28.4) 390,593 3,905,930 - -
Less:Sharesboughtbackduringtheyear (ReferNote28.4)
(29,665) (296,650) - -
Sharesoutstandingattheendoftheyear 1,000,928 10,009,280 640,000 6,400,000
More than 5% Shareholding
name of shareholder as at 31st march, 2018 as at 31st march 2017
no. of shares held
% of holding no. of shares held
% of holding
WinroCommercial(India)Limited 177,584 17.74% 104,970 16.40%
FourDimensionsSecurities(India)Limited 205,787 20.56% 33,900 5.30%
AshwinPannalalKothari 61,081 6.10% 64,500 10.08%
AshwinKumarKothari(HUF) 59,343 5.93% 63,000 9.84%
AshwinKumarKothari(smaller)(HUF) 59,366 5.93% 63,000 9.84%
PannalalCKothari(HUF) 50,979 5.09% 53,050 8.29%
note 4 reserves and surplus
particulars as at 31st march 2018
as at 31st march 2017
rs rs
(a) general reserve
Openingbalance 213,498,205 35,922,535
Less:BuybackofEquityShares-TrasnfertoCapitalRedemptionReserve (296,650) -
Less:premiumonBuy-backofequityshares (24,175,720) -
notes Forming part oF the standalone FinanCial statements
35th annual report 2017-18
71
particulars as at 31st march 2018
as at 31st march 2017
rs rs
Add:TransferredfromAroniCommercialsLimitedpursuanttotheSchemeofAmalgamation
- 177,575,670
Closing balance 189,025,835 213,498,205
(b) surplus in statement of profit and loss
Openingbalance 829,997,500 247,763,628
Add:Profit/(Loss)fortheyear 159,664,611 52,240,475
Less:TransfertoReserveu/s45IC (31,932,922) (10,448,095)
Add:TransferredfromAroniCommercialsLimitedpursuanttotheSchemeofAmalgamation
- 540,441,492
Closing balance 957,729,189 829,997,500
(c) statutory reserves
Reservesu/s.45ICofRBIAct
Openingbalance 72,332,228 61,884,133
Add:TransferfromProfit&LossAccount 31,932,922 10,448,095
Closing balance 104,265,150 72,332,228
(d) securities premium account
Openingbalance 4,540,000 -
Less:premiumonBuy-backofequityshares (4,540,000) -
Add:TransferredfromAroniCommercialsLimitedpursuanttotheSchemeofAmalgamation
- 4,540,000
Closing balance - 4,540,000
(e) Capital redemption reserve
Openingbalance - -
Add:BuybackofequityShares 296,650 -
Closing balance 296,650 -
(f) Capital reserve on amalgamation (as - 14)
Openingbalance 30,341,516 -
Add:ReserveCreatedinAmalgamation - 30,341,516
Closing balance 30,341,516 30,341,516
total 1,281,658,340 1,150,709,449
note 5 long-term provisions
particulars as at 31st march, 2018
as at 31st march, 2017
rs rs
Provisionforemployeebenefits
ProvisionforLeavesalary 1,442,264 2,001,848
total 1,442,264 2,001,848
saraswati CommerCial (india) limited
72
note 6 short term borrowings
particulars as at 31st march, 2018
as at 31st march, 2017
rs rs
loan payable on demand
Otherparties
Secured - 80,000,000
Unsecured(Refernote25.4) 318,100,000 -
total 318,100,000 80,000,000
due to related party 318,100,000 -
notes:details of security for the secured short-term borrowings
particulars nature of security as at 31st march, 2018
as at 31st march, 2017
rs rs
loan payable on demand
BarclaysInvestmentsandLoans(India)Limited
SecuredbyPledgeofShares - 80,000,000
note 7 trade payables
particulars as at 31st march, 2018
as at 31st march, 2017
rs rs
Tradepayables
OtherthanAcceptances(Refernote25.4&28.2) 454,510 77,276,540
total 454,510 77,276,540
due to related party 454,510 77,276,540
note 8 other current liabilities
particulars as at 31st march, 2018
as at 31st march, 2017
rs rs
(a)Interestaccruedandnotdueonborrowings 378,515 2,920,133
(b)Otherpayables
(i)TDSPayable 298,688 1,241,712
(ii)OutstandingLiabilities 1,820,426 2,529,751
total 2,497,629 6,691,596
due to related party 1,100,515 3,355,260
note 9 short-term provisions
particulars as at 31st march, 2018
as at 31st march, 2017
rs rs
Provision-Others
ProvisionforStandardAssets 1,091,303 893,225
total 1,091,303 893,225
TheprovisionforstandardassetsiscalculatedaspertheprudentialnormsapplicabletoSystemicallyImportantNon-BankingFinancial(Non-DepositAcceptingorHolding)Companies.
notes Forming part oF the standalone FinanCial statements
35th AnnuAl RepoRt 2017-18
73
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Mot
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saraswati CommerCial (india) limited
74
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35th annual report 2017-18
75
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- -
- -
230
,000
7,199
,418
-
7,199
,418
Diamon
dPo
werIn
frastructureLtd
2/-
-
- -
- 233
,000
9,187
,229
-
9,187
,229
EssDee
AluminiumLim
ited
10/-
1
489
-
489
1
489
-
489
FutureEnterprisesLim
ited
2/-
5
85,0
01
32,
800,
439
- 3
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9 10,00
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,600
-
172
,600
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dustrie
sLimite
d 2
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65,
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- 7
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- -
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llyFert.&Che
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37
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- 1
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kLimite
d 2
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-
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d 2
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150
,000
4
1,48
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9 -
41,
481,
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- -
- -
saraswati CommerCial (india) limited
76
parti
cula
rsFa
ce
Valu
e a
s at
31s
t mar
ch, 2
018
as
at 3
1st m
arch
, 201
7
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of
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ted
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o of
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ankLimite
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sLimite
d 2
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- 1
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,303
9,500
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-
1,391
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cide
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dia)Lim
ited
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18,
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- 1
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5 -
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strie
sLimite
d10/-
- -
- -
313
,000
69,74
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223
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ceLim
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2/-
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- 13,00
06,423
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d10/-
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- -
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Lim
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465
1
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- -
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1,283
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d10/-
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64,257
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- -
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100
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29,20
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turesLimite
d 2
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- 1
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d10/-
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- 4
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10,00
06,528
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-
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strie
sLimite
d10/-
2
981
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981
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eFina
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d10/-
- -
- -
20,00
010,32
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10,32
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8
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rchidHotelsLimite
d10/-
117
,000
1
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2,31
5 -
11,
342,
315
63,00
05,307
,308
-
5,307
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Sadb
havInfrastructureProjectLim
ited
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432
,795
5
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51,
134,
354
- -
- -
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fiIndiaLimtie
d10/-
- -
- -
13,00
043,27
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entL
imite
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- -
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InsuranceCo
mpa
nyLim
ited
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300
1
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- 1
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eshForgingsLim
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1
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SicagenIndiaLimite
d10/-
1
- -
- 1
- -
-
not
e 11
non
-cur
rent
inve
stm
ents
35th annual report 2017-18
77
parti
cula
rsFa
ce
Valu
e a
s at
31s
t mar
ch, 2
018
as
at 3
1st m
arch
, 201
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armaceu
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- 8
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887
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ited
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- -
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Triden
tLim
ited
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- -
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iritsLim
ited
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1
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108
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108
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CorpLimite
d5/-
129
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1
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EnterprisesLim
ited
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600
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2 -
54,
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ther
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(B)
421,
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57,
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478,
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535,
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n Sh
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s
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frastructureLim
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efernote25
.1)
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rovision
ford
iminishing
inth
evalueof
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t(E)
- 8
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+B+C
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9 21
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8 75
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5 19
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ents
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- 65
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8,86
5
agg
rega
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ted
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ents
922,
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204
- 92
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4 1,08
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agg
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214,
919,
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- 19
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4,54
4
saraswati CommerCial (india) limited
78
note 12 deferred tax assets
particulars deferred tax assest/(liabilities) as at 31st
march, 2017
Charge/(Credit)
during the period
deferred tax assest/(liabilities) as at 31st
march, 2018
rs rs rs
Depreciation 642,703 (161,010) 481,693
BusinessLoss 21,710,023 2,995,145 24,705,168
SpeculationLoss 53,826 (8,527) 45,299
Provisionforstandardassets 295,327 8,273 303,600
ProvisionforLeaveSalary 661,871 (260,633) 401,238
Longttermloss 818,071 344,951 1,163,022
AmalgamationExpenses 128,714 477,664 606,378
MarktoMarketLoss 741,142 (501,745) 239,397
MarktoMarketProfit (276,061) 276,061 -
Stockvaluation 118,592 (118,587) 5
total 24,894,208 3,051,592 27,945,800
note 13 long-term loans and advances
particulars as at 31st march, 2018
as at 31st march, 2017
rs rs
(a)SecurityDeposits
Unsecured,Consideredgood 10,106,219 10,106,219
(b)PrepaidExpenses
Unsecured,consideredgood 6,000 8,407
(c)Loansandadvancestoemployees
Unsecured,consideredgood 874,000 -
(d)MATCreditEntitlment 20,026,428 -
Unsecured,consideredgood 20,026,428 -
total 31,012,647 10,114,626
notes Forming part oF the standalone FinanCial statements
35th annual report 2017-18
79
not
e 14
Cur
rent
inve
stm
ents
parti
cula
rsFa
ce V
alue
as
at 3
1st m
arch
, 201
8a
s at
31s
t mar
ch, 2
017
no
of u
nits
Quo
ted
unq
uote
dto
tal
no
of u
nits
Quo
ted
unq
uote
dto
tal
rs
rs
rs
rs
rs
rs
rs
a.
Oth
er in
vest
men
ts
inve
stm
ent
in V
entu
re
Capi
tal F
unds
Urban
Infrastructure
Opp
ortunitie
sFu
nd
49,
430
540
-
14,
960,
700
14,
960,
700
540
-
21,86
2,98
021,86
2,98
0
(62,43
0)
KshitijVen
tureCap
italFun
d 3
24.7
0 1
0,00
0 -
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55,4
00
2,1
55,4
00
10,00
0 -
2,694
,700
2,694
,700
(337
.50)
inve
stm
ent
in M
utua
l Fu
nds
BirlaSu
nLifeCashPlus
- 7
99,9
65.2
9 -
222,
900,
000
222,
900,
000
- -
- -
KotakFloa
terSh
ortterm
Growth
- 2
9,53
6.03
-
84,
100,
000
84,
100,
000
- -
- -
tota
l -
324,
116,
100
324,
116,
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- 2
4,55
7,68
0 2
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7,68
0
agg
rega
te a
mou
nt o
f quo
ted
inve
stm
ents
- -
- -
- -
agg
rega
te m
arke
t val
ue o
f lis
ted
and
quot
ed in
vest
men
ts -
- -
- -
-
agg
rega
te a
mou
nt o
f unq
uote
d in
vest
men
ts32
4,11
6,10
0 32
4,11
6,10
0 -
24,
557,
680
24,
557,
680
saraswati CommerCial (india) limited
80
note 15 inventories
(atcostornetrealisablevaluewhicheverislow)
particulars as at 31st march, 2018 as at 31st march, 2017
nos rs nos rs
(a) Quoted shares
AdityaBirlaFashion&RetailLimited - - 40,000 6,154,000
ConsolidatedFibers&ChemLimited 50 500 50 80
DiamondPowerInfrastructureLimited - - 1,000 34,600
IDFCLimited 750,000 36,562,500 - -
JMCProjectLimited - - 1 266
KridhanInfraLimited 1 87 1 51
RattanIndianInfrastructureLimited - - 1,565,000 5,176,385
StateBankofIndiaLimited 1 250 - -
WelspunIndiaLimited 488,000 28,328,400 - -
total - a 1,238,052 64,891,737 1,606,052 11,365,381
(B) unquoted shares
AuroplastIndiaLimited 2,500 25,000 2,500 25,000
AlliedResinsChemLimited 5,000 5,000 5,000 5,000
EastAgglePlasticLimited 660 1,320 660 1,320
MeerajMultiwebInds.Limited 24,000 240,000 24,000 240,000
total - B 32,160 271,320 32,160 271,320
total- a+B 1,270,212 65,163,057 1,638,212 11,636,701
aggregate market value of Quoted financial securities
65,163,076 12,563,816
note 16 trade receivables
particulars as at 31st march, 2018
as at 31st march, 2017
rs rs
Tradereceivablesoutstandingforaperiodexceedingsixmonthsfromthedatetheyweredueforpayment
Unsecured,consideredgood - -
Othertradereceivables
Unsecured,consideredgood - 26,742,245
total - 26,742,245
notes Forming part oF the standalone FinanCial statements
35th annual report 2017-18
81
note 17 Cash and Bank balance
particulars as at 31st march, 2018
as at 31st march, 2017
rs Rs
Cash and cash equivalents (as per as 3 Cash Flow statements)
(a)Cashonhand 60,796 236,940
(b)Balanceswithbanks
(i)Incurrentaccounts 2,670,458 15,625,635
2,731,254 15,862,575
other Bank Balance
(i)InFixedDeposit 375,614 375,614
total 3,106,868 16,238,189
note 18 short-term loans and advances
particulars as at 31st march, 2018
as at 31st march, 2017
rs rs
(a)Loansandadvancestoemployees
Unsecured,consideredgood 446,030 282,000
(b)Inter-corporatedeposits
Unsecured,consideredgood(refernote25.4) 265,600,000 239,000,000
(c)Others
Unsecured,consideredgood - 4,750,000
(d)Prepaidexpenses
Unsecured,consideredgood 74,094 80,970
(e)Balanceswithgovernmentauthorities-Unsecured,consideredgood
AdvanceTax(NetofProvisionofRs.39,027,425) (PreviousYearRs.33,678,396)
19,905,681 9,317,914
total 286,025,805 253,430,884
due from related parties 175,600,000 169,000,000
note 19 other current assets
particulars as at 31st march, 2018
as at 31st march, 2017
rs rs
(a)Accruals
(i)Interestaccruedonloans 7,225,653 11,456,738
(b)Others
(i)Advanceagainstexpenses 2,000 2,000
(ii)Otherreceivable 900,000 600,000
total 8,127,653 12,058,738
due from related parties 5,180,311 10,427,927
saraswati CommerCial (india) limited
82
note 20 revenue from operations
particulars For the year ended
31st march, 2018
For the year ended
31st march, 2017
rs rs
ProfitonTradinginSecurities&Mutualfunds(net)(refernote(a)below) (168,459,073) 32,322,421
Otheroperatingrevenues(refernote(b)below) 176,675,658 32,066,934
total 8,216,585 64,389,355
note particulars For the year ended
31st march, 2018
For the year ended
31st march, 2017
rs rs
(a) profit on trading in securities & mutual funds comprises
traded goods
Saleofsharesandmutualfunds 523,728,995 275,811,545
Less:Purchasesofshares&mutualfunds 743,755,309 94,753,081
Less:Changesininventories(refernote(i)below) (53,526,356) 146,215,822
Less:SecurityTransactionCharges 1,959,115 2,520,221
total (168,459,073) 32,322,421
(i) particulars For the year ended
31st march, 2018
For the year ended
31st march, 2017
rs rs
inventories at the end of the year:
Stock-in-trade 65,163,057 11,636,701
65,163,057 11,636,701
inventories at the beginning of the year:
Stock-in-trade 11,636,701 186,136,516
Less:TransfertoInvestments - (28,283,993)
11,636,701 157,852,523
net (increase) / decrease (53,526,356) 146,215,822
(b) other operating revenues comprise
(i) Interestincome
Interestonloan 17,204,538 22,022,590
Interestincomefrominvestments/bonds - 4,547,636
(ii) Profitonsaleofinvestment 147,432,853 70,719,399
(iii) Profit/(Loss)onfutures&optionssegment 10,726,690 (65,229,947)
(iv) Incomefromspeculationinequityshares-cashsegment 1,311,577 2,456
(v) BrokerageReceived - 4,800
total - other operating revenues 176,675,658 32,066,934
income from related party 5,755,901 15,039,301
notes Forming part oF the standalone FinanCial statements
35th annual report 2017-18
83
note 21 other income
particulars For the year ended
31st march, 2018
For the year ended
31st march, 2017
rs rs
interest income
Interestincome(refernote(i)below) 440,718 597,656
dividend income
fromgroupcompany 3,806,951 -
fromothers 151,294,598 42,522,957
miscellneous income 332 -
total 155,542,599 43,120,613
income from related party 3,806,951 -
Note(i)
particulars For the year ended
31st march, 2018
For the year ended
31st march, 2017
rs rs
interest income comprises
(a)Interestonfixeddeposits 62,425 425,560
(b)Interestonincometaxrefund 378,293 172,096
total 440,718 597,656
note 22 employee benefits expense
particulars For the year ended
31st march, 2018
For the year ended
31st march, 2017
rs rs
Salaries,bonusandallowances 12,337,561 14,789,538
Staffwelfareexpenses 105,826 105,807
total 12,443,387 14,895,345
payment to related parties 4,915,174 7,657,476
note 23 Finance costs
particulars For the year ended
31st march, 2018
For the year ended
31st march, 2017
rs rs
Interestonborrowings 3,365,462 28,137,661
InterestonIncomeTax - 263,029
InterestonlatepaymentofTDS 19 -
total 3,365,481 28,400,690
payment to related parties 420,572 3,129,102
saraswati CommerCial (india) limited
84
note 24 other expenses
particulars For the year ended
31st march, 2018
For the year ended
31st march, 2017
rs rs
Ratesandtaxes,excludingtaxesonincome 2,000 4,500
Legalandprofessionalfees 5,558,875 1,648,399
Paymentstoauditors(refernote(i)below) 95,000 113,000
ExpendituretowardsCorporateSocialResponsibilityExpenses - 2,700,000
ProvisionforStandardAsset 198,078 779,684
Sundarybalancewrittenoff - 5,000,001
DecreaseinthevalueofventureFund 2,246,631 -
Miscellaneousexpenses 3,035,010 2,255,604
total 11,135,593 12,501,188
payment to related parties 15,418 8,485
note (i)
particulars For the year ended
31st march, 2018
For the year ended
31st march, 2017
rs rs
Paymentstotheauditorscomprises
Asauditors-statutoryaudit 55,000 55,000
TaxAuditfees 15,000 15,000
forotherservices 25,000 43,000
total 95,000 113,000
note 25 additional information to the financial statements
25.1 Contingent liabilities and commitments (to the extent not provided for)
Contingent liabilities :
(i) Contingentliabilitiesnotprovidedforuncalledliabilityon
a)PartlypaiduppreferencesharesofArkayaCommercialPrivateLimitedamountingtoRs.6,250/-
b)PartlypaidupshareswarrantofRamkyInfrastructureLimitedamountingtoRs.75,750,000/-
(ii) DemandofRs.80,22,602/-forAY1996-97ispendingunderMadhyaPradeshSalesTaxActagainstwhichappealshadbeenfiledwithDeputyCommissionerofCommercialTax.TheDeputyCommissionerofCommercialtaxhasredirectedcasetoAssessingOfficerforreassessment.Thereassessmentproceedingshasnotyetinitiated.
notes Forming part oF the standalone FinanCial statements
35th annual report 2017-18
85
assessment year demand u/s Short provision rs.
amount paid under protest / refund adjusted rs
status of appeal
aroni Commercials limited - transferor Company
2005-06 u/s250 146,381 146,381 Letterforrectificationagainstordergivingeffect of CIT (Appeal)’s order has beenfiledon18/04/2012.
