Maharashtra apex annual report 2009

7/30/2019 Maharashtra apex annual report 2009

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65

2008-09


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L a te S r i T R am e sh U P ai

Respectful Salutations...


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B O A RD O F D I R EC T OR S

E x e cu t i ve D i r ec t o r : S r i G A R E G O

D i r ec t o r : S r i S R G O W DA

D i r ec t o r : S r i K B S H E TT Y

C o mp a ny S e cr e ta r y : S r i J M PA N DE Y

Bankers : SYNDICATE BANKCORPORATION BANKICICI BANK LTD.KARNATAKA BANK LTD.

A u di t or s : M / s R AO & S WA M IChartered AccountantsVidyarathna BuildingUDUPI - 576 101

Registered Office : "Syndicate House"Upendra NagarMANIPAL - 576 104

S h a re T ra n s fe r A g e nt s : M / s P u r va S h a re g i st r y ( I n di a ) P v t .L t d .Unit: Maha Rashtra Apex Corporation Ltd.9 S h i v S ha k ti I n du s tr i al E s ta t e

7 - B J R B o r ic h a M ar gMUMBAI - 400 011


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NOTICE

N OT I CE i s h e re b y g i ve n t h at t h e 6 5t h A n nu a l G e ne r al M e et i ng o f t h e m e mb e rs o f M A HA R AS H TR A A P EXCORPORATION LIMITED will be held as follows:

Date : Wednesday, September 30, 2009 Time : 4.00 p.m.Venue : MANIPAL JUNIOR COLLEGE AUDITORIUM, MANIPAL - 576 104

The Agenda for the meeting is given below:

1. To receive, consider and adopt the audited Profit & Loss Account for the year ended 31st March, 2009 and the

Balance Sheet as on that date and the Report of the Board of Directors and Auditors thereon.

2. To Appoint a Director in the place of Sri S R Gowda who retires by rotation and being eligible offershimself for reappointment.

3. To appoint Auditors and to fix their remuneration.

SPECIALBUSINESS:

4. To consider and if thought fit to pass the following Resolution with or without modification as a Special Resolution.

"RESOLVED THAT pursuant to the provisions of Section 269 and other applicable provisions of theCompaniesAct, 1956 (read with schedule XIII of the CompaniesAct, 1956) and in terms of Clause No.134 & 180

o f t h e C o m pa n i es A r t i cl e s o f A s s oc i a t io n a n d s u b je c t t o t h e a p p ro v a l o f m e m b er s o f t h e C o m pa n y S r i G A R e g o b eand is hereby reappointed as Executive Director of the Company for a period of 2 years from 1st December, 2009".

5. To consider and if thought fit to pass the following Resolution with or without modification as a Special Resolution.

"RESOLVED that the Registered Office of the Company be changed from 3rd Floor, Syndicate House,Manipal - 576 104 to 3rd Floor, Front wing, North Block, Manipal Centre, 47, Dickenson Road, Bangalore - 560 042with effect from 01.10. 2009."

By Order of the Board,

M an ip al G A R eg oAugust 28, 2009 Executive Director


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NOTES:

1. A member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote instead of himself and the proxy need not be a member.

2 . D u l y c o m p l et e d i n s t r u m en t o f p r o xy m u s t b e l o d ge d w i t h t h e C o m pa n y 's R e g is t e re d O f fi c e n o t l e s s t h a n48 hours before the meeting time.

3 . T h e R e g is t e r o f M e m b er s a n d s h a re t r a ns f e r b o o ks o f t h e C o m pa n y s h a ll r e m a in c l o se d f r o m 2 8 . 9. 2 0 09to 30.9.2009 (both days inclusive).

4. Members are requested to bring their copy of the Annual Report along with them to the meeting.


M an ip al G A R eg oAugust 28,2009. Executive Director

I NF OR MAT IO N UN DE R CL AU SE 4 9 OF T HE L IS TI NG A GR EE ME NT R EG AR DI NG R EA PP OI NT ME NT O FDIRECTORS AND EXPLANATORY STATEMENT UNDER SECTION 173(2) OF THE COMPANIES ACT, 1956.

