pkf finance ltd · 2019. 9. 3. · corporate office : 'balbir tower', pkf-namdev chowk,...
TRANSCRIPT
PKF
Corporate Information
Board of Directors
Director's Report
Annexures to Director's Report
Financial Highlights
Performance Highlights
Auditor's Report
Balance Sheet
Profit & Loss Account
Cash Flow Statement
Notes to Financial Statement
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2018-19
CONTENTS
ANNUAL REPORT
Registered Office : 317, New Jawahar Nagar, Jalandhar-144001.
Corporate Office : 'Balbir Tower', PKF-Namdev Chowk, G. T. Road, Jalandhar-144001.
Ph. : 2238611-15
E-mail : [email protected]
Website : www.pkffinance.com
Statutory Auditors : Dass & Co., Chartered Accountants, Civil Lines, Jalandhar.
Branch Auditors : Daver Sikri & Co., Chartered Accountants, New Delhi.
Internal Auditors : V. P. Vijh & Co., Chartered Accountants, K. K. Towers, Jalandhar.
Principal Bankers : Punjab National Bank
Jalandhar Branch-I : 19, G. T. Road. Ph. : 2225058, 2223114
Jalandhar Branch-II : Ground Floor, Balbir Tower, G. T. Road. Ph. : (0181) 2238611
Delhi : 'Anupam Bhawan', Azadpur Complex, G. T. Karnal Road. Ph. : (011) 27682986-88
Nawanshahr : 'Rai Market', Chandigarh Road. Ph. : (01823) 223513
Kapurthala : DC Chowk (adj. to Kinetic Showroom), Jalandhar Road. Ph. : (01822) 237639
Moga : 'Basant Bhawan', Ferozepur Road. Ph. : (01636) 233188
Batala : SCO-53, Dharam Singh Market. Ph. : (01871) 502311
Ludhiana : Samrala-Cheema Chowk, Link Road. Ph. : (0161) 4622213
Bathinda : SCF-70, First Floor, Model Town Market, Phase-I. Ph. : (0164) 5012324
Patiala : Shop No. 8, Khalsa School Market. Ph. : (0175) 5002528
Mohali : SCF 80, Phase-6. Ph. : (0172)5094050
Bilaspur : 21D & 22D, Diana, Sector-8, NH 21. Ph. : (01978) 221599
Gurugram : Nr. Atul Kataria Chowk. Ph : (0124) 4057737
Sirsa : Opp. Activa Showroom, Dabwali Road. Ph : 97792-31266
(0181)
CORPORATE INFORMATION
BRANCHES
2
BOARD OF DIRECTORS
Managing Director :
1. Mr. Alok Sondhi
Managing Director
Director : Reliable Agro Engg. Services Pvt. Ltd.
: Punjab Reliable Investments Pvt. Ltd.
: PKF Securities Pvt. Ltd.
: Jullundur Motor Agency (Delhi) Ltd.
: Growth Properties Pvt. Ltd.
Executive Member : Finance Industry Development Council (FIDC)
: Federation of Indian Hire Purchase Association (FIHPA)
Managing Trustee : Rai Salig Ram Sondhi Charitable Hospital (Estd. 1903), Jalandhar.
Secretary General : Punjab & Haryana Finance Co.'s Association
General Secretary : Kanya Maha Vidyalaya, Jalandhar.
: Doaba College, Jalandhar.
: Dev Raj Girls Sr. Sec. School, Jalandhar.
: Jalandhar Model School, Jalandhar.
: Sanskriti KMV School, Jalandhar.
Executive Member : Manav Sehyog Society
Joint Managing Director :
2. Mr. Vivek Sondhi
Joint Managing Director : Punjab Kashmir Finance Ltd.
Director : Reliable Agro Engg. Services Pvt. Ltd.
: Punjab Reliable Investments Pvt. Ltd.
: PKF Securities Pvt. Ltd.
: Growth Properties Pvt. Ltd.
Managing Trustee : Savitri Loomba Charitable Trust
: B.R.R.M. Sondhi Family Charitable Trust
Executive Member : Arya Shiksha Mandal (Handling two colleges & three schools)
: Punjab & Haryana Finance Co's Association
3. Mr. Ashim Sondhi
Director : Punjab Kashmir Finance Ltd.
: Reliable Agro Engg. Services Pvt. Ltd.
: Punjab Reliable Investments Pvt. Ltd.
: PKF Securities Pvt. Ltd.
: Punjab Kashmir Finance Ltd.
WHOLE TIME DIRECTOR :
3
DIRECTORS :
4. Mrs. Raj Mohini Sondhi
Chairperson : Punjab Kashmir Finance Ltd.
: Reliable Agro Engg. Services Pvt. Ltd.
Director : Punjab Reliable Investments Pvt. Ltd.
: PKF Securities Pvt. Ltd.
: Growth Properties Pvt. Ltd.
President : Inner Wheel Club of Jalandhar (1980-81)
Chief Advisor : All India Women Conference, Jalandhar.
Trustee : B.R.R.M. Sondhi Family Charitable Trust
: Rai Salig Ram Sondhi Charitable Hospital
Executive Member : Arya Samaj, Model Town, Jalandhar
: Lajwanti Manchanda Charitable Hospital
: Shri Guru Virjanand Samark Samiti, Kartarpur
: Arya Siksha Mandal
5. Mr. Jagjit Singh Ghuman
: Chief Town Planner and Head of T & CP Department, Govt. of Punjab (Retd.)
: Past President, Institute of Town Planners of India (1990-91)
: Life Member of Indian National Trust for Art & Cultural Heritage
: Members Chandigarh Admn. Advisory Council (1995-1997)
: Professor of Physical Planning, GNDU, Amritsar (1992 - 1995)
INDEPENDENT DIRECTORS :
6. Mr. Chetan Kumar Kalia
Director : Punjab Kashmir Finance Ltd.
: Reliable Agro Engg. Services Pvt. Ltd.
7. Mr. Baljit Singh Virk
Director : Punjab Kashmir Finance Ltd.
: Reliable Agro Engg. Services Private Limited
Member : Jalandhar Co-operative Cold Storage, Jalandhar
4
market conditions, Company has become selective to lend
only to clients with good back ground. A lot of stress is being
laid on recovery of Bad Debts and NPAs so as to maximize
Profitability.
I) RESOURCES:
1) Deposits: Your Company is registered with Reserve Bank
of India as a Category 'A' Deposit accepting Asset Finance
Company. Your Company enjoys immense goodwill amongst
its customer and has one of the best Deposit renewal ratio in
the industry.stTotal Deposits held by the Company as on 31 March'19 stood
at Rs. 25 crores 69 lacs as compared to Rs. 27 crores 25 lacs a
year before.
A. OPERATIONS:
Your Company has recorded growth in Profitability over the
previous year despite the slow down in the Economy in the
later half of financial year 2018-19 and in a highly competitive
financial services sector.
Company opened two new Branches in Haryana in 2018 at
Sirsa and Gurgaon which will help in business growth in
future.
Tight liquidity conditions due to many Banks and Financial
Institutions facing high defaults has affected the on-lending to
Industry, Finance as well as the Transport Sector and economy
on the whole.
Your Company has no dearth of funds to lend, however,
considering the prevailing Economic slow down and sluggish
5
26th Director's Report
(figures in Lacs of `)
Total Income
Expenditure Interest
Employee Cost
Administration Cost
Bad Debts and NPA Provision
TOTAL
Profit before Depreciation
Depreciation
Profit before Tax (PBT)
Less : Provision for Income Tax
Profit After Tax (PAT)
Add Profit Brought Forward
Amount available for appropriation
Appropriation Statutory Reserve
General Reserve
Dividend
Dividend Distribution Tax
TOTAL
Surplus carried forward to the Balance Sheet
1
2
3
4
5
6
7
8
9
10
11
S.No. Particulars
1548
688
316
154
155
1313
235
27
208
58
150
105
255
31
20
79
16
146
109
1355
577
291
143
124
1135
220
21
199
63
136
113
249
27
20
81
16
144
105
2018-192017-182016-17
1243
514
232
132
112
990
253
22
231
77
154
40
194
31
50
-
-
81
113
Dear Shareholders,
The Board of Directors have the pleasure in presenting the Twenty Sixth Annual Report of the Company alongwith
Audited Accounts for the financial year ended 31st March'19.
6
2) Debentures: Your Company has diversified funding
sources and has accepted fully secured non-convertible
Debentures through private placement to the tune of Rs. 23
crores 94 lacs during the financial year 2018-19 against Rs. 19
crores 88 lacs a year before.
3) Bank Finance : Your Company has a Cash Credit Limit of
Rs. 10 crores from Punjab National Bank.
4) Credit Rating : India's top credit rating agency 'CRISIL' has
re-affirmed Company's Fixed Deposits rating as 'FA'- stable and
'BBB'-adequate safety rating for Bank Borrowings for the
current year.
II) INVESTMENTS:
During the financial year 2018-19, Company disbursed an
amount of Rs. 45 crores 21 lacs as against Rs. 46 crores 99 lacs a
year before and the asset under management stood at Rs. 95 stcrores 69 lacs as on 31 March'19 as compared to Rs. 90 crores
14 lacs a year earlier. Company has done quite well by
increasing Investment Portfolio by 6%.
Your company extends finance for all kinds of new & used
moveable Assets which help in Nation's Economic Growth &
Employment Generation. Commercial Vehicles constitute the
majority of the Investment portfolio alongwith Construction
Equipment, Industrial Machinery, Gen-sets, Medical
Equipment, AC plants, Lifts and all kinds of movable Assets
used for Commercial purpose.
III) REALIZATION:
Transport sector is facing a tough time with freight rates
having come down due to lack of Goods available on one hand
and cost of operations having gone up on the other hand
mainly due to increase in Diesel cost. Delay in repayment of
installments by the borrowers has resulted in the increase of
outstandings and Non-performing Assets.
Reducing NPAs is the top priority of the Company and
consistent efforts are being made to pursue realisation of NPAs
and recovery of Bad Debts written off.
IV) PROFITABILITY:
By improving return on the Investments and increasing
operational efficiency Company has managed to enhance
Profitability by 10%. Net profit of the company increased from stRs. 1 crore 36 lacs a year before to Rs. 1 crore 50 Lacs as on 31
March'19.
We are confident of improving our profitability by bringing
down NPAs, expediting recovery of old Bad Debts besides
reducing cost of Operations as well as ensuing Business
Growth.
V) NET WORTH:
1) Reserves of your Company have gone up by 5% from Rs. 11
crore 24 lacs a year before to Rs. 11 crore 79 lacs as on 31st
March'19. During the year, an amount of Rs. 31 lacs has been
transferred to Statutory Reserve as per section 45 (IC) of the
Reserve Bank of India.
Receivables (5 Years)
Am
ou
nt
in L
acs
(`)
14000
12000
10000
8000
7000
6000
5000
4000
3000
2000
201920182016 201720150
(As on March 31st)
76737967
1155712206
9824
Deposits & Debentures (5Years)
Am
ou
nt
in L
acs
()`
5500
5000
4500
4000
3500
3000
2500
2000
1500
1000
0
(As on March 31st)2018 201920172015
3464
4015
2016
4048
5461
5065
7
2) Net Owned Funds of your company stand at Rs. 20 crore
13 lacs as on 31st March'19 against Rs. 19 crore 58 lacs a year
before.
3) Book Value of Company's Equity Share of Rs. 10 has grown stto Rs. 33.58 paise as on 31 March'19 against Rs. 32.50 paise
a year before.
4) Capital Adequacy Ratio (CRAR) stands at 21.55 % on the
year-end against the statutory requirement of 15%, reflecting
a robust and sound financial health of your company.
VI) MANAGEMENT DISCUSSION AND ANALYSIS
ECONOMIC OVERVIEW:
Global Economy: After strong growth in 2017 and early 2018,
global economic activity slowed notably in the second half of
last year, reflecting a confluence of factors affecting major
economies. China's growth declined following trade tensions
with the United States. The euro area economy lost more
momentum than expected as consumer and business
confidence weakened.
External demand, especially from emerging Asia, softened.
Elsewhere, natural disasters hurt activity in Japan. Trade
tensions increasingly took a toll on business confidence and,
so, financial market sentiment worsened, with financial
conditions tightening for vulnerable emerging markets as well
as advanced economies weighing on global demand.
Global growth, which peaked at close to 4 percent in 2017,
softened to 3.6 percent in 2018, and is projected to decline
further to 3.3 percent in 2019.
As per Global ranking based on International Monetary Fund
(IMF), India has overtaken United Kingdom to become the
fifth largest Economy of the World in 2019. Ranking of top ten
countries in nominal terms is : United States at No. 1 followed
by China, Japan, Germany, India, France, United Kingdom,
Italy, Brazil and Canada.
Indian Economy: In 2018-19 fiscal, Indian economy is
estimated to have grown 6.9%, lower than 7.2% in 2017-18.
Drags from the Demonetisation and the introduction of the
goods and services tax still lingers on fade, Indian economy
has taken a down turn since second half of the last fiscal and is
projected to grow at 6.8% in the current fiscal 2019-20 and
7.2% in 2020, remains to be the fastest growing major
economy of the world.
Inspite of the slow down, India is the fastest-growing trillion-
dollar economy in the world and the fifth-largest with a
nominal GDP of $2.61 trillion as per the IMF report. The
country ranks third when GDP is compared in terms of
purchasing power parity at $9.45 trillion. When it comes to
calculating GDP per capita, India's high population drags its
nominal GDP per capita down to $1,982 and is ranked 141 in
the World. The Indian economy in 1980, ranked 13th on the
list globally has now become fifth biggest Economy in the
World in 2019.
India's post-independence journey began as an agrarian
nation, however, over the years the manufacturing and
services sector has emerged strongly. Today, its service sector
is the fastest-growing sector in the world, contributing to more
than 60% to its economy and accounting for 28% of
employment. Manufacturing remains as one of its crucial
sectors. Contribution of its agricultural sector has declined to
around 17%.
The economy's strength lies on Exports, high saving rate,
favorable demographics, and a rising middle class.
Indian economy remains vulnerable to domestic and
geopolitical risks, monsoons play a big role in bringing
economic growth changes that can affect relative prices and
hurt current and fiscal account deficit. While expectations of
inflationary pressures remain benign, concerns have risen on
Reserves Capital Net Worth
(As on March 31st)
2000
1800
1500
1200
900
600
300
02015 2016 201920182017
671
931
1288
1765
616
834
Reserves & Net Worth (5 Years)
`
10851124 1178
1919 1959 2013
834 834 834
Am
ou
nt
in L
acs
()`
8
the twin deficit problem—current account deficit and fiscal
deficit—especially as portfolio investments remain subdued
while trade deficit stays high. While fiscal expansion remains
key to accelerating growth, it may weigh on government
coffers if private investment loses steam.
Indian rupee is prevailing at Rs.70/- against Rs. 67/- a year
ago, It had touched a record low of Rs. 74/- to a US dollar
during the year under review.
Sensex prevails around 37,000 after touching 39,200 in
April'19, it was prevailing around 35,000 a year back in
May'18.
Foreign Exchange Reserves of India stand at US $ 420
billion as against US $ 426 billion a year back.
Parliamentary elections are going on in the World's largest thDemocracy. First phase of Voting took place on 11 April'19
th thwith 7 & last phase of polling scheduled on 19 May'19 with rdthe Results scheduled to be announced on 23 May'19.
Let's hope India gets a stable Government at the centre which
brings in the much needed structural changes to realise the
dream of India becoming a developed economy in the next
decade.