2006-07 u/s250 413,358 413,358 OrderGivingEffecttoITATorderpending.
2009-10 u/s143(3) 156,807 156,807 Letter for rectification against order u/s154 wrt 143(3) dated 29/02/2012 hasbeenfiled.
2010-11 u/s143(3) 72,107 - CIT (Appeal’s) order giving effect ispending.
2012-13 u/s143(3) 290,483 218,052 Letter for rectification has been filedagainst order 143(3) dated 10/02/2015orderpending.
2015-16 u/s143(3) 20,316 20,316 Orderu/s154ispending.
saraswati Commercial (india) limited- transferee Company
2010-11 u/s143(1) 385,884 385,884 Rectificationofoderu/s154ispending.
(iii)DuringF.Y.2004-05,CompanyhaskeptRs.100.70LacsinEscrowaccountwithCalyonBank,NarimanPointBranchforanydemandsofstampduty,penaltiesandliabilitiesthatmayariseontheschemeofarrangementasapprovedbytheHighCourtofJudicatureatMumbaiintermsofwhichcompanyhastransferreditsAluminumChlorideundertakingandwindmillundertakingtoNagdaOrgoChemPrivateLimitedundersection391tosection394ofthecompaniesAct,1956.0n01/10/2012,TheHighcourtofIndore(SingleJudge)hasgivendecisioninfavouroftheCompany.RevenuehadfiledanwritappealagainstthesaidorderwiththeHon’bleTheHighcourtofM.P.,Indore.(DoubleJudge),whereinorderdated26.09.2014statesthattheappealbelistedforfinalhearinginduecourse.
(iv)NEPCIndiaLimitedhadinstitutedasuitagainstthecompanyinthecourtofIIFASTTRACKJUDGEMadrasfordefermentofpaymenttotheNEPCIndiaLimitedthesumofRs.20,47,156/-togetherwithinterestat24%p.aonRs.10,53,450/-Videorderdated13/02/2012,courthasgivendecisioninfavourofNEPCIndialimited.IntheresultthesuitisdecreedinfavourofNEPCIndiaLimitedforRs.10,53,450/-withinterestattherateof12%p.a.fromaugust98tillrealisationwithcosts.CompanyhasfiledanappealwiththeHighcourtofMadrasagainstthesaidorder.
(v) AsperIncomeTaxDepartmentfollowingtaxdemandisoutstandingagainstthecompany&ithasnotbeenpro-videdintheaccounts.
25.2 details of open interest in equity stock Futures Contracts as on 31st march, 2018
name of equity stock Future no. of Contracts
Longposition
Shortposition
scrip Fut/opt eXpiry
DHFL FUT 26-APR-2018 34 - 51,000
HINDPETRO FUT 26-APR-2018 17 26,775 -
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25.3 income and expensditure in Foreign Currency
particulars 2017-18 2016-17
rs. rs.
Expenditureinforeigncurrency nil NIL
Earningsinforeignexchange nil NIL
25.4 TradeReceivable,TradePayable,LoansandAdvancesandUnsecuredLoansaresubjecttoconfirmation.
25.5 TheCompanyhasapolicyofbookingIncomereceivedfrom“KshitijVentureCapitalFund”and“UrbanInfrastructureOpportunitiesFund”onthebasisofprovisionalincomestatementreceivedfromrespectiveVentureCapitalFundManager.TheCompanyhasbookedthefundbasedonNAVofthefundason31stMarch,2018receivedfromthefundManager.Accodinglyanydecreaseischargedtoprofitandlossunderhead“DecreaseinthevalueofventureFund”.
25.6 A)FixeddepositswithbankofRs.3,75,614/-includesfixeddepositofRs.3,08,871/-inthenameofDistrictandSessionsJudge,Ujjaindepositedasguaranteemoney.However,theentireamountofRs.3,75,614issubjecttoreconciliationandconfirmationfromtherespectivebanksandauthorities.TheFixedDepositofRs.3,08,871/-wasrenewedinAugust2003havingmaturityinJune2006withamaturityvalueRs.4,84,974/-.Sincethestatusofthecaseispending&thereisnocommunicationofrenewalofFixedDepositpostJune2006.Consideringthisfact,thecompanyhasnotaccountedforanyinterestincomeonthesaidfixeddeposit.
B) During F.Y. 2004-05, Company has kept Rs.100.70 Lacs in Escrow account in fixed deposit in the nameofArcilCatalystPrivateLimitedpreviouslyknownas‘Atofina’withCalyonBank,NarimanPointBranchforanydemandsofstampduty,penaltiesandliabilitiesthatmayariseontheschemeofarrangementasapprovedbytheHighCourtofJudicatureatMumbaiintermsofwhichcompanyhastransferreditsAluminumChlorideundertakingandwindmillundertakingtoNagdaOrgoChemPrivateLimited.Thepresentvalueofthefixeddepositason31stMarch2018isRs.20,412,705.SincethefixeddepositisinthenameofArcilCatalystPrivateLimitednoincomeonsameisaccountedforbytheCompany.Onlyintheeventofafavourableoutcomefromtheapexcourtinfavourofthecompany,proceedsoffixeddepositwillbereceived,theCompanywillaccountforinterestincome.
note 26 disclosures under accounting standards
26.1 employee Benefit plans (as 15)
a AsnumberofemployeesworkingincompanyarelessthanTen,GratuityprovisionsasperAccountingStandard15issuedbyInstituteofCharteredAccountantofIndiadoesnotapplytocompany.
b ThecompanyhasmadeprovisionforLeaveSalaryontheactualbalanceleavesoftheemployeesfortheFY2017-2018,calculatedatthemonthlybasicplusHRAsalaryoftheemployeesfortheFY2017-2018.
26.2 related party transactions (as 18)
details of related parties:
description of relationship names of related parties
Subsidiaries SareshwarTrading&FinancePrivateLimited
ArkayaCommercialsPrivateLimited
associates ArciesLaboratoriesLimited
entities in which Kmp / relatives of Kmp have
FourDimensionsCommoditiesPrivateLimited
significant influence & other group companies
FourDimensionsSecurities(India)Limited
notes Forming part oF the standalone FinanCial statements
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GeeceeVenturesLimited
GeeceeInvestmentsLimited
GeeceeBusinessPrivateLimited
SamJag-DeepInvestmentPrivateLimited
UrudavanInvestmentandTradingPrivateLimited
WinroCommercial(India)Limited
KothariPremisesPrivateLimited
Key management personnel (Kmp) as on 31/03/2018
•ShriHarisinghShyamsukha -Director(upto13-11-2017)
•ShriAnilKumarRajan -Director(upto10-08-2017)
•ShriVVSureshkumar -Director(w.e.f14-08-2017)
•ShriRiteshZaveri -Director(w.e.f.13-11-2017)
•ShriKetanDesai -Director
•MrsBabitaThaker -Director
•MrRajivPathak -ChiefExecutiveOfficer
•MrsVaishaliRajeshDhuri -ChiefFinancialOfficer
•MrsAvaniSanghavi -CompanySecretary(w.e.f14-08-2017)
•MrsEktaKumari -CompanySecretary(upto14-08-2017)
note: 1.RelatedpartieshavebeenidentifiedbytheManagement.
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88
details of related party transactions during the year ended 31st march, 2018 and balances outstanding as at 31st march, 2018:
Subsidaries associates Kmp relatives of Kmp
Others total
rs rs rs rs rs rs
a BrokeragePaid - - - - 4,804,116 4,804,116
(-) (-) (-) (-) (5,571,171) (5,571,171)
b Employeebenefitexpenses - - 4,915,174 - - 4,915,174
(-) (-) (7,657,476) (-) (-) (7,657,476)
c InterestReceivedonLoan - - - - 5,755,901 5,755,901
(-) (-) (-) (-) (15,039,301) (15,039,301)
d DividendReceived - - - - 3,806,951 3,806,951
(-) (-) (-) (-) (-) (-)
e InterestPaid - - - - 420,572 420,572
(-) (-) (-) (-) (3,129,102) (3,129,102)
f Reimbursementofexpenses - - - - 15,418 15,418
(-) (-) (-) (-) (8,485) (8,485)
Finance & investment
g LoanTaken - - - - 662,993,613 662,993,613
(-) (-) (-) (-) (702,058,266) (702,058,266)
h LoanRepaid - - - - 344,893,613 344,893,613
(-) (-) (-) (-) (702,058,266) (702,058,266)
i LoansAdvanced - - - - 1,370,323,927 1,370,323,927
(-) (-) (-) (-) (1,988,195,703) (1,988,195,703)
j LoansReceivedback - - - - 1,194,723,927 1,194,723,927
(-) (-) (-) (-) (1,988,195,703) (1,988,195,703)
k Investmentpurchased - - - - - -
(-) (-) (-) (-) (161,555,327) (161,555,327)
Balances outstanding at the end of the year
l OtherCurrentLiability - - 722,000 - 378,515 1,100,515
(-) (-) (541,647) (-) (2,813,613) (3,355,260)
m TradePayable - - - - 454,510 454,510
(-) (-) (-) (-) (77,276,540) (77,276,540)
n ShortTermborrowing - - - - 318,100,000 318,100,000
(-) (-) (-) (-) (-) (-)
o ShortTermloan&Advances - - - - 175,600,000 175,600,000
(-) (-) (-) (-) (169,000,000) (169,000,000)
p Investments 2,017,803 25,000 - - 352,120,892 354,163,695
(2,005,303) (25,000) (-) (-) (352,120,892) (354,151,195)
q OtherCurrentAssets - - - - 5,180,311 5,180,311
(-) (-) (-) (-) (10,427,927) (10,427,927)
note: Figures in bracket relates to the previous year
notes Forming part oF the standalone FinanCial statements
35th annual report 2017-18
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DisclosureinrespectofRelatedPartyTransactionsduringtheyear
particulars relation 2017-18 2016-17
rs rs
a Brokerage paid
-FourDimensionsSecurities(India)Limited Others 4,804,116 5,571,171
b employee benefit expenses
-MrNalinKothari KMP - 488,212
-MrsVaishaliDhuri KMP 962,256 829,948
-MrsEktaKumari KMP 56,126 152,400
-MrRajivPathak KMP 3,415,737 2,288,030
-MrsAvaniSanghavi KMP 481,055 -
-Mr.AnoopChaturvedi KMP - 739,775
-Mrs.ShreyaDhende KMP - 762,053
-Mr.NiravShah KMP - 2,397,058
c interest received on loan
FourDimensionsSecurities(India)Limited Others 3,580,141 3,610,884
KothariPremisesPrivateLimited Others 834,252 10,607,032
GeeCeeInvestmentLimited Others 768,776 700,867
UrdhavanInvestment&TradingPrivateLimited Others 572,732 120,518
d dividend received
-GeeceeVenturesLimited Others 3,806,951 -
e interest paid
-GeeceeInvestmentsLimited Others - 2,866
-WinroCommercial(India)Limited Others 420,572 3,126,236
f reimbursement of expenses
-MrNalinKothari KMP - 2,895
-MrsVaishaliDhuri KMP 13,887 5,590
-MrsAvaniSanghavi KMP 1,531 -
Finance & investment
g Loan taken
-GeeceeInvestmentsLimited Others - 14,900,000
-WinroCommercial(India)Limited Others 662,993,613 687,158,266
h loan repaid
-GeeceeInvestmentsLimited Others - 14,900,000
-WinroCommercial(India)Limited Others 344,893,613 687,158,266
i loans advanced
-GeeceeInvestmentsLimited Others 297,002,914 186,594,243
-FourDimensionsSecurities(India)Limited Others 597,745,218 1,303,350,460
saraswati CommerCial (india) limited
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particulars relation 2017-18 2016-17
rs rs
-KothariPremisesPrivateLimited Others 185,146,329 364,951,000
-UrdhavanInvestment&TradingPrivateLimited Others 290,429,466 133,300,000
j loans received back
-GeeceeInvestmentsLimited Others 297,002,914 186,594,243
-FourDimensionsSecurities(India)Limited Others 597,745,218 1,134,350,460
-KothariPremisesPrivateLimited Others 9,546,329 364,951,000
-UrdhavanInvestment&TradingPrivateLimited Others 290,429,466 133,300,000
k purchase of investment from
-GeeceeInvestmentsLimited Others - 107,703,551
-WinroCommercial(India)Limited Others - 53,851,776
l Balances outstanding at the end of the year
trade payable
-FourDimensionsSecurities(India)Limited Others 454,510 77,276,540
m other Current liablities
interest payable
-WinroCommercial(India)Limited Others 378,515 2,813,613
employee benefits payable
-MrRajivPathak KMP 616,000 372,587
-MrsVaishaliDhuri KMP 76,000 156,060
-MrsEktaKumari KMP 30,000 12,500
telephone expenses payable
-MrsVaishaliDhuri KMP - 500
n Other current assets
-FourDimensionsSecurities(India)Limited Others 3,222,127 145,218
-KothariPremisesPrivateLimited Others 750,827 9,546,329
-GeeceeInvestmentsLimited Others 691,898 627,914
-UrdhavanInvestment&TradingPrivateLimited Others 515,459 108,466
o short term borrowing
-WinroCommercial(India)Limited Others 318,100,000 -
p short term loan & advances
-KothariPremisesPrivateLimited 175,600,000 169,000,000
notes Forming part oF the standalone FinanCial statements
35th annual report 2017-18
91
DisclosureinrespectofRelatedPartyTransactionsduringtheyear
particulars relation 2017-18 2016-17
rs rs
q investments
SareshwarTrading&FinancePrivateLimited Subsidary 1,837,053 1,837,053
GeeceeVentureLimited Others 220,581,377 220,581,377
GeeceeInvestmentsLimited Others 812,436 812,436
WinroCommercial(India)Limited Others 684,209 684,209
ArkayaCommercialPrivateLimited Subsidary 180,750 180,750
ArciesLaboratoriesLimited Associates 25,000 25,000
FourDimensionsCommoditiesPrivateLimited Others 130,000 130,000
FourDimensionsSecurities(I)Limited Others 123,064,220 123,064,220
GeeCeeBusinessPrivateLimited Others 6,848,650 6,848,650
26.3 earnings per share (as 20)
particulars For the year ended
31st march, 2018
For the year ended
31st march, 2017
rs rs
(a) Profitavailableforequityshareholders 159,664,611 52,240,475
(b) WeightedaveragenumberofEquitySharesforBasicEarningspershare(Nos.)
964,137 640,000
(c) EffectofweightedaverageofpotentialequitysharesonisueofsharesinAmalgamation
- 390,593
(d) WeightedaveragenumberofequitysharesforDilutedEarningspershare(Nos.)
964,137 1,030,593
(e) NominalValueofEquityShares(Rs.) 10.00 10.00
(f) BasicEarningspershare(Rs.) 165.60 81.63
(g) DilutedEarningspershare(Rs.) 165.60 50.69
27 disclosure as per annexure 4 of reserve Bank of india’s notification no. dnBr.19/ Cgm (Cds)-2015 dated april 10, 2015 on non- Banking Financial Companies-Corporate governance (reserve Bank) directions, 2015 read with the requirements as required by annexure Xii of non Banking Financial Company – systematically important – non-deposit taking Company and deposit taking Company (reserve Bank) direction, 2016.
27.1 summary of significant accounting policies
ThesummaryofSignificantAccountingPoliciesisdisclosedinNoteNo.1&2totheFinancialStatements.
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27.3 investments
particulars as at 31st march,
2018
as at 31st march,
2017
(i) Value of investments
(i)GrossValueofInvestments 1,259,164,310 983,607,790
(a)InIndia 1,259,164,310 983,607,790
(b)OutsideIndia, - -
(ii)ProvisionsforDepreciation 887,535 -
(a)InIndia 887,535 -
(b)OutsideIndia, - -
(iii)NetValueofInvestments 1,258,276,775 983,607,790
(a)InIndia 1,258,276,775 983,607,790
(b)OutsideIndia - -
(ii) movement of provisions held towards depreciation on investments
(i)Openingbalance - -
(ii)Add:Provisionsmadeduringtheyear 887,535 -
(iii)Less:Write-off/write-backofexcessprovisionsduringtheyear - -
(iv)Closingbalance 887,535 -
27.4 derivatives
Forward rate agreement / interest rate swap:
TheCompanyhasnotenteredintoanyForwardRateAgreement/InterestRateSwaptransactionsduringthecurrentfinancialyearandinthepreviousfinancialyear.
exchange traded interest rate (ir) derivatives :
TheCompanyhasnotenteredintoanyExchangeTradedInterestRate(IR)Derivativestransactionsduringthecurrentfinancialyearandinthepreviousfinancialyear.
