saraswati commercial (india) ltd. · 2018-09-28 · 35th annual report 2017 s18 1 notice notice is...

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

SaraSwatiCommerCial (india) limited

3 5 t h a n n u a l r e p o r t

2 0 1 7 - 2 0 1 8

saraswati CommerCial (india) limited

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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)



2

3 FourDimensionsSecurities(India)Limited

GroupCompany (CommonPromoters)

Renderingrevolvingloanfacility(floatinginterestrate)


4 UrudavanInvestment&TradingPrivateLimited

GroupCompany(CommonPromoters)



5 KothariPremisesPrivateLimited




6 ArciesLaboratoriesLimited

AssociateCompany(CommonPromoters)



7 GTZ(Bombay)PrivateLimited




8 Sam-Jag-DeepInvestmentsPrivateLimited




9 KothariVenturesLLP GroupEntity Renderingrevolvingloanfacility(floatinginterestrate)


10 ArkayaCommercialPrivateLimited

SubsidiaryCompany(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


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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,


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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**************

https://www.evoting.nsdl.com/

https://www.evoting.nsdl.com/

https://eservices.nsdl.com/


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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.

https://www.evoting.nsdl.com/eVotingWeb/commonhtmls/NewUser.jsp

https://www.evoting.nsdl.com/eVotingWeb/commonhtmls/PhysicalUser.jsp

http://www.evoting.nsdl.com

mailto:[email protected]



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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








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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.









http://www.saraswaticommercial.com



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


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


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


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)



Yes Yes

FourDimensionsSecurities(India)Limited

GroupCompany


Renderingrevolvingloanfacilityandavailingbrokingservices


• Loan-Maximumupto100.00crores• Brokerageupto1Crore

Yes Yes

UrudavanInvestment&TradingPrivateLimited

GroupCompany





Yes Yes

KothariPremisesPrivateLimited

GroupCompany





Yes Yes


11

ArciesLaboratoriesLimited

AssociateCompany

AssociateCompany(CommonPromoters)




Yes Yes

GTZ(Bombay)PrivateLimited

GroupCompany





Yes Yes

Sam-Jag-DeepInvestmentsPrivateLimited

GroupCompany





Yes Yes

KothariVenturesLLP

GroupEntity

GroupEntity Renderingrevolvingloanfacility(floatinginterestrate)


Maximumupto50crores

Yes Yes

ArkayaCommercialPrivateLimited

SubsidiaryCompany

SubsidiaryCompany(CommonPromoters)




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




12

6. FourDimensionsSecurities(India)Limited

WinroCommercial(India)Limited 25.95

GeeceeInvestmentsLimited 5.10

KothariPremisesPrivateLimited 99.00

KothariVenturesLLP 50.00

7. WinroCommercial(India)Limited


FourDimensionsSecurities(India)Limited 39.52

ArkayaCommercialPrivateLimited 20.82

8. FourDimensionsCommoditiesPrivateLimited


9. GeeceeInvestmentsLimited WinroCommercial(India)Limited 8.79



ArkayaCommercialPrivateLimited 17.35

Themembersarefurtherinformedthatnomember/softheCompanybeingarelatedpartyorhavinganyinterestintheresolutionassetoutatitemNo.4shallbeentitledtovoteonthisordinaryresolution.


Except Promoters/ Directors/ KMPs/ Relatives mentioned above, no other Promoters, Directors or Key ManagerialPersonnelsortheirrelatives,isconcernedorinterested,financiallyorotherwise,inpassingofthisresolution.



sd/-aVani sanghaVi

Company secretary & Compliance officer


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




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.


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


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


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.


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.




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)


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.


20

SanketBahetiAge:27Years%ofsharesheld:NIL

Analyst Qualifica-tion:MBAExperience:3Years


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


Non- contrac-tual

LooksafterAc-counts

AroniCom-mercialsLimited

Thereisnorela-tionshipwithanyDirectors

GajendraPawarAge:45Years%ofsharesheld:NIL

AdminManager

Qualifica-tion:UnderGrad-uateExperience:24Years


Non- contrac-tual

LooksafterAdmin-work



KSPremanandAge:53Years%ofsharesheld:NIL

SecretarytoDirectors

Qualifica-tion:UnderGraduateExperience:25Years


Non- contrac-tual

Secre-tarialwork&Adminis-tration



NiravShahAge:35Years%ofsharesheld:NIL

ResearchAssociate

Qualifica-tion:BCOM,CFAExperience:10Years


Non- contrac-tual

LooksafterInvest-ment



AvaniSanghaviAge:31Years%ofsharesheld:NIL

CompanySecretary

Qualifica-tion:CS,B.comExperience:7Years


Non- contrac-tual

Looksaf-terSec-retarialcompli-ances

FirstWinnerIndustriesLimited

Thereisnorela-tionshipwithanyDirectors.