VII) AUTOMOBILE INDUSTRY AND ROAD TRANSPORT
SECTOR:
The Automobile industry produced a total 3 cr 9 lacs vehicles
including passenger vehicles, commercial vehicles, three
wheelers, two wheelers and quadricycle in April-March 2019
as against 2 cr 91 lacs a year before registering a growth of 6 %
over the same period last year.
The overall Commercial Vehicles segment registered a growth
of 17.55 percent in April- March 2019 as compared to the same
period last year. Medium & Heavy Commercial Vehicles
(M&HCVs) increased by 14.66 percent and Light Commercial
Vehicles grew by 19.46 percent in April-March 2019 over the
same period last year.
Transport sector in India has developed to a great extent but it
still faces some problems. The growing population and traffic
in India always adds to the need of constructing more roads.
Heavy Goods hauling by large vehicles have also been an issue
in maintenance of roads and the need for quality roads. The
road length of India 75.01 km per 100 sq km area is very low
compared to 294.6 km of Japan, 131.2km of Austria, 451.8 km
of Belgium, 147.2 km of France and many more developed
countries.
About 20 percent of National Highways need to be widened
from single to double lanes and 70 percent of two lane roads
need to be converted into Expressways. The main challenge in
road sector is to prepare all weather good quality roads
connecting each village with State or National Highways. The
roads in village areas need to be strengthened for carrying
large volumes of agricultural products to the city areas. And all
these need more funds allocation to the development and
maintenance schemes.
Road Transport Sector is going through major changes.
Weight carrying capacity of the Commercial Vehicles has been
increased both for New as well as Used ones. Stringent
emission norms are being set for future. B-IV emission norms
are proposed to be made mandatory for all vehicles sold w.e.f. st1 April'20. European Union (EU), China, India continue to
increase fuel economy and vehicle emission standards.
Meanwhile, reflecting the fiscal realities of incentives
programs, policies regarding electric vehicle across major
consuming regions are undergoing a re-evaluation as
policymakers attempt to strike a balance between government
support and the competitiveness of electric vehicles.
VIII) NBFC SECTOR AND REGULATORY FRAME WORK:
NBFC sector in India has undergone a significant
transformation over the past few years and has come to be
recognised as systemically important component of the
financial system and it is growing quite consistently year-on-
year. NBFCs are playing a critical role for the development of
core infrastructure, transport, employment generation,
wealth creation, economic development, to finance
economically weaker sections and considerable contribution
to the state exchequer.
NBFC sector continues to remain at the forefront in driving
new credit disbursals for the country's underserved retail and
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MSME market. Despite recording robust growth, the NBFC
market share has been dominated by large players, while
many small players have struggled to scale up operations
profitably.
Moreover, recently, the sector has taken a beating in the stock
market with defaults and liquidity challenges, specifically
related to two large NBFCs. Although the problem seems
isolated, it has concerned regulators due to the risk of
contagion effect and the overall governance in the sector.
Given the sector is fairly large now to impact the overall
economy, this certainly entails some potential implications,
including new compliance measures by the regulator, lending
slowdown and potential consolidation by larger players.
Your company is registered with Reserve Bank of India as a
category 'A' Asset Finance Company (NBFC) and adheres to all
prudential norms of RBI and other regulatory bodies.
It is hoped that high NPAs of the banks would make the
Government & RBI to take ground realities of the Indian
Economy into account and take suitable measures by bringing
in the much needed changes in the law & by addressing long
pending demands of the financial sector so as to ensure early
recovery of dues from the defaulters.
Asset Finance Companies have been helping the Economy in
employment generation, capital formation and financial
inclusion since independence. There is a need for sensitivity
from the regulators especially towards medium and small
sector which faces extinction due to mandatory credit rating
and un-realisitic NPA recognizing norms made applicable in
Nov,2014. Promised support of 'SARFESI' and other legal
measures required for NPA control are still to be provided to
the NBFC sector by the RBI for a level playing field as these are
available to Banks to expedite recovery from defaulters.
IX) INTERNAL CONTROL SYSTEMS:
The Company has an internal control system to
commensurate with the size, scale and complexity of its
operations. The internal auditor monitor the efficiency and
efficacy of the internal controls systems in the Company,
compliance with operating systems / accounting procedures
and policies of the Company. Significant audit observations
and corrective actions thereon are presented to the Audit
Committee of the Board.
The Company also undertakes audit of its branches covering
all aspects of branch operations and credit audit covering
underwriting aspects.
The Company has adequate systems and procedures to
provide assurance of recording transactions in all material
respects. During the year, the internal auditors reviewed the
operating effectiveness of the internal financial controls by
undertaking an effectiveness testing of controls covered
under the Risk Control Matrices for major processes. During
the year the internal auditors reviewed the adequacy of the
internal financial controls of various processes as required
under Section 134 (5) of the Companies Act, 2013.
1) Internal Audit: The Company has an internal audit
department & has also appointed reputed Chartered
Accountant firms as internal auditors & Branch auditors.
They conduct audits of all areas of operations including
branches as per an audit calendar approved by the
Committee.
2) Compliance: The audit committee reviews the
performance of the compliance functions, the
effectiveness of controls and compliance with regulatory
guidelines and gives such directions to the management
as necessary / considered appropriate. The Company has
framed a Board approved compliance policy to effectively
monitor and supervise the compliance function in
accordance with the statutory requirements.
X) ROLE AS A GOOD CORPORATE CITIZEN:
Your company has always believed in conducting business
with honesty & transparency, we take pride in our Corporate
Governance practices and customer oriented policies.
In addition to substantial tax contribution to the National Ex-
Chequer year after year, your company undertakes various
social projects for betterment of Environment, promotion of
Educational, Sports, Cultural and Arts related activities.
Provisions of the Section 135 of the Companies Act, 2013
10
regarding Corporate Social Responsibility (CSR) are not
applicable to the company.
Company has been maintaining various Round-abouts, Green
Belts, Parks in the city which have been appreciated and
awarded by the various Government authorities and social
organizations. Tree Plantation in collaboration with Punjab
Police for making the City Clean and Green, Sponsorship of
Music Competition of Harivallabh Sangeet Sammelan for
promoting budding Hindustani Sangeet Artistes, Yuvaa
Theatre & SPICMACAY for the Promotion of Art & Culture are
some of the projects undertaken by the Company on
continuous basis.
XI) INFORMATION TECHNOLOGY:
Your Company believes that use of the technology in an
optimum manner in its business for enhancing efficiency
servicing customers and other back-end operations, is
essential to enhance its brand visibility and achieve business
goals.
In the FY 2018-19, major initiatives were taken in the
Information Technology infrastructure and related systems of
your Company so as to keep in pace with the business and
technological requirements. During this period your
Company has tied up with software provider NELITO which is
subsidiary of TATA & Japan's DTS Corp.
Company's website and social media pages are upgraded
regularly with the most futuristic outlook. Your Company has
the ability to do real time business transactions.
Data privacy and Information security has been a focus area
during the year. The Company has augmented equipment,
tools and processes, including staff training, to augment the
information security framework.
XII) HUMAN RESOURCES:
Your Company strongly believes that people focus is must to
achieve business success and nurture talent and give them
ample opportunity to grow. Your Company strongly believes
and provides a positive and productive work environment
which is very important and drives our Team to perform.
Company undertakes many initiatives for Human Resource
Development in the shape of - monthly in-house bulletin
'PROGRESS'. “I am Committed to ensure Results rather than
Justifications , I will make the Difference” is the Annual Team
Theme for the financial year 2019-20. PKF specific Annual
Planner is provided to Team Members alongwith the new year
diary, Company has a Team Creed and periodical review of
Company's existing policies and formulation of new systems
and policies is undertaken regular basis.
Oath taking ceremony is held every Monday at all offices,
planning & game session every Saturday, periodical meeting
with the Team Member is held at least once a month, Quarterly
Branch Head meeting are some of the initiatives your
Company undertakes for personality development, talent and
knowledge enhancement so as to encourage & motivate Team
Members for their own and Company's betterment.
Family meet is held annually to bring together family
members of PKF Team to emphasize importance & role of
family in the growth of Company.
Attractive incentive schemes and holiday trips are offered to
increase performance levels from time to time. A number of
on-going incentives are available which are linked to clear Key
Responsibility Areas (KRAs) defined individually for each
Team member.
XIII) FUTURE OUTLOOK:
Prospects for the Indian economy does not seem very
promising in the first half of the current fiscal. The latest
downturn is a culmination of the adverse global conditions
that have played out over the last few months. A sudden spike
in crude oil prices had sent the Indian currency in a freefall,
widening the current account deficit and dampening growth.
Only a reversal in oil price trends proved to be a saving grace
for the Indian economy. The series of events were a rude
reminder of the dependence of the health of the Indian
economy on the price of oil.
Despite softer growth, the Indian economy remains as the
11
fastest growing Economy in the world and possibly the least
affected by global turmoil. Longterm future outlook is positive
for India.
Fostering private investment and careful management of
public finances could help the economy go a long way. Robust
government spending should support growth, as should
looser monetary policy and greater political certainty
following the elections. However, weak public finances and
global trade protectionism both weigh on prospects.
Branch at Mohali & Bilaspur were made fully operational last
year and have started earning profit on their own. Branches at
Sirsa & Gurgaon have started working with formal
inauguration scheduled in the current fiscal. Your company is
in the process of re-organizing the existing organizational
structure and upgrading systems so as to leverage higher
efficiency and productivity.
We hope to derive great benefit from Company's new ERP
system which has been recently launched. We are committed
to improve on Investment growth & hope to achieve
exceptional all round growth culminating in better
profitability.
Your company is a part of PKF group which celebrated it's
Diamond Jubilee in the year 2018 with a glorious track record
of 60 Years of continuous growth & profit sharing. We are
committed to preserve Your Trust and uphold highest Ethical
business standards and are confident of setting new records in
the times to come.
XIV) STATUTORY REQUIREMENTS:
Matured Deposits
Company Acceptance of Public Deposits (Reserve Bank)
Directions, 1998 on NBFCs : Deposit of Rs. 159.50 lacs
belonging to 159 depositors stood matured but not renewed
/ encashed up to March 31, 2019, a number of these have
since been paid and required steps have been taken for
reminding the deposit holders for their overdue deposits.
Meetings of the Board
During the year Eleven (11) meetings of the Board of Directors
were held. For further details, please refer Annexure I.
Contracts and Arrangements with Related Parties
During the year, the Company did not enter into any material
transaction with related parties, under Section 188 of the
Companies Act, 2013. All transactions entered into by the
Company with the related parties were in the ordinary course
of business and on an arm's length basis. Form AOC-2, as
required under Section 134 (3)(h) of the Act, read with Rule 8
(2) of the Companies (Accounts) Rules 2014, is attached as part
of this report vide Annexure II. For further details of Related
Party transactions, please refer to Note No. 23.9 of the
Financial Statements.
Extract of Annual Return
As required pursuant to Section 92 (3) of the Companies Act,
2013 and Rule 12 (1) of the Companies (Management and
Administration) Rules, 2014, an extract of Annual Return in
MGT-9 is annexed as a part of this report vide Annexure III. ( to
be placed on website of the company as amended in companies
act 2017).
Director's Responsibility Statement:
In accordance with the provisions of Section 134 (5) of the
Companies Act, 2013 : Yours Directors confirm that -
(i) In the preparation of annual accounts for the year ended st31 March'19, the applicable accounting standards have
been followed and there are no material departures from
the same.
ii) Accounting policies selected were applied consistently.
Reasonable and prudent judgments and estimates were
made so as to give true and fair view of state of affairs of stthe Company as at the end of 31 March'19 and of the profit
of the Company for the year ended on that date.
iii) Proper and sufficient care has been taken for the
maintenance of adequate accounting records in
accordance with the provision of Companies Act, 2013, for
safeguarding assets of the Company and for preventing
and detecting frauds and other irregularities.
iv) The annual accounts of the Company have been prepared
on a going concern basis.
v) Proper systems have devised to ensure compliance with
the provisions of all applicable laws and that such systems
12
are adequate and operating effectively.
Directors and Key Managerial Personnel.
In accordance with the provisions of the Companies Act, 2013
Director Prof. J. S. Ghuman retires by rotation at the ensuing
Annual General Meeting and being eligible has offered himself
for re-appointment.
The Company has received necessary declaration from
Independent Directors of the Company under Section 149 (7)
of the Companies Act, 2013 that the Independent Directors of
the Company meet with the criteria of their Independence laid
down in Section 149 (6).
Policy on Directors Appointment and Remuneration
The company has a policy as required under section 178 of the
Companies Act, 2013 for performance evaluation of the Board
of Directors, Independent Directors, Committees, and other
individual directors which includes the non executive
directors and executive directors. The company policy for
selection of directors and determining directors
independence & Remuneration policy are attached as part of
this report vide Annexure IV. to be placed on website of the
company as amended in companies act 2017)
Particular of Loans given, Investments made,
Guarantee given and Securities provided.
Section 186 is not applicable to the company being an NBFC.
However, no loans, guarantees, have been given and
investment made other than in the ordinary course of
business.
XV) DIVIDEND
Equity Dividend; Board of Directors propose a dividend of
10% on equity shares in the current financial year.
Preference Shares; Interim dividend amounting to Rs. 28.15
Lakhs at the agreed rate has been paid on preference shares in
Mr. Jai Paul Gupta, resigned from the directorship of the
company due to his health issues w.e.f. 01st Feb, 2019 and
expired on 19th Feb, 2019.
The board record its deep appreciation for the contribution of
Shri Jai Paul Gupta as Director throughout his directorship
and also for the significant contribution he has made to the
management of affairs of the Company and for the valuable
advises he made to the board from time to time.
the month of April 19.
Material changes & Commitments
There has been no material changes and commitment,
affecting the financial position of the company which has
occurred between the end of the financial year to which the
financial statement relate and the date of the report.
Particulars regarding Conservation of energy,
Technology absorption and Foreign Exchange Earnings
and Expenditure
Particulars regarding conservation of energy, technology
absorption stipulated in the Companies ( Accounts) Rules,
2014 are not applicable to the company. Company does not
have any foreign exchange earnings and expenditure.
Information as per Rule 5 (2) of Companies
(Appointment and Remuneration of Managerial
Personnel) Rules, 2014
There are no employees in the company drawing salary of Rs. 1
Crore 2 lacs per annum or Rs. 8.50 lac per month or more; and
none of the employees are relatives of Directors. Moreover,
none of the employees of the Company other than Managing
Director and Joint Managing Director hold by himself or along
with his spouse or dependent children two percent or more
equity shares of the Company.
Transfer of unclaimed dividend to Investor Education
and Protection fund
Unclaimed or Unpaid Dividend relating to the financial year th2010-11 was due for remittance on 14 August, 2018 to the
Investor Education and Protection Fund established by the
Central Government. The company has duly transferred the
requisite amount to Investor Education and Protection Fund ston 31 July, 2018.
Name of the companies which has become ceased to be
Subsidiaries/Associates or Joint Ventures during the
year
The Company does not have any Subsidiary, Joint venture or
Associate Company.
Disclosure Under The Sexual Harassment of Women At
Workplace (Prevention, Prohibition And Redresseal)
And the unclaimed dividend for the financial
year 2011-12 will be transferred to the Investor Education
Protection Fund in current year.
13
Act, 2013 - Constitute Internal Complaint Committee.
The company has constituted a internal compliant committee
for redressal of complaints for Sexual Harassment of women at
the workplace. There is no pending complaint under the said
act.
Appointments/Resignations of the Key Managerial
Personnel
Mr. Alok Sondhi, Managing Director, Mr. Vivek Sondhi, Joint
Managing Director, Mr. Ashim Sondhi, Whole Time Director
and Mrs. Sonia Gaba, Company Secretary of the company are
the Key Managerial Personnel as per the provisions of the
Companies Act, 2013.