27.2 Capital to risk assets ratio (“Crar”)
items as at 31st march,
2018
as at 31st march,
2017
CRAR(%) 64.62 78.34
CRAR–TierICapital(%) 64.52 78.23
CRAR–TierIICapital(%) 0.09 0.11
AmountofsubordinateddebtraisedasTier-IICapital - -
AmountraisedbyissueofperpetualDebtInstruments - -
notes Forming part oF the standalone FinanCial statements
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27.6 maturity pattern of certain items of assets and liabilities
particulars deposit advances investments Borrowings Foreign Currency
assets
Foreign Currency liabilities
1dayto30/31days - - 310,479,143 318,100,000 - -
Overonemonthupto2months - 20,000,000 2,700,000 - - -
Over2monthsupto3months - 20,000,000 - - - -
Over3monthsupto6months - - - - - -
Over6monthsupto1year - 225,600,000 78,179,157 - - -
Over1yearupto3years - - - - -
Over3yearsupto5years - - - - - -
Over5years - - 866,918,475 - - -
total - 265,600,000 1,258,276,775 318,100,000 - -
note:
MaturitypatternoftheInvestmentsarebasedontheManagement’sintentiontoholdthemforadesiredperiod.
disclosures on risk exposure in derivatives :
TheCompanyhasnotentered intoanyCurrencyDerivatives transactionsduring thecurrentfinancial yearandinthepreviousfinancialyear.However,thecompanyhasenteredintoequity/indexFuturesandOptionscontractsduringthecurrentaswellaspreviousfinancialyear.TheMarktoMarketGainsorlosseshavebeenrecognizedasperaspertheGuidanceNoteon“accountingforDerivativeContracts (2015)” issuedbyTheInstituteofCharteredAccountantsofIndiaandshownunderthehead“Profit/(Loss)onfutures&optionssegment”innoteno.20tothefinancialstatement.
27.5 disclosures relating to securitisation
TheCompanyhasnotdoneanySecuritisationduringthecurrentfinancialyearandinthepreviousfinancialyear.HencedisclosuresrelatingtoSecuritisationarenotapplicable.
27.5.1 details of non-performing financial assets purchased / sold
TheCompanyhasneitherpurchasednorsoldanyNonPerformingFinancialAssetsduringthecurrentfinancialyearandinthepreviousfinancialyear.
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27.7 exposure to real estate sector
Category as at 31st march,
2018
as at 31st march,
2017a)DirectExposure
i)ResidentialMortgages- nil Nil
Lendingfullysecuredbymortgagesonresidentialpropertythatisorwillbeoccupiedbytheborrowerorthatisrented:
ii)CommercialRealEstate- nil Nil
Lendingsecuredbymortgagesoncommercialrealestates(officebuildings,retailspace,multipurposecommercialbuildings,multi-tenantedcommercialpremises,multi-familyresidentialpremises,industrialorwarehousespace,hotels,landacquisition,developmentandconstruction,etc).Exposureincludesnon-fundbased(NFB)limits.
iii)InvestmentsinMortgageBackedSecurities(MBS)andothersecuritisedexposures-
1.Residential nil Nil
2.CommercialRealEstate nil Nil
exposure to Capital market
particulars as at 31st march,
2018
as at 31st march,
2017
(i) direct investment in equity shares, convertible bonds, convertibledebenturesandunitsofequity-orientedmutualfundsthecorpusofwhichisnotexclusivelyinvestedincorporatedebt;*
898,019,460 959,043,860
(ii)advancesagainstshares/bonds/debenturesorothersecuritiesoroncleanbasistoindividualsforinvestmentinshares(includingIPOs/ESOPs),convertible bonds, convertible debentures, and units of equity-orientedmutualfunds;
- -
(iii)advancesforanyotherpurposeswheresharesorconvertiblebondsorconvertibledebenturesorunitsofequityorientedmutualfundsaretakenasprimarysecurity;
- -
(iv)advancesforanyotherpurposestotheextentsecuredbythecollateralsecurityofsharesorconvertiblebondsorconvertibledebenturesorunitsof equity oriented mutual funds i.e. where the primary security otherthanshares/convertiblebonds/convertibledebentures/unitsofequityorientedmutualfunds‘doesnotfullycovertheadvances;
- -
(v)securedandunsecuredadvancestostockbrokersandguaranteesissuedonbehalfofstockbrokersandmarketmakers;
- -
(vi)loanssanctionedtocorporateagainstthesecurityofshares/bonds/debentures or other securities or on clean basis formeetingpromoter’scontribution to the equity of new companies in anticipation of raisingresources;
- -
(vii)bridgeloanstocompaniesagainstexpectedequityflows/issues; - -
(viii)allexposurestoVentureCapitalFunds(bothregisteredandunregistered) - -
total exposure to Capital market 898,019,460 959,043,860
*Note:TheCompanyhasmadeaninvestmentofRs.9,454,575(PreviousyearRs.26,200,924)inHousingFinanceCompany(Rs.9,454,575(PreviousyearRs.9,454,575)inHousingDevelopmentFinanceCorporationLimited, RS.Nil (Previous year Rs. 6,423,291) in LICHousing Finance Limited&Rs.Nil (Previous year Rs.10,323,058)inRepcoHomeFinanceLimited)whichareincludedinCapitalMarket.
notes Forming part oF the standalone FinanCial statements
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27.8 details of financing of parent company products
TheCompanydoesnotfinanceitsparentCompanyproducts.Hencethisclauseisnotapplicable.
27.9 details of single Borrower limit (sgl)/ group Borrower limit gBl exceeded by the nBFC
The Company does not exceed Single Borrower Limit (SGL)/ Group Borrower Limit as prescribed RBI inprudentialnorms.
27.10 unsecured advances
TheCompanyhasgivenunsecuredloans/advancesduringcurrentaswellaspreviousyear.Theoutstandingamountofunsecuredloans/advancesason31stMarch,2018isRs.265,600,000(PreviousyearRs.243,750,000).TheCompanyhasnotgivenanyadvancesagainstintangiblesecurity.
27.11 miscellaneous
27.11.1 registration obtained from other financial sector regulators
NotApplicable.
27.11.2 disclosure of penalties imposed by rBi and other regulators
NopenaltieshavebeenimposedbyRBIandanyotherregulator.
27.11.3 related party transactions
Detailsofallmaterialtransactionswithrelatedparties:Refernoteno.26.2
27.11.4 ratings assigned by credit rating agencies and migration of ratings during the year
NotApplicable.
27.11.5 remuneration of directors
TheCompanyhasnotpaidanyremunerationtoanydirectoroftheCompanyexceptdirector’ssittingfeesofRs17000/-paidtoindependentdirectors
27.11.6 Management
ManagementDiscussionandAnalysisReportisbeenincorporatedintheDirectorsReport.
27.11.7 net profit or loss for the period, prior period items and changes in accounting policies
Therearenopriorperioditems.Accordinglythereisnoimpactonprofit/lossoftheCompany.
27.11.8 revenue recognition
Thecompanyhasnotpostponedrecognitionofrevenueonaccountofanypendingresolutionofsignificantuncertainties.
27.11.9 accounting standard 21 -Consolidated Financial statements (CFs)
TheCompanyhaspresentedtheConsolidatedFinancialStatementaspertheguidelines&clerificationprovidedbyICAI.
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27.12 additional disclosures
27.12.1 provisions and Contingencies
Break up of ‘provisions and Contingencies’ shown under the head expenditure in profit and loss account
as at 31st march,
2018
as at 31st march,
2017
ProvisionsfordepreciationonInvestment 887,535 -
ProvisiontowardsNPA - -
ProvisionmadetowardsIncometax - 2,483,000
Provisionforemployeebenefits 181,049 339,523
OtherProvisionandContingencies(withdetails) - -
ProvisionforStandardAssets 198,078 779,684
27.12.2 draw down from reserves
TheCompanyhasnotmadeanydrawdownfromreservesduringthecurrentandpreviousyear.
27.12.3 Concentration of deposits, advances, exposures and npas
1. Concentration of deposits (for deposit taking nBFCs)
AstheCompanyisanon-deposittaking/holdingNBFC,detailsasrequiredunderthisclauseisnotapplicable.
2. Concentration of advances (AmountinRs)
particulars 2017-18 2016-17
TotalAdvancestotwentylargestborrowers 265,600,000 243,750,000
PercentageofAdvancestotwentylargestborrowerstoTotalAdvancesoftheNBFC
100.00% 100.00%
3. Concentration of exposures
Particulars 2017-18 2016-17
TotalExposuretotwentylargestborrowers/Customers* 1,151,610,411 1,084,894,470
PercentageofExposurestotwentylargestborrowers/customerstoTotalExposureoftheNBFConborrowers/customers
95.99% 90.20%
*Note:
TotalExposureincludesinvestmentmadeinsharesofanothercompany(includingGroupcompanies)aswellasloansgiven.
4. Concentration of npas
TheCompanydoesnothaveanyNon-PerformingAssets.
5. sector-wise npas
TheCompanydoesnothaveanyNon-PerformingAssets.
27.12.4 movement of npas
TheCompanydoesnothaveanyNon-PerformingAssets,detailsasrequiredunderthisclauseisnotapplicable.
27.12.5 Overseas assets
TheCompanydoesnothaveanyoverseasAssetsnorhavemadeanyInvestmentsinanyOverseasJointventureorOverseasSubsidiary.
27.12.6 off-balance sheet spVs sponsored
TheCompanydoesnothaveanyoffbalancesheetSPVssponsored.
notes Forming part oF the standalone FinanCial statements
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97
27.12.7 disclosure of Complaints
Customer Complaints
particulars 2017-18 2016-17
(a)No.ofcomplaintspendingatthebeginningoftheyear nil nil
(b)No.ofcomplaintsreceivedduringtheyear nil nil
(c)No.ofcomplaintsredressedduringtheyear nil nil
(d)No.ofcomplaintspendingattheendoftheyear nil nil
28.1 disclosure as per regulation 34 (3) & 53(f) of securities and exchange Board of india ( listing obligation and disclosure requirement) regulation, 2015
Loansandadvances(includinginterestaccruedanddue)inthenatureofloanstosubsidiaries,associates,firms/companiesinwhichdirectorsareinterested
particulars Balance sheet as at
maximum balance
outstanding during the year ended
Balance sheet as at
maximum balance
outstanding during the year ended
31st march, 2018
31st march, 2018
31st march, 2017
31st march, 2017
SubsidariesArkayaCommercialPrivateLimited - - - - SareshwarTrading&FinancePrivateLimited
- - - -
associate:ArciesLaboratoriesLimited - - - - Companies in which directors are interested
- - - -
GeeceeInvestmentsLimited 691,898 200,000,000 - -
28.2 disclosures under the micro, small and medium enterprises development act, 2006:
sr.no particulars as at 31st march, 2018
as at 31st march, 2017
(a) Principal amount remaining unpaid to any supplier at the end of theaccountingyear.
- -
(b) Interestdue thereon remainingunpaid toanysupplierat theendof theaccountingyear.
- -
(c) Theamountofinterestdueandpayablefortheperiodofdelayinmakingpayment(whichhavebeenpaidbutbeyondtheappointeddayduringtheyear)butwithoutaddingtheinterestspecifiedundertheMicro,SmallandMediumEnterprisesDevelopmentAct,2006.
- -
(d) Theamountofinterestaccruedandremainingunpaidattheendofeachaccountingyear.
- -
(e) The amount of further interest remaining due and payable even in thesucceedingyears,untilsuchdatewhentheinterestduesaboveareactuallypaidtothesmallenterprise,forthepurposeofdisallowanceofadeductibleexpenditureunderSection23oftheMicro,SmallandMediumEnterprisesDevelopmentAct,2006.
- -
DuestoMicroandSmallEnterpriseshavebeendeterminedtotheextentsuchpartieshavebeenidentifiedonthebasisofinformationcollectedbytheManagement.Thishasbeenrelieduponbytheauditors.
saraswati CommerCial (india) limited
98
28.4 (a)Thecompanyhasallotted390,593EquityShareson29thMay,2017totheShareholdersofAroniCommercialsLimitedasonrecorddate(i.e22ndMay,2017)duetotheSchemeofAmalgamationintheratioapproved.Pursuanttothesaidallotment,theEquityShareCapitaloftheCompanyisincreasedtoRs.10,305,930/-.
(b)BoardofDirectorsobservedthattheequitysharesofCompanywereinfrequentlytradedontheBSElimitingtheopportunityfortheshareholderstobuyandsellequitysharesoftheCompany.AlsotheCompanyhadsurpluscashportionofwhichtheBoardwantedtoreturntoitsShareholders.
Also theBoardofDirectorsof theCompanywasof theview that thebuybackofEquityShares shall alsoprovideanopportunitytoshareholderstooffertheirEquitySharestotheCompanyresultinginimprovementinfinancialratiosandmaximizationofoverallshareholders’value.Thereforetheyattheirmeetingheldon7thDecember,2017announcedtheBuybackupto60,000fullypaid-upequitysharesoftheCompanyoffacevalueRs.10/-representingupto5.82%ofthetotalnumberofEquitySharesoftheCompany,fromalltheequityshareholders/beneficialownersoftheCompanywhoholdsEquitySharesasontherecorddate i.e.Friday,22ndDecember,2017,onaproportionatebasis,throughthetenderofferusingstockexchangemechanism,atapriceofRs.978/-perEquityShareforanaggregatemaximumamountofuptoRs.5,86,80,000/-excludingtransactioncostssuchasbrokerage,securitiestransactiontax,goodsandservicetax,stampduty,etc.
ThetotalnumberofEquitySharesboughtbackundertheBuybackwere29,665EquityShares,atapriceofRs.978/-perEquityShare,amountingto
Rs.2,90,12,370/-excludingTransactionCost.
TheCompanyreceivedtheapprovalforbuybackofEquitySharesfromSEBIon2ndJanuary,2018andcompletedtheprocesson9thFebruary,2018.
PostbuybackthesharecapitaloftheCompanyreducedtoRs.1,00,09,280/-EquitySharesfromRs.1,03,05,930/-
28.5 Previousyear’sfigureshavebeenregrouped/reclassifiedwherevernecessarytocorrespondwiththecurrentyear’sclassification/disclosure.
28.3 section 135 of the Companies act, 2013 i.e Corporate social responsibility, read with schedule Vii thereto, is not applicable to the Company. although, the Company has spent rs. nil (previous year rs. 27 lakh ) towards Corporate social responsibility.particulars For the year
ended 31st march,
2018
For the year ended
31st march, 2017
rs rs (a) GrossamountrequiredtobespentbytheCompanyduringtheyear. - - (b) Amountspentduringtheyear:
InCash - 2,700,000Yettobepaidincash - -
total - 2,700,000 (i) Construction/acquisitionofanyasset - - (ii) Onpurposesotherthan(i)above - 2,700,000
notes Forming part oF the standalone FinanCial statements
in terms of our report attached. For and on behalf of the Board of directors
For m/s aJay shoBha & Co.CharteredAccountantsFirmReg.No:317031E
sd/-V. V. Suresh kumar DirectorDIN:00053859
sd/-ritesh ZaveriDirectorDIN:00054741
sd/-ajay guptaPartnerMembershipNo.053071
sd/-Vaishali rajesh dhuri ChiefFinancialOfficer
sd/-avani SanghaviCompanySecretary
Place:MumbaiDate:28thMay,2018
35th annual report 2017-18
99
assets Side : amount outstanding amount outstanding
(2) Break-up of loans and advances including bills receivables {other than those included in (4) below} :
(a)Secured nil Nil
(b)Unsecured
InterCorporatedeposits 2,656.00 2,390.00
LoantoEmployees 13.20 2.82
Otherloan - 47.50
Others:
PrepaidExpenses 0.80 0.89
SecurityDeposit 101.06 101.06
MATCreditEntitlment 200.26 -
AdvanceIncomeTax(Net) 199.06 3,170.38 93.18 2,635.45
anneXure (Forming part oF the aCCounts)schedule to the Balance sheet
{asrequiredintermsofParagraph18ofSystemicallyImportantNon-BankingFinancial(Non-DepositAcceptingorHolding)CompaniesPrudentialNorms(ReserveBank)Directions,2016.}
(Rs.inLakhs)
particulars 31st march 2018 31st march 2017
liabilities side : amount Outstanding
amount Overdue
amount Outstanding
amount Overdue
(1) loans and advances availed by the nBFCs inclusive interest accrued thereon but not paid :
(a)Debentures :Secured nil nil Nil Nil
:Unsecured nil nil Nil Nil
(Otherthanfallingwithinthemeaningofpublicdeposit*)
(b)DeferredCredits nil nil Nil Nil
(c)TermLoans nil nil Nil Nil
(d)Inter-corporateLoansandBorrowings 3,184.79 nil 829.00 Nil
(e)CommercialPaper nil nil Nil Nil
(f)OtherLoans(specifynature) nil nil Nil Nil
*PleaseseeNote1below
saraswati CommerCial (india) limited
100
assets Side : amount outstanding amount outstanding
(3) Break up of leased assets and stock on hire and other assets counting towards aFC activities(i)Leaseassetsincludingleaserentalsunder
sundrydebtors:nil Nil
(a)Financiallease(b)Operatinglease
(ii)Stockonhireincludinghirechargesundersundrydebtors:
nil Nil
(a)Assetsonhire(b)RepossessedAssets
(iii)OtherloanscountingtowardsAFCactivities
nil Nil
(a)Loanswhereassetshavebeenrepossessed
(b)Loansotherthan(a)above
(rs. in lakhs)
particulars 31st march 2018
31st march 2017assets Side :
(4) Break-up of investmentsCurrentInvestments:
1. Quoted: i) Shares: (a)Equity 648.92 113.65
(b)Preference nil Nil ii) DebenturesandBonds nil Nil iii) Unitsofmutualfunds nil Nil iv) GovernmentSecurities nil Nil v) Others(CommercialPaper) nil Nil2. Unquoted:
i) Shares: (a)Equity 2.71 2.71(b)Preference nil Nil
ii) DebenturesandBonds nil Niliii) Unitsofmutualfunds 3,070.00 Niliv) GovernmentSecurities nil Nilv) Others 171.16 245.58
LongTermInvestments:1. Quoted:
i) Shares: (a)Equity 6,423.18 7,577.56(b)Preference 117.60 Nil
ii) DebenturesandBonds nil Niliii) Unitsofmutualfunds nil Niliv) GovernmentSecurities nil Nilv) Others(Pleasespecify) nil Nil
2. Unquoted:i) Shares: (a)Equity 2,149.02 1,896.52
(b)Preference 0.19 0.06ii) DebenturesandBonds nil Nil
iii) Unitsofmutualfunds nil Niliv) GovernmentSecurities nil Nilv) Others(Pleasespecify) nil Nil
35th annual report 2017-18
101
(5) Borrower group-wise classification of all leased assets financed as in (2) and (3) above
Pleaseseenote2below:
Category 31st march 2018 31st march 2017
amount net of provisions amount net of provisions
secured unsecured total secured unsecured total
1 RelatedParties**
(a) Subsidiaries nil nil nil Nil Nil Nil
(b) Companiesinthesamegroup
nil 1,756.00 1,756.00 Nil 1,690.00 1,690.00
(c) OtherRelatedParties nil nil nil Nil Nil Nil
2 OtherthanRelatedparties nil 1,414.38 1,414.38 Nil 945.45 945.45
total 3,170.38 3,170.38 2,635.45 2,635.45
(6) investor group-wise classification of all investments (current and long term) in shares and securities (both quoted and unquoted) :
Category 31st march 2018 31st march 2017
market Value/Break up or fair value or
naV
Book Value (net of
provision)
market Value/Break up or fair value or
naV
Book Value (net of
provision)
1. RelatedParties**
(a) Subsidiaries 16.84 20.18 17.02 20.05
(b) Companiesinthesamegroup: 8,711.56 3,521.46 7,610.77 3,521.46
(c) OtherRelatedParties nil nil Nil Nil
2. OtherthanRelatedparties 10,461.57 9,041.13 8,287.98 6,294.57
total 19,189.97 12,582.77 15,915.77 9,836.08
**AsperAccountingStandardofICAI(PleaseseeNote3)
(7) other information
particulars 31st march 2018
31st march 2017
rs rs
(i) GrossNon-PerformingAssets
(a) Relatedparties nil Nil
(b) Otherthanrelatedparties nil Nil
(ii) NetNon-PerformingAssets
(a) Relatedparties nil Nil
(b) Otherthanrelatedparties nil Nil
(iii) Assetsacquiredinsatisfactionofdebt nil Nil
saraswati CommerCial (india) limited
102
notes :
1 Asdefinedinparagraph2(1)(xii)oftheNon-BankingFinancialCompaniesAcceptanceofPublicDeposits(ReserveBank)Directions,1998.
2 ProvisioningnormsshallbeapplicableasprescribedinNon-SystemicallyImportantNon-BankingFinancial(Non-Deposit Accepting orHolding) Companies PrudentialNorms (Reserve Bank) Directions, 2016 or SystemicallyImportantNon-Banking Financial (Non-Deposit Accepting orHolding) Companies PrudentialNorms (ReserveBank)Directions,2016whicheverisapplicable.