NileshBhoirAge:28Years%ofsharesheld:NIL

BackOf-ficeAssis-tant

Qualifica-tion:UnderGrad-uateExperience:6Years


Non- contrac-tual

BackOfficeWork

RasanaIn-ternationalPrivateLimited


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,


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.




http://www.saraswaticommercial.com/policies/CODE-OF-CONDUCT.pdf

http://www.saraswaticommercial.com/policies/CODE-OF-CONDUCT.pdf


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.

http://www.saraswaticommercial.com/policies-and-code.asp









http://www.saraswaticommercial.com/policies/CSR%20Policy_SARASWATI.pdf

http://www.saraswaticommercial.com/policies/CSR%20Policy_SARASWATI.pdf

http://www.saraswaticommercial.com/policies/Vigil-Mechanism-policy-SCIL.pdf

http://www.saraswaticommercial.com/policies/Vigil-Mechanism-policy-SCIL.pdf






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/-




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



sd/-V V Sureshkumar

directordin: 00053859


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


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


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


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


3 arcies laboratories limited 19,WesternIndiaHouse,2ndFloor,SirP.MRoad,Fort,Mumbai400001

U24200MH1945PLC004429 AssociateCompany


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%


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


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


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


Shares


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/-.


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


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


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


company

no.of Shares


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


32

Sl no


yearno.of Shares


company

no.of Shares


company

2 AshwinKumarKothari(smaller)(HUF) 01.04.2017 63000 9.84 63000 9.84

IncreaseduringtheyearpursuanttoMerger

29.05.2017 29 0.00 63029 6.12


07.02.2018 3663 0.36 59366 5.93


3 AshwinKumarKothari(HUF) 01.04.2017 63000 9.84 63000 9.84


29.05.2017 6 0.00 63006 6.11


07.02.2018 3663 0.36 59343 5.93


4 PannaLalCKothariHuf 01.04.2017 53050 8.29 53050 8.29


29.05.2017 1075 0.10 54125 5.25


07.02.2018 3146 0.31 50979 5.09


5 RohitKothari 01.04.2017 44630 6.97 44630 6.97


29.05.2017 112 0.01 44742 4.34


07.02.2018 2601 0.26 42141 4.21


6 MeenaAKothari 01.04.2017 20500 3.20 20500 3.20


29.05.2017 40 0.00 20540 1.99


07.02.2018 1193 0.12 19347 1.93


7 HarisinghShyamsukha 01.04.2018 0 0.00 0 0.00


29.05.2017 11 0.00 11 0.00


07.02.2018 0 0.00 11 0.00



33

Sl no


yearno.of Shares


company

no.of Shares


company

8 NiyatiMehta 01.04.2017 0 0.00 0 0.00


29.05.2017 22000 2.13 22000 2.13


07.02.2018 0 0.00 22000 2.20


9 WinroCommercial(India)Limited 01.04.2017 104970 16.40 104970 16.40


29.05.2017 72614 7.05 177584 17.23


07.02.2018 0 0.00 177584 17.74


10 FourDimensionsSecurities(India)Limited 01.04.2017 33900 5.30 33900 5.30


29.05.2017 171887 16.68 205787 19.97


07.02.2018 0 0.00 205787 20.56


11 FourDimensionsCommoditiesPrivateLimited

01.04.2017 31000 4.84 31000 4.84


29.05.2017 0 0.00 31000 3.01


07.02.2018 0 0.00 31000 3.10


12 Sam-Jag-DeepInvestmentsPrivateLimited 01.04.2017 1450 0.23 1450 0.23


29.05.2017 0 0.00 1450 0.14


07.02.2018 0 0.00 1450 0.14


13 GeeceeInvestmentsLimited 01.04.2017 0 0.00 0 0.00


29.05.2017 7861 0.76 7861 0.76


07.02.2018 0 0.00 7861 0.79



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



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


4 luv Kush projects limited



5 marco private limited


Increase 14.07.2017 19,136 1.86 19,136 1.86


6 panchmukhi properties limited



7 akash Bhanshali


Increase 14.07.2017 10,525 1.02 10,525 1.02


8 Lata Bhanshali


Increase 14.07.2017 10,525 1.02 10,525 1.02


9 Bihariji Commercial limited



10 ananta Jewels private limited


Increase 14.07.2017 9,006 0.87 9,006 0.87



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 - - -


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.


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 - - - - -



C. other oFFiCers in deFault

Penalty - - - - -




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


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.


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.


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


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:





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;


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).


45

(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:



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.KetanDesai 4 4




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.


heldno. of meetings

attended

Ms.BabitaThakar 3 3


Mr.KetanDesai 3 3



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


47