ITEM NO.2

S r i S R G o w da , an En g i ne e r in g G r a du a t e h a s g o t a m p l e e x p er i e nc e i n th e f i e l d o f ad m i n is t r at i o n a s w e l l a s P u b li crelation and he has acquired sufficient knowledge in the field of finance to be competent to become one of the directorsof the Company.

He is also a Director in the following Company:

1. Canara Steel Ltd.2. Canara Nidhi Ltd.3. Manipal Home Finance Ltd.4. Maharashtra ApexAsset Management Co.Ltd.5. Manipal Gold Co.Ltd.6. Manipal Chit Fund Pvt.Ltd.7 . M a n i pa l M e d i R e c or d s P v t .L t d .8. Manipal Coir & Foam Pvt.Ltd.9. Metropolis Builders Pvt.Ltd.

1 0 . C h i tr a k al a A p a rt m e nt s P v t .L t d .


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11 . E l 'd o ra d o S ha r e S er v ic e s P v t . Lt d .1 2. D ag ny I nv es tm en ts P vt .L td .1 3. C r im s on E s t at e & P r o pe r ti e s P v t .L t d.14. Rajmahal Trade & Investments Pvt.Ltd.15. Anil Sunil Trade & Investments Pvt.Ltd.16. Jaymahal Trade & Investments Pvt.Ltd.

He is member of Shareholder/Investor's Grievance Committee and Audit Committee.

ITEM NO.4

S ri G A R eg o , w as a p po i nt e d a s E x ec ut i ve D i re c to r o f t h e C o mp a ny I n it i al l y f o r a p e ri o d o f f i ve y e ar s f r om1st December, 2001 to 30th November, 2006. On expiry of this term he was reappointed by the Board for a further period of three years from 1st December, 2006 to 30th November, 2009. The Board has again decided to continue his

appointment as Executive Director for two more years from 1st December, 2009 to 30th November, 2011. The termsof reappointment of Sri G A Rego as Executive Director are as follows:

a) Salary: Rs.14,520/- per month with suitable annual increment as decided by the Board.b) Conveyance Allowance: Rs.5,445/- per month.c ) M e d i ca l R e i mb u r se m e nt : F o r s e l f a n d h i s f a m i ly m e m b er s . T h e t o t al c o s t o f w h i ch s h a ll n o t e x c ee d o n e m o n th ' s

salary in a year.d ) L e a ve T r a v el C o n c e s si o n : O n c e i n 2 y e a r s i n a c c or d a nc e w i t h C o m pa n y 's r u l e s.e ) L e av e : O n fu l l p a y a n d a l lo w an c es i n a c co r da n ce w it h th e ru l es o f t h e C om p an y.

f) Club Fees: Reimbursement of one Club fees other than admission fee.g ) P e r so n a l A c c i d e nt I n s ur a n ce : I ns u r an c e c o v er a g e u p t o a n e x t en t o f R s . 2 l a k hs o n l y.h) Provident Fund: Company's contribution to PF as per the applicable rules and norms.i) Leave Encashment: Encashment as per the rules of the Company.

j) Car Facility: Provision of a car with Driver for use on Company's business.k ) Te l e ph o n e: P r ov i s i on o f t e l ep h o ne a t r e s id e n ce f o r b u s in e s s p u r po s e .

Variation: The terms and conditions as set out in the above resolution may be altered or varied from time to time by theBoard at its absolute discretion so as not to exceed the limits of Schedule XII.

Notice: The appointment may be terminated by either party by giving 3 months notice to the other Party.

S i n ce S r i G A R e g o i s a b o ve 7 0 y e a rs a p p ro v a l o f m e m b er s i s r e q ui r e d b y S p e ci a l R e s ol u t io n a n d h e n ce t h e s a m e h a sbeen proposed to be passed as a Special Resolution.