3 AllaccountingstandardsandguidancenotesissuedbyICAIareapplicableincludingforvaluationofinvestmentsandotherassetsasalsoassetsacquiredinsatisfactionofdebts.However,marketvalueinrespectofquotedinvestmentsandbreakup/fairvalue/NAVinrespectofunquotedinvestmentsshouldbedisclosedirrespectiveofwhethertheyareclassifiedaslongtermorcurrentincolumn(4)above.
4 Current Investment inNBFCReport includesStock inTradeof SharesShownas“Inventories” in theBalanceSheet.
5 Long Term Investment inNBFCReport includes Investment Shown in theBalance Sheet as “Non - CurrentInvestment”.
in terms of our report attached. For and on behalf of the Board of directors
For m/s aJay shoBha & Co.CharteredAccountantsFirmReg.No:317031E
sd/-V. V. Suresh kumar DirectorDIN:00053859
sd/-ritesh ZaveriDirectorDIN:00054741
sd/-ajay guptaPartnerMembershipNo.053071
sd/-Vaishali rajesh dhuri ChiefFinancialOfficer
sd/-avani SanghaviCompanySecretary
Place:MumbaiDate:28thMay,2018
35th annual report 2017-18
103
independent auditors’ reportto,the members of
saraswati CommerCial (india) limited
report on the Consolidated Financial statements
WehaveauditedtheaccompanyingConsolidatedFinancialStatementsofsaraswati CommerCial (india) limited (hereinafterreferredtoas“theHoldingCompany”)anditssubsidiaries(theHoldinganditssubsidiariestogetherreferredtoas“theGroup”)anditsassociatecompanywhichcomprisetheConsolidatedBalanceSheetasat31stMarch,2018,theConsolidatedStatementofProfit&LossAccountandtheConsolidatedCashFlowStatementfortheyearthenendedandasummaryofthesignificantaccountingpoliciesandotherexplanatoryinformation(hereinafterreferredtoas“theConsolidatedFinancialStatements”).
management’s responsibility for the Consolidated Financial statements
TheHoldingCompany’sBoardofDirectors isresponsiblefor thepreparationandpresentationoftheseConsolidatedFinancialStatementsintermsoftherequirementsoftheCompaniesAct,2013("hereinafterreferredtoastheAct")thatgiveatrueandfairviewoftheconsolidatedfinancialposition,consolidatedfinancialperformanceandconsolidatedcashflowsoftheGroupanditsAssociateinaccordancewiththeaccountingprinciplesgenerallyacceptedinIndia,includingtheAccountingStandardsspecifiedunderSection133oftheAct,readwithRule7oftheCompanies(Accounts),Rules2014.TherespectiveBoardofDirectorsoftheCompaniesincludedintheGroupandofitsassociateareresponsibleformaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionoftheActforsafeguardingtheassetsoftheCompanyandforpreventinganddetectingfraudsandotherirregularities;selectionandapplicationofappropriateaccounting policies;making judgments and estimates that are reasonable and prudent; and design, implementationand maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracyand completenessof accounting records, relevant to thepreparationandpresentationof theConsolidated FinancialStatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror,whichhavebeenusedforthepurposeofpreparationoftheConsolidatedFinancialStatementsbytheDirectorsoftheHoldingCompany,asaforesaid.
auditor’s responsibility
Our responsibility is to express an opinion on these Consolidated Financial Statements based on our audit. Whileconductingtheaudit,wehavetakenintoaccounttheprovisionsoftheAct,theaccountingandauditingstandardsandmatterswhicharerequiredtobeincludedintheauditreportundertheprovisionsoftheActandRulesmadethereunder.
WeconductedourauditinaccordancewiththeStandardsonAuditingspecifiedundersection143(10)oftheAct.ThoseStandards require that we comply with ethical requirements and plan and perform the audit to obtain reasonableassuranceaboutwhethertheConsolidatedFinancialStatementsarefreefrommaterialmisstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in theConsolidatedFinancialStatements.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementoftheConsolidatedFinancialStatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalfinancialcontrolrelevanttotheHoldingCompany’spreparationandfairpresentationoftheConsolidatedFinancialStatementsthatgiveatrueandfairview inordertodesignauditproceduresthatareappropriateinthecircumstancesbutnotforthepurposeofexpressinganopiniononwhethertheHoldingCompanyhasanadequateinternalfinancialcontrolssystemoverfinancialreportinginplaceandtheoperatingeffectivenessofsuchcontrols.AnauditalsoincludesevaluatingtheappropriatenessoftheaccountingpoliciesusedandthereasonablenessoftheaccountingestimatesmadebytheHoldingCompany’sBoardofDirectorsaswellasevaluatingtheoverallpresentationoftheConsolidatedFinancialStatements.
saraswati CommerCial (india) limited
104
WebelievethattheauditevidenceobtainedbyusandtheauditevidenceobtainedbyotherauditorsintermsoftheirreportreferredtointheOtherMattersparagraphbelow,issufficientandappropriatetoprovideabasisforourauditopinionontheConsolidatedFinancialStatements.
opinion
In our opinion and to the best of our information and according to the explanations given to us, andbasedon theconsiderationofreportsofotherauditorsonseparatefinancialstatementsofthesubsidiariesandassociatereferredtointheOtherMattersparagraphbelow,theaforesaidConsolidatedFinancialStatementsgivetheinformationrequiredbytheActinthemannersorequiredandgiveatrueandfairviewinconformitywiththeaccountingprinciplesgenerallyaccepted in India,of theconsolidatedstateofaffairsof theGroupand itsassociateasat31stMarch2018and theirconsolidatedprofit/(loss)andtheirconsolidatedcashflowsfortheyearendedonthatdate.
other matters
WedidnotauditthefinancialstatementoftwosubsidiarieswhosefinancialstatementsreflecttotalassetsofRs.29.04lacsasat31stMarch2018,totalrevenuesofRs.0.40lacsandlossofRs.0.48lacsandnetcashoutflowamountingtoRs1.05lacsfortheyearendedonthatdate,asconsideredintheConsolidatedFinancialStatements.TheConsolidatedFinancialStatementsalsoincludestheCompany’sshareofnetlossofRs.Nilfortheyearended31stMarch,2018,asconsideredintheConsolidatedFinancialStatements,inrespectofitsassociate,ArciesLaboratoriesLimitedwhosefinancialstatementshavenotbeenauditedbyus.ThesefinancialstatementshavebeenauditedbyotherauditorswhosereporthavebeenfurnishedtousbytheManagementandouropinionontheconsolidatedfinancialstatement,insofarasitrelatestotheamountsanddisclosuresincludedinrespectofthesesubsidiariesandassociate,andourreportintermsofsubsection(3)ofSection143oftheAct,insofarasitrelatestotheaforesaidsubsidiariesandassociateisbasedsolelyonthereportsoftheotherauditors.
Ouropinionontheconsolidatedfinancialstatement,andourreportonOtherLegalandRegulatoryRequirementbelowisnotmodifiedintherespectoftheabovematterswithrespecttoourrelianceontheworkdoneandthereportoftheotherauditors.
report on other legal and regulatory requirements
AsrequiredbySection143(3)oftheAct,basedonourauditandontheconsiderationofthereportoftheotherauditorsonseparatefinancialstatementofthesubsidiariesandassociate,referredintheOtherMattersabove,wereportthat:
(a) Wehavesoughtandobtainedalltheinformationandexplanations,whichtothebestofourknowledgeandbeliefwerenecessaryforthepurposeofourauditoftheaforesaidConsolidatedFinancialStatements.
(b) Inouropinion,properbooksofaccountasrequiredby lawrelatingtopreparationof theaforesaidConsolidatedFinancialStatementshavebeenkeptsofarasitappearsfromourexaminationofthosebooks.
(c) The Consolidated Balance sheet, the Consolidated statement of Profit & Loss and the Consolidated cash flowstatement dealtwith by this report are in agreementwith the books of accountmaintained for the purpose ofpreparationoftheConsolidatedFinancialStatements.
(d) In our opinion, the aforesaid Consolidated Financial Statements complywith the accounting standards specifiedundersection133oftheact,readwithrule7oftheCompanies(Accounts)Rules,2014.
(e) OnthebasisofthewrittenrepresentationsreceivedfromthedirectorsoftheHoldingCompanyason31stMarch,2018andtakenonrecordbytheBoardofDirectorsoftheHoldingCompanyandthereportsofthestatutoryauditorsofitssubsidiariesandassociatecompaniesincorporatedinIndia,noneofthedirectorsoftheHoldingCompanyandits subsidiariesandassociate companies incorporated in India isdisqualifiedason31stMarch,2018 frombeingappointedasadirectorintermsofSection164(2)oftheAct.
35th annual report 2017-18
105
(f) With respect to theadequacyof the internalfinancial controlsoverfinancial reportingof theCompanyand theoperatingeffectivenessofsuchcontrols,refertoourseparatereportin“AnnexureA’’,whichisbasedontheauditors’reports of theHolding company, subsidiary companies and associate company incorporated in India.Our reportexpressesanunmodifiedopinionontheadequacyandoperatingeffectivenessoftheinternalfinancialcontrolsoverfinancialreportingofthosecompanies,forthereasonsstatedtherein.
(g) WithrespecttotheothermatterstobeincludedintheAuditorsReportinaccordancewithRule11oftheCompanies(AuditandAuditors)Rules,2014,inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous:
i. TheConsolidatedFinancialStatementsdisclosethe impactofpending litigationson itsconsolidatedfinancialpositionoftheGroupanditsassociates-ReferNoteNo.25.1totheConsolidated financialstatements;
ii. TheGroupanditsassociatedidnothaveanylongtermcontractsincludingderivativecontractsforwhichtherewereanymaterialforeseeablelosses.
iii. TherewerenoamountsrequiredtobetransferredtotheInvestorEducationandProtectionFundbytheGroupanditsassociates.
For aJay shoBha & Co.Firm registration no.317031E
Chartered aCCountants
place : mumbaidate: 28th may, 2018
sd/-aJay gupta
partnermemBership no. 053071
saraswati CommerCial (india) limited
106
anneXure-a to the auditors reportreport on the internal Financial Controls under clause (i) of sub-section 3 of section 143 of the Companies act, 2013 (“the act”)
InconjunctionwithourauditoftheConsolidatedFinancialStatementsoftheCompanyasofandfortheyearended31st March,2018,wehaveauditedtheinternalfinancialcontrolsoverfinancialreportingofSARASWATICOMMERCIAL(INDIA)LIMITEDanditssubsidiarycompanies,itsassociate,whicharecompaniesincorporatedinIndia,asofthatdate.
management’s responsibility for internal Financial Controls
The respectiveBoardofDirectorsof theof theHoldingCompany, its subsidiary companiesandassociate,whicharecompanies incorporatedin India,areresponsibleforestablishingandmaintaining internalfinancialcontrolsbasedontheinternalcontroloverfinancialreportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia(ICAI).Theseresponsibilitiesincludethedesign,implementationandmaintenanceofadequateinternalfinancialcontrolsthatwereoperatingeffectivelyforensuringtheorderlyandefficientconductof itsbusiness, includingadherencetocompany’spolicies,thesafeguardingof itsassets,thepreventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheCompaniesAct,2013.
auditors responsibility
OurresponsibilityistoexpressanopinionontheHoldingCompany,itssubsidiariesandassociate,whicharecompaniesincorporated in India, internal financial controls over financial reporting based on audit.We conducted our audit inaccordancewiththeGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReporting(the‘GuidanceNote”)andtheStandardsonAuditing,issuedbyICAIanddeemedtobeprescribedundersection143(10)oftheCompaniesAct,2013totheextentapplicabletoanauditofinternalfinancialcontrols.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetheradequateinternalfinancialcontrolsoverfinancialreportingwasestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialaspects.
Ourauditinvolvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternalfinancialcontrolssystemoverfinancialreportingandtheiroperatingeffectiveness,Ourauditofinternalfinancialcontrolsoverfinancialreportingincludedobtaininganunderstandingofinternalfinancialcontrolsoverfinancialreporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessof internalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.
Webelievethattheauditevidencewehaveobtainedandtheauditevidenceobtainedbytheotherauditorsofsubsidiarycompanies,associatecompanieswhicharecompaniesincorporatedinIndia,intermsoftheirreportsreferredtointheOtherMattersparagraphbelow,issufficientandappropriatetoprovideabasisforourauditopinionontheCompany’sinternal financial controls system over financial reporting of the Holding Company, its subsidiary companies and itsassociate,whicharecompaniesincorporatedinIndia.
meaning of internal Financial Controls over Financial reporting
ACompany’s internalfinancialcontroloverfinancial reporting isaprocessdesignedtoprovidereasonableassuranceregarding the reliability of financial reporting and the preparation of financial statements for external purposes inaccordancewithgenerallyacceptedaccountingprinciples.ACompany’sinternalfinancialcontroloverfinancialreportingincludesthosepoliciesandproceduresthat(1)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsoftheCompany;(2)providereasonableassurancethattransactions are recorded as necessary to permit preparation of financial statements in accordance with generallyacceptedaccountingprinciples,andthatreceiptsandexpendituresoftheCompanyarebeingmadeonlyinaccordancewith authorizations ofmanagement and directors of the Company; and (3) provide reasonable assurance regarding
35th annual report 2017-18
107
preventionortimelydetectionofunauthorizedacquisition,use,ordispositionoftheCompany’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.
inherent limitations of internal Financial Controls over Financial reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility ofcollusionorimpropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmayoccurandnotbedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiodsaresubjecttotheriskthattheinternalfinancialcontroloverfinancialreportingmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.
opinion
Inouropinion,theHoldingCompany,itssubsidiariesandassociate,whicharecompaniesincorporatedinIndia,have,inallmaterialrespects,anadequateinternalfinancialcontrolssystemoverfinancialreportingandsuchinternalfinancialcontrolsoverfinancial reportingwereoperatingeffectivelyasat31stMarch2018,basedonthe internalcontroloverfinancialreportingcriteriaestablishedbytheHoldingCompanyconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia.
other matters
OuraforesaidreportSection143(3)(i)oftheActontheadequacyandoperatingeffectivenessoftheInternalFinancialControlsoverfinancialreportinginsofarasitrelatestotwosubsidiarycompaniesandoneassociatecompany,whicharecompaniesincorporatedinIndia,isbasedonthecorrespondingreportsoftheauditorsofsuchcompaniesincorporatedinIndia.