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:



3. Mr.KetanDesai-Member(Non-ExecutiveIndependentDirector)

TheaforesaidCommitteemet3timesdated14thAugust2017,13thNovember,2017&12thFebruary,2018,duringtheFinancialYearfrom1stApril,2017to31stMarch,2018.


heldno. of meetings

attended

Ms.BabitaThakar 3 3


Mr.KetanDesai 3 3



(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)


3. Ms.BabitaThakar-Member(Non-ExecutiveIndependentDirector)

TheaforesaidCommitteemet4timesdated24th July, 2017,14thAugust2017,13thNovember, 2017&12th February,2018,duringtheFinancialYearfrom1stApril,2017to31stMarch,2018.


48


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)


3. Ms.BabitaThakar-Member(Non-ExecutiveIndependentDirector)

4. Mr.RajivPathak-Member(ChiefExecutiveOfficer)

TheaforesaidCommitteemet4timesdated24th July, 2017,14thAugust2017,13thNovember, 2017&12th February,2018,duringtheFinancialYearfrom1stApril,2017to31stMarch,2018.


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.


49

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.




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.


51

(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:


(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





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


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


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


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]



56

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


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


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.


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


58

independent auditors’ reportto the memBers oF


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.


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


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:


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



sd/-aJay gupta



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.


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



sd/-aJay gupta



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


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










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


67


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


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










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.


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.


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


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)


- 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) -


- 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)


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


72

note 6 short term borrowings



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


rs rs


BarclaysInvestmentsandLoans(India)Limited

SecuredbyPledgeofShares - 80,000,000

note 7 trade payables



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



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



rs rs

Provision-Others

ProvisionforStandardAssets 1,091,303 893,225

total 1,091,303 893,225

TheprovisionforstandardassetsiscalculatedaspertheprudentialnormsapplicabletoSystemicallyImportantNon-BankingFinancial(Non-DepositAcceptingorHolding)Companies.


35th AnnuAl RepoRt 2017-18

73

Not

e 10

- Fi

xed

Ass

ets

Curr

ent Y

ear

parti

cula

rsG

ross

Blo

ckA

ccum

ulat

ed D

epre

ciati

onn

et B

lock

Bala

nce

as

at 1

st A

pril

2017

Add

ition

on

acco

unt o

f A

mal

gam

a-ti

on

Add

ition

s/

(Dis

posa

ls)

Bala

nce

as a

t 31

st M

arch

, 20

18

Bala

nce

as

at 1

st A

pril

2017

Add

ition

on

acco

unt o

f A

mal

gam

a-ti

on

Dep

reci

ation

ch

arge

for

the

year

Bala

nce

as a

t 31

st M

arch

20

18

Bala

nce

as a

t 31

st M

arch

20

18

Rs

Rs

Rs

Rs

Rs

Rs

Rs

Rs

Rs

prop

erty

, pla

nt a

nd

equi

pmen

t

Land

58,

870

- -

58,

870

- -

- -

58,

870

Mot

or C

ycle

195

,526

-

82,

183

277

,709

1

52,9

12

- 1

6,98

0 1

69,8

92

107

,817

Mot

or V

ehic

al 9

,406

,644

-

- 9

,406

,644

8

,716

,221

-

192

,301

8

,908

,522

4

98,1

22

Tele

phon

e 2

9,10

0 -

- 2

9,10

0 2

9,09

9 -

- 2

9,09

9 1

Com

pute

r -

109

,754

1

09,7

54

- -

16,

786

16,

786

92,

968

tota

l 9

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-

191

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9

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8

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-

226

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9

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7

57,7

78

Prev

ious

Yea

r

parti

cula

rsG

ross

Blo

ckA

ccum

ulat

ed D

epre

ciati

onn

et B

lock

Bala

nce

as

at 1

st A

pril

2016

Add

ition

on

acco

unt

of

Am

alga

ma-

tion

Add

ition

s/

(Dis

posa

ls)