Vigil Mechanism
The Company has implemented a Whistle Blower Policy
pursuant to which Whistle Blowers can raise concerns relating
to Reportable Matters (as defined in the policy) such as breach
of Code of Conduct, fraud, bribery, corruption, employee
misconduct, illegality, health & safety, environmental issues
and wastage / misappropriation of company funds/assets, etc.
Further, the mechanism adopted by the company encourages
the Whistle Blower to report genuine concerns or grievances
and provides for adequate safeguards against victimization of
Whistle Blower who avail of such mechanism and also
provides for direct access to the Chairman of the Audit
Committee, in exceptional cases. The functioning of the Vigil
mechanism is reviewed by the Audit Committee from time to
time. None of the Whistle Blowers have been denied access to
the Audit Committee of the Board.
Risk Management Framework
Risk Management Committee has been entrusted with the
responsibility to assist the Board in (a) Overseeing and
approving the Company's enterprise wide risk management
framework; and (b) Overseeing that all the risks that the
organization faces such as strategic, financial, credit, market,
liquidity, security, property, IT, legal, regulatory and other
risks have been identified and assessed and there is an
adequate risk management infrastructure in place capable of
addressing those risks. A Group Risk Management Policy was
reviewed and approved by the Committee.
XVI) AUDITORS:
Your Company's statutory auditors M/s Dass & Co. Chartered
Accountants, Jalandhar are proposed to be re-appointed upto th27 Annual General Meeting to be held in the year 2020. The
Company has received a certificate form M/s Dass & Co. as
required under section 139 (1) of the Companies Act, 2013 to
the effect that reappointment if made will be within the
statutory prescribed limit.
M/s Daver Sikri & Co. Branch Auditors of Delhi Branch hold
office until the conclusion of the ensuing Annual General
Meeting and are eligible for re-appointment.
There are no qualifications, reservation and adverse remarks
made by the Auditors in the Auditor Report. Hence do not
require any comments and explanation by the board.
XVII) ACKNOWLEDGMENT:
We are grateful to our valued Depositors and Debenture
holders for their continued faith. We thank our Clients,
Associates for their support, our bankers Punjab National Bank
for extending us credit facilities. It is always our endeavor to
provide our clients with our best services.
We are indeed fortunate to have a capable Team which
continues to strive hard for increasing profitability. PKF Team
is dedicated and believes in converting challenges into
By the order of the Board
Place : Jalandhar Alok Sondhi
Date : May 16, 2019 Managing Director
DIN: 00583970
14
Particulars Board Meeting Audit Risk Nomination & Asset LiabilityCommittee Management Remuneration Committee
Committee Committee Meeting
No. of meetings 11 2 1 2 3
Dates of Meeting 30/04/2018 15/05/2018 15/05/2018 15/05/2018 31/05/2018
15/05/2018 15/12/2018 25/10/2018 31/08/2018
31/05/2018 30/11/2018
30/06/2018 10/12/2018
31/07/2018 20/12/2018
31/08/2018
08/09/2018
29/09/2018
20/10/2018
15/12/2018
30/03/2019
Number of meetings attended by the Directors/Members
Mr. Alok Sondhi 10 N.A. N.A. 2 5
Mr. Vivek Sondhi 10 2 1 N.A. 5
Mr. Ashim Sondhi 11 N.A. N.A. N.A. N.A.
Mrs. Raj Mohini 11 N.A. N.A. N.A. N.A.
Sondhi
Mr. Chetan Kalia 4 2 1 2 N.A.
Mr. J.S Ghuman 4 N.A. N.A. N.A. N.A.
Mr. Baljit Singh Virk 3 2 1 2 N.A.
Mr. Lalit Kohli N.A. N.A. N.A. N.A. 5
Mr.Harvinder Singh N.A. N.A. N.A. N.A. 5
Annexure -I
Number of Board and Committees Meetings :
Annexure -II
Form No. AOC-2
(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2)
of the Companies (Accounts) Rules, 2014)
Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties
referred to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arms length transactions
under third proviso thereto
1. Details of contracts or arrangements or transactions not at arm's length basis: Nil
2. Details of material contracts or arrangement or transactions at arm's length basis:
a) Contract with the Related Party duly approved in the Board of Directors meeting as required under section 188(1) of the
Companies Act, 2013
Name(s) of the Nature of Nature of contracts/ Duration of Salient terms Date(s) of Amount paidrelated party relationship arrangements/ the contracts / of the contracts approval by the as advances,
transactions arrangements/ or arrangements Board, if anyif any transactions or transactions
including the value, if any
NIL NIL NIL NIL NIL NIL NIL
b) Detail of transactions entered into by the company in its ordinary course of business at arm length price and hence no approval
in Board of Directors is required as provided third proviso to Section 188 (1) of the Companies Act, 2013-
Mr. Rohan Dhawan Director Relative Deposits 3 years 76,198 N.A Nil
Mr. Raghav Kalia Director Relative Deposits 3 years 5,40,000 N.A Nil
Mr. Chetan Kalia Director Relative Deposits 3 years 2,00,000 N.A Nil
Ms. Surbhie Cheba Director Relative Deposits 3 years 8,47,233 N.A Nil
Ms. Neha Kalia Director Relative Deposits 3 years 4,51,530 N.A Nil
Ms. Chetan Kalia HUF Director Relative Deposits 3 years 6,76,331 N.A Nil
Mrs. Anuradha Sondhi Director Relative Deposits 5 years 3,03,000 N.A Nil
Mrs. Raj Mohini Sondhi Director Relative Deposits 5 years 22,000 N.A Nil
Ms. Vijaya Sondhi Director Relative Deposits 5 years 33,000 N.A Nil
15
Name(s) of the related party
Nature of relationship
Nature of contracts/
arrangements/transactions
Duration of thecontracts /
arrangements/ transactions
Salient terms of the contracts or
arrangements or transactions
including the value, if any
Date(s) ofapproval by the
Board, if any
Amount paid as advances,
if any
i CIN U65921PB1994PLC014314
ii Registration Date 11/03/94
iii Name of the Company PKF FINANCE LIMITED
iv Category/Sub-category of the Company Company Limited by Shares
v Address of the Registered office & contact details 317, New Jawahar Nagar, Jalandhar,
(0181) 2238611
vi Whether listed company No
vii Name , Address & contact details of the Registrar & Transfer Agent, Registrar of Companies, Chandigarh
if any.
SL No Name & Description of main NIC Code of the % to total turnover
products/services Product /service of the company
1 Hypothecation Loans/ Other Loans 65923 93.30%
Annexure -III
FORM NO. MGT 9
EXTRACT OF ANNUAL RETURN
as on financial year ended on 31.03.2019
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:
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
The company is engaged in financing of Moveable assets, Commercial Vehicles, Passenger Vehicles, Plant and Machinery,
Business Loan etc. in India.
III. PARTICULARS OF HOLDING, SUBSIDIARY & ASSOCIATE COMPANIES
16
Sl No Name & Address of the Company CIN/GLN HOLDING/
SUBSIDIARY/ SHARES HELD SECTION
ASSOCIATE
1 Nil Nil Nil Nil Nil
% OF APPLICABLE
Category of No. of Shares held at the No. of Shares held at the % change during
Shareholders beginning of the year end of the year the year
Demat Physical Total % of Total Demat Physical Total % of Total
Shares Shares
A. Promoters
(1) Indian
a) Individual/HUF 0 8,09,900 8,09,900 16..20% 8,200 8,07,700 8,15,900 16.32% 6000 0.12%
b) Central Govt.or State Govt. 0 0 0 0 0 0 0 0 0 0
c) Bodies Corporates 0 29,97,200 29,97,200 59.94% 0 29,97,200 29,97,200 59.94% 0 0
d) Bank/FI 0 0 0 0 0 0 0 0 0 0
e) Any other 0 0 0 0 0 0 0 0 0 0
SUB TOTAL:(A) (1) 0 38,07,100 38,07,100 76.14% 8,200 38,04,900 38,13,100 76.26% 6000 0.12%
(2) Foreign
a) NRI- Individuals 0 0 0 0 0 0 0 0 0 0
b) Other Individuals 0 0 0 0 0 0 0 0 0 0
c) Bodies Corp. 0 0 0 0 0 0 0 0 0 0
d) Banks/FI 0 0 0 0 0 0 0 0 0 0
e) Any other… 0 0 0 0 0 0 0 0 0 0
SUB TOTAL (A) (2) 0 0 0 0 0 0 0 0 0 0
Total Shareholding of Promoter
(A)= (A)(1)+(A)(2) 38,07,100 38,07,100 76.14% 8,200 38,04,900 38,13,100 76.26% 6000 0.12%
B. PUBLIC SHAREHOLDING
(1) Institutions
a) Mutual Funds 0 0 0 0 0 0 0 0 0 0
b) Banks/FI 0 0 0 0 0 0 0 0 0 0
C) Central Govt 0 0 0 0 0 0 0 0 0 0
d) State Govt. 0 0 0 0 0 0 0 0 0 0
e) Venture Capital Fund 0 0 0 0 0 0 0 0 0 0
f) Insurance Companies 0 0 0 0 0 0 0 0 0 0
g) FIIS 0 0 0 0 0 0 0 0 0 0
h) Foreign Venture
Capital Funds 0 0 0 0 0 0 0 0 0 0
i) Others (specify) 0 0 0 0 0 0 0 0 0 0
SUB TOTAL (B)(1): 0 0 0 0 0 0 0 0 0 0
(2) Non Institutions
a) Bodies corporates 0 0 0 0 0 0 0 0 0 0
i) Indian
ii) Overseas 0 0 0 0 0 0 0 0 0 0
b) Individuals
i) Individual shareholders
holding nominal share
capital upto Rs. 1 lakh 0 0 0 0 0 0 0 0 0 0
ii) Individuals shareholders
holding nominal share
capital in excess of
Rs. 1 lakh 0 0 0 0 0 0 0 0 0 0
c) Others (specify) 0 0 0 0 0 0 0 0 0 0
SUB TOTAL (B)(2): 0 0 0 0 0 0 0 0 0 0
Total Public Shareholding
(B)= (B)(1)+(B)(2) 0 0 0 0 0 0 0 0 0 0
C. Shares held by
Custodian for
GDRs & ADRs 0 0 0 0 0 0 0 0 0 0
Other than Promoters 11,92,900 11,92,900 23.86% 56,100 11,30,800 11,86,900 23.74% - 6000 0.12%
Grand Total (A+B+C) 0 50,00,000 50,00,000 100% 64,300 49,35,700 50,00,000 100% 0 0
IV. SHAREHOLDING PATTERN (Equity Share capital Break up as % to total Equity)
17
Sl. Shareholders Name Shareholding at the Shareholding at the % change
No. Beginning of the year end of the year in share
No. of % of total % of shares No. of shares % of total % of shares holding
shares shares pledged shares pledged
of the encumbered of the encumbered
company to total shares company to total shares
1 Alok Sondhi 4,73,200 9.46% Nil 4,74,200 9.48% Nil 0.02%
2 Vivek Sondhi 1,09,300 2.19% Nil 1,09,300 2.19% Nil 0.00%
3 Raj Mohini Sondhi 26,000 0.52% Nil 26,000 0.52% Nil 0.00%
4 Raizada B R Vivek Sondhi 50,500 1.01% Nil 50,500 1.01% Nil 0.00%
5 Vandana Sondhi 72,200 1.44% Nil 72,200 1.44% Nil 0.00%
6 Ashim Sondhi 4,700 0.09% Nil 9,700 0.19% Nil 0.1%
7 Varuna Sondhi 27,000 0.54% Nil 27,000 0.54% Nil 0.00%
8 Vijaya Sondhi 22,000 0.44% Nil 22,000 0.44% Nil 0.00%
9 Punjab Kashmir Finance Ltd 9,50,000 19.00% Nil 9,50,000 19.00% Nil 0.00%
10 Reliable Agro Engg. Services
Pvt. Ltd. 9,50,000 19.00% Nil 9,50,000 19.00% Nil 0.00%
11 Punjab Reliable Investments
Pvt. Ltd. 9,50,000 19.00% Nil 9,50,000 19.00% Nil 0.00%
12 PKF Securities Pvt. Ltd. 1,47,200 2.94% Nil 1,47,200 2.94% Nil 0.00%
13 Raizada B.R. Alok Sondhi 25,000 0.50% Nil 25,000 0.50% Nil 0.00%
38,07,100 76.14% Nil 38,13,100 76.26% Nil 0.12%
(ii) SHARE HOLDING OF PROMOTERS
18
1 Alok Sondhi 4,73,200 9.45% 1,000 0.02% 4,74,200 9.48% Tsfr. 1000 Share
on 25/05/2018
2 Vivek Sondhi 1,09,300 2.19% 0 0.00% 1,09,300 2.19% No Change
3 Raj Mohini Sondhi 26,000 0.52% 0 0.00% 26,000 0.52% No Change
4 Raizada B R Vivek Sondhi 50,500 1.01% 0 0.00% 50,500 1.01% No Change
5 Vandana Sondhi 72,200 1.44% 0 0.00% 72,200 1.44% No Change
6 Ashim Sondhi 4,700 0.02% 5,000 0.1% 9,700 0.19% Tsfr. 1000 shares
on 27/04/18,
Tsfr. 1000 shares
on 11/06/18,
Tsfr. 1000 shares
on 28/08/18,
Tsfr. 500 shares
on 22/08/18
Tsfr. 1000 shares
on 29/09/18,
Tsfr. 500 shares
on 01/10/18
7 Varuna Sondhi 27,000 0.54% 0 0.00% 27,000 0.54% No Change
8 Vijaya Sondhi 22,000 0.44% 0 0.00% 22,000 0.44% No Change
9 Punjab Kashmir Fin. Ltd 9,50,000 19.00% 0 0.00% 9,50,000 19.00% No Change
10 Reliable Agro Engg.
Services Pvt. Ltd. 9,50,000 19.00% 0 0.00% 9,50,000 19.00% No Change
11 Punjab Reliable
Investments Pvt. Ltd. 9,50,000 19.00% 0 0.00% 9,50,000 19.00% No Change
12 PKF Securities Pvt. Ltd. 1,47,200 2.94% 0 0.00% 1,47,200 2.94% No Change
13 Raizada BR Alok Sondhi 25,000 0.50% 0 0.00% 25,000 0.50% No Change
38,07,100 76.14% 6,000 0.12% 38,13,100 76.26% No Change
(iii) CHANGE IN PROMOTERS' SHAREHOLDING ( SPECIFY IF THERE IS NO CHANGE)
Sr No.
Name Share holding at the beginning of the Year
Increase / Decrease in Share-holding
Cumulative Share holding during the year
Mode of Changealong with
Date
No. of Shares
No. of Shares
No. of Shares
% of total shares of
the company
% of total shares of the
company
% of total shares of the
company
19
(iv) Shareholding Pattern of top ten Shareholders (other than Direcors, Promoters & Holders of GDRs & ADRs)
1 Onkar Nath Aggarwal 189000 3.78% Nil Nil 189000 3.78%
2 Geetu Mehra 100000 2.00% Nil Nil 100000 2.00%
3 Ashok Mehra 50000 1.00% Nil Nil 50000 1.00%
4 Narinder Kaur Keith 28000 0.56% Nil Nil 28000 0.56%
5 K S Paintal 24800 0.50% Nil Nil 24800 0.50%
6 Surjit Singh Ajmal 20000 0.40% Nil Nil 20000 0.40%
7 M.L Mahajan 28000 0.56% Nil Nil 28000 0.56%
8 Amarjit Kaur Paintal 16700 0.33% Nil Nil 16700 0.33%
9 Vijay Kumar Vasudev 14500 0.29% Nil Nil 14500 0.29%
10 Aradhana Misra 13500 0.27% Nil Nil 13500 0.27%
484500 9.69% Nil Nil 484500 9.69%
Sr.No.