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ITEM NO.5

The Registered office of the company is at present situated at Manipal. For better administrative convenience it isproposed to shift the Registered Office from Manipal to Bangalore. The above shifting will be within the same State of Karnataka and within the jurisdicti on of the same Registrar of Compan ies. In order to change the Registered Officewithin the same state, the consent of the share-holders is required by means of a special resolution. Hence the sameis being placed for your approval at thisAGM.

The Board considers that the change of Registered office is in the best interest of the company and recommend theresolution for approval of members. No Director is concerned or interested in this resolution.


M an ip al G A R eg oAugust 28, 2009 Executive Director


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DIRECTORS' REPORT

TO THE MEMBERS,

Your Directors have pleasure in presenting the 65th Annual Report and Audited Statements of Account for the year ended31st March, 2009.

FINANCIAL RESULTS (Rs. in lakhs)

REVIEW OF OPERATION

T h e C o m pa n y c o u ld n o t i n v ol v e i n f u n d b a s ed b u s in e s s a c t iv i t i es d u e t o C a n ce l l a ti o n o f i t s l i c e nc e b y t h e R e s er v eB a n k o f I n d ia . T h e r e c ov e r y p o s it i o n f r o m t h e b o r ro w e rs d u r in g t h e y e a r i s n o t f u l l s a t i sf a c to r y. T h e c o m p an y i s i n t h ep r o ce s s o f d i s po s i ng of f i t s a s s et s i n c lu d i ng in v e st m e n ts i n K u r lo n L i m i te d t o a r r an g e a d e qu a t e f u n ds t o r e p ay t h eDeposits/Bonds. The Hon'ble High court of Karnataka has given permission to sale of investments in Kurlon Limited. It isw o r th m e nt i o n in g t h a t t h e Co m p an y i s i n t he p r oc e s s o f au g m en t i ng f u n ds t h r ou g h a l l p o s si b l e c h a nn e l s t o ex p e di t e t h erepayment of Deposits/Bonds even though the requirements as per the order of High Court of Karnataka could not befulfilled in time as expected. During the year under review the collection of dues under HP/Lease/Loan/Bills etc was to thetune of Rs.494.14 lacs.

Year ended Previous Year March 31, 2009 March 31, 2008

Profit before Interest, Depreciation,Lease Equalisation andProvision for Taxation 134.61 2039.67

Less: Interest 361.01 351.37Lease Equalisatio n (49.46) (58.39)Depreciatio n 88.87 96.52

400.42 389.50

(265.81) 1650.17

Less: Provision for Taxation 0.00 300.00

( e a rl i e r y e a rs p a i d)Provision for Fringe Benefit Tax 1.25 1.20( e a rl i e r y e a rs p a i d)Prior Period item adjustment (Net of Tax) 14.75 0.00

Net Profit/Loss (281.81) 1348.97

Add: Previous year's surplus (11097.52) (12446.49)

Amount available for disposal (11379.33) (11097.52)


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The Company posted a net loss of Rs. 281.81 lakhs for the Current year. In view of this loss the Board expressed itsinability to declare dividend to Equity/Preference Shareholders.

SCHEME OFARRANGEMENT

I n t e rm s o f S c he m e o f ar r a ng e m e nt s a n ct i o ne d b y t h e H on ' b le H i g h Co u r t of K a r na t a ka , t h e Co m p an y h a s r e p ai dDeposits/Bonds aggregating to Rs. 95.11 Crores till 31.3.2009. The details are given below:

(Rs.in Lakhs)

PERSONNELThe Staff strength has been reduced considerably and the minimum staff members required for functioning of theCompany are retained. The above austerity measures taken by the management helped a lot to reduce the over headsof the Company.

None of the employees of the Company is in receipt of remuneration exceeding the limits as specified in Section 217(2A)of the CompaniesAct, 1956.