Bala

nce

as a

t 31

st M

arch

, 20

17

Bala

nce

as

at 1

st A

pril

2016

Add

ition

on

acco

unt o

f A

mal

gam

a-ti

on

Dep

reci

ation

ch

arge

for

the

year

Bal

ance

as

at 3

1st

Mar

ch, 2

017

Bala

nce

as a

t 3

1st M

arch

, 20

17

RsRs

RsRs

RsRs

Rs R

s Rs

prop

erty

, pla

nt a

nd

equi

pmen

t

Land

- 5

8,87

0 -

58,

870

- -

- -

58,

870

Mot

or C

ycle

61,

117

134

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-

195

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2

9,62

2 1

11,7

78

11,

512

152

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4

2,61

4

Mot

or V

ehic

al -

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06,6

44

- 9

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09,2

78

306

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8

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6

90,4

23

Tele

phon

e -

29,

100

- 2

9,10

0 -

29,

088

11

29,

099

1

tota

l 6

1,11

7 9

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9,6

90,1

40

29,

622

8,5

50,1

44

318

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8

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7

91,9

08


74

parti

cula

rsFa

ce

Valu

e a

s at

31s

t mar

ch, 2

018

as

at 3

1st m

arch

, 201

7

no

of

Shar

es

Quo

ted

unq

uote

d t

otal

n

o of

Sh

ares

Q

uote

du

nquo

ted

tota

l

rs

rs

rs

rs

rs

rs

rs

a

trad

e in

vest

men

ts (a

t cos

t):

(a)

inve

stm

ent i

n eq

uity

inst

rum

ents

(i) o

f sub

sidi

ary

Com

pani

es

ArkayaCom

mercialPriv

ateLimite

d10/-

16,

200

- 1

62,0

00

162

,000

16,20

0 -

162

,000

162

,000

SareshwarTrading

&Finan

cePriv

ateLimite

d10/-

93,

700

- 1

,837

,053

1

,837

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93,70

0 -

1,837

,053

1,837

,053

- 1

,999

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1

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1,9

99,0

53

1,9

99,0

53

(ii) o

f ass

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tes

& g

roup

Com

pani

es

ArciesLab

oratoriesLim

ited

10/-

2,5

00

- 2

5,00

0 2

5,00

0 2,500

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25,00

025,00

0

FourDim

ensio

nsCom

mod

itiesPriv

ateLimite

d10/-

13,

000

- 1

30,0

00

130

,000

13,00

0 -

130

,000

130

,000

FourDim

ension

sSecuriti

es(I)Lim

ited

10/-

1,8

89,1

93

- 12

3,06

4,22

0 12

3,06

4,22

0 1,889

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-

123,06

4,22

012

3,06

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0

Gee

ceeBu

sine

ssPriv

ateLimite

d10/-

3,1

08

- 6

,848

,650

6

,848

,650

3,108

-

6,848

,650

6,848

,650

Gee

ceeInvestmen

tsLim

ited

10/-

210

,500

-

812

,436

8

12,4

36

210

,500

-

812

,436

812

,436

Gee

ceeVe

nturesLim

ited

10/-

2,5

37,9

67

220,

581,

377

- 22

0,58

1,37

7 2,537

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22

0,58

1,37

7 -

220,58

1,37

7

WinroCom

mercial(Ind

ia)Lim

ited

10/-

100

,150

6

84,2

09

- 6

84,2

09

100

,150

684

,209

-

684

,209

221,

265,

586

130,

880,

306

352,

145,

892

221,

265,

586

130,

880,

306

352,

145,

892

(b)

inve

stm

ent i

n pr

efer

ence

sha

res

(i) o

f sub

sidi

ary

[non

Cum

ulati

ve re

deem

able

par

tly p

aid

up]