OurOpinionisnotmodifiedinrespectoftheabovematters
For aJay shoBha & Co.Firm registration no.317031E
Chartered aCCountants
place : mumbaidate: 28th may, 2018
sd/-aJay gupta
partnermemBership no. 053071
saraswati CommerCial (india) limited
108
Consolidated BalanCe sheet as at 31st marCh, 2018particulars note
no. as at 31st march,
2018 as at 31st march,
2017 rs rs
a eQuity and liaBilities1 shareholders’ funds
(a)Sharecapital 3 10,009,280 6,400,000(b)Reservesandsurplus 4 1,281,299,556 1,150,380,765
1,291,308,836 1,156,780,7652 shares pending allotment - 3,905,9303 minority interest 1,072,120 1,090,2874 non-current liabilities
(a)Long-termprovisions 5 1,442,264 2,001,8485 Current liabilities
(a)Shorttermborrowings 6 318,231,988 80,000,000(b)TradePayables
totaloutstandingduesof:(i)MicroenterprisesandSmallenterprises(ii)CreditorsotherthanmicroenterprisesandSmall
enterprises7 454,510 77,338,603
(c)Othercurrentliabilities 8 2,513,578 6,701,946(d)Short-termprovisions 9 1,091,303 893,225
322,291,379 164,933,774tOtaL 1,616,114,599 1,328,712,604 B aSSEtS1 non-current assets
(a)FixedassetsProperty,plantandequipment 10 757,778 791,908(b)Non-currentinvestments 11 869,719,772 948,207,709(c)Deferredtaxassets(net) 12 27,945,800 24,894,208(d)Long-termloansandadvances 13 31,012,842 10,114,821
929,436,192 984,008,6462 current assets
(a)Currentinvestments 14 324,116,100 24,557,680
(b)Inventories 15 65,163,057 11,636,701(c)Tradereceivables 16 - 26,742,245(d)CashandBankbalance 17 3,245,608 16,271,817(e)Short-termloansandadvances 18 286,025,989 253,436,777(f)Othercurrentassets 19 8,127,653 12,058,738
686,678,407 344,703,958tOtaL 1,616,114,599 1,328,712,604 significant accounting policies 1&2the accompanying notes are an integral part of the Consolidated Financial statements
in terms of our report attached. For and on behalf of the Board of directors
For m/s aJay shoBha & Co.CharteredAccountantsFirmReg.No:317031E
sd/-V. V. Suresh kumar DirectorDIN:00053859
sd/-ritesh ZaveriDirectorDIN:00054741
sd/-ajay guptaPartnerMembershipNo.053071
sd/-Vaishali rajesh dhuri ChiefFinancialOfficer
sd/-avani SanghaviCompanySecretary
Place:MumbaiDate:28thMay,2018
35th annual report 2017-18
109
Consolidated statement oF proFit and loss For the year ended 31St March, 2018particulars note
no. For the year
ended 31st march, 2018
For the year ended
31st march, 2017 rs rs
1 revenueRevenuefromoperations 20 8,256,939 64,389,355Otherincome 21 155,542,599 43,120,613total revenue 163,799,538 107,509,968
2 expenses(a)Employeebenefitsexpense 22 12,443,387 14,895,345(b)Financecosts 23 3,367,710 28,400,690(c)Depreciationandamortisationexpense 10 226,067 318,466(d)Otherexpenses 24 11,216,276 12,541,059total expenses 27,253,440 56,155,560
3 profit before exceptional and extraordinary items and tax (1 - 2) 136,546,098 51,354,408 4 Exceptionalitems - - 5 profit before extraordinary items and tax (3 + 4) 136,546,098 51,354,408 6 Extraordinaryitems - - 7 profit before tax (5 + 6) 136,546,098 51,354,408 8 tax expense:
(a)Currenttaxexpenseforcurrentyear 5,709 2,483,000(b)MATCreditEntitlement (20,026,428)(c)Currenttaxexpenserelatingtoprioryears 2,065 1,768,637net current tax expense (20,018,654) 4,251,637 Deferredtax 12 (3,051,592) (5,097,833)
(23,070,246) (846,196)9 profit after tax before share profit/ loss of associate &
minority interest (7 - 8) 159,616,344 52,200,604
10 Shareinlossofassociatefortheyear - - 11 profit after tax before share of profit / (loss) attributable to
minority interest (9 + 10) 159,616,344 52,200,604
12 Shareofprofit/(loss)attributabletoMinorityinterest (18,167) (15,339)13 profit for the year attributable to shareholders of the
Company (11 - 12) 159,634,511 52,215,943
14 earnings per share (of rs. 10/- each) 26.3Basic 165.57 81.59Diluted 165.57 50.67
significant accounting policiesthe accompanying notes are an integral part of the Consolidated Financial statements
in terms of our report attached. For and on behalf of the Board of directors
For m/s aJay shoBha & Co.CharteredAccountantsFirmReg.No:317031E
sd/-V. V. Suresh kumar DirectorDIN:00053859
sd/-ritesh ZaveriDirectorDIN:00054741
sd/-ajay guptaPartnerMembershipNo.053071
sd/-Vaishali rajesh dhuri ChiefFinancialOfficer
sd/-avani SanghaviCompanySecretary
Place:MumbaiDate:28thMay,2018
saraswati CommerCial (india) limited
110
particulars For the year ended For the year ended
31st march, 2018
31st march, 2018
31st march, 2017
31st march, 2017
rs rs rs rs
a. Cash flow from operating activities
NetProfitbeforeextraordinaryitemsandtax 136,546,098 51,354,408
Adjustments for:
Depreciation 226,067 318,466
Financecosts 3,367,710 28,400,690
ProvisionforLeaveSalary (559,584) 339,523
ReductiononrestatethevalueofCurrentInvestment
2,246,631 10,086,929
ProvisionforStandardassets 198,078 779,684
InterestonIncomeTax (378,293) (172,096)
Dividendincome (155,101,549) (42,522,957)
SundryBalancewrittenoff - 5,000,001
Provisionindiminishinginthevalueofinvestment
887,535 -
Longtermcapital(profit)/LossfromVentureFund
(873,051) 3,701,289
Gainonsaleofinvestments(net) (147,487,691) (297,474,147) (84,507,617) (78,576,088)
operating profit / (loss) before working capital changes
(160,928,049) (27,221,680)
Changes in working capital:
Adjustments for (increase) / decrease in operating assets:
Inventories (53,526,356) 146,215,822
Tradereceivables 26,742,245 35,241,831
Short-termloansandadvances (22,007,154) (75,380,768)
Long-termloansandadvances (871,593) 43,850
Othercurrentassets 3,931,085 3,626,420
Adjustmentsforincrease/(decrease)inoperatingliabilities:
Short-termBorrowings 238,231,988 (342,282,033)
Tradepayables (76,884,093) 77,305,016
Othercurrentliabilities (4,188,368) (43,916,079)
Long-termprovisions - 774,392
Short-termprovisions - 111,427,754 - (198,371,549)
(49,500,295) (225,593,229)
Cashflowfromextraordinaryitems - -
Cash generated from operations (49,500,295) (225,593,229)
Netincometaxpaid (10,211,539) (369,793)
net cash flow from / (used in) operating activities (a)
(59,711,834) (225,963,022)
Consolidated Cash Flow statement For the year ended 31st marCh, 2018
35th annual report 2017-18
111
particulars For the year ended For the year ended
31st march, 2018
31st march, 2018
31st march, 2017
31st march, 2017
rs rs rs rs
B. Cash flow from investing activities
Capitalexpenditureonfixedassets,includingcapitaladvances
(191,937) -
Purchase&Saleoflong-terminvestments
-Purchased (3,443,456,322) (4,797,582,835)
-Proceedsfromsale 3,367,612,416 5,023,905,141
Dividendreceived 155,101,549 79,065,705 42,522,957 268,845,264
Cashflowfromextraordinaryitems - -
net cash flow from / (used in) investing activities (B)
79,065,705 268,845,264
c. Cash flow from financing activities
Financecost (3,367,710) (28,137,661)
BuybackofEquityShares (29,012,370) -
net cash flow from / (used in) financing activities (C)
(32,380,080) (28,137,661)
net increase / (decrease) in Cash and cash equivalents (a+B+C)
(13,026,209) 14,744,581
Cashandcashequivalentsatthebeginningoftheyear
15,896,203 863,259
CashandCashEquivalentsreceivedonAmalgamation
- 243,360
Cashandcashequivalentsatthebeginningoftheyearonaccountofconsolidation
- 45,003
Cash and cash equivalents at the end of the year 2,869,994 15,896,203
Cash and cash equivalents at the end of the year *
* Comprises:
(a)Cashonhand 88,276 257,420
(b)Balanceswithbanks
(i)Incurrentaccounts 2,781,718 15,638,783
2,869,994 15,896,203
the accompanying notes are an integral part of the Consolidated Financial statements
in terms of our report attached. For and on behalf of the Board of directors
For m/s aJay shoBha & Co.CharteredAccountantsFirmReg.No:317031E
sd/-V. V. Suresh kumar DirectorDIN:00053859
sd/-ritesh ZaveriDirectorDIN:00054741
sd/-ajay guptaPartnerMembershipNo.053071
sd/-Vaishali rajesh dhuri ChiefFinancialOfficer
sd/-avani SanghaviCompanySecretary
Place:MumbaiDate:28thMay,2018
saraswati CommerCial (india) limited
112
notes to the Consolidated FinanCial statements
signiFiCant aCCounting poliCies1 Basis of consolidation :
The Consolidated Financial Statements relate to Saraswati Commercial (India) Limited (the Company), itsSubsidiaries (The Group) and its Associate. The Consolidated Financial Statements have been prepared inaccordancewithAccountingStandard21“ConsolidatedFinancialStatements”(AS21)andAccountingStandard23 “Accounting for Investments in Associates in Consolidated Financial Statements” (AS 23) specified underSection133oftheCompaniesAct,2013,readwithRule7oftheCompanies(Accounts)Rules,2014asamendedandtheCompanies(AccountingStandards)AmendmentRules,2016.
1.1 ThefinancialstatementsofthefollowingsubsidiarieshavebeenconsolidatedasperAccountingstandard21on“ConsolidatedFinancialStatements”asspecifiedunderSection133ofthe2013Act.
name of subsidary Company For the year ended 31st march, 2018
For the year ended 31st march, 2017
extent of holding (%) extent of holding (%)
1.SareshwarTradingandFinancePrivateLimited 60.77% 60.77%
2.ArkayaCommercialPrivateLimited 61.83% 61.83%
AllthesubsidiariesmentionedaboveareincorporatedinIndia.
1.2 Thefollowingassociate,investmentinwhichisaccountedusingequitymethod‘asperAccountingstandard23on“AccountingforInvestmentsinAssociatesin‘ConsolidatedFinancialStatements”asnotifiedbytheCompanies(Accounting‘Standards)Rules,2006:
name of associate Company For the year ended 31st march, 2018
For the year ended 31st march, 2017
extent of holding (%) extent of holding (%)
1.ArciesLaboratoriesLimited 31.03% 31.03%
1.3 principles of consolidation:
TheFinancialstatementsoftheCompanyanditssubsidiarieshavebeenconsolidatedonalinebylinebasisbyaddingtogetherthebookvaluesoflikeitemsofassets,liabilities,incomeandexpenses,aftereliminatingintra-groupbalancesandintra-grouptransactionsresultinginunrealisedprofitsorlossesasperAccountingStandard21on‘ConsolidatedFinancialStatements’asspecifiedunderSection133ofthe2013Act.
‘The financial statements of the associates entities have been consolidated by taking share in profit /(loss) asperAccountingStandard23onAccounting for Investments inAssociates in ‘ConsolidatedFinancialStatements’ as notified by the Companies (Accounting Standards) Rules, 2006 using the “Equity” method. Thegains/ losses in respectofpartdilutionofstake inAssociateCompaniespursuant to issueofadditionalsharesareadjustedinShareofAccumlatedprofit/(loss)ofassociatesundertheheadReservesandSurplusintheconsolidatedbalanceSheet.
2 significant accounting policies:
2.1 Basis of accounting:
TheConsolidatedfinancialstatementshavebeenpreparedonaccrualbasisunderthehistoricalcostconvention.‘The Consoliodated financial statements have been prepared in accordance with the Generally AcceptedAccountingPrinciplesinIndia(IndianGAAP)tocomplywiththeAccountingStandardsspecifiedunderSection133oftheCompaniesAct,2013,readwithRule7oftheCompanies(Accounts)Rules,2014andtherelevantprovisionsoftheCompaniesAct,2013(“the2013Act”)/CompaniesAct,1956(“the1956Act”),asapplicable.The Company follows the Systemically ImportantNon-Banking Financial (Non-Deposit Accepting orHolding)CompaniesPrudentialNorms(ReserveBank)Directions,2016.
35th annual report 2017-18
113
2.2 use of estimates
The preparation of the Consolidated financial statements in conformity with Indian GAAP requires theManagementtomakeestimatesandassumptionsconsideredinthereportedamountsofassetsandliabilities(including contingent liabilities) and the reported income and expenses during the year. TheManagementbelieves that the estimates used in preparation of the Consolidated financial statements are prudent andreasonable.Futureresultscoulddifferduetotheseestimatesandthedifferencesbetweentheactualresultsandtheestimatesarerecognisedintheperiodsinwhichtheresultsareknown/materialise.
2.3 inventories
StocksofsharesarevaluedatLowerofcostorNetRealisableValue.
2.4 Cash and cash equivalents (for purposes of Cash Flow statement)
Cashcomprisescashonhandanddemanddepositswithbanks.Cashequivalentsareshort-termbalances(withanoriginalmaturityofthreemonthsorlessfromthedateofacquisition)
2.5 Cash flow statement
Cashflowsarereportedusingtheindirectmethod,wherebyprofit/(loss)beforeextraordinaryitemsandtaxis adjusted for theeffectsof transactionsofnon-cashnatureandanydeferralsoraccrualsofpastor futurecashreceiptsorpayments.Thecashflowsfromoperating,investingandfinancingactivitiesoftheCompanyaresegregatedbasedontheavailableinformation.
2.6 depreciation
DepreciationonFixedAssetsisprovidedtotheextentofdepreciableamountontheWrittenDownValue(WDV)Method.DepreciationisprovidedbasedonusefullifeoftheassetsasprescribedinScheduleIItotheCompaniesAct,2013.
2.7 revenue recognition
Termsofincomeandexpenditurearerecognizedonaccrualbasisexceptincaseofnon-performingassets,whereitisrecognizeduponrealization,asperRBIguidelines.
2.8 other income
Interestincomeisaccountedonaccrualbasis.Dividendincomeisaccountedforwhentherighttoreceiveitisestablished.
2.9 property, plant and equipment
Property,plantandequipmentsarestatedatcostofacquisitionlessaccumulatedDepreciation.Property,plantandequipmentsarecarriedatcostlessaccumulateddepreciation.Costcomprisesofthepurchasepriceandanyotherattributableexpenditureofbringingtheassettoitsworkingconditionforitsintendeduse.
2.10 investments
InvestmentsareclassifiedintoCurrentandNon-currentInvestments.CurrentInvestmentsarestatedatlowerofcostandfairvalue.Non-currentInvestmentsarestatedatcost.Aprovisionfordiminutionismadetorecogniseadecline,otherthantemporary,inthevalueofNon-currentInvestments.Whendisposingofapartoftheholdingofanindividualinvestment,thecarryingamounttobeallocatedtothatpartisdeterminedonthebasisoftheFirstinFirstOurMethodamountofthetotalholdingoftheinvestment.
2.11 employee benefits
Asnumberofemployeesworkingincompanyarelessthanten,provisionforgratuityasperAccountingStandard15issuedbyInstituteofCharteredAccountantsofIndiadoesnotapplytothecompany.
ThecompanyhasmadeprovisionforLeaveSalaryontheactualbalanceleavesoftheemployees.
saraswati CommerCial (india) limited
114
2.12 segment reportingAsthecompany’sbusinessactivityfallswithinsinglesegmentviz.NBFCActivitiesthedisclosurerequirementsofAccountingStandard17“SegmentReporting” issuedby InstituteofCharteredAccountantsof India isnotapplicable.
2.13 earnings per shareBasicandDilutedearningspershareiscomputedbydividingtheprofit/(loss)aftertax(includingtheposttaxeffectofextraordinaryitems,ifany)bytheweightedaveragenumberofequitysharesoutstandingduringtheyear.
2.14 taxes on incomei.ProvisionforcurrenttaxismadeandretainedintheaccountsonthebasisofestimatedtaxliabilityaspertheprovisionsoftheIncome-TaxAct1961.
ii.Deferredtaxfortimingdifferencesbetweentaxprofitsandbookprofitsisaccountedbyusingthetaxratesandlawsthathavebeenenactedorsubstantialenactedasofthebalancesheetdate.Deferredtaxassetsinrespectofunabsorbedlossesarerecognisedtotheextentthereisreasonablecertaintythattheseassetscanberealisedinfuture.
2.15 Future / option Contracts:-Equity/Indexfuturesaremarked-to-marketonadailybasis.MarktoMarketGains/(losses)arerecognizedasper theGuidanceNoteon “accounting forDerivativeContracts (2015)” issuedbyThe InstituteofCharteredAccountantsofIndia.