SUBSIDIARYCOMPANIESAs required under Section 212 of the Companies Act,1956 the Audited Statement of Accounts along with reports of theB o a rd o f D i r ec t o rs a n d A u d it o r s o f S u b si d i a ry C o m pa n i es n a m el y M a h a ra s h tr a A p e x A s s e t M a n ag e m en t C o m pa n yLtd., Crimson Estates & Properties Pvt. Ltd., El'Dorado Investments Pvt. Ltd., and Riviera Steels Pvt. Ltd., are annexed.

DIRECTORSS r i G A R e g o' s a p p oi n t m en t a s E x e cu t i ve D i r ec t o r e x p ir e s o n 3 0 t h N o v em b e r, 2 0 0 9. T h e B o a rd o f D i r ec t o rs i n t h e i r meeting held on 28th August, 2009 has decided to reappoint him for a further period of two years from 1st December, 2009to 30th November, 2011.

T h e n e ce s s ar y r e s ol u t i on f o r h i s r e a pp o i nt m e nt i s p u t u p f or t h e S h a re h o ld e r s a p p ro v a l i n t h e e ns u i ng A nn u a l G e n er a lMeeting.

Sri S R Gowda, Director retires in the ensuing Annual General Meeting and being eligible offers himself for reappointment.

Category Payable Paid till31.03.09

Face Value of Rs.5000/- & Less 1258.70 1160.69Instalments (Above Rs.5000/-)I 3448.10 3448.10II 4503.00 4503.00III 5211.00 397.90IV 3516.40 1.90TOTAL 17937.20 9511.59


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DIRECTORS' RESPONSIBILITY STATEMENT

As required under Section 217(2AA) of the Companies Act,1956, your Director confirm that:

i) In the preparation of the annual accounts,the applicable accounting standards have been followed along withproper explanations relating to material departures.

I i ) A p p ro p r ia t e a c c ou n t in g p o l i ci e s h av e b ee n s el e c te d a n d ap p l i ed t h e m c o n si s t en t l y a n d m a d e j u d gm e n ts a n destimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company ason 31st March, 2009 and of the loss of the Company for the year ended as on that date.

iii) Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordancewith the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventingand detecting fraud and other irregularities.

iv) The annual accounts have been prepared on a going concern basis.

REPLY TO AUDITORS' OBSERVATION

T h e B o a rd i s t a k in g va r i ou s s t e ps t o a cc e l er a t e r e c ov e r y. I t h a s c o n st i t ut e d an A s s et R ec o v er y B o a rd w it h a de q u at epowers to settle One time Settlement Cases. Recovery Facilitators are also appointed at selected places. Special effortsare on to induce the loan defaulters and bring them forward for settlement. The Company has met fair success in thisprocess.

Consequent to the closure of most of the branches and discontinuation of business activities,there has not beenany Significant transactions which merit the continuance of Internal Audit system. Hence as a cost cutting measurethe InternalAudit System has been discontinued with effect from the year 2003.

With regard to Auditors' observation in Paras 2(e)(f)(g)(i)(j)(k) and (l) explanations given in the relevant notes B(1) to B(5),B(16), B(19), B(23), and B(24) of Schedule 'M' of the Accounts are self-explanatory.

AUDITORS

M/s Rao & Swami, Chartered Accountants, Udupi, the present auditors of the Company retire at the forthcoming

Annual General Meeting. A Certificate under Section 224(1B) of the Companies Act,1956 has been received from theAuditors, confirming that the appointment if made will be within the prescribed limits.

CONSERVATION OF ENERGY, TECHNOLOGY, ABSORPTION AND FOREIGN EXCHANGE

As your Company is not engaged in manufacturing activities, there is no information to submit in respect of the above.

CORPORATE GOVERNANCE


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As required under Clause 49 of the Listing Agreement a detailed Report on Corporate Governance is enclosed. ACertificate from the Auditors regarding compliance of the conditions of Corporate Governance is made as part of thisReport.

CASH FLOW STATEMENT

In conformity with Clause 32 of the Listing Agreement with Stock Exchanges the Cash Flow Statement for the periodended 31st March, 2009 is Annexed herewith.