10%ArkayaCo

mmercialPriv

ateLimite

d100

/-

250

-

18,

750

18,

750

250

-

6,250

6,250

(Rs.75/-p

artly

paidup

)

- 1

8,75

0 1

8,75

0 -

6,2

50

6,2

50

tota

l - t

rade

(a)

221,

265,

586

132,

898,

109

354,

163,

695

221,

265,

586

132,

885,

609

354,

151,

195

not

e 11

non

-cur

rent

inve

stm

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no

tes

Form

ing

pa

rt o

F th

e st

an

da

lon

e Fi

na

nCi

al

stat

emen

ts


75

parti

cula

rsFa

ce

Valu

e a

s at

31s

t mar

ch, 2

018

as

at 3

1st m

arch

, 201

7

no

of

Shar

es

Quo

ted

unq

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d t

otal

n

o of

Sh

ares

Q

uote

du

nquo

ted

tota

l

rs

rs

rs

rs

rs

rs

rs

B.O

ther

inve

stm

ents

(a)

inve

stm

ent i

n eq

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inst

rum

ents

(i) o

f oth

er e

ntitie

s

Adan

iEnterprisesLim

ited

1/-

400

,000

5

3,73

7,78

1 -

53,

737,

781

- -

- -

Adity

aBirla

Cap

italLim

ited

10/-

31,

500

1,4

06,9

06

- 1

,406

,906

-

- -

-

Adan

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

00

- 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

d 2

/-

- -

- -

70,00

06,608

,840

-

6,608

,840

Balkrishn

aIndu

strie

sLimite

d 2

/-

4,7

18

1,8

51,6

51

- 1

,851

,651

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

5

4 -

54

1

54

- 54

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

d 2

/-

- -

- -

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/-

5

85,0

01

32,

800,

439

- 3

2,80

0,43

9 10,00

0172

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-

172

,600

GrasimIn

dustrie

sLimite

d 2

/-

65,

750

73,

775,

997

- 7

3,77

5,99

7 -

- -

-

GujaratNarmad

aVe

llyFert.&Che

m.Lim

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10/-

37

1,5

91

- 1

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37

1,591

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1,591

HDFC

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d 2

/-

1,0

00

1,2

54,7

88

- 1

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1,000

1,254

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-

1,254

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Hindu

stan

ZincLimite

d 2

/-

150

,000

4

1,48

1,20

9 -

41,

481,

209

- -

- -


76

parti

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Valu

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31s

t mar

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as

at 3

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7

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of

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Quo

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rs

rs

rs

rs

rs

rs

Hou

sing

Develop

men

tFinan

ceCorpo

ratio

n

Limite

d 2

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9,0

00

9,4

54,5

75

- 9

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9,000

9,454

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9,454

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ICICIB

ankLimite

d 2

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6

1,8

34

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6

1,834

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1,834

Indian

TerrainFashion

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d 2

/-

9,5

00

1,3

91,3

03

- 1

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,303

9,500

1,391

,303

-

1,391

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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