2.16 provisions and contingenciesThesearedisclosedbywayofnotesontheBalancesheet.Provisionismadeintheaccountsinrespectofthosecontingencieswhicharelikelytomaterialiseintoliabilitiesaftertheyearend,tillthefinalisationofaccountsandhavematerialeffectonthepositionstatedintheconsolidatedbalancesheet.
note 3 - shareholder’s Funds - share Capital
particulars as at 31st march, 2018 as at 31st march, 2017
number rs number rs
authorised
EquitySharesofRs.10each 8,250,000 82,500,000 8,250,000 82,500,000
issued,subscribed & paid up
EquitySharesofRs.10each 1,000,928 10,009,280 640,000 6,400,000
(oftheabove7,90,593ShareswereallottedpursuanttotheSchemeofAmalgamation,withoutpaymentbeingreceivedincash.)
total 1,000,928 10,009,280 640,000 6,400,000
rights of equity shareholders
TheCompanyhasonlyoneclassofEquityShareshavingparvalueofRs.10.Eachholderofequitysharesisentitledtoonevotepershare.IntheeventofliquidationoftheCompany,theholderofequityshareswillbeingentitledtoreceiveanyoftheremainingassetsofthecompany,afterdistributionofallpreferentialamount.
reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:
particulars equity shares equity shares
number rs number rs
Sharesoutstandingatthebeginningoftheyear 640,000 6,400,000 640,000 6,400,000
Add:SharesIssuedduringtheyear(ReferNote32) 390,593 3,905,930 - -
Less:Sharesboughtbackduringtheyear(ReferNote32) (29,665) (296,650) - -
Sharesoutstandingattheendoftheyear 1,000,928 10,009,280 640,000 6,400,000
notes to the Consolidated FinanCial statements
35th annual report 2017-18
115
More than 5% Shareholding
name of shareholder as at 31st march, 2018 as at 31st march, 2017
no. of shares held
% of holding no. of shares held
% of holding
WinroCommercial(India)Ltd 177,584 17.74% 104,970 16.40%
FourDimensionsSecurities(India)Ltd 205,787 20.56% 33,900 5.30%
AshwinPannalalKothari 61,081 6.10% 64,500 10.08%
AshwinKumarKothari(HUF) 59,343 5.93% 63,000 9.84%
AshwinKumarKothari(smaller)(HUF) 59,366 5.93% 63,000 9.84%
PannalalCKothari(HUF) 50,979 5.09% 53,050 8.29%
note 4 reserves and surplus
particulars as at 31st march, 2018
as at 31st march, 2017
rs rs
(a) General reserve
Openingbalance 213,498,205 35,922,535
Add:TransferredfromAroniCommercialsLimitedpursuanttotheSchemeofAmalgamation
- 177,575,670
Less:BuybackofEquityShares-TrasnfertoCapitalRedemptionReserve (296,650) -
Less:PremiumonBuybackofEquityShares (24,175,720) -
Closing balance 189,025,835 213,498,205
(b) surplus in Consolidated statement of profit and loss
Openingbalance 829,597,948 247,356,942
Add:Profit/(Loss)fortheyear 159,634,511 52,215,943
Add:TransferredfromAroniCommercialsLimitedpursuanttotheSchemeof Amalgamation
- 540,441,492
Add:ShareinaccumlatedlossofMinorityInterest - 8,662
Add:ShareinaccumlatedPre-acquisitionloss - 23,004
Less:TransfertoReserveu/s45IC (31,932,922) (10,448,095)
Closing balance 957,299,537 829,597,948
(c) statutory reserves
Reservesu/s.45ICofRBIAct
Openingbalance 72,332,228 61,884,133
Add:TransferfromProfit&LossAccount 31,932,922 10,448,095
Closing balance 104,265,150 72,332,228
(d) Capital reserves (as 14)
Openingbalance 30,341,516 -
Add:ReservecreatedinAmalgamation(AS-14) - 30,341,516
Closing balance 30,341,516 30,341,516
saraswati CommerCial (india) limited
116
(e) securities premium account
Openingbalance 4,540,000 -
Add:TransferredfromAroniCommercialsLimitedpursuanttotheSchemeof Amalgamation
- 4,540,000
Less:PremiumonBuybackofEquityShares (4,540,000)
Closing balance - 4,540,000
(f) Capital reserves (as 21)
Openingbalance 70,868 -
Add:CapitalReservecreatedinconsolidation(AS21) - 70,868
Closing balance 70,868 70,868
(g) Capital redemption reserve
Openingbalance - -
Add:AdditiononaccountofBuybackofequityShares 296,650 -
Closing balance 296,650 -
total 1,281,299,556 1,150,380,765
note 5 long term provision
particulars as at 31st march, 2018
as at 31st march, 2017
rs rs
Provisionforemployeebenefits
ProvisionforLeavesalary 1,442,264 2,001,848
total 1,442,264 2,001,848
note 6 short term Borrowing
particulars as at 31st march, 2018
as at 31st march, 2017
rs rs
loan payable on demand
Otherparties
Secured - 80,000,000
Unsecured(Refernote-25.4&27) 318,231,988 -
total 318,231,988 80,000,000
due to related party 318,231,988 -
notes:details of security for the secured short-term borrowings
particulars nature of security as at 31st march, 2018
as at 31st march, 2017
rs rs
loan payable on demand
BarclaysInvestmentsandLoans(India)Limited SecuredbyPledgeofShares - 80,000,000
notes to the Consolidated FinanCial statements
35th annual report 2017-18
117
note 7 trade payables
particulars as at 31st march, 2018
as at 31st march, 2017
rs rs
Tradepayables
OtherthanAcceptances(Refernote-25.4&27) 454,510 77,338,603
total 454,510 77,338,603
due to related party 454,510 77,276,540
note 8 other current liabilities
particulars as at 31st march, 2018
as at 31st march, 2017
rs rs
(a)Interestaccruedandnotdueonborrowings 380,744 2,920,133
(b)Otherpayables
(i)TDSPayable 298,688 1,241,712
(ii)OutstandingLiabilities 1,834,146 2,540,101
total 2,513,578 6,701,946
due to related party 1,102,744 3,355,260
note 9 short-term provisions
particulars as at 31st march, 2018
as at 31st march, 2017
rs rs
Provision-Others
ProvisionforStandardAssets 1,091,303 893,225
total 1,091,303 893,225
Theprovisionforstandardassets iscalculatedaspertheprudentialnormsapplicabletoSystemically ImportantNon-BankingFinancial(Non-DepositAcceptingorHolding)Companies
saraswati CommerCial (india) limited
118
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35th annual report 2017-18
119
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-
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iTransmission
Lim
ited
10/-
- -
- -
840
,000
24,56
7,06
7 -
24,56
7,06
7
Antiq
ueFinan
cePriv
ateLimite
d10
/-
1,9
31,0
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- 5
6,77
1,40
0 5
6,77
1,40
0 1,931
,000
-
56,77
1,40
056,77
1,40
0
Asha
puraM
ineche
mLim
ited
2/-
- -
- -
135
,000
8,685
,165
-
8,685
,165
Asho
kaBuildconLimite
d5/-
- -
- -
33,00
05,221
,853
-
5,221
,853
BalajiTelefilmsLimite
d2/
- -
- -
- 70,00
06,608
,840
-
6,608
,840
Balkrishn
aIndu
strie
sLimite
d2/
- 4
,718
1
,851
,651
-
1,8
51,6
51
2,359
1,851
,651
-
1,851
,651
BharatGearsLim
ited
10/-
300
-
- -
300
-
- -
Cairn
IndiaLimite
d10
/-
- -
- -
294
,000
88,57
7,07
1 -
88,57
7,07
1
CCLProd
ucts(Ind
ia)Lim
ited
2/-
1
54
- 5
4 1
54
- 54
not
e 11
non
-cur
rent
inve
stm
ents
saraswati CommerCial (india) limited
120
parti
cula
rsFa
ce
Valu
e
as
at 3
1st m
arch
, 201
8a
s at
31s
t mar
ch, 2
017
no
of
shar
es/
uni
ts
Quo
ted
unq
uote
d t
otal
n
o of
sh
ares
/u
nits
Quo
ted
unq
uote
dto
tal
rsrs
rs
rs
rs
rs
rs
rs
CityUnion
Ban
kLimite
d1/-
255
,068
9
,836
,403
-
9,8
36,4
03
300
,062
13,32
1,78
4 -
13,32
1,78
4
ClarisLife
sciencesLim
ited
10/-
- -
- -
21,20
06,688
,353
-
6,688
,353
CoxAn
dKing
sLimite
d5/-
- -
- -
100
,000
17,69
6,38
7 -
17,69
6,38
7
DalmiaBha
ratL
imite
d2/
- -
- -
- 23,25
018,83
3,35
1 -
18,83
3,35
1
DCB
Ban
kLimite
d10
/-
1
26
- 2
6 1
26
- 26
DCW
Lim
ited
10/-
- -
- -
230
,000
7,199
,418
-
7,199
,418
Diamon
dPo
werIn
frastructureLtd
2/-
- -
- -
233
,000
9,187
,229
-
9,187
,229
EssDee
AluminiumLim
ited
10/-
1
489
-
489
1
489
-
489
FutureEnterprisesLim
ited
2/-
585
,001
3
2,80
0,43
9 -
32,
800,
439
10,00
0172
,600
-
172
,600
GrasimIn
dustrie
sLimite
d2/
- 6
5,75
0 7
3,77
5,99
7 -
73,
775,
997
- -
- -
GujaratNarmad
aVe
llyFert.&Che
m.Lim
ited
10/-
37
1,5
91
- 1
,591
37
1,591
-
1,591
HDFC
Ban
kLimite
d2/
- 1
,000
1
,254
,788
-
1,2
54,7
88
1,000
1,254
,788
-
1,254
,788
Hindu
stan
ZincLimite
d2/
- 1
50,0
00
41,
481,
209
- 4
1,48
1,20
9 -
- -
-
Hou
sing
Develop
men
tFinan
ceCorpo
ratio
n
Limite
d2/
- 9
,000
9
,454
,575
-
9,4
54,5
75
9,000
9,454
,575
-
9,454
,575
ICICIB
ankLimite
d2/
- 6
1
,834
-
1,8
34
6
1,834
-
1,834
Indian
TerrainFashion
sLimite
d2/
- 9
,500
1
,391
,303
-
1,3
91,3
03
9,500
1,391
,303
-
1,391
,303
Insecti
cide
s(In
dia)Lim
ited
10/-
45,
200
18,
529,
955
- 1
8,52
9,95
5 45,20
018,52
9,95
5 -
18,52
9,95
5
JBFIndu
strie
sLimite
d10
/-
- -
- -
313
,000
69,74
9,38
7 -
69,74
9,38
7
JMCProjects(Ind
ia)Lim
ited
10/-
- -
- -
1
223
-
223
Larsen
And
Tou
broLimite
d2/
- 5
,001
1
,699
-
1,6
99
1
1,290
-
1,290
L.G.B
alakrishn
an&BrothersLimite
d10
/-
400
-
- -
400
-
- -
LGBForgeLimite
d10
/-
2,0
00
- -
- 2,000
-
- -
LICHou
sing
Finan
ceLim
ited
2/-
- -
- -
13,00
06,423
,291
-
6,423
,291
MindtreeLimite
d10
/-
- -
- -
10,00
04,500
,118
-
4,500
,118
MRF
Lim
ited
10/-
300
1
6,29
6,59
5 -
16,
296,
595
465
16,29
6,59
5 -
16,29
6,59
5
MusicBroad
castLim
ited
10/-
- -
- -
3,854
1,283
,382
-
1,283
,382
35th annual report 2017-18
121
parti
cula
rsFa
ce
Valu
e
as
at 3
1st m
arch
, 201
8a
s at
31s
t mar
ch, 2
017
no
of
shar
es/
uni
ts
Quo
ted
unq
uote
d t
otal
n
o of
sh
ares
/u
nits
Quo
ted
unq
uote
dto
tal
rsrs
rs
rs
rs
rs
rs
rs
Mutho
otCap
italServicesLimite
d10
/-
17,
331
5,0
31,3
18
- 5
,031
,318
15,75
64,257
,687
-
4,257
,687
Mutho
otFinan
ceLim
ited
10/-
- -
- -
100
,000
29,20
4,43
5 -
29,20
4,43
5
NavaBh
aratVen
turesLimite
d2/
- -
- -
- 100
,000
12,08
2,84
7 -
12,08
2,84
7
OclIn
diaLimite
d2/
- 2
5,00
0 1
9,58
4,01
9 -
19,
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019
25,00
019,58
4,01
9 -
19,58
4,01
9
Raym
ondLimite
d10
/-
7,5
00
4,9
12,2
20
- 4
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,220
10,00
06,528
,566
-
6,528
,566
RelianceIndu
strie
sLimite
d10
/-
2
981
-
981
1
981
-
981
RepcoHom
eFina
nceLimite
d10
/-
- -
- -
20,00
010,32
3,05
8 -
10,32
3,05
8
RoyalO
rchidHotelsLimite
d10
/-
117
,000
1
1,34
2,31
5 -
11,
342,
315
63,00
05,307
,308
-
5,307
,308
Sadb
havInfrastructureProjectLim
ited
10/-
432
,795
5
1,13
4,35
4 -
51,
134,
354
- -
- -
Sano
fiIndiaLimtie
d10
/-
- -
- -
13,00
043,27
9,15
4 -
43,27
9,15
4
SaurashtraCem
entL
imite
d10
/-
- -
- -
73,35
64,085
,117
-
4,085
,117
SbiLife
InsuranceCo
mpa
nyLim
ited
10/-
300
1
98,6
25
- 1
98,6
25
- -
- -
ShreeGan
eshForgingsLim
ited
10/-
1
30
- 3
0 1
30
- 30
SicagenIndiaLimite
d10
/-
1
- -
- 1
- -
-
SicalLog
istic
sLimite
d10
/-
1
151
-
151
1
151
-
151
Siem
ensLimite
d2/
- 1
0 1
,130
-
1,1
30
10
1,130
-
1,130
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dVe
nturesLim
ited
2/-
10,
000
2,0
10,9
31
- 2
,010
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-
- -
-
SunPh
armaceu
ticalIn
dustrie
sLimite
d1/-
- -
- -
14,95
611,76
5,14
9 -
11,76
5,14
9
TataM
otorsLimite
d2/
- 1
4
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- 4
46
1
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-
446
TeracomLim
ited
10/-
81,
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- 8
87,5
35
887
,535
81,50
0 -
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,535
887
,535
Than
gaM
ayilJewelleryLim
ited
10/-
- -
- -
79,00
010,58
3,42
9 -
10,58
3,42
9
Triden
tLim
ited
10/-
- -
- -
500
,000
30,11
7,74
0 -
30,11
7,74
0
UnitedSp
iritsLim
ited
10/-
1
69
- 6
9 1
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- 69
UPLLim
ited
2/-
2
108
-
108
2
108
-
108
VikasEcotechLimite
d1/-
- -
- -
1,000
13,46
0 -
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0
VRLLogisticsLim
ited
10/-
10
2,6
81
- 2
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10
2,681
-
2,681
saraswati CommerCial (india) limited
122
parti
cula
rsFa
ce
Valu
e
as
at 3
1st m
arch
, 201
8a
s at
31s
t mar
ch, 2
017
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of
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ts
Quo
ted
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uote
d t
otal
n
o of
sh
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Quo
ted
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tal
rsrs
rs
rs
rs
rs
rs
rs
Welspun
CorpLimite
d5/-
129
,000
1
0,96
6,04
5 -
10,
966,
045
129
,000
10,96
6,04
5 -
10,96
6,04
5
Welspun
EnterprisesLim
ited
10/-
600
,000
5
4,04
3,80
2 -
54,
043,
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- -
- -
421,
052,
523
57,
658,
935
478,
711,
458
535,60
3,27
957,65
8,93
559
3,26
2,21
4
Less:P
rovision
ford
iminishing
inth
evalueof
Investmen
t -
(887
,535
) (8
87,5
35)
- -
-
421,
052,
523
56,
771,
400
477,
823,
923
535,60
3,27
957,65
8,93
559
3,26
2,21
4
(b)
inve
stm
ent i
n pr
efer
ence
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Veda
ntaLimite
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PreferenceSh
ares
10/-
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00
11,
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000
- 1
1,76
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0 -
- -
11,
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- 1
1,76
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(c)
inve
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n Sh
are
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s
RamkyIn
frastructureLim
ited(R
efernoteno
-25
.1)
1,0
00,0
00
- 2
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0 2
5,25
0,00
0 -
- -
- 2
5,25
0,00
0 2
5,25
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0 -
- -
(d)
inve
stm
ent i
n m
utua
l Fun
ds
HDFC
LiquidFu
nd-Growth
883
.79
- 1
,707
,063
1
,707
,063
914
.67
- 1,766
,709
1,766
,709
- 1
,707
,063
1
,707
,063
-
1,766
,709
1,766
,709
tota
l - o
ther
(B)
432,
812,
523
83,
728,
463
516,
540,
986
535,
603,
279
59,
425,
644
595,
028,
923
tota
l (a
+B)
654,
463,
053
215,
256,
719
869,
719,
772
757,
253,
809
190,
953,
900
948,
207,
709
Aggregateam
ountofq
uotedinvestmen
ts65
4,46
3,05
3 -
654,
463,
053
757,25
3,80
9 -
757,25
3,80
9
Aggregatemarketv
alue
oflistedan
dqu
oted
investmen
ts1,
012,
580,
370
- 1,
012,
580,
370
1,09
6,06
6,99
1 -
1,09
6,06
6,99
1
Aggregateam
ountofu
nquo
tedinvestmen
ts -
215,
256,
719
215,
256,
719
- 19
0,95
3,90
019
0,95
3,90
0
no
tes
to t
he
Con
soli
dat
ed F
ina
nCi
al
stat
emen
ts
35th annual report 2017-18
123
note 13 long-term loans and advances
particulars as at 31st march, 2018
as at 31st march, 2017
rs rs
(a)SecurityDeposits
Unsecured,Consideredgood 10,106,219 10,106,219
(b)Loansandadvancestoemployees
Unsecured,Consideredgood 874,000 -
(c)MATCreditEntitlment
Unsecured,Consideredgood 20,026,623 195
(d)PrepaidExpenses- -
Unsecured,consideredgood 6,000 8,407
total 31,012,842 10,114,821
note 12 deferred tax assets
particulars deferred tax assest/
(liabilities) as at 31st march,
2017
Charge/(Credit)
during the period
deferred tax assest/
(liabilities) as at 31st march,
2018
rs rs rs
Depreciation 642,703 (161,010) 481,693
BusinessLoss 21,710,023 2,995,145 24,705,168
SpeculationLoss 53,826 (8,527) 45,299
Provisionforstandardassets 295,327 8,273 303,600
ProvisionforLeaveSalary 661,871 (260,633) 401,238
Longtermloss 818,071 344,951 1,163,022
AmalgamationExpenses 128,714 477,664 606,378
MarktoMarketLoss 741,142 (501,745) 239,397
MarktoMarketProfit (276,061) 276,061 -
Stockvaluation 118,592 (118,587) 5
total 24,894,208 3,051,592 27,945,800
saraswati CommerCial (india) limited
124
not
e 14
Cur
rent
inve
stm
ents
parti
cula
rsFa
ce
Valu
ea
s at
31s
t mar
ch, 2
018
as
at 3
1st m
arch
, 201
7
no
of u
nits
Quo
ted
unq
uote
dto
tal
no
of u
nits
Quo
ted
unq
uote
dto
tal
rs r
s r
s r
s r
s r
s r
s
a.
Oth
er in
vest
men
ts
inve
stm
ent i
n Ve
ntur
e Ca
pita
l Fun
ds
Urban
InfrastructureOpp
ortunitie
sFun
d 4
9,43
0 5
40
- 1
4,96
0,70
0 1
4,96
0,70
0 540
-
21,86
2,98
021,86
2,98
0
(62,43
0)
KshitijVen
tureCap
italFun
d 3
24.7
0 1
0,00
0 -
2,1
55,4
00
2,1
55,4
00
10,00
0 -
2,694
,700
2,694
,700
(337
.50)
- 1
7,11
6,10
0 1
7,11
6,10
0 -
24,55
7,68
024,55
7,68
0
inve
stm
ent i
n m
utua
l Fun
ds
Birla
Sun
Life
CashPlus
799
,965
.29
- 22
2,90
0,00
0 22
2,90
0,00
0 -
- -
KotakFloa
terS
hortte
rmGrowth
29,
536.