ACKNOWLEDGEMENTS

Your Directors would like to express their gratitude to all the Bankers of the Company for their continued support and co-operation. The Directors also thank the customers, creditors and shareholders for their support and the staff membersfor their devoted services.

For and On behalf of the Board,

M a n ip a l G A R e g o K B S h e tt yAugust 28, 2009 Executive Director Director


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CORPORATE GOVERNANCE REPORT 2009

COMPANY'S PHILOSOPHY

The Company is keen to maintain excellent Corporate Governance and in this connection it has made all out efforts toensure that its objectives are achieved without leaving any stone unturned under any circumstances.

BOARD OF DIRECTORS

Composition of Board

The Board of Directors of the Company consists of Executive Director and Non-Executive Directors as on 31st March,2009. 66% of the Board Members consisted of Non-Executive and independent Directors. Composition of the Boardof Directors of the Company and their other Directorship(s)/Committee Membership(s)/Chairmanship(s) as on 31stM a r ch , 2 0 0 9 w a s a s u n d er :

Six Board Meetings were held during the period 2008-09. These meetings were held on 28th April 2008, 29th July 2008,18th August 2008, 25th October 2008, 24th January 2009 & 17th February 2009. The details are follows:

* Expired on 18.7.2008

AUDIT COMMITTEE

Composition of the Audit Committee meets all the criteria under the law. The Committee comprises of three Directors,majority being Non-Executive and independent. It met five times during the period 2008-2009 on 28th April 2008, 29thJuly 2008, 18th August 2008, 25th October 2008 and 24th January 2009.

The Audit Committee comprised of the following members:

T h e C o m p an y S e c re t a ry a c t s a s t h e S e c r et a r y t o t h e A u d it C o m m i t t ee .

S l .N o. N am e o f D i re c to r C at e go r y o f D i re c to r sh i p N o . o f M e et i ng A t te n da n ce N o . o f o t he r N o. o f M em b er s hi pAttended at last AGM Directorship Chairman(C)

1. Smt. Shanthi R Pai* Pr omoter Non-Executive 1 No 1 2Chairperson

2. Sri G A Rego Executive/Whole time Director 6 Yes 15 23. Sri S R Gowda Independent-Non-Executive 6 Yes 16 24. Mr K B Shetty Independent- Non-Executive 5 No Nil 2

Sri K B Shetty ChairmanS m t . S h a nt h i R P a i M e m b er u p t o 1 8 . 07 . 2 00 8S r i G A R e g o M e m b er f r o m 2 9 . 07 . 2 00 8S r i S R G o w da M e m b er


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Attendance of the Directors in the Audit Committee Meeting:

REMUNERATION COMMITTEE

T h e N o n -E x e cu t i ve D i r ec t o rs s t o pp e d d r a wi n g a n y r e m un e r at i o n b y w a y o f s i t ti n g f e e s f o r a t t en d i ng B o a rd /Committee Meetings. Therefore remuneration committee has not been formed.

Details of remuneration paid to the Whole-Time Director during the period from 1.4.2008 to 31.3.2009 is given here below:

i) Whole-Time Director ... Rs. 2.74 lakhsii) Non-Executive Directors ... Nil

SHAREHOLDERS/INVESTORS GRIEVANCE COMMITTEE

The Committee comprising three members of the Board, approves transfers, transmission issue of duplicate shares andr e v ie w a n d r e d re s s S h a re h o l d er s g r i ev a n ce s / co m p l ai n t o n m a t t er s r e l at i n g t o t r a ns f e r o f s h ar e s a n d n o n- r e ce i p t o f Balance Sheet. The Committee met 19 times during the year under report.

The composition of Shareholders/Investors' Grievance Committee and attendance of members in the meeting are givenbelow:

Date of Meeting No. of Members Present

28.04.2008 329.07.2008 218.08.2008 325.10.2008 324.01.2009 3

Sl.No Name of Director Category of Directorship No.of Meeting Attended

1. Smt Shanthi R Pai Promoter Non-ExecutiveChairperson (