Name Share holding at the beginningof the Year
Increase / Decrease in Share-holding
Cumulative Share holding during the year
No. of Shares
No. of Shares
No. of Shares
% of total
shares of the
company
% of total
shares of the
company
% of total
shares of the
company
(v) Shareholding of Directors & KMP
1 Sh. Alok Sondhi 4,73,200 9.46% 1,000 0.02% 4,74,200 9.48%
2 Sh. Vivek Sondhi 1,0,9300 2.19% 0 0.00% 1,09,300 2.19%
3 Smt.Raj Mohini Sondhi 26,000 0.52% 0 0.00% 26,000 0.52%
4 Sh. Ashim Sondhi 4,700 0.09% 5,000 0.1% 9,700 0.19%
5 Sh. Chetan Kalia 15,000 0.30% 0 0.00% 15,000 0.30%
6 Sh. J.S Ghuman 1,000 0.02% 0 0.00% 1,000 0.02%
7 Sh. Baljit Singh Virk 2,000 0.04% 833 0.02% 2,833 0.06%
6,31,200 12.62% 6,833 0.14% 6,38,033 12.76%
Sr No. Name Share holding at the beginningof the Year
Increase / Decrease in Share-holding
Cumulative Share holding during the year
No. of Shares
No. of Shares
No. of Shares
% of total
shares of the
company
% of total
shares of the
company
% of total
shares of the
company
20
V INDEBTEDNESS
i) Principal Amount 3403.14 351.17 2725.93 6480.24
ii) Interest due but not paid 0 0 0 0
iii) Interest accrued but not due 148.65 24.31 286.96 399.92
Total (i+ii+iii) 3551.79 375.48 2952.89 6880.16
Net Change in Indebtedness during the
financial year 564.00 151.72 -110.62 605.10
Indebtedness at the end of the
financial year
i) Principal Amount 3908.91 498.48 2569.05 6977.39
ii) Interest due but not paid 0 0 0 0
iii) Interest accrued but not due 206.88 29.73 272.27 507.87
Total (i+ii+iii) 4115.79 527.20 2842.27 7485.26
Indebtedness of the Company including interest outstanding/accrued but not due for payment
Secured Loans
excluding
deposits
Unsecured
Loans
DepositsTotal
Indebted-
ness
Indebtness at the beginning of
the financial year
(Rs. in Lacs)
21
1 Gross Salary Mr. Alok Sondhi Mr. Vivek Sondhi Mr.Ashim Sondhi Total Amount
(a) Salary as per provisions 16,68,011 10,68,014 15,69,658 43,05,683
contained in section 17(1) of the
Income Tax. 1961.
(b) Value of perquisites u/s 17(2)
of the Income tax Act, 1961 60,261 1,19,889 75,299 2,55,449
(c ) Profits in lieu of salary under
section 17(3) of the Income Tax
Act, 1961 Nil Nil Nil Nil
2 Stock option Nil Nil Nil Nil
3 Sweat Equity Nil Nil Nil Nil
4 Commission Nil Nil Nil Nil
as % of profit Nil Nil Nil Nil
others (specify) Nil Nil Nil Nil
5 Directors Meeting Fees 37,500 40,500 36,000 1,14,000
Total (A) 17,65,772 12,28,403 16,80,957 46,75,132
Ceiling as per the Act : 84 lacs as per schedule V PART II SECTION II of the Companies Act, 2013
VI REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
A. Remuneration to Managing Director, Whole time Director and/or Manager:
Particulars of Remuneration Sl.No. Name of the MD/WTD/Manager
B. Remuneration to other directors:
(a) Fee for attending board
committee meetings 43,500 33,500 N.A N.A 77,000
(b) Commission Nil Nil Nil N.A N.A
(c ) Others, please specify Nil Nil Nil N.A N.A
Total (1) 43,500 33,500 N.A N.A 77,000
2 Other Non Executive Directors
(a) Fee for attending board
committee meetings N.A N.A 36,000 36,000 72,000
(b) Commission N.A N.A Nil Nil
(c ) Others, please specify. N.A N.A Nil Nil
Total (2) N.A N.A 36,000 36,000 72,000
Total (B) =(1+2) 43,500 33,500 36,000 36,000 1,49,000
Total Managerial
Remuneration 48,24,132
Overall Ceiling as per the Act. 84 lacs as per schedule V PART II SECTION II of the Companies Act, 2013
Particulars of Remuneration
Independent Directors
S.No. Name of the DirectorsTotal
AmountMr.Chetan Kumar Kalia
Mr. Baljit Singh Virk
Mrs. Raj Mohini Sondhi
Mr. J. S.Ghuman
1
22
1 Gross Salary CEO Company CFO
Secretary
Sonia Gaba
(a) Salary as per provisions
contained in section 17(1) of
the Income Tax Act, 1961. Nil 3,20,689 Nil 3,20,689
(b) Value of perquisites u/s
17(2) of the Income Tax Act, 1961 Nil Nil Nil Nil
(c ) Profits in lieu of salary
under section 17(3) of the
Income Tax Act, 1961 Nil Nil Nil Nil
2 Stock Option Nil Nil Nil Nil
3 Sweat Equity Nil Nil Nil Nil
4 Commission Nil Nil Nil Nil
as % of profit Nil Nil Nil Nil
others, specify Nil Nil Nil Nil
5 Others, please specify Nil Nil Nil Nil
Total Nil 3,20,689 Nil 3,20,689
A. COMPANY NO
Penalty
Punishment None
Compounding
B. DIRECTORS NO
Penalty
Punishment None
Compounding
C. OTHER OFFICERS IN DEFAULT NO
Penalty
Punishment None
Compounding
Type Section of the
Companies Act
Brief
Description
Details of Penalty/
Punishment/Compounding fees imposed
Authority
(RD/NCLT/
Court)
Appeall made
if any
(give details)
C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD
Particulars of Remuneration S.No. Key Management Personnel Total
VII PENALTIES/PUNISHMENT/COMPOUNDING OF OFFENCES
23
Annexure -IV
Criteria for evaluation of the Board and non-
independent directors at a separate meeting of
Independent Directors
PKF ensures constitution of a Board of Directors with an
appropriate composition , size, diversified expertise and
experience and commitment to discharge their
responsibilities and duties effectively.
PKF recognize the importance of independent directors in
achieving the effectiveness of the board and aim to have an
optimum combination of Executive, Non Executive and
Independent Directors.
This policy sets out the guiding principles for the Nomination
and Remuneration committee for identifying persons who
are qualified to become directors and to determine the
independence of directors, in case of their appointment as
independent directors of the company.
The following policy shall be followed for selection of
directors and determining directors independence
The company with the approval of its Board of Directors,
Nomination and Remuneration Committee ( Committee) has
put in place a policy on directors appointment and
remuneration including criteria for determining qualification
, positive attributes, independence of director .The committee
would evaluate the composition of the board and vacancies
arising from time to time.
Criteria for evaluation of Chairman at separate
meeting of Independent Directors:
1. Leadership qualities
2. Standard of Integrity
24
3. Understanding of Macro economic trends and Micro
industry trends.
4. Public Relations
5. Future Vision and Innovation
Criteria for evaluation of Independent Directors by the
entire Board:
1. Qualifications & Experience
2. Standard of Integrity
3. Attendance in Board Meetings / AGM
4. Understanding of Company's business
5. Value addition in Board Meetings
Criteria for evaluation of the Audit Committee by the
Board:
1. Qualification & Experience of members
2. Depth of review of financial performance
3. Oversight of Audit & Inspection
4. Review of regulatory compliance
5. Fraud monitoring
For the above assessment, the committee would also consider
the Fit and Proper criteria for Directors guidelines issued by
the Reserve Bank of India in this regard.
The committee based on the above assessment will make
suitable recommendations on the appointment of directors to
the board.
Remuneration Policy:
PKF recognizes the importance of aligning the business
objectives with specific and measurable individual objectives
and targets. The Company has therefore formulated the
25
remuneration policy for its directors, key managerial
personnel and other employees keeping in view the following
objectives:
a. Ensuring that the level and composition of remuneration
is reasonable and sufficient to attract, retain and
motivate, to run the company successfully.
b. Ensuring that relationship of remuneration to
performance is clear and meets the performance
benchmarks.
c. Ensuring that remuneration involves a balance between
fixed and incentive pay reflecting short and long term
performance objectives appropriate to the working of
the company and its goals.
This Policy sets out the guiding principles for the Nomination
Committee and Remuneration Committee (NCRC) and
Human Resources for recommending to the Board the
remuneration of the directors, key managerial personnel and
other employees of the Company.
The following policy shall be hereinafter referred to as
"Remuneration Policy of PKF Finance Limited"
I . Definitions
a) "Remuneration" means any monetary benefit or its
equivalent extended to any person for services rendered
by him/her and includes perquisites as defined under the
Income-tax Act, 1961.
b) "Key Managerial Personnel" means,
i) Managing Director, Chief Executive Officer or Manager;
ii) Whole-time Director;
iii) Chief Financial Officer;
iv) Company Secretary.
c) "Employee" will mean an employee who has been
appointed on the rolls of PKF Finance Limited
(hereinafter referred to as 'the Company') and has been
issued an appointment order by the Company.
II. Board Diversity
It will be the endeavour of the Company to attract people to be
on the Board of our Company as Directors from variety of
backgrounds which are appropriate to the business interests
of the Company.
III . Remuneration Pattern
The NCRC lays down the following remuneration pattern for
Non-executive Directors and Independent Directors,
Executive Directors, Key Managerial Personnel, Senior
Management and other employees under the Remuneration
Policy:
1. The remuneration payable to Non-Executive
Directors and Independent Directors shall consist of:
a) Sitting fees for attending the meetings of the Board and
sub-committees of the Board, within the limit prescribed
under the Companies Act, 2013;
b.) Reimbursement of expenses for attending meetings of
the Board and sub-committees of the Board.
2. The remuneration payable to Managing Director,
Whole-time Director, who are appointed based on
Shareholders' approval, shall consist of:
a) Salary, allowances, commission and perquisites;
b) Commission for each financial year, as may be decided by
the Board of Directors, based on the recommendations of
the NCRC;
c) Minimum Remuneration in any financial year, when the
Company has no profits or its profits are inadequate, by
way of salary, allowances, commission and perquisites
not exceeding the limits specified in Part II of Section II of
26
Schedule V to the Companies Act, 2013 or such other
limits as may be prescribed by the Government from time
to time as minimum remuneration.
The overall remuneration payable to Directors, including
Executive Directors, shall be within the limits prescribed
under Section 197 of the Companies Act, 2013 read with
Schedule V.
3. The remuneration payable to Key Managerial
Personnel, Senior Management and other employees of
the company shall consist of :
Salary, allowances, perquisites and variable components
reflecting the short and long term performance objectives
appropriate to the working of the Company, which are aligned
to industry standards.
IV. Implementation of the Remuneration Policy
The remuneration payable to Non-executive Directors and
Independent Directors shall be determined by the Board of
Directors, after taking into account their performance and
contribution.
The Remuneration payable to Executive Directors shall be
determined by the NCRC after taking into account their
experience, qualification, responsibilities, contributions,
performance and industry standards.
The Remuneration Policy of the Company, to the extent
applicable to Key Managerial Personnel other than Executive
Directors, Senior Management and other employees shall be
monitored by the Managing Director, who shall take
appropriate steps to ensure that the remuneration is
commensurate with their experience, qualification,
responsibilities, contributions, performance and industry
standards.
The NCRC shall take suitable steps to issue guidelines,
procedures and such other steps as may be considered
appropriate from time to time, for effective implementation of
the Remuneration Policy.
Financial Highlights
Progress of the Company through Years : 1994-2019 : A Comparative Statement
As on 30th June ` ` ` ` ` ` ` `
1994 1,900 26 2,429 - 35 -- 35 18% 8
As on 31st March
1995 7,500 0 812 13,833 1,743 1,130 -- 1,130 20% 344
1995-96 18,000 0 2,153 35,915 10,022 2,993 -- 2,993 20% 652
1996-97 18,000 0 3,640 66,640 30,976 6,056 789 5,267 20% 3,600
1997-98 25,000 0 1,542 1,06,899 84,403 3,674 1,500 2,174 10% 2,077
1998-99 25,000 0 3,670 1,87,558 1,17,633 6,106 648 5,458 12% 3,330
1999-00 25,000 0 7,007 2,41,145 1,43,913 8,709 1,765 6,944 13% 3,607
2000-01 25,000 4,520 9,723 2,26,523 1,47,029 8,777 3,030 5,747 11% 3,030
2001-02 25,000 4,520 12,622 2,36,444 1,59,930 8,772 2,620 6,152 10% 3,253
2002-03 25,000 7,220 10,303 2,36,090 1,70,545 8,529 3,645 5,601 10% 3,217
2003-04 28,300 9,920 12,646 2,40,135 1,81,285 8,848 6,032 5,840 9% 3,498
2004-05 28,300 20,000 14,925 2,70,523 2,01,987 8,489 4,574 5,753 9% 3,474
2005-06 28,300 20,000 16,430 3,20,917 2,17,789 9,548 3,643 6,093 9% 4,588
2006-07 28,300 27,400 18,788 3,41,379 2,29,956 11,184 3,857 7,269 10% 4,911
2007-08 28,300 27,400 21,006 3,90,520 2,59,620 11,802 3,738 7,267 10% 5,039
2008-09 28,300 27,400 25,719 4,05,096 2,94,754 13,576 4,456 8,946 10% 4,244
2009-10 28,300 27,400 30,004 4,13,216 3,29,809 12,439 4,365 8,198 9% 3,913
2010-11 28,300 30,064 32,134 4,49,371 3,59,026 15,311 6,122 10,226 11% 5,433
2011-12 28,300 33,386 35,275 4,79,940 4,06,897 20,094 5,739 13,618 12% 7,154
2012-13 28,300 33,386 42,861 5,53,949 4,42,778 22,596 7,405 15,000 12% 7,413
2013-14 28,300 33,386 54,153 5,73,645 4,78,717 28,134 8,575 19,117 13% 7,825
2014-15 28,300 33,386 67,132 6,18,193 4,37,338 23,613 7,916 1,66,67 - 3,689
2015-16 50,000 33,386 93,099 7,37,346 3,82,211 22,745 8,321 15,113 Int.11% 10,846
Final 10%
2016-17 50,000 33,386 1,08,527 9,35,516 4,46,558 23,112 9,837 15,428 10% 9,689
2017-18 50,000 33,386 1,12,449 11,00,492 5,46,533 19,863 7,682 13,610 10% 9,550
2018-19 50,000 33,386 1,17,903 11,72,614 5,97,040 20,807 8,556 15,008 10% 9,554
27
(` in thousands)
Financial
Year
Paid up Capital
Equity
Share
Pref.