03
- 8
4,10
0,00
0 8
4,10
0,00
0 -
- -
- 30
7,00
0,00
0 30
7,00
0,00
0 -
- -
tota
l -
324,
116,
100
324,
116,
100
- 2
4,55
7,68
0 2
4,55
7,68
0
agg
rega
te a
mou
nt o
f quo
ted
inve
stm
ents
- -
- -
- -
- -
agg
rega
te m
arke
t val
ue o
f lis
ted
and
quot
ed in
vest
men
ts -
- -
- -
- -
-
agg
rega
te a
mou
nt o
f unq
uote
d in
vest
men
ts -
- 32
4,11
6,10
0 32
4,11
6,10
0 -
- 2
4,55
7,68
0 2
4,55
7,68
0
no
tes
to t
he
Con
soli
dat
ed F
ina
nCi
al
stat
emen
ts
35th annual report 2017-18
125
note 15 inventories
(at cost or net realisable value whichever is low)
particulars as at 31st march, 2018 as at 31st march, 2017
nos rs nos rs
(a) Quoted shares
AdityaBirlaFashion&RetailLimited - - 40,000 6,154,000
ConsolidatedFibers&ChemLimited 50 500 50 80
DiamondPowerInfrastructureLimited - - 1,000 34,600
IDFCLimited 750,000 36,562,500 - -
JMCProjectLimited - - 1 266
KridhanInfraLimited 1 87 1 51
RattanIndianInfrastructureLimited - - 1,565,000 5,176,385
StateBankofIndiaLimited 1 250 - -
WelspunIndiaLimited 488,000 28,328,400 - -
total- a 1,238,052 64,891,737 1,606,052 11,365,381
(B) unquoted shares and mutual Funds
AuroplastIndiaLimited 2,500 25,000 2,500 25,000
AlliedResinsChemLimited 5,000 5,000 5,000 5,000
EastAgglePlasticLimited 660 1,320 660 1,320
MeerajMultiwebInds.Limited 24,000 240,000 24,000 240,000
total- B 32,160 271,320 32,160 271,320
total - a+B 1,270,212 65,163,057 1,638,212 11,636,701
aggregate market value of quoted shares 65,163,076 12,563,816
note 16 trade receivables
particulars as at 31st march, 2018
as at 31st march, 2017
rs rs
Tradereceivablesoutstandingforaperiodexceedingsixmonthsfromthedatetheyweredueforpayment
Unsecured,consideredgood - -
OtherTradereceivables
Unsecured,consideredgood - 26,742,245
total - 26,742,245
saraswati CommerCial (india) limited
126
note 17 Cash and Bank balance
particulars as at 31st march, 2018
as at 31st march, 2017
rs rs
Cash and cash equivalents (as per as 3 Cash Flow statements)
(a)Cashonhand 88,276 257,420
(b)Balanceswithbanks
(i)Incurrentaccounts 2,781,718 15,638,783
2,869,994 15,896,203
other Bank Balance
(i)InFixedDeposit 375,614 375,614
total 3,245,608 16,271,817
note 18 short-term loans and advances
particulars as at 31st march, 2018
as at 31st march, 2017
rs rs
(a)Loansandadvancestoemployees
Unsecured,consideredgood 446,030 282,000
(b)Inter-corporatedeposits
Unsecured,consideredgood(Refernote-25.4) 265,600,000 239,000,000
(c)Others
Unsecured,consideredgood - 4,750,000
(d)Prepaidexpenses
Unsecured,consideredgood 74,094 80,970
(e)Balanceswithgovernmentauthorities
Unsecured,consideredgood 19,905,865 9,323,807
AdvanceTax(NetofProvisionofRs.39,033,134)
(PreviousYearRs.33,678,396)
total 286,025,989 253,436,777
due from related parties 175,600,000 169,000,000
note 19 other current assets
particulars as at 31st march, 2018
as at 31st march, 2017
rs rs
(a)Accruals
(i)Interestaccruedonloans 7,225,653 11,456,738
(b)Others
(i)Advanceagainstexpenses 2,000 2,000
(ii)Otherreceivable 900,000 600,000
total 8,127,653 12,058,738
due from related parties 5,180,311 10,427,927
notes to the Consolidated FinanCial statements
35th annual report 2017-18
127
note 20 revenue from operations
particulars For the year ended
31st march, 2018
For the year ended
31st march, 2017
rs rs
ProfitonTradinginSecurities&Mutualfunds(net)(refernote(a)below) (168,459,073) 32,322,421
Otheroperatingrevenues(refernote(b)below) 176,716,012 32,066,934
total 8,256,939 64,389,355
note particulars For the year ended
31st march, 2018
For the year ended
31st march, 2017
rs rs
(a) profit on trading in securities & mutual funds comprises
traded goods
Saleofsharesandmutualfunds 523,728,995 275,811,545
Less:Purchasesofshares&mutualfunds 743,755,309 94,753,081
Less:Changesininventories(refernote(i)below) (53,526,356) 146,215,822
Less:SecurityTransactionCharges 1,959,115 2,520,221
total (168,459,073) 32,322,421
particulars For the year ended
31st march, 2018
For the year ended
31st march, 2017
rs rs
Inventoriesattheendoftheyear:
Stock-in-trade 65,163,057 11,636,701
65,163,057 11,636,701
Inventoriesatthebeginningoftheyear:
Stock-in-trade 11,636,701 186,136,516
Less:TransfertoInvestments - (28,283,993)
11,636,701 157,852,523
net (increase) / decrease (53,526,356) 146,215,822
(b) other operating revenues comprise
(i) Interestincome
Interestonloan 17,204,538 22,022,590
Interestincomefrominvestments/bonds - 4,547,636
(ii) Profitonsaleofinvestment 147,473,207 70,719,399
(iii) Profit/(Loss)onfutures&optionssegment 10,726,690 (65,229,947)
(iv) Incomefromspeculationinequityshares-cashsegment 1,311,577 2,456
(v) Brokeragereceived - 4,800
total - other operating revenues 176,716,012 32,066,934
income from related party 5,755,901 15,039,301
saraswati CommerCial (india) limited
128
note 21 other income
particulars For the year ended
31st march, 2018
For the year ended
31st march, 2017
rs rs
other operating revenues comprise
Interestincome(refernote(i)below) 440,718 597,656
dividend income
fromgroupcompany 3,806,951 -
fromothers 151,294,598 42,522,957
miscellneous income 332 -
total 155,542,599 43,120,613
income from related party 3,806,951 -
note (i)
particulars For the year ended
31st march, 2018
For the year ended
31st march, 2017
rs rs
Interestincomecomprises
(a) Interestonfixeddeposits 62,425 425,560
(b) Interestonincometaxrefund 378,293 172,096
total 440,718 597,656
note 22 employee benefits expense
particulars For the year ended
31st march, 2018
For the year ended
31st march, 2017
rs rs
Salaries,bonusandallowances 12,337,561 14,789,538
Staffwelfareexpenses 105,826 105,807
total 12,443,387 14,895,345
payment to related party 4,915,174 7,657,476
notes to the Consolidated FinanCial statements
35th annual report 2017-18
129
note 24 other expenses
particulars For the year ended
31st march, 2018
For the year ended
31st march, 2017
rs rs
Ratesandtaxes,excludingtaxesonincome 4,770 7,000
Legalandprofessionalfees 5,616,793 1,672,495
Paymentstoauditors(refernote(i)below) 104,000 122,000
CorporateSocialResponsibilityExpenses - 2,700,000
ProvisionforStandardAsset 198,078 779,684
SundryBalancewrittenoff - 5,000,001
DecreaseinthevalueofventureFund 2,246,631 -
Miscellaneousexpenses 3,046,005 2,259,879
total 11,216,276 12,541,059
payment to related party 79,236 8,485
notes (i):
particulars For the year ended
31st march, 2018
For the year ended
31st march, 2017
rs rs
Paymentstotheauditorscomprises
Asauditors-statutoryaudit 64,000 64,000
TaxAuditfees 15,000 15,000
forotherservices 25,000 43,000
total 104,000 122,000
note 23 Finance costs
particulars For the year ended
31st march, 2018
For the year ended
31st march, 2017
rs rs
Interestonborrowings 3,367,691 28,137,661
InterestonIncomeTax - 263,029
InterestonlatepaymentofTDS 19 -
total 3,367,710 28,400,690
payment to related party 422,801 3,129,102
saraswati CommerCial (india) limited
130
note 25 additional information to the financial statements
25.1 Contingent liabilities and commitments (to the extent not provided for)
Contingent liabilities :
(i)Contingentliabilitiesnotprovidedforuncalledliabilityon
a)PartlypaiduppreferencesharesofArkayaCommercialPrivateLimitedamountingtoRs.6,250/-
b)PartlypaidupshareswarrantofRamkyInfrastructureLimitedamountingtoRs.75,750,000/-
(ii)DemandofRs.80,22,602/-forAY1996-97ispendingunderMadhyaPradeshSalesTaxActagainstwhichappealshadbeenfiledwithDeputyCommissionerofCommercialTax.TheDeputyCommissionerofCommercialtaxhasredirectedcasetoAssessingOfficerforreassessment.Thereassessmentproceedingshasnotyetinitiated.
(iii)DuringF.Y.2004-05,CompanyhaskeptRs.100.70Lacs inEscrowaccountwithCalyonBank,NarimanPointBranchforanydemandsofstampduty,penaltiesandliabilitiesthatmayariseontheschemeofarrangementasapprovedbytheHighCourtofJudicatureatMumbaiintermsofwhichcompanyhastransferreditsAluminumChlorideundertakingandwindmillundertakingtoNagdaOrgoChemPrivateLimitedundersection391tosection394ofthecompaniesAct,1956.0n01/10/2012,TheHighcourtofIndore(SingleJudge)hasgivendecisioninfavouroftheCompany.RevenuehadfiledanwritappealagainstthesaidorderwiththeHon’bleTheHighcourtofM.P., Indore.(DoubleJudge),whereinorderdated26.09.2014statesthattheappealbelistedforfinalhearinginduecourse.
(iv)NEPCIndiaLimitedhadinstitutedasuitagainstthecompanyinthecourtofIIFASTTRACKJUDGEMadrasfordefermentofpaymenttotheNEPCIndiaLimitedthesumofRs.20,47,156/-togetherwithinterestat24%p.aonRs.10,53,450/-Videorderdated13/02/2012,courthasgivendecisioninfavourofNEPCIndialimited.IntheresultthesuitisdecreedinfavourofNEPCIndiaLimitedforRs.10,53,450/-withinterestattherateof12%p.a.fromaugust98tillrealisationwithcosts.CompanyhasfiledanappealwiththeHighcourtofMadrasagainstthesaidorder.
(v)AsperIncomeTaxDepartmentfollowingtaxdemandisoutstandingagainstthecompany&ithasnotbeenprovidedintheaccounts.
assessment year demand u/s Short provision
rs.
amount paid under protest
/ refund adjusted
rs.
status of appeal
aroni Commercials limited - transferor Company
2005-06 u/s250 146,381 146,381 Letter for rectification against order givingeffectofCIT (Appeal)’s orderhasbeenfiledon18/04/2012.
2006-07 u/s250 413,358 413,358 OrderGivingEffecttoITATorderpending.
2009-10 u/s143(3) 156,807 156,807 Letter for rectificationagainstorderu/s154wrt143(3)dated29/02/2012hasbeenfiled.
2010-11 u/s143(3) 72,107 - CIT(Appeal’s)ordergivingeffectispending.
2012-13 u/s143(3) 290,483 218,052 Letterforrectificationhasbeenfiledagainstorder 143(3) dated 10/02/2015 orderpending.
2015-16 u/s143(3) 20,316 - Orderu/s154ispending.
saraswati Commercial (india) limited- transferee Company
2010-11 u/s143(1) 385,884 385,884 Rectificationofoderu/s154ispending.
notes to the Consolidated FinanCial statements
35th annual report 2017-18
131
25.2 details of open interest in equity stock Futures Contracts as on 31/03/2018
name of equity stock Future no. of Contracts
Longposition
Shortposition
scrip Fut/opt eXpiry
DHFL FUT 26-APR-2018 34 - 51,000
HINDPETRO FUT 26-APR-2018 17 26,775 -
25.3 income and expenditure in Foreign Currency
particulars 2017-18 2016-17
rs. rs.
Expenditureinforeigncurrency nil NIL
Earningsinforeignexchange nil NIL
25.4 TradeReceivable,TradePayable,LoansandAdvancesandUnsecuredLoansaresubjecttoconfirmation.
25.5 TheCompanyhasapolicyofbookingIncomereceivedfrom“KshitijVentureCapitalFund”and“UrbanInfrastructureOpportunitiesFund”onthebasisofprovisionalincomestatementreceivedfromrespectiveVentureCapitalFundManager.
TheCompanyhasbookedthefundbasedonNAVofthefundason31stMarch,2018receivedfromthefundManager.Accodinglyanydecreaseischargedtoprofitandlossunderhead“DecreaseinthevalueofventureFund”.
25.6 A)FixeddepositswithbankofRs.3,75,614/-includesfixeddepositofRs.3,08,871/-inthenameofDistrictandSessionsJudge,Ujjaindepositedasguaranteemoney.However,theentireamountofRs.3,75,614issubjecttoreconciliationandconfirmationfromtherespectivebanksandauthorities.TheFixedDepositofRs.3,08,871/-wasrenewedinAugust2003havingmaturityinJune2006withamaturityvalueRs.4,84,974/-.Sincethestatusofthecaseispending&thereisnocommunicationofrenewalofFixedDepositpostJune2006.Consideringthisfact,thecompanyhasnotaccountedforanyinterestincomeonthesaidfixeddeposit.
B)During F.Y. 2004-05, Company has kept Rs.100.70 Lacs in Escrow account in fixed deposit in the nameofArcilCatalystPrivateLimitedpreviouslyknownas‘Atofina’withCalyonBank,NarimanPointBranchforanydemandsofstampduty,penaltiesandliabilitiesthatmayariseontheschemeofarrangementasapprovedbytheHighCourtofJudicatureatMumbaiintermsofwhichcompanyhastransferreditsAluminumChlorideundertakingandwindmillundertakingtoNagdaOrgoChemPrivateLimited.Thepresentvalueofthefixeddepositason31stMarch2018isRs.20,412,705.SincethefixeddepositisinthenameofArcilCatalystPrivateLimitednoincomeonsameisaccountedforbytheCompany.Onlyintheeventofafavourableoutcomefromtheapexcourtinfavourofthecompany,proceedsoffixeddepositwillbereceived,theCompanywillaccountforinterestincome.
saraswati CommerCial (india) limited
132
disclosures under accounting standards
26.1 employee Benefit plans (as 15)
a.AsnumberofemployeesworkingincompanyarelessthanTen,GratuityprovisionsasperAccountingStandard15issuedbyInstituteofCharteredAccountantofIndiadoesnotapplytocompany.
b.ThecompanyhasmadeprovisionforLeaveSalaryontheactualbalanceleavesoftheemployeesfortheFY2017-2018,calculatedatthemonthlybasicplusHRAsalaryoftheemployeesfortheFY2017-2018.
26.2 related party transactions (as 18)
details of related parties:
description of relationship names of related parties
associates ArciesLaboratoriesLtd
entities in which Kmp / relatives of Kmp have significant influence & other group companies
FourDimensionsCommoditiesPvt.Ltd.
FourDimensionsSecurities(India)Ltd.
GeeceeVenturesLtd
GeeceeInvestmentsLtd
GeeceeBusinessPvtLtd
SamJag-DeepInvestmentPvtLtd
UrudavanInvestmentandTradingPvtLtd.
WinroCommercial(India)Ltd
KothariPremisesPrivateLimited
Key management personnel (Kmp) as on 31/03/2018
•ShriHarisinghShyamsukha -Director(upto13-11-2017)
•ShriAnilKumarRajan -Director(upto10-08-2017)
•ShriVVSureshkumar -Director(w.e.f14-08-2017)
•ShriRiteshZaveri -Director(w.e.f.13-11-2017)
•ShriKetanDesai -Director
•MrsBabitaThakar -Director
•MrRajivPathak -CEO(w.e.f.11-08-2016)
•MrsVaishaliDhuri -CFO
•MrsAvaniSanghavi -CompanySecretary (w.e.f14-08-2017)
•MrsEktaKumari -CompanySecretary (upto14-08-2017)
note: 1.RelatedpartieshavebeenidentifiedbytheManagement.