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69,74

9,38

7 -

69,74

9,38

7

JMCProjects(Ind

ia)Lim

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10/-

- -

- -

1

223

-

223

Larsen

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d 2

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5,0

01

1,6

99

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1

1,290

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1,290

L.G.B

alakrishn

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d10/-

400

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400

-

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LGBForgeLimite

d10/-

2,0

00

- -

- 2,000

-

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LICHou

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Finan

ceLim

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2/-

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- 13,00

06,423

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6,423

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MindtreeLimite

d10/-

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- -

10,00

04,500

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-

4,500

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MRF

Lim

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10/-

465

1

6,29

6,59

5 -

16,

296,

595

465

16,29

6,59

5 -

16,29

6,59

5

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castLim

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10/-

- -

- -

3,854

1,283

,382

-

1,283

,382

Mutho

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d10/-

17,

331

5,0

31,3

18

- 5

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15,75

64,257

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-

4,257

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Mutho

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ceLim

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10/-

- -

- -

100

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29,20

4,43

5 -

29,20

4,43

5

NavaBh

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d 2

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- -

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100

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12,08

2,84

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2,84

7

OclIn

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d 2

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25,

000

19,

584,

019

- 1

9,58

4,01

9 25,00

019,58

4,01

9 -

19,58

4,01

9

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d10/-

7,5

00

4,9

12,2

20

- 4

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06,528

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6,528

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RelianceIndu

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981

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981

1

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RepcoHom

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3,05

8

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117

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1

1,34

2,31

5 -

11,

342,

315

63,00

05,307

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432

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5

1,13

4,35

4 -

51,

134,

354

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13,00

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9,15

4

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73,35

64,085

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SbiLife

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10/-

300

1

98,6

25

- 1

98,6

25

- -

- -

ShreeGan

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10/-

1

30

- 3

0 1

30

- 30

SicagenIndiaLimite

d10/-

1

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not

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non

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stm

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77

parti

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Valu

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7

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rs

rs

rs

SicalLog

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d10/-

1

151

-

151

1

151

-

151

Siem

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d 2

/-

10

1,1

30

- 1

,130

10

1,130

-

1,130

SorilHolding

sAn

dVe

nturesLim

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2/-

1

0,00

0 2

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2,0

10,9

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d1/-

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14,95

611,76

5,14

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11,76

5,14

9

TataM

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d 2

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1

446

-

446

1

446

-

446

TeracomLim

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10/-

81,

500

- 8

87,5

35

887

,535

81,50

0 -

887

,535

887

,535

Than

gaM

ayilJewelleryLim

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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

69

- 69

UPLLim

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2/-

2

1

08

- 1

08

2

108

-

108

VikasEcotechLimite

d1/-

- -

- -

1,000

13,46

0 -

13,46

0

VRLLogisticsLim

ited

10/-

10

2,6

81

- 2

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10

2,681

-

2,681

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,

802

- -

- -

tota

l - o

ther

inve

stm

ents

(B)

421,

052,

523

57,

658,

935

478,

711,

458

535,

603,

279

57,

658,

935

593,

262,

214

(b)

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n pr

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inst

rum

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Veda

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PreferenceSh

ares

10/-

1,1

76,0

00

11,

760,

000

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1,76

0,00

0 -

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-

tota

l - o

ther

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stm

ents

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760,

000

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1,76

0,00

0 -

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(c)

inve

stm

ent i

n Sh

are

war

rant

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RamkyIn

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ited(R

efernote25

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5,25

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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



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



79

not

e 14

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Infrastructure

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49,

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-

14,

960,

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14,

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-

21,86

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84,

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680

24,

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80

note 15 inventories

(atcostornetrealisablevaluewhicheverislow)


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



rs rs

Tradereceivablesoutstandingforaperiodexceedingsixmonthsfromthedatetheyweredueforpayment

Unsecured,consideredgood - -

Othertradereceivables

Unsecured,consideredgood - 26,742,245

total - 26,742,245



81

note 17 Cash and Bank balance



rs Rs

Cash and cash equivalents (as per as 3 Cash Flow statements)

(a)Cashonhand 60,796 236,940



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



rs rs

(a)Loansandadvancestoemployees


(b)Inter-corporatedeposits

Unsecured,consideredgood(refernote25.4) 265,600,000 239,000,000

(c)Others


(d)Prepaidexpenses


(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



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



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



83

note 21 other income


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)


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


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


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


84

note 24 other expenses


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)


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.



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 -


86

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



87

GeeceeVenturesLimited

GeeceeInvestmentsLimited

GeeceeBusinessPrivateLimited

SamJag-DeepInvestmentPrivateLimited

UrudavanInvestmentandTradingPrivateLimited

WinroCommercial(India)Limited


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.


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



89

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





g Loan taken

-GeeceeInvestmentsLimited Others - 14,900,000

-WinroCommercial(India)Limited Others 662,993,613 687,158,266

h loan repaid



i loans advanced

-GeeceeInvestmentsLimited Others 297,002,914 186,594,243

-FourDimensionsSecurities(India)Limited Others 597,745,218 1,303,350,460


90


rs rs

-KothariPremisesPrivateLimited Others 185,146,329 364,951,000

-UrdhavanInvestment&TradingPrivateLimited Others 290,429,466 133,300,000

j loans received back





k purchase of investment from


-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


employee benefits payable

-MrRajivPathak KMP 616,000 372,587



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



91

DisclosureinrespectofRelatedPartyTransactionsduringtheyear


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)


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.