Share
Reserves
&
Surplus
Investments
(inclusive
of advance
finance
charges)
Deposits/
Debentures
(including
accrued
interest)
Profit
before
Tax
Income
Tax
Net
Profit
Equity
Dividend
%
DividendAmountincl. tax
(on Equity& Pref. Shares)
Performance Highlights
28
Sources & Distribution of Income (2018-19)Rs. 1,548 Lacs
DISTRIBUTION
FinanceCost44%
Employee &AdministrativeExpenses30%
RetainedProfits
10%
TaxExpenses4%
Provision& WriteOff10%
Depreciation2%
SOURCES
Income fromFinancingOperations95%
Income fromOthers 1%
Income fromInvestment4%
BOOK VALUE
(As on March 31st)
NET PROFIT NET OWNED FUNDS
Am
ou
nt
in L
acs
(`)
(As on March 31st)2015 2016 2017 2018 2019
200 -
180 -
160 -
140 -
120 -
100 -
80 -
60 -
40 -
20 -
0 -
Am
ou
nt
in L
acs
(`)
34 3432 32
28
(As on March 31st)2015 2016 2017 2018 2019
40
35 -
30 -
25 -
20 -
15 -
10 -
5 -
0 -
-
Am
ou
nt
in L
acs
(`)
1288
1765
1919 1958 2013
(As on March 31st)2015 2016 2017 2018 2019
2500
2000 -
1500 -
1000 -
500 -
0 -
-
150
166
151 154
136
29
Auditor's Report To the Members of PKF Finance Limited
Report on the standalone Financial Statements
Opinion
We have audited the accompanying Standalone
financial statements of M/s. PKF FINANCE LIMITED
(“the Company”) which comprises the Balance Sheet
as at March 31, 2019, the Statement of Profit and Loss,
and statement of cash flows for the year then ended and
notes to the financial statements, including a summary
of significant accounting policies.
In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
standalone financial statements give the information
required by the Act in the manner so required and give a
true and fair view in conformity with the accounting
principles generally accepted in India, of the state of
affairs of the Company as at March 31, 2019, and profit
and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the
Standards on Auditing (SAs) specified under section
143(10) of the Companies Act , 2013. Our
responsibilities under those Standards are further
described in the Auditor's Responsibilities for the Audit
of the Financial Statements section of our report. We are
independent of the Company in accordance with the
Code of Ethics issued by the Institute of Chartered
Accountants of India together with the ethical
requirements that are relevant to our audit of the
financial statements under the provisions of the
Companies Act, 2013 and the Rules there under, and we
have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code of
Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis
for our opinion.
Responsibility of Management for the Standalone
Financial Statements
The Company's Board of Directors is responsible for the
matters stated in section 134(5) of the Companies Act,
2013 (“the Act”) with respect to the preparation of these
standalone financial statements that give a true and fair
view of the financial position, financial performance,
(changes in equity) and cash flows of the Company in
accordance with the accounting principles generally
accepted in India, including the accounting Standards
specified under section 133 of the Act. This
responsibility also includes maintenance of adequate
accounting records in accordance with the provisions
of the Act for safeguarding of the assets of the Company
and for preventing and detecting frauds and other
irregularities; selection and application of appropriate
implementation and maintenance of accounting
policies; making judgments and estimates that are
reasonable and prudent; and design, implementation
and maintenance of adequate internal financial
controls, that were operating effectively for ensuring
the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of
the financial statement that give a true and fair view and
are free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, management is
responsible for assessing the Company's ability to
continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going
concern basis of accounting unless management either
intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for
overseeing the company's financial reporting process
Auditor's Responsibility for the Audit of the
Financial Statements
Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free
from material misstatement, whether due to fraud or
error, and to issue an auditor's report that includes our
opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit
conducted in accordance with SAs will always detect a
material misstatement when it exists. Misstatements
can arise from fraud or error and are considered
material if, individually or in the aggregate, they could
30
reasonably be expected to influence the economic
decisions of users taken on the basis of these financial
statements.
Report on Other Legal and Regulator y
Requirements
As required by the Companies (Auditor's Report) Order,
2016 (“the Order”), issued by the Central Government
of India in terms of sub-section (11) of section 143 of the
Companies Act, 2013, we give in the Annexure 'B” a
statement on the matters specified in paragraphs 3 and
4 of the Order, to the extent applicable.
As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information
and explanations which to the best of our
knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion, proper books of account as
required by law have been kept by the Company so
far as it appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement dealt with by this
Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial
statements comply with the Accounting Standards
specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations
received from the directors as on 31st March, 2019
taken on record by the Board of Directors, none of
the directors is disqualified as on 31st March, 2019
from being appointed as a director in terms of
Section 164 (2) of the Act.
f) With respect to the adequacy of the internal
financial controls over financial reporting of the
Company and the operating effectiveness of such
controls, refer to our separate Report in “Annexure
A”.
g) With respect to the other matters to be included in
the Auditor's Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014, in
our opinion and to the best of our information and
according to the explanations given to us:
i. The Company does not have any pending
litigations which would impact its financial
position.
ii. The Company did not have any long-term
contracts including derivative contracts for
which there were any material foreseeable
losses.
iii. There were no amounts pending which were
required to be transferred to the Investor
Education and Protection Fund by the
Company.
For Dass & Co
Chartered Accountants
FRN 000200N
Sd/-
Place: Jalandhar Neeru Saluja
Dated : 16th May, 2019 Partner
M.No. 505151
31
Report on the Internal Financial Controls Over
Financial Reporting under Clause (i) of Sub-
section 3 of Section 143 of the Companies Act, 2013
(“the Act”)
We have audited the internal financial controls over
financial reporting of .PKF FINANCE LIMITED(“the
Company”) as of March 31, 2019 in conjunction with our
audit of the standalone financial statements of the
Company for the year ended on that date.
Management's Responsibility for Internal
Financial Controls
The Board of Directors of the Company is responsible
for establishing and maintaining internal financial
controls based on the internal control over financial
reporting criteria established by the Company
considering the essential components of internal
control stated in the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting issued by
the Institute of Chartered Accountants of India. These
responsibilities include the design, implementation
and maintenance of adequate internal financial
controls that were operating effectively for ensuring
the orderly and efficient conduct of its business,
including adherence to respective company's policies,
the safeguarding of its assets, the prevention and
detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely
preparation of reliable financial information, as
required under the Companies Act, 2013.
Auditor's Responsibility
Our responsibility is to express an opinion on the
internal financial controls over financial reporting of
the Company based on our audit. We conducted our
audit in accordance with the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting
(the “Guidance Note”) issued by the Institute of
Chartered Accountants of India and the Standards on
Auditing prescribed under Section 143(10) of the
Companies Act, 2013, to the extent applicable to an
audit of internal financial controls. Those Standards and
the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain
reasonable assurance about whether adequate internal
financial controls over financial reporting was
established and maintained and if such controls
operated effectively in all material respects.
Our audit involves performing procedures to obtain
audit evidence about the adequacy of the internal
financial controls system over financial reporting and
their operating effectiveness. Our audit of internal
financial controls over financial reporting included
obtaining an understanding of internal financial
controls over financial reporting, assessing the risk that
a material weakness exists, and testing and evaluating
the design and operating effectiveness of internal
control based on the assessed risk. The procedures
selected depend on the auditor's judgement, including
the assessment of the risks of material misstatement of
the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained, is
sufficient and appropriate to provide a basis for our
audit opinion on the internal financial controls system
over financial reporting of the Company.
Meaning of Internal Financial Controls Over
Financial Reporting
A company's internal financial control over financial
reporting is a process designed to provide reasonable
assurance regarding the reliability of financial
reporting and the preparation of financial statements
for external purposes in accordance with generally
accepted accounting principles. A company's internal
financial control over financial
reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the
company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit
ANNEXURE “A” TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 1(f) under 'Report on Other Legal and Regulatory Requirements'
section of our report to the Members of Infosys Limited of even date)
32
preparation of financial statements in accordance with
generally accepted accounting principles, and that
receipts and expenditures of the company are being
made only in accordance with authorisations of
management and directors of the company; and (3)
provide reasonable assurance regarding prevention or
timely detection of unauthorised acquisition, use, or
disposition of the company's assets that could have a
material effect on the financial statements.
Limitations of Internal Financial Controls Over
Financial Reporting
Because of the inherent limitations of internal financial
controls over financial reporting, including the
possibility of collusion or improper management
override of controls, material misstatements due to
error or fraud may occur and not be detected. Also,
projections of any evaluation of the internal financial
controls over financial reporting to future periods are
subject to the risk that the internal financial control
over financial reporting may become inadequate
because of changes in conditions, or that the degree of
compliance with the policies or procedures may
deteriorate.
Opinion
In our opinion, to the best of our information and
according to the explanations given to us, the Company
has, in all material respects, an adequate internal
financial controls system over financial reporting and
such internal financial controls over financial reporting
were operating effectively as at March 31, 2019, based
on the internal control over financial reporting criteria
established by the Company considering the essential
components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls Over
Financial Reporting issued by the Institute of Chartered
Accountants of India.
For Dass & Co
Chartered Accountants
FRN 000200N
Sd/-
Place: Jalandhar Neeru Saluja
Dated : 16th May, 2019 Partner
M.No. 505151
33
“Annexure B” to the Independent Auditors' Report
Referred to in paragraph 1 under the heading 'Report on Other Legal & Regulatory Requirement' of our report
of even date to the financial statements of the Company for the year ended March 31, 2019:
i. a) The Company has maintained proper records
showing full particulars, including quantitative
details and situation of fixed assets;
b) The management at reasonable intervals has
physically verified the fixed assets and no
material discrepancies were noticed on such
physical verification.
c) The title deeds of immovable properties are
held in the name of the company.
ii. The Company is a Non Banking Financial company
engaged in loans and advances. Accordingly, it does
not hold any physical inventories. Thus, paragraph
3(ii) of the Order is not applicable to the Company.
iii. The Company has not granted any loans, secured or
unsecured to companies, firms, Limited Liability
partnerships or other parties covered in the
Register maintained under section 189 of the Act.
Accordingly, the provisions of clause 3 (iii) (a) to (c)
of the Order are not applicable to the Company and
hence not commented upon.
iv. In our opinion and according to the information
and explanations given to us, the company has not
given any loans and has not made any investment
covered under the provisions of section 185 and
I86 of the Companies Act, 2013.
v. On the examination of records produced before us,
the Company has complied with the rules and
regulations of Reserve Bank of India with regard to
acceptance of deposits from the public during the
year under audit.
vi. The maintenance of Cost Records has not been
specified by the Central Government under sub-
section (1) of Section 148 of the Act, in respect of
the activities carried on by the company.
vii. a. In our opinion and according to the
information and explanation given to us, the
company is regular in depositing with
appropriate authorities undisputed statutory
dues including Income tax, provident fund,
employees' state insurance, service tax, GST,cess
and other statutory dues applicable to it.
According to the information and explanations
given to us, there are no undisputed amount
payable in respect of Income tax, provident
fund, employees' state insurance, service tax,
GST, cess and other material statutory which are
in arrears as on 31/03/2019 for a period of more
than six months from the date they became
payable.
b. According to the information and explanation
given to us, there are no dues of income tax,
service tax, GST outstanding on account of any
dispute.
viii. In our opinion and according to the information
and explanations given to us, the Company has not
been defaulted in repayment of dues to banks and
Debenture holders.
ix. Based upon the audit procedures performed and
the information and explanations given by the
management, the company has not raised moneys
by way of initial public offer or further public offer
(including debt instruments).
x. Based upon the audit procedures performed and
the information and explanations given by the
management, we report that no fraud by the
Company or on the company by its officers or
employees has been noticed or reported during the
year.
xi. Based upon the audit procedures performed and
the information and explanations given by the
management, the managerial remuneration has
been paid or provided in accordance with the
requisite approvals mandated by the provisions of
section 197 read with Schedule V to the Companies
Act;
xii. The Company is not a Nidhi Company. Therefore,
the provisions of clause 4 (xii) of the Order are not
applicable to the Company.
34
Xiii. In our opinion, all transactions with the related
parties during the year under audit are in
compliance with section 177 and 188 of Companies
Act, 2013 and the details have been disclosed in the
Financial Statements as required by the applicable
accounting standards.
xiv. Based upon the audit procedures performed and
the information and explanations given by the
management, the company has not made any
preferential allotment or private placement of
shares or fully or partly convertible debentures
during the year under review. Accordingly, the
provisions of clause 3 (xiv) of the Order are not
applicable to the Company and hence not
commented upon.
xv. Based upon the audit procedures performed and
the information and explanations given by the
management, the company has not entered into any
non-cash transactions with directors or persons
connected with during the year under report.
Accordingly, the provisions of clause 3 (xv) of the
Order are not applicable to the Company and hence
not commented upon.
xvi. The company has been registered as Non Banking
Financial Companies (Deposit accepting
Company) with Reserve Bank of India, Chandigarh
vide registration No.06.00104 dated 30th April,
1998.
For Dass & Co
Chartered Accountants
FRN 000200N
Sd/-
Place: Jalandhar Neeru Saluja
Dated : 16th May, 2019 Partner
M.No. 505151
Directors
Alok Sondhi
Vivek Sondhi
Raj Mohini Sondhi
Ashim Sondhi
Chetan Kumar Kalia
Jagjit Singh Ghuman
Baljit Singh Virk
Company Secretary
Sonia Gaba
Balance Sheet as at 31st March, 2019
Particulars
(Amount in Rs.)
Note No. 31st March '19 31st March '18
I. EQUITY AND LIABILITIES
1 Shareholders’ funds
(a) Share Capital 2 8,33,86,350 8,33,86,350
(b) Reserve and Surplus 3 11,79,03,263 11,24,49,018
Sub-Total Share-holders Funds 20,12,89,613 19,58,35,368
2 Non-current liabilities
(a) Long Term Borrowings 4 35,20,17,310 28,39,80,354
(b) Long Term Provisions 5 3,58,65,994 2,43,39,432
Sub-Total Non-Current liabilities 38,78,83,304 30,83,19,786
3 Current liabilities
(a) Short Term Borrowings 6 22,40,05,947 24,51,46,314
(b) Other Current Liabilities 7 21,84,96,817 21,95,66,116
(c) Short Term Provisions 8 85,56,000 76,82,000
Sub-Total Current Liabilities 45,10,58,764 47,23,94,430
Total Equity & Liabilities ( 1+2+3) 1,04,02,31,681 97,65,49,584
II. ASSETS
Non-current assets
1 (a) Fixed Assets
Tangible assets 9 1,90,13,426 1,89,02,053
(b) Non Current Investments 10 4,80,02,968 5,61,50,968
(c) Deferred Tax Assets (net) 11 85,24,432 57,66,929
(d) Long Term Loans and Advances 12 58,54,18,900 54,03,31,509
(e) Other Non Current Assets 13 16,45,398 6,99,863
Sub-Total Non-Current Assets 66,26,05,124 62,18,51,322
2 Current assets
(a) Cash and Cash Equivalents 14 1,75,55,018 1,26,64,384
(b) Short Term Loans and Advances 15 34,27,47,492 32,67,96,544
(c) Other Current Assets 16 1,73,24,047 1,52,37,334
Sub-Total Current Assets 37,76,26,557 35,46,98,262
Total Assets (1 +2) 1,04,02,31,681 97,65,49,584
Significant Accounting Policies and Notes to Accounts 1 to 23
Schedule as per RBI requirement 24
35
Auditor's ReportAs per our report attached herewithFor Dass & Co.Chartered AccountantsFRN 000200NNeeru SalujaPartnerM.No. 505151Place : JalandharDate : May 16, 2019
Profit & Loss StatementFor the Year Ended 31st March, 2019
Particulars
(Amount in Rs.)
ReferNote No.