notes to the Consolidated FinanCial statements
35th annual report 2017-18
133
details of related party transactions during the year ended 31st march, 2018 and balances outstanding as at 31st march, 2018:
associates Kmp relatives of Kmp
Others total
rs rs rs rs rs
a BrokeragePaid - - - 4,804,116 4,804,116
(-) (-) (-) (5,571,171) (5,571,171)
b Employeebenefitexpenses - 4,915,174 - - 4,915,174
(-) (7,657,476) (-) (-) (7,657,476)
c InterestReceivedonLoan - - - 5,755,901 5,755,901
(-) (-) (-) (15,039,301) (15,039,301)
d DividendReceived - - - 3,806,951 3,806,951
(-) (-) (-) (-) (-)
e InterestPaid - - - 422,801 422,801
(-) (-) (-) (3,129,102) (3,129,102)
f ReimbursementofExpenses - - - 79,236 79,236
(-) (-) (-) (8,485) (8,485)
Finance & investment
g LoanTaken - - - 663,125,601 663,125,601
(-) (-) (-) (702,058,266) (702,058,266)
h LoanRepaid - - - 344,893,613 344,893,613
(-) (-) (-) (702,058,266) (702,058,266)
i LoansAdvanced - - - 1,370,323,927 1,370,323,927
(-) (-) (-) (1,988,195,703) (1,988,195,703)
j LoansReceivedback - - - 1,194,723,927 1,194,723,927
(-) (-) (-) (1,988,195,703) (1,988,195,703)
k Investmentpurchased - - - - -
(-) (-) (-) (161,555,327) (161,555,327)
Balances outstanding at the end of the year
l OtherCurrentLiability - 722,000 - 380,744 1,102,744
(-) (541,647) (-) (2,813,613) (3,355,260)
m TradePayable - - - 454,510 454,510
(-) (-) (-) (77,276,540) (77,276,540)
n Shorttermborrowings - - - 318,231,988 318,231,988
(-) (-) (-) (-) (-)
o ShortTermloan&Advances - - - 175,600,000 175,600,000
(-) (-) (-) (169,000,000) (169,000,000)
p Investments - - - 353,178,786 353,178,786
(-) (-) (-) (352,120,892) (352,120,892)
q OtherCurrentAssets - - - 5,180,311 5,180,311
(-) (-) (-) (10,427,927) (10,427,927)
note: Figures in bracket relates to the previous year
saraswati CommerCial (india) limited
134
particulars relation 2017-18 2016-17
rs rs
a Brokerage paid
-FourDimensionsSecurities(India)Limited Others 4,804,116 5,571,171
b employee benefit expenses
-MrNalinKothari KMP - 488,212
-MrsVaishaliDhuri KMP 962,256 829,948
-MrsEktaKumari KMP 56,126 152,400
-MrRajivPathak KMP 3,415,737 2,288,030
-MrsAvaniSanghavi KMP 481,055 -
-Mr.AnoopChaturvedi KMP - 739,775
-Mrs.ShreyaDhende KMP - 762,053
-Mr.NiravShah KMP - 2,397,058
c interest received on loan
FourDimensionsSecurities(India)Limited Others 3,580,141 3,610,884
KothariPremisesPrivateLimited Others 834,252 10,607,032
GeeCeeInvestmentLimited Others 768,776 700,867
UrdhavanInvestment&TradingPrivateLimited Others 572,732 120,518
d dividend received
-GeeceeVenturesLimited Others 3,806,951 -
e reimbursement of expenses
-MrNalinKothari KMP - 2,895
-MrsVaishaliDhuri KMP 13,887 5,590
-MrsAvaniSanghavi KMP 1,531 -
-GeeceeVenturesLimited Others 63,818 -
f interest paid
-GeeceeInvestmentsLimited Others 2,229 2,866
-WinroCommercial(India)Limited Others 420,572 3,126,236
Finance & investment
g Loan taken
-GeeceeInvestmentsLimited Others 131,988 14,900,000
-WinroCommercial(India)Limited Others 662,993,613 687,158,266
h loan repaid
-GeeceeInvestmentsLimited Others - 14,900,000
-WinroCommercial(India)Limited Others 344,893,613 687,158,266
i loans advanced
-GeeceeInvestmentsLimited Others 297,002,914 186,594,243
-FourDimensionsSecurities(India)Limited Others 597,745,218 1,303,350,460
-KothariPremisesPrivateLimited Others 185,146,329 364,951,000
-UrdhavanInvestment&TradingPrivateLimited Others 290,429,466 133,300,000
disclosure in respect of material related party transactions during the year
notes to the Consolidated FinanCial statements
35th annual report 2017-18
135
particulars relation 2017-18 2016-17
rs rs
j loans received back
-GeeceeInvestmentsLimited Others 297,002,914 186,594,243
-FourDimensionsSecurities(India)Limited Others 597,745,218 1,134,350,460
-KothariPremisesPrivateLimited Others 9,546,329 364,951,000
-UrdhavanInvestment&TradingPrivateLimited Others 290,429,466 133,300,000
k purchase of investment from
-GeeceeInvestmentsLimited Others - 107,703,551
-WinroCommercial(India)Limited Others - 53,851,776
Balances outstanding at the end of the year
l trade payable
-FourDimensionsSecurities(India)Limited Others 454,510 77,276,540
m short term borrowing
-GeeceeInvestmentsLimited Others 131,988 -
-WinroCommercial(India)Limited Others 318,100,000 -
n other Current liablities
interest payable
-GeeceeInvestmentsLimited Others 2,229 -
-WinroCommercial(India)Limited Others 378,515 2,813,613
employee benefits payable
-Mr.RajivPathak KMP 616,000 372,587
-MrsVaishaliDhuri KMP 76,000 156,060
-MrsEktaKumari KMP 30,000 12,500
telephone expenses payable
-MrsVaishaliDhuri KMP - 500
o Other current assets
-FourDimensionsSecurities(India)Limited Others 3,222,127 145,218
-KothariPremisesPrivateLimited Others 750,827 9,546,329
-GeeceeInvestmentsLimited Others 691,898 627,914
-UrdhavanInvestment&TradingPrivateLimited Others 515,459 108,466
p short term loan & advances
-KothariPremisesPrivateLimited Others 175,600,000 169,000,000
disclosure in respect of material related party transactions during the year
q investments
GeeceeVentureLimited Others 220,581,377 220,581,377
GeeceeInvestmentsLimited Others 1,485,386 1,485,386
WinroCommercial(India)Limited Others 1,069,153 1,069,153
FourDimensionsCommoditiesPrivateLimited Others 130,000 130,000
FourDimensionsSecurities(I)Limited Others 123,064,220 123,064,220
GeeCeeBusinessPrivateLimited Others 6,848,650 6,848,650
saraswati CommerCial (india) limited
136
26.3 earnings per share (as 20)
particulars For the year ended
31st march, 2018
For the year ended
31st march, 2017
rs rs (a) Profitavailableforequityshareholders 159,634,511 52,215,943(b) WeightedaveragenumberofEquitySharesforBasicEarningspershare(Nos.) 964,137 640,000(c) Effectofweightedaverageofpotentialequitysharesonisueofsharesin
Amalgamation - 390,593
(d) WeightedaveragenumberofequitysharesforDilutedEarningspershare(Nos.) 964,137 1,030,593(e) NominalValueofEquityShares(Rs.) 10.00 10.00(f) BasicEarningspershare(Rs.) 165.57 81.59(g) DilutedEarningspershare(Rs.) 165.57 50.67
other disclosures
27 disclosures under the micro, small and medium enterprises development act, 2006:
particulars as at 31st march, 2018
as at 31st march, 2017
(a) Principalamountremainingunpaidtoanysupplierattheendoftheaccountingyear.
- -
(b) Interest due thereon remaining unpaid to any supplier at the end of theaccountingyear.
- -
(c) The amount of interest due and payable for the period of delay inmakingpayment(whichhavebeenpaidbutbeyondtheappointeddayduringtheyear)butwithoutaddingtheinterestspecifiedundertheMicro,SmallandMediumEnterprisesDevelopmentAct,2006.
- -
(d) The amount of interest accrued and remaining unpaid at the end of eachaccountingyear.
- -
(e) The amount of further interest remaining due and payable even in thesucceedingyears,until suchdatewhen the interestduesaboveareactuallypaidtothesmallenterprise,forthepurposeofdisallowanceofadeductibleexpenditure under Section 23 of theMicro, Small andMedium EnterprisesDevelopmentAct,2006.
- -
DuestoMicroandSmallEnterpriseshavebeendeterminedtotheextentsuchpartieshavebeenidentifiedonthebasisofinformationcollectedbytheManagement.Thishasbeenrelieduponbytheauditors.28 section 135 of the Companies act, 2013 i.e Corporate social responsibility, read with schedule Vii thereto, is
not applicable to the Company. although, the Company has spent rs. nil (previous year rs. 27 lakh ) towards Corporate social responsibility.particulars For the year
ended 31st march,
2018
For the year ended
31st march, 2017
rs rs GrossamountrequiredtobespentbytheCompanyduringtheyear. - - Amountspentduringtheyear:
InCash - 2,700,000Yettobepaidincash - -
total - 2,700,000 Construction/acquisitionofanyasset - - Onpurposesotherthan(i)above - 2,700,000
notes to the Consolidated FinanCial statements
35th annual report 2017-18
137
29 investment in associate
Thebreak-upofInvestmentinArciesLaboratoriesLimitedasat31stMarch,2018isasunder
particulars For the year ended
31st march, 2018
For the year ended
31st march, 2017
rs rs (i) Numberofequityshares(Nos.) 2,500 2,500(ii) Percentageholding(%) 31.03% 31.03%(iii) CostofInvestment(Equityshares) 25,000 25,000(iv) Goodwill/(CapitalReserve)IncludedincostofInvestmentabove (78,933) (78,933)(v) Shareinaccumulatedlossnetofdividendreceivedasatthebeginningoftheyear (875,213) (880,900)
Add/Less:ShareofProfit/Lossfortheyear (91,475) 5,687Less:Dividendreceivedduringtheyear - - Lossrestrictedtocostofinvestment (25,000) (25,000)
(vi) Carryingcost(iii+v) - -
30 entities included in Consolidation
name of the enterprise Country of incorporation
proportion of interest as on 31st march,
2018 (%)
proportion of interest as on 31st march,
2017 (%)Subsidiaries in india
SareshwarTradingandFinancePrivateLimited India 60.77% 60.77%ArkayaCommercialPrivateLimited India 61.83% 61.83%
associateArciesLaboratoriesLimited India 31.03% 31.03%
31 additional information as required by paragraph 2 of the general instructions for preparation of Consolidated Financial statements to schedule iii to the Companies act, 2013
particularsname of the enterprise net assets, i.e., total assets
minus total liabilitiesshare of profit or loss
as % of consolidated
net assets
amount as % of consolidated profit or loss
amount
parentSaraswatiCommercial(India)Limited 100.03% 1,291,667,620 100.02% 159,664,611Subsidiariesindian1.SareshwarTradingandFinancePrivateLimited 0.20% 2,571,588 0.02% 24,2552.ArkayaCommercialPrivateLimited 0.01% 184,551 (0.05%) (72,522)Foreign NA NA NA NAMinorityInterestsinallsubsidiaries (0.08%) (1,072,120) (0.01%) (18,167)associates (investment as per the equity method)indianArciesLaboratoriesLimited - - - - Foreign NA NA NA NA
100.16% 1,293,351,639 100.00% 159,634,511Less:Elimination (0.16%) (2,042,803) - - total 100.00% 1,291,308,836 100.00% 159,634,511
saraswati CommerCial (india) limited
138
32 (a)Thecompanyhasallotted390,593EquityShareson29thMay,2017totheShareholdersofAroniCommercialsLimitedason recorddate (i.e22ndMay,2017)due to theSchemeofAmalgamation in the ratioapproved.Pursuanttothesaidallotment,theEquityShareCapitaloftheCompanyisincreasedtoRs.10,305,930/-.
(b)BoardofDirectorsobservedthattheequitysharesofCompanywereinfrequentlytradedontheBSElimitingtheopportunityfortheshareholderstobuyandsellequitysharesoftheCompany.AlsotheCompanyhadsurpluscashportionofwhichtheBoardwantedtoreturntoitsShareholders.
AlsotheBoardofDirectorsoftheCompanywasoftheviewthatthebuybackofEquitySharesshallalsoprovideanopportunitytoshareholderstooffertheirEquitySharestotheCompanyresultinginimprovementinfinancialratiosandmaximizationofoverallshareholders’value.Thereforetheyattheirmeetingheldon7thDecember,2017announcedtheBuybackupto60,000fullypaid-upequitysharesoftheCompanyoffacevalueRs.10/-representingupto5.82%ofthetotalnumberofEquitySharesoftheCompany,fromalltheequityshareholders/beneficialownersoftheCompanywhoholdsEquitySharesasontherecorddatei.e.Friday,22ndDecember,2017,onaproportionatebasis,throughthetenderofferusingstockexchangemechanism,atapriceofRs.978/-perEquityShareforanaggregatemaximumamountofuptoRs.5,86,80,000/-excludingtransactioncostssuchasbrokerage,securitiestransactiontax,goodsandservicetax,stampduty,etc.
ThetotalnumberofEquitySharesboughtbackundertheBuybackwere29,665EquityShares,atapriceofRs.978/-perEquityShare,amountingto
Rs.2,90,12,370/-excludingTransactionCost.
TheCompanyreceivedtheapprovalforbuybackofEquitySharesfromSEBIon2ndJanuary,2018andcompletedtheprocesson9thFebruary,2018.
PostbuybackthesharecapitaloftheCompanyreducedtoRs.1,00,09,280/-EquitySharesfromRs.1,03,05,930/-
33 Previousyear’sfigureshavebeen regrouped/ reclassifiedwherevernecessary tocorrespondwith thecurrentyear’sclassification/disclosure.
in terms of our report attached. For and on behalf of the Board of directors
For m/s aJay shoBha & Co.CharteredAccountantsFirmReg.No:317031E
sd/-V. V. Suresh kumar DirectorDIN:00053859
sd/-ritesh ZaveriDirectorDIN:00054741
sd/-ajay guptaPartnerMembershipNo.053071
sd/-Vaishali rajesh dhuri ChiefFinancialOfficer
sd/-avani SanghaviCompanySecretary
Place:MumbaiDate:28thMay,2018
35th annual report 2017-18
139
Form aoC-1(Pursuanttofirstprovisotosub-section(3)ofsection129readwithrule5ofCompanies(Accounts)Rules,2014)
statement containing salient features of the financial statement of subsidiaries/associate companies/joint ventures
part “a”: subsidiaries
name of subsidary sareshwar trading and Finance
private limited
arkaya Commercial
private limited
1 Reportingperiodforthesubsidiaryconcerned,ifdifferentfromtheholdingcompany’sreportingperiod
31.03.2018 31.03.2018
2 ReportingcurrencyandExchangerateasonthelastdateoftherelevantFinancialyearinthecaseofforeignsubsidiaries.
Nil Nil
3 Sharecapital 1,542,000 280,750
4 Reserves&surplus 1,029,588 (96,199)
5 Totalassets 2,580,308 323,768
6 TotalLiabilities 8,720 139,217
7 Investments 2,463,362 301,595
8 Turnover 40,354 -
9 Profitbeforetaxation 29,964 (72,522)
10 Provisionfortaxation 5,709 -
11 Profitaftertaxation 24,255 (72,522)
12 ProposedDividend - -
13 %ofshareholding 60.77% 61.83%
Thefollowinginformationshallbefurnished:-
1 Namesofsubsidiarieswhichareyettocommenceoperations:Nil
2 Namesofsubsidiarieswhichhavebeenliquidatedorsoldduringtheyear:Nil
saraswati CommerCial (india) limited
140
part “B”: associates and Joint Ventures
the company has no Joint Venture and therefore details under this heading relate only to associate companies
statement pursuant to section 129 (3) of the Companies act, 2013 related to associate Companies and Joint Ventures
name of associates/Joint Ventures arcies Laboratories
Limited
1.LatestauditedBalanceSheetDate 31.03.2018
2.SharesofAssociate/JointVenturesheldbythecompanyontheyearend
(i)No.ofShares 2,500
(ii)AmountofInvestmentinAssociates/JointVenture-Rs.InLakhs 0.25
(iii)ExtendofHolding% 31.03
3.Descriptionofhowthereissignificantinfluence ShareholidnginCompany
4.Reasonwhytheassociate/jointventureisnotconsolidated NA
5.NetworthattributabletoshareholdingasperlatestauditedBalanceSheet(RsinLakhs) (8.66)
6.Profit/Lossfortheyear
(i)ConsideredinConsolidation-(RsinLakhs) (0.91)
(ii)NotConsideredinConsolidation-(RsinLakhs) -
Thefollowinginformationshallbefurnished:-
1.Namesofassociatesorjointventureswhichareyettocommenceoperations.NA
2.Namesofassociatesorjointventureswhichhavebeenliquidatedorsoldduringtheyear:NA
For m/s aJay shoBha & Co.CharteredAccountantsFirmReg.No:317031E
For and on behalf of the Board of directors
sd/-ajay guptaPartnerMembershipNo.053071
sd/-V.V. Suresh kumar DirectorDIN:00053859
sd/-ritesh ZaveriDirectorDIN:00054741
Place:MumbaiDate:28thMay,2018
sd/-Vaishali rajesh dhuri ChiefFinancialOfficer
sd/-avani SanghaviCompanySecretary
35th annual report 2017-18
141
saraswati CommerCial (india) limitedRegisteredOffice:209-210,ArcadiaBuilding,2ndFloor,PlotNo.195,NarimanPoint,Mumbai–400021.
Website:www.saraswaticommercial.comEmail:[email protected] Telephone:02266708600Fax:0226670865
Cin: l51909mh1983plC166605
FORM-MGT-11
proXy Form
NameoftheMember(s)
RegisteredAddress
E-mailId
FolioNo./ClientId/DPID:
I / We being a member(s) of saraswati CommerCial (india) limited shares of the above named company, herebyappoint
1. Name
Address
EmailID Signature orfailinghim/her
2. Name
Address
EmailID Signature orfailinghim/her
3. Name
Address
EmailID Signature orfailinghim/her
asmy/ourProxytoattendandvote(onpoll)forme/usandonmy/ourbehalfatthe35thAnnualGeneralMeetingoftheCompany,tobeheldonthursday, 27th september, 2018 at 4.30 p.m at oricon house, 6th Floor, 12, K. dubhash marg, Fort, mumbai-400001andatanyadjournmentthereofinrespectofsuchresolutionsasareindicatedbelow:
Sr no.
resolution For against
1 AdoptionoftheFinancialStatementsandReportsthereonfortheyearended31stMarch,2018
2 Re-AppointmentofMr.VVSureshkumar(DIN:00053859)whoretiresbyrotation
3 AppointmentofMr.RiteshZaveri(DIN:00054741)asa(Non-Executive)DirectoroftheCompany.
4 ApprovalofRelatedPartyTransactions.
Signedthis__________________ dayof_____________2018.
SignatureoftheShareholder Signatureoftheproxyholder(s)
note:This Formof proxy in order tobeeffective shouldbeduly completed anddeposited at theRegisteredOfficeof theCompany,notlessthan48hoursbeforethecommencementofthemeeting.
AffixRe.1.00RevenueStamp
35th annual report 2017-18
143
saraswati CommerCial (india) limitedRegisteredOffice:209-210,ArcadiaBuilding,2ndFloor,PlotNo.195,NarimanPoint,Mumbai–400021.
Website:www.saraswaticommercial.comEmail:[email protected] Telephone:02266708600Fax:0226670865
Cin: l51909mh1983plC166605
attendanCe slip
35th annual general meeting
dp id – Client id / Folio no.
name & address of member:
no of shares held
IcertifythatIamamember/proxyoftheCompany
Iherebyrecordmypresenceatthe35thAnnualGeneralMeetingoftheCompanyheldon27thSeptember,2018at4:30P.M.atOriconHouse,6thFloor,12,K.DubhashMarg,Mumbai–400001.
member’s / proxy’s signature
cut here
eleCtroniC Voting partiCular
eVen(e-voting event number)
user id password / pin
109459
note: please read the complete instructions given under the note (the instruction for shareholders voting electronically) to the notice of annual general meeting. the voting time starts from 24th september, 2018 (9:00 a.m. ist) and ends on 26th september, 2018 (5:00 p.m. ist). the voting module shall be disabled by nsdl for voting thereafter.
35th annual report 2017-18
3
route map From Cst railway station and ChurChgate railway station to oriCon house