92

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 - -



93

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.


94

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.



95

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.


96

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)


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.



97

27.12.7 disclosure of Complaints

Customer Complaints


(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


(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.


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.


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











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


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


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


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”.










103

independent auditors’ reportto,the members of


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.


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.


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.




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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


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




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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










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










110


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)


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)


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


111


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


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



2,869,994 15,896,203

the accompanying notes are an integral part of the Consolidated Financial statements










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.


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.


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


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



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



rs rs

(a) General reserve

Openingbalance 213,498,205 35,922,535


- 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)


Add:ReservecreatedinAmalgamation(AS-14) - 30,341,516

Closing balance 30,341,516 30,341,516


116

(e) securities premium account


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



rs rs

Provisionforemployeebenefits

ProvisionforLeavesalary 1,442,264 2,001,848

total 1,442,264 2,001,848

note 6 short term Borrowing



rs rs


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


rs rs


BarclaysInvestmentsandLoans(India)Limited SecuredbyPledgeofShares - 80,000,000



117

note 7 trade payables



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



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



rs rs

Provision-Others

ProvisionforStandardAssets 1,091,303 893,225

total 1,091,303 893,225

Theprovisionforstandardassets iscalculatedaspertheprudentialnormsapplicabletoSystemically ImportantNon-BankingFinancial(Non-DepositAcceptingorHolding)Companies


118

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123

note 13 long-term loans and advances



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- -


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


124

not

e 14

Cur

rent

inve

stm

ents

parti

cula

rsFa

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InfrastructureOpp

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125

note 15 inventories

(at cost or net realisable value whichever is low)


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



rs rs

Tradereceivablesoutstandingforaperiodexceedingsixmonthsfromthedatetheyweredueforpayment

Unsecured,consideredgood - -

OtherTradereceivables


total - 26,742,245


126

note 17 Cash and Bank balance



rs rs

Cash and cash equivalents (as per as 3 Cash Flow statements)

(a)Cashonhand 88,276 257,420



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



rs rs

(a)Loansandadvancestoemployees


(b)Inter-corporatedeposits

Unsecured,consideredgood(Refernote-25.4) 265,600,000 239,000,000

(c)Others


(d)Prepaidexpenses


(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


note 19 other current assets



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




127

note 20 revenue from operations


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


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


128

note 21 other income


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)


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


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



129

note 24 other expenses


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


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):


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


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


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.



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


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.


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


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.



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)


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)


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


134


rs rs

a Brokerage paid

-FourDimensionsSecurities(India)Limited Others 4,804,116 5,571,171

b employee benefit expenses




-MrRajivPathak KMP 3,415,737 2,288,030


-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




-GeeceeVenturesLimited Others 63,818 -

f interest paid




g Loan taken

-GeeceeInvestmentsLimited Others 131,988 14,900,000


h loan repaid



i loans advanced





disclosure in respect of material related party transactions during the year



135


rs rs

j loans received back





k purchase of investment from


-WinroCommercial(India)Limited Others - 53,851,776


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 -


employee benefits payable

-Mr.RajivPathak KMP 616,000 372,587



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


-UrdhavanInvestment&TradingPrivateLimited Others 515,459 108,466

p short term loan & advances


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


136

26.3 earnings per share (as 20)


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:



(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



137

29 investment in associate

Thebreak-upofInvestmentinArciesLaboratoriesLimitedasat31stMarch,2018isasunder


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


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.


PostbuybackthesharecapitaloftheCompanyreducedtoRs.1,00,09,280/-EquitySharesfromRs.1,03,05,930/-

33 Previousyear’sfigureshavebeen regrouped/ reclassifiedwherevernecessary tocorrespondwith thecurrentyear’sclassification/disclosure.










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


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




sd/-V.V. Suresh kumar DirectorDIN:00053859






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


3. Name

Address


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


142


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.


144


3

route map From Cst railway station and ChurChgate railway station to oriCon house


4

If Undelivered, please Return to:

saraswati CommerCial (india) limited209-210,Arcadia,2ndFloor,195NarimanPoint,Mumbai-400021.

saraswati commercial (india) ltd. · 2018-09-28 · 35th annual report 2017 s18 1 notice notice is...

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