31st March '19 31st March '18
I. Revenue from Operations 17 15,31,48,636 13,25,63,215
II. Other Income 18 16,73,153 29,27,210
III. Total Revenue (I + II) 15,48,21,789 13,54,90,425
IV. Expenses:
Employee benefits expense 19 3,15,63,850 2,90,84,325
Finance costs 20 6,88,21,912 5,77,31,212
Depreciation and amortization expense 9 26,95,156 21,51,036
Other expenses 21 1,54,02,174 1,42,62,034
Provisions and write off 22 1,55,31,315 1,23,98,603
Total expenses 13,40,14,407 11,56,27,210
V. Profit before exceptional and extraordinary items and tax (III-IV) 2,08,07,382 1,98,63,215
VI. Exceptional items - -
VII. Profit before extraordinary items and tax (V - VI) 2,08,07,382 1,98,63,215
VIII. Extraordinary Items - -
IX. Profit before tax (VII- VIII) 2,08,07,382 1,98,63,215
X Tax expense:
(1) Current tax (-) 85,56,000 (-) 76,82,000
(2) Deferred tax 27,57,503 14,29,733
(3) Excess Income tax Provision of Earlier Years 0 0
(-) 57,98,497 (-) 62,52,267
XI Profit for the period from continuing operations (IX-X) 1,50,08,885 1,36,10,948
XII Profit from discontinuing operations - -
XIII Tax expense of discontinuing operations - -
XIV Profit from Discontinuing operations (after tax) (XII-XIII) - -
XV Profit for the period (XI + XIV) 1,50,08,885 1,36,10,948
XVI Earning per share :
Basic 2.32 2.02
Diluted 2.50 2.26
Significant Accounting Policies and Notes to Accounts 1 to 23
36
Directors
Alok Sondhi
Vivek Sondhi
Raj Mohini Sondhi
Ashim Sondhi
Chetan Kumar Kalia
Jagjit Singh Ghuman
Baljit Singh Virk
Company Secretary
Sonia Gaba
Auditor's ReportAs per our remarks at the foot of the Balance Sheet of even dateFor Dass & Co.Chartered AccountantsFRN 000200NNeeru SalujaPartnerM.No. 505151Place : JalandharDate : May 16, 2019
37
A) CASH FLOW FROM OPERATING ACTIVITIES
Profit Before Tax 2,08,07,382 1,98,63,215
Add: Financial Expenses 6,88,21,912 8,96,29,294 5,77,31,212, 7,75,94,427
Add: Depreciation 26,95,156 21,51,036
Add: Premium on Investment written off 52,000 2,72,000
Add: Provision for Non-Performing Assets 1,13,87,199 82,24,496
Add: Provision for Standard Assets 1,39,363 1,42,73,718 7,98,394 1,14,45,926
Profit on Sale of Fixed Assets (-) 1,30,132 (-) 1,19,405
Dividend Received (-) 81,895 (-) 81,995
Interest Received on Government Securities (-) 42,93,099 (-) 44,67,753
Tax paid (-) 87,24,420 (-) 1,32,29,546 (-) 1,05,83,967 (-) 1,52,53,120
Operating Profit before Working capital Changes 9,06,73,466 7,37,87,233
Working Capital Changes
Change in Long term advances (-) 4,50,87,391 (-) 9,48,45,792
Change in Non Current Assets (-) 76,425 (-) 9,000
Change in Short term loans and advances (-) 1,59,50,948 (-) 3,82,87,134
Change in other current assets (-) 19,65,403 (-) 12,93,891
Change in other current liabilities (-) 1,16,79,979 (-) 7,47,60,148 (-) 3,76,38,066 (-)17,20,73,883
1,59,13,320 (-) 9,82,86,650
Less: Financial Expenses (-) 5,82,11,232 (-) 5,93,16,196
Cash Flow from Operating Activities (-) 4,22,97,912 (-)15,76,02,846
B) CASH FROM INVESTING ACTIVITIES
Purchase of Fixed Assets (-) 29,02,973 (-) 52,74,920
Sale of Fixed Assets 2,26,576 5,80,715
Change in Investments 81,48,000 (-) 87,90,068
Dividend & Interest received 43,74,994 45,49,748
Cash Flow from Investing activities 96,46,597 (-) 89,34,525
C) CASH FLOW FROM FINANCING ACTIVITIES
Change in Long term borrowings 6,80,36,956 11,75,15,194
Change in Short term borrowings 2,11,40,367 5,56,56,159
Dividend & Dividend Tax paid 95,54,640 (-) 96,89,876
Cash Flow from Financing activities 3,73,41,949 16,34,81,477
Net Increase/( decrease) in Cash/ Cash Equivalents (A+B+C) 48,90,634 (-) 30,55,894
Cash & Cash equivalents at the beginning of the year 1,26,64,384 1,57,20,278
Cash & Cash equivalents at the end of the year 1,75,55,018 1,26,64,384
+ sign indicates inflow and (-) sign indicates outflow
CASH FLOW STATEMENT FOR THE YEAR ENDED ON 31st March '19 31st March '18
Directors
Alok Sondhi
Vivek Sondhi
Raj Mohini Sondhi
Ashim Sondhi
Chetan Kumar Kalia
Jagjit Singh Ghuman
Baljit Singh Virk
Company Secretary
Sonia Gaba
Auditor's ReportAs per our remarks at the foot of the Balance Sheet of even dateFor Dass & Co.Chartered AccountantsFRN 000200NNeeru SalujaPartnerM.No. 505151Place : JalandharDate : May 16, 2019
38
NOTE: 1 - SIGNIFICANT ACCOUNTING POLICIES:
1.1 Basis of Accounting
The Company prepares its Financial Statement under historical cost convention on accrual basis of Accounting in accordance
with requirements of the Companies Act 2013, as per accounting standards issued by the Institute of Chartered Accountants of
India (ICAI) and Directions issued by Reserve Bank of India applicable to Deposit taking Non-Banking Financial Companies.
1.2 Fixed Assets:
Fixed Assets are carried at cost less Accumulated Depreciation.
1.3 Depreciation:
Depreciation on fixed assets is provided, at pro-rata basis, on the Straight Line Method at the rates prescribed under schedule II
of the Companies Act 2013.
1.4 Loan under Hypothecated Assets:
Loans granted under hypothecation of assets are stated at agreed value less installments received.
1.5 Valuation of Investments:
Long term Investments are valued at cost in accordance with the Prudential Norms Directives of The Reserve Bank of India and
also in accordance with the Accounting standard on Investments (AS- 13) issued by The Institute of Chartered Accountants of
India, New Delhi..
1.6 Revenue recognition:
i) Income and Expenditure are accounted for on accrual basis. The Income arising from Non- Performing Assets is
recognized as and when realized as recommended in Para-3 of Prudential norms Directions of RBI.
(ii) Income in respect of Loan under Hypothecated Assets and Loans and Advances (Other) is recognized on the basis of
the Internal Rate of Return Method..
(iii) Income in respect of Government securities is recognized on accrual basis.
(iv) Income from Dividend on Shares is recognized on declaration of dividend.
(v) Income from bad debts recovered is recognized as and when realized.
(vi) Interest from overdue installments charges is recognized on receipt basis.
1.7 Provision for Non Performing Assets:
Provision for Non-Performing Assets is made in accordance with the Non Banking Financial Company Systemically Important
Non Deposit Taking Company and Deposit Taking Company (Reserve Bank) Directions, 2016.
1.8 Provision for Standard Assets:
Provision for Standard Assets has been made @ 0.40% of the Standard Assets as prescribed In Non Banking Financial Company
Systemically Important Non Deposit Taking Company and Deposit Taking Company (Reserve Bank) Directions, 2016.
1.9 Retirement Benefits:
(i) Gratuity liability of the employees of the company is covered by the Group Gratuity Policy taken from the Life
Insurance Corporation of India for the payment of gratuity payable to its employees. Necessary contribution for the
liability ascertained on this account has been made as per terms of policy.
(ii) Year end accrued liability towards un-availed leave benefit is provided.
1.10 Impairment of Assets
The carrying amounts of assets are reviewed at balance sheet date to ascertain impairment based on internal and external
factors. The carrying amount of the assets is not less than the recoverable amount of these assets. Hence there is no impairment
loss on the assets of the company.
1.11 Taxation:
Provision for Income Tax has been made in accordance with Income Tax Act, 1961.
Particulars As at 31st March 2019
Number NumberAmount Amount
As at 31st March 2018
Preference Shares
Shares outstanding at the beginning of the year 33,38,635 3,33,86,350 33,38,635 3,33,86,350
Shares Issued during the year - - - -
Shares bought back during the year - - - -
Any other movement (Redeemed) - - - -
Shares outstanding at the end of the year 33,38,635 3,33,86,350 33,38,635 3,33,86,350
Share CapitalAs at 31st March 2019
Number NumberAmount Amount
As at 31st March 2018
AuthorisedEquity Shares of Rs. 10 each 70,00,000 7,00,00,000 60,00,000 6,00,00,000Preference Shares of Rs. 10 each 50,00,000 5,00,00,000 60,00,000 6,00,00,000
1,20,00,000 12,00,00,000 1,20,00,000 12,00,00,000IssuedA) EquityEquity Shares of Rs.10 each 50,00,000 5,00,00,000 50,00,000 5,00,00,000B) Preference8% ( PY 9.25% )Convertible Preference shares of Rs. 10 each 5,00,000 50,00,000 5,00,000 50,00,0008% ( PY 9.25% )Convertible Preference shares of Rs. 10 each 40,000 4,00,000 40,000 4,00,0008% ( PY 9% )Convertible Preference shares of Rs. 10 each 3,67,000 36,70,000 3,67,000 36,70,0008% ( PY 9% )Convertible Preference shares of Rs. 10 each 7,40,000 74,00,000 7,40,000 74,00,0008% ( PY 9% )Convertible Preference shares of Rs. 10 each 2,66,400 26,64,000 2,66,400 26,64,0009% Convertible Preference shares of Rs. 10 each 1,20,000 12,00,000 1,20,000 12,00,0008% ( PY 9.25% )Convertible Preference shares of Rs. 10 each 10,000 1,00,000 10,000 1,00,0008.25% Convertible Preference shares of Rs. 10 each 9,63,000 96,30,000 9,63,000 96,30,0008.25% Convertible Preference shares of Rs. 10 each 3,32,235 33,22,350 3,32,235 33,22,350
33,38,635 3,33,86,350 33,38,635 3,33,86,350Subscribed & fully Paid upA) Equity Equity Shares of Rs. 10 each 50,00,000 5,00,00,000 50,00,000 5,00,00,000B) Preference8% ( PY 9.25% )Convertible Preference shares of Rs. 10 each 5,00,000 50,00,000 5,00,000 50,00,0008% ( PY 9.25% )Convertible Preference shares of Rs. 10 each 40,000 4,00,000 40,000 4,00,0008% ( PY 9% )Convertible Preference shares of Rs. 10 each 3,67,000 36,70,000 3,67,000 36,70,0008% ( PY 9% )Convertible Preference shares of Rs. 10 each 7,40,000 74,00,000 7,40,000 74,00,0008% ( PY 9% )Convertible Preference shares of Rs. 10 each 2,66,400 26,64,000 2,66,400 26,64,0009% Convertible Preference shares of Rs. 10 each 1,20,000 12,00,000 1,20,000 12,00,0008% ( PY 9.25% )Convertible Preference shares of Rs. 10 each 10,000 1,00,000 10,000 1,00,0008.25% Convertible Preference shares of Rs. 10 each 9,63,000 96,30,000 9,63,000 96,30,0008.25% Convertible Preference shares of Rs. 10 each 3,32,235 33,22,350 3,32,235 33,22,350
33,38,635 3,33,86,350 33,38,635 3,33,86,350Total (A + B) 83,38,635 8,33,86,350 83,38,635 8,33,86,350
a) Reconciliation of Number of shares
Particulars As at 31st March 2019
Number NumberAmount Amount
As at 31st March 2018
Equity Shares
Shares outstanding at the beginning of the year 50,00,000 5,00,00,000 50,00,000 5,00,00,000
Shares Issued during the year - - - -
Shares bought back during the year - - - -
Any other movement (forfeited) - - - -
Shares outstanding at the end of the year 50,00,000 5,00,00,000 50,00,000 5,00,00,000
NOTE - 2 : Share Capital
BALANCE SHEET
39
31-3-2019
1 8% ( PY 9.25%) Preference shares 10,000 1,00,000 1,00,000 31/03/20242 9% Preference shares 1,20,000 12,00,000 12,00,000 31/03/20223 8% ( PY 9.25%) Preference shares 40,000 4,00,000 4,00,000 31/07/20224 8% ( PY 9%) Preference shares 3,67,000 36,70,000 36,70,000 30/11/2022 5 8% ( PY 9.25%) Preference shares 5,00,000 50,00,000 50,00,000 31/03/20256 8.25% Preference shares 9,63,000 96,30,000 96,30,000 31/03/20277 8.25% Preference shares 3,32,235 33,22,350 33,22,350 31/03/20278 9% Preference shares 7,40,000 74,00,000 74,00,000 31/03/20269 9% Preference shares 2,66,400 26,64,000 26,64,000 31/03/2026 3,33,86,350 3,33,86,350
40
b) Rights , preferences and restrictions attached to shares
Equity Shares: The company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible of one vote per
share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General
Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all
preferential amounts in proportion to their shareholding.
Preference shares: The company has issued different series of convertible Preference shares of Rs. 10 each. Each Preference share holder is
eligible to receive dividend at the agreed rate. These shares are convertible in equity shares as mentioned at point no. (d) here in below.
Name of Shareholder
Name of Shareholder
Particulars
As at 31st March 2019
As at 31st March 2019
No. of Sharesheld
No. of Sharesheld
No. of Sharesheld
No. of Sharesheld
% ofHolding
% ofHolding
No. ofShares
% ofHolding
% ofHolding
Amount Date ofConversion
As at 31st March 2018
As at 31st March 2018
Equity Shares
Preference Shares
c) Details of shares held by shareholders holding more than 5% of the aggregate shares in the company
1 Punjab Kashmir Finance Ltd. 9,50,000 19.00% 9,50,000 19.00%
2 Reliable Agro. Engg. Services Pvt Ltd. 9,50,000 19.00% 9,50,000 19.00%
3 Punjab Reliable Investments Pvt Ltd. 9,50,000 19.00% 9,50,000 19.00%
4 Mr. Alok Sondhi 4,74,200 9.48% 4,73,200 9.46%
1 Mrs. Jatinder Kaur & Mr. J.P. Singh 2,61,000 7.82% 2,50,000 7.49%2 Mrs. Palvi Khanna 3,22,500 9.66% 2,95,000 8.84%3 Dr. Vijay Mahajan 0 0.00% 5,38,000 16.11%4 Mr. C.L. Jairath 2,17,000 6.50% 1,90,000 5.69%5 Dr. Malwinderwant Kaur 2,00,000 5.99% 2,00,000 5.99%6 Mr. Mohinder Paul Singh 2,50,000 7.49% 0 0.00%7 Mr. Abhiraj Singh 2,00,000 5.99% 0 0.00%
S.No.31-3-2018
d) Terms of Securities convertible into equity shares
The above mentioned preference shares are convertible into equity shares of the company at Book value at the end of financial year preceding
the date of conversion or as decided by the Board of Directors of the company at the time of conversion.
41
NOTE - 3 : Reserves and Surplus
Reserves & Surplus As at31st March 2019
As at31st March 2018
a. General Reserve
Opening Balance 3,45,00,000 3,25,00,000
(+) Current Year Transfer 20,00,000 20,00,000
(-) Written Back in Current Year - -
Closing Balance 3,65,00,000 3,45,00,000
b. Statutory Reserve Fund
Opening Balance 4,11,75,000 3,84,50,000
(+) Current Year Transfer 31,00,000 27,25,000
(-) Written Back in Current Year - -
Closing Balance 4,42,75,000 4,11,75,000
c. Capital Redemption Reserve
Opening Balance 45,20,000 45,20,000
(+) Current Year Transfer - -
(-) Written Back in Current Year - -
Closing Balance 45,20,000 45,20,000
d. Share Premium
Opening Balance 2,17,00,000 2,17,00,000
(+) Current Year Transfer - -
(-) Written Back in Current Year - -
Closing Balance 2,17,00,000 2,17,00,000
-
e. Surplus
Opening balance 1,05,54,018 1,13,57,946
(+) Net Profit for the current year 1,50,08,885 1,36,10,948
(-) Dividend Paid 79,26,379 80,50,902
(-) Dividends Distribution Tax 16,28,261 16,38,974
(-) Transfer to General Reserve 20,00,000 20,00,000
(-) Transfer to Statutory Reserve 31,00,000 27,25,000
Closing Balance 1,09,08,263 1,05,54,018
Total (a+b+c+d+e) 11,79,03,263 11,24,49,018
42
Long Term ProvisionsAs at
31st March 2019As at
31st March 2018
NOTE - 4: Long term borrowings
Note 5 : Long Term Provisions
NOTE - 6- Short term Borrowings
Other ProvisionProvisions for Non Performing Assets 2,21,29,188 1,43,51,081Provision for un-realised Finance charges 1,04,09,611 68,00,519Contingent Provision for Standard Assets 33,27,195 31,87,832
Total 3,58,65,994 2,43,39,432
# The company is registered with Reserve Bank of India (RBI) as Deposit Accepting Company. The company has accepted deposits as per extent
RBI Guidelines and its repayments are also governed by the directives issued by the RBI from time to time and as per the terms and conditions of
deposit.
Long Term BorrowingsAs at
31st March 2019As at
31st March 2018
Secured
Debentures
1,69,868 (previous year 1,21,872) Non convertible Redeemable
Debentures of Rs. 1,000 each 16,98,68,000 12,18,72,000
Secured against movable properties in the form of floating charge excluding
investments purchased for the purpose of statutory liquidity subject to prior
charge created in the favour of company's banker on the hypothecation of
documents of the company.
b) HDFC Bank Ltd. (Secured against Hypothecation of Car) 11,87,368 23,87,201
Repayable in 37 monthly Installments of Rs. 1,12,320/- carrying
interest @ 8.02%
17,10,55,368 12,42,59,201
Unsecured
Deposits # 18,09,61,942 15,97,21,153
Total 35,20,17,310 28,39,80,354
Short Term BorrowingsAs at
31st March 2019As at
31st March 2018
Secured
(a) Working Capital Loans repayable on demand from Bank
i) Punjab National Bank 9,90,78,948 13,79,86,826
(Secured against hypothecation of documents, promissory notes, Equitable Mortgage of
Land of the company situated at Civil Lines, Near Prem Eye Hospital, Jalandhar, Property
of Punjab Reliable Investments situated at Nawanshahr, Property in the name of Growth
Properties Pvt. Ltd. at Jalandhar and Personal Guarantee of the Directors)
Ii) Punjab National Bank
Overdraft (Secured against FDRs of Punjab Reliable Investments Pvt. Ltd. And
Reliable Agro, Engg. Services Pvt. Ltd. 5,00,46,301 0
14,91,25,249 13,79,86,826
Unsecured
Deposits# 7,48,80,698 10,71,59,488
Total 22,40,05,947 24,51,46,314
43
NOTE - 7: Other Current liabilities
NOTE-8: Short Term Provisions
A : There is no amount due for payment to the Investor Education and Protection Fund under section 125 of the Companies Act, 2013 as on
31/03/2019
(a) Current maturities of long-term debt (Deposit) 3,49,61,183 2,46,25,614
(b) Current maturities of long-term debt (Debentures) 5,87,48,000 6,76,12,000
(c) Interest accrued but not due on Deposit 2,77,11,303 2,25,94,009
(d ) Interest accrued but not due on debentures 1,94,20,393 1,34,99,334
(e) Interest accrued and due on debentures 27,119 1,92,297
(f) Interest accrued and due on deposits 78,960 1,74,856
(g) Interest payable on debenture application money 68,224 39,017
(h) Security deposit 10,18,735 8,18,735
(i) Interest payable on security deposit 1,22,823 1,96,476
(j) Unpaid dividends (refer note A below) 5,05,066 5,45,146
(k) Unpaid matured deposits and interest accrued thereon (refer note A below) 1,84,58,450 1,87,36,938
(l) Unpaid matured debentures and interest accrued thereon (refer Note A below) 1,20,30,499 1,07,13,340
(m) Tax deducted at source 23,67,578 21,53,897
(n) Trade advance 11,02,485 1,84,363
(o) Sundry payable 18,21,121 2,29,41,572
(p) Cheque issued but not yet presented 3,03,34,483 2,59,62,543
(q) Contingency security 37,87,288 29,68,830
(r) GST payable 53,474 45,610
(s) Expenses payable 4,61,490 5,77,253
(t) Stamp duty payable 0 1,06,669
(u) Salary/ Leave Salary payable 22,84,878 20,21,257
(v) Contribution to PF/ESI 2,10,661 1,85,089
(w) Bonus payable 17,12,531 15,63,623
(x) Current Maturity of Long term Debt ( Car Loan) 11,99,833 11,07,648
(y) Punjab State Development Tax 10,240 0
Total 21,84,96,817 21,95,66,116
Other Current LiabilitiesAs at
31st March 2019As at
31st March 2018
Short Term ProvisionsAs at
31st March 2019As at
31st March 2018
Others
Provision for Income tax 85,56,000 76,82,000
Total 85,56,000 76,82,000
44
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Depreciationcharge for the year
Adjustmentdue to revaluations
On disposals
As at31st March 2019
As at31st March 2018
Particulars
Particulars
As at31st March 2019
31st March 2019
As at31st March 2018
31st March 2018
Other Investments
(a) Investment in Equity instruments- Sarup Tanneries Ltd. 2,968 2,968
(b) Investments in 9.25% preference shares-
Punjab Kashmir Finance Ltd. 830 (PY 430) Shares of Rs. 1000 0 8,30,000
(c) Investments in 9% preference shares-
Punjab Kashmir Finance Ltd. (68 shares of 1000 each) 0 68,000
(d) Investments in Government or Trust securities
i) 9.50% Punjab State Electricity Board 0 60,00,000
ii) 9.20% West Bengal Infra-structure Development Financial Corp. 50,00,000 50,00,000
iii) 9.43% Punjab State Industrial Development Corp. 90,00,000 90,00,000
iv) 9.45% Haryana Vidyut Parsaran Nigam Ltd. 1,00,00,000 1,00,00,000
v) 9.70% Tamilnadhu Genreration & Distribution Corp. Ltd. 50,00,000 50,00,000
vi) 9.97% Andhara Pardesh Power Corp. 50,00,000 50,00,000
vii) 9.99% Kerala Finance Corp. 0 12,50,000
(viii) 8.74% Andhra Pardesh Power Corp. 50,00,000 50,00,000
ix) 9.20% Tamilnadhu Power Finance & Infrastructure Dev. Corp.Ltd. 90,00,000 90,00,000
4,80,00,000 5,52,50,000
Total (a+b+c+d) 4,80,02,968 5,61,50,968
Less : Provision for dimunition in the value of Investments - -
Total 4,80,02,968 5,61,50,968
Note: 10 Non Current Investments
Aggregate amount of quoted investments 3,40,02,968 3,22,52,968
Aggregate amount of unquoted investments 1,40,00,000 2,38,98,000
Market value of quoted bonds un-ascertainble. The investments are valued at cost.
Note: 11 Deferred Tax
45
Particulars
Deferred Tax Assets
a) Tax impact of expenditure u/s 43B of the Income Tax Act, 1961 33,575 33,575
b) Tax impact of provisions for Non-performing Assets (Net of Amount deductible u/s 36(1)
(vii) of the Income Tax Act, 1961) 77,55.141 50,40,506
c) Tax impact of provision for standard asset 9,25,626 8,86,855
Total (a+b+c) 87,14,342 59,60,936
Less : Deferred Tax liability
Tax impact of difference between book depreciation and depreciation under
Income Tax Act, 1961 1,89,910 1,94,007
Net Deferred Tax affect 85,24,432 57,66,929
46
Loans and advances
a) Capital Advance 1,09,01,192 1,04,01,192
b) Security Deposit - -
c) Loans and advances to related parties - -
d) Other Advances - -
i) Loan and advances against Hypothecation of Assets
Secured
Considered Good 49,00,70,068 46,97,11,053
Doubtful 8,44,27,640 57,44,97,708 5,88,29,907 52,85,40,960
ii) Loans and advances (other)
Secured Considered Good - 12,69,157 -
Unsecured - -
Considered Good - -
Doubtful 20,000 20,000 1,20,200 13,89,357
58,54,18,900 54,03,31,509
Note 12: Long Term Loans and advances
Note 14 : Cash and bank balances
Note 13: Other Non Current Assets
Long Term Loans and AdvancesAs at
31st March 2019As at
31st March 2018
Other Non Current Assets
Cash and Cash EquivalentsAs at
31st March 2019As at
31st March 2018
As at31st March 2019
As at31st March 2018
a) Income tax paid for earlier years (Net of Provision) 13,73,593 4,52,483
b) Security Deposit 1,26,837 50,412
c) Premium on Investments 1,96,968 4,68,968
Less : Transferred to P & L A/c. 52,000 1,44,968 2,72,000 1,96,968
16,45,398 6,99,863
a. Cash on hand 1,00,89,053 67,92,344
b. Cheques drafts on hand 41,59,081 31,01,226
c. bank balances - in current a/c
i) In current a/cs 28,01,818 22,24,154
ii) in un-claimed dividend a/c 5,05,066 33,06,884 5,46,660 27,70,814
1,75,55,018 1,26,64,384
47
Other Current Assets
As at31st March 2019
As at31st March 2018
Note 16: Other Current Assets
i) Advance tax paid 83,08,016 81,86,706
ii) Interest Accrued on Investments 52,72,867 51,94,341
iii) Sundry receivables 31,68,585 12,26,806
iv) Pre paid expenses 3,09,793 4,88,708
v) GST/input Credit receivable 2,64,786 1,40,773
1,73,24,047 1,52,37,334
ParticularsFor the year ended
31st March 2019For the year ended
31st March 2018
Note 17: Revenue from operations
STATEMENT OF PROFIT & LOSS
Revenue From Operations
i) Finance charges and settlement from Hypothecation 14,53,35,151 12,49,28,909
ii) Interest on Loans and advances (Other) 13,18,717 8,99,322
iii) Interest on Government Securities 42,93,099 44,67,753
iv) Documentation Charges 22,01,669 15,31,48,636 22,67,231 13,25,63,215
Total 15,31,48,636 13,25,63,215
Short Term Loans and AdvancesAs at
31st March 2019As at
31st March 2018
Note 15: Short Term Loans and Advances
a) Loan and advances against Hypothecation of Assets
Secured Considered Good 33,30,73,465 31,48,15,757
b) Loans and advances (Other)
Unsecured Considered Good 6,28,922 8,86,470
c. Others
Secured considered good 12,69,157 14,01,309
Unsecured Considered Good
i) Advances to Staff 4,60,777 5,72,652
Secured Considered Good
ii) Loan Against company's FDRs/ company's security 73,15,171 90,45,105 91,20,356 1,10,94,317
34,27,47,492 32,67,96,544
48
(a) Salaries incentives 2,66,95,883 2,43,35,958
(b) Bonus 17,67,108 16,46,637
(c) Contributions to -
(i) Provident & Other Fund 13,46,752 11,84,209
(d) Gratuity fund contributions 89,938 4,56,311
(e) Staff welfare expenses 16,64,169 14,61,210
Total 3,15,63,850 2,90,84,325
Employee Benefit Expenses
Particulars
For the year ended31 March 2019st
For the year ended31st March 2019
For the year ended31 March 2018st
For the year ended31st March 2018
NOTE 19: Employee Benefit Expenses
NOTE 20 : Finance Cost
Interest expense
(i) Deposits 2,56,41,508 2,67,47,454
(ii) Debentures 2,11,49,992 1,42,76,309
(iii) Bank Borrowings 82,99,450 71,66,276
(iv) Other Borrowings 1,28,40,282 85,76,193
Bank Charges 4,85,138 5,26,080
Stamp Duty on debentures 4,05,542 4,38,900
Total 6,88,21,912 5,77,31,212
ParticularsFor the year ended
31st March 2019For the year ended
31st March 2018
Note 18: Other Income
Dividend Income 81,895 81,995
Profit on sale of Fixed Assets 1,30,132 1,19,405
Bad debts recovered 4,62,824 18,62,689
Rebate & Discount 4,53,852 3,54,317
Interest deducted on pre mature Deposit/debentures 4,67,239 3,97,769
Misc. Income 77,211 1,11,035
Total 16,73,153 29,27,210
Advertisement 34,21,817 33,78,611Annual General Meeting Expenses 88,266 89,391Payment to Auditor 1,53,000 1,53,000Books & Periodicals 79,328 93,155Business Development 1,11,996 75,261Car Expenses 6,06,420 4,72,156Charity & Donation 3,57,020 2,37,811Club & Membership 1,38,989 1,34,448Commission 2,14,762 3,11,600Computer Expenses 5,61,186 8,55,999Directors Meeting Fee 2,63,000 2,02,500Diwali Expenses 3,90,674 1,90,076Document Charges 66,005 61,216Electricity and water charges 3,19,184 3,05,141General Expenses 6,28,617 3,86,923Generator Expenses 92,365 49,752Insurance Premium 5,03,132 4,20,724Legal Charges 2,76,683 2,79,348Printing and Stationery 7,92,318 7,12,362Professional charges 11,96,007 10,90,232Rates and taxes 27,233 56,923Rent 8,11,461 5,82,434Repair and maintenance - Building Repair 3,66,741 2,54,621 - other Repair 5,48,053 1,40,099Telephone and Postage 9,02,020 9,95,543 Traveling and Conveyance 17,75,458 18,10,569GST Paid 5,06,929 4,86,453Security Expenses 1,51,510 1,07,686Loss on Sale of Bonds 0 56,000Premium on Investments written off 52,000 2,72,000Total 1,54,02,174 1,42,62,034
49
Other ExpensesFor the year ended
31st March 2019For the year ended
31st March 2018
NOTE 21: Other Expenses
NOTE 22 Provisions and write off
Particulars For the year ended31st March 2019
For the year ended31st March 2018
Bad Debts written off 19,10,498 16,05,243Loss on sale of repossessed assets 17,83,240 10,75,579Provision for Non Performing Assets 77,78,107 67,04,732Provisions for un-realised Finance charges 36,09,092 15,19,764Provision for Standard Assets 1,39,363 7,98,394Rebate and Discount 3,11,015 6,94,891
Total 1,55,31,315 1,23,98,603
Payments to the auditor as For the year ended31st March 2019
For the year ended31st March 2018
a. auditor 1,53,000 1,53,000
b. for taxation matters - -
c. for company law matters - -
d. for management services - -
e. for other services - -
f. for reimbursement of expenses - -
Total 1,53,000 1,53,000
50
NOTE No. 23 : GENERAL
23.1 Statutory Reserve:
A sum of Rs. 31,00,000/- (Minimum 20% of Profit after tax) has been transferred to Statutory Reserve in accordance with Section 45-IC of the
Reserve Bank of India Act, 1934.
23.2 Company has issued Secured Redeemable Non Convertible Debentures having face value of Rs. 1000/- which are redeemable at par in
accordance with the terms of allotment. Maturity Profile and Rate of Interest on Non-Convertible Debentures are as set below-
7.40 2057000 0 0 0 0 20570007.50 2595000 0 0 0 0 25950007.55 670000 0 0 0 0 6700007.60 1825000 0 0 0 0 18250007.65 355000 0 0 0 0 3550007.70 410000 0 0 0 0 4100007.75 2190000 2215000 0 0 0 44050007.80 0 0 2000000 0 0 20000007.85 5140000 0 0 0 0 51400007.90 2015000 500000 0 0 0 25150008.00 2901000 3665000 4886000 0 0 114520008.05 770000 0 500000 351000 0 16210008.10 3830000 4500000 260000 0 0 85900008.15 2025000 250000 0 0 0 22750008.20 0 0 0 2200000 0 22000008.25 1790000 5400000 2880000 1950000 1800000 138200008.30 2966000 200000 2770000 0 100000 60360008.35 406000 3910000 0 1540000 0 58560008.40 2440000 2000000 1765000 0 0 62050008.45 995000 0 0 0 0 9950008.50 1650000 4616000 6165000 1300000 1700000 154310008.55 500000 200000 1304000 1900000 260000 41640008.60 8412000 1000000 1736000 0 20000 111680008.65 0 4650000 1700000 700000 400000 74500008.70 500000 0 500000 0 530000 15300008.75 0 13525000 1265000 9205000 2050000 260450008.80 1600000 0 1780000 1804000 0 51840008.85 0 0 3030000 3500000 1164000 76940008.90 0 0 2000000 400000 0 24000008.95 0 0 913000 0 300000 12130009.00 3341000 0 15184000 7300000 9800000 356250009.05 0 0 0 2050000 0 20500009.10 2080000 0 800000 0 900000 37800009.15 0 0 0 1600000 0 16000009.20 0 0 1500000 0 700000 22000009.25 0 0 350000 0 0 3500009.30 0 0 2150000 0 0 21500009.40 0 0 0 0 2000000 20000009.50 0 1261000 0 0 0 12610009.75 0 1300000 0 0 0 130000010.00 700000 3128000 0 0 0 382800010.25 0 1600000 0 0 0 160000010.50 1400000 2261000 0 0 0 366100010.75 3185000 725000 0 0 0 3910000TOTAL 58748000 56906000 55438000 35800000 21724000 228616000
Rate of Interest
(%)
Maturity Profile of Debentures
2019-20 2020-21 2022-23 2023-242021-22 Total
23.9 Related party disclosures-Names of related Parties a) Key Management Personnel Mr. Alok Sondhi , Mg. Director
Mr. Vivek Sondhi, Joint Mg. DirectorMr. Ashim Sondhi, Director
b) Relatives of Key Management Personnel: Mr. Alok Sondhi Mrs. Anuradha Sondhi Wife
Mrs. Aradhana Misra DaughterMrs. Aditi Soni DaughterRaizada Balbir Raj Alok Sondhi HUFMrs. Raj Mohini Sondhi Mother
Mr. Vivek Sondhi Mrs. Vandana Sondhi WifeMs. Varuna Sondhi DaughterMs. Vijaya Sondhi DaughterRaizada Balbir Raj Vivek Sondhi HUFMrs. Raj Mohini Sondhi Mother
Mr. Ashim Sondhi Mrs. Ruhani Wife
51
The remuneration to Directors has been paid in accordance with Schedule V of the Companies Act, 2013.23.5 Interest expense includes Rs. 16,40,900/- ( Previous Year Rs 25,05,028/-) paid to the Directors on their deposits.23.6 Interest on overdue deposit is accounted for as and when such deposits are renewed and further renewed.23.7 Earning per share (Basic and Diluted)
Basic EPS
1. Profit after Tax 1,50,08,885 1,36,10,948
Less:
2. Dividend on Preference shares including Dividend Distribution tax 33,94,751 35,21,877
3. Profit available for Equity shareholder (1-2) 1,16,14,134 1,00,89,071
4 No. of Equity Shares 50,00,000 50,00,000
5 Earning per share (Basic) (3 / 4) 2.32 2.02
6 Earning per share (Restated) (3/7)
Diluted EPS
7. No. of Equity Shares 50,00,000 50,00,000
8. Add: Potential Equity shares on Conversion of Preference shares
(calculated on the basis of Book value at the end of the year) 9,94,233 10,27,588
9. Total shares 59,94,233 60,27,588
10. Diluted EPS (1/9) 2.50 2.26
31 March, 2018stSr. No. Particulars 31 March, 2019st
23.8 Dividend proposed to be distributed on shares is as under-
Particulars Amount Per Share
To preference shareholders 28,15,929 As per terms of allotment
To Equity Shareholders 50,00,000 Rs. 1.00 per share
Sr. No. Particulars 2018-19 2017-18
a) Salary 43,05,683 38,94,072
b) Contribution to PF 43,200 43,200
c) Perquisites 2,55,449 2,11,943
Total 46,04,332 41,04,215
23.3 In the opinion of the Board of Directors, current Assets, loans and advances granted in the ordinary course of business are expected to realize as stated in the Balance Sheet.
23. 4 Remuneration to directors:
d) Related party transactions for the year ended on 31st March, 2019
52
c) Enterprises owned or significantly influenced by Key Managerial Personnel or their relatives
i) Punjab Kashmir Finance Ltd.
ii) Punjab Reliable Investments Pvt. Ltd.
iii) Reliable Agro. Engg. Services Pvt. Ltd.
iv) PKF Securities Pvt. Ltd.
V) Growth Properties Pvt. Ltd.
23.10 There is no amount due to small scale industries in terms of the 'The Micro, Small and Medium Enterprises Development Act 2006'.
23.11 The balance shown in the Balance Sheet on account of Sundry debtors, Sundry Advances and Creditors are subject to confirmation.
23.12 From time to time, the company has purchased Securities for complying with the SLR requirement as prescribed under Section 45IB
of the Reserve Bank of India Act, 1934. Since the purchase of securities are either at premium at discount, the company has followed
consistent policy of disclosing the securities at face value, the difference so arisen is charged to the profit & loss account on
proportionate basis by taking into account the year of redemption of security.
23.13 Additional Disclosures as required by Para No. 70 of the Non Banking Financial Company Systemically Important Non Deposit
Taking Company and Deposit Taking Company (Reserve Bank) Directions, 2016.
Nature of
Transaction
Key Management
Personnel
Relatives of key Management
PersonnelAssociates Previous yearTotal
Income
Dividend Nil Nil 81,895 81,895 81,895
Expenses
Remuneration 46,04,332 Nil Nil 46,04,332 41,04,215
Interest 3,44,047 22,63,699 70,50,244 96,57,990 83,59,534
Director meet. fees 1,14,000 36,000 Nil 1,50,000 1,13,500
Service/Outsou.fees Nil Nil 5,40,000 5,40,000 Nil
Dividend 7,37,525 1,97,700 30,93,169 40,28,394 40,31,194
Asset
Preference shares Nil Nil Nil Nil 8,98,000
Liabilities
Equity Shares 59,32,000 19,77,000 2,99,72,000 3,78,81,000 3,83,26,000
Preference Shares 14,50,000 Nil Nil 14,50,000 25,12,850
Deposit 26,14,871 2,12,48,566 Nil 2,38,63,437 2,89,09,658
a) Capital Adequacy Ratio
i) CRAR (%) 21.55% 22.54%
ii) CRAR - Tier I Capital (%) 21.18% 22.17%
iii) CRAR - Tier II Capital (%) 0.37% 0.37%
iv) Amount of subordinated debt raised as Tier-II Capital Nil Nil
v) Amount raised by issue of Perpetual Debt Instruments Nil Nil
Particulars 31st March 2019 31st March 2018
b) Investments
(1) Value of Investments
(i) Gross Value of Investments
(a) In India 480.03 561.51
(b) Outside India Nil Nil
(ii) Provisions for Depreciation
(a) In India Nil Nil
(b) Outside India Nil Nil
(iii) Net Value of Investments
(a) In India 480.03 561.51
(b) Outside India Nil Nil
(2) Movement of provisions held towards depreciation on investments.
(i) Opening balance Nil Nil
(ii) Add : Provisions made during the year Nil Nil
(iii) Less : Write-off / write-back of excess provisions during the year Nil Nil
(iv) Closing balance Nil Nil
(Amount in Rs.Lac)
Particulars
53
31st March 2019 31st March 2018
c) Asset Liability Management (Amt in Lac)
Up to 30/31 days
Over 1 month to2 Month
Over 2months to3 months
Over 3months to6 months
Over 6months to
1 Year
Over 1Year to3 Year
Over 3Year to5 Year
Over 5 Years
Total
Deposits 245.15 102.83 84.70 153.70 671.54 1390.65 418.97 Nil 3067.54
Debentures 107.63 114.98 Nil 290,19 182.31 1123.44 575.24 Nil 2393.79
Bank 0.96 0.97 0.98 2.97 1497.37 11.87 Nil Nil 1515.12
Inflows
Advances 446.96 279.62 278.27 898.51 1524.12 4075.20 1352.50 317.48 9172.65
Investments Nil Nil 90.00 Nil Nil 227.00 163.00 0.03 480.03
Outflows
Borrowings
d) Ratings assigned by credit rating agencies and migration of ratings during the year
Company has obtained Credit Rating of its Fixed Deposits and Bank Loan from CRISIL and has been assigned credit rating of FA- /Stable to
Fixed Deposit and BBB/Stable on Bank Loan Rating. CRISIL has reaffirmed the credit rating at the same level which is valid upto 21st
March 2020.
e) Remuneration of Non-Executive Director
Company has not paid any remuneration to the Non-executive Directors during the year except fees of Rs. 1,49,000/- ( PY 1,17,000) for
attending the meeting of Board of Directors.
f) Provisions and Contingencies
Provisions for depreciation on Investment Nil Nil
Provision towards NPA 113.87 82.24
Provision made towards Income tax 85.56 76.82
Provision for Deferred Tax (27.58) (14.30)
Provision for Standard Assets 1.39 7.98
(Amount in Rs. Lac)
Break up of 'Provisions and Contingencies' shown under the head Expenditure
in Profit and Loss Account
54
31st March 2019 31st March 2018
g) Concentration of Deposits, Advances, Exposures and NPAs
i) Concentration of Deposits
Total Deposits of twenty largest depositors 700.47
Percentage of Deposits of twenty largest depositors to Total Deposits of the NBFC 22.83%
(Amount in Rs. Lacs)
Total Advances to twenty largest borrowers 1147.20
Percentage of Advances to twenty largest borrowers to Total Advances of the NBFC 12.51%
(Amount in Rs. Lacs)
Total Exposure to twenty largest borrowers / Customers 1147.20
Percentage of Exposures to twenty largest borrowers / customers to Total Exposure of
the NBFC on borrowers / customers 12.51%
(Amount in Rs. Lacs)
ii) Concentration of Advances
iii) Concentration of Exposures
Total Exposure to top four NPA accounts 135.68
(Amount in Rs. Lacs)
iv) Concentration of NPAs
v) Sector-wise NPAs
1. Agriculture & allied activities 28.06%
2. MSME 11.68%
3. Corporate borrowers NIL
4. Services NIL
5. Unsecured personal loans NIL
6. Auto loans 7.47%
7. Other personal loans NIL
Sl. No. Sector Percentage of NPAs to Total Advances in that sector
55
h) Movement of NPAs
(i) Net NPAs to Net Advances (%) 5.87% 4.53%
(ii) Movement of NPAs (Gross)
(a) Opening balance 589.50 406.01
(b) Additions during the year 439.20 377.04
(c) Reductions during the year 184.22 193.55
(d) Closing balance 844.48 589.50
(iii) Movement of Net NPAs
(a) Opening balance 377.98 276.74
(b) Additions during the year 260.70 220.57
(c) Reductions during the year 119.59 119.33
(d) Closing balance 519.09 377.98
(iv) Movement of provisions for NPAs (excluding provisions on standard assets)
(a) Opening balance 211.52 129.27
(b) Provisions made during the year 178.50 156.47
(c) Write-off / write-back of excess provisions 64.63 74.22
(d) Closing balance 325.39 211.52
(Amount in Rs.Lac)
Particulars 31st March 2019 31st March 2018
Liabilities side :
(1) Loans and advances availed by the NBFCs inclusive of
interest accrued thereon but not paid :
(a) Debentures : Secured 2600.94 120.30
: Unsecured ---------- ----------
(other than falling within the meaning
of public deposit)
(b) Deferred Credits ---------- ----------
(c) Term Loans 23.87 ----------
(d) Inter-Corporate loans and borrowing 221.20 ----------
(e) Commercial Paper ---------- ----------
(f) Public Deposits 2842.12 184.58
(g) Others --------- ----------
i) Directors & Directors relatives 307.20 ----------
ii) Bank Borrowings 1491.25 ----------
(2) Break-up of (1) (f) above (Outstanding public deposits
inclusive of interest accrued thereon but not paid) :
(a) In the form of unsecured debentures ---------- ----------
(b) In the form of partly secured debentures i.e. debentures ---------- ----------
where there is a shortfall in the value of security.
(c) Other public deposits 2842.12 187.58
Assets side :
Amount outstanding
(3) Break-up of Loans and Advances including bills receivables
(other than those included in (4) below) :
(a) Secured 73.15
(b) Unsecured 11.10
NOTE NO. 24[Schedule to the Balance sheet as required in terms of Paragraph 18 of Non-Banking
Financial Company systematically Important Not Deposit taking Company &
Deposit taking Company (Reserve Bank) Directions 2016]
Particulars
(Rs. in lakhs)
Amount Outstanding
Amount Overdue
56
57
(4) Break-up of Leased Assets and stock on hire and other assets
counting towards AFC activities
(i) Lease assets including lease rentals under sundry debtors :
(a) Financial lease ----------
(b) Operating lease ----------
(ii) Stock on hire including hire charges under sundry debtors:
(a) Assets on hire ----------
(b) Repossessed Assets ----------
(iii) Other Loans counting towards AFC activities :
(a) Loans where assets have been repossessed ----------
(b) Loans other than (a) above 9088.44
(5) Break-up of Investments :
Current Investments :
Quoted :
(i) Shares : (a) Equity ----------
(b) Preference ----------
(ii) Debentures and Bonds ----------
(iii) Units of mutual funds ----------
(iv) Government Securities ----------
(v) Others (please specify) ----------
Unquoted :
(i) Shares : (a) Equity ----------
(b) Preference ----------
(ii) Debentures and Bonds ----------
(iii) Units of mutual funds ----------
(iv) Government Securities ----------
(v) Others ----------
Long Term Investments :
1. Quoted :
(i) Shares : (a) Equity ----------
(b) Preference 0.03
(ii) Debentures and Bonds ----------
(iii) Units of mutual funds ----------
(iv) Government Securities 340.00
(v) Others ----------
2. Unquoted :
(i) Shares : (a) Equity ----------
! (b) Preference ----------
(ii) Debentures and Bonds ----------
(iii) Units of mutual funds ----------
(iv) Government Securities 140.00
(v) Others (please specify) ----------
58
(6) Borrower group-wise classification of assets financed as in (3) and (4) above :
Amount net of Provisions
Category Secured Unsecured Total
1. Related Parties
(a) Subsidiaries ---------- ---------- ----------
(b) Companies in the same group ---------- ---------- ----------
(c) Other related parties ---------- ---------- ----------
2. Other than related parties 8836.20 11.06 8847.26
Total 8836.20 11.06 8847.26
(7) Investor group-wise classification of all investments (current and long term) in shares and
securities (both quoted and unquoted)
Category Market Value/ Book Value
Break up or fair (Net of
value or NAV Provisions)
1. Related Parties
(a) Subsidiaries ---------- ----------
(b) Companies in the same group ---------- ----------
(c) Other related parties ---------- ----------
2. Other than related parties 480.00 480..0
Total 480.00 480..00
(8) Other information
Particulars Amount
(i) Gross Non-Performing Assets
(a) Related parties ----------
(b) Other than related parties 844.48
(ii) Net Non-Performing Assets
(a) Related parties ----------
(b) Other than related parties 519.09
(iii) Assets acquired in satisfaction of debt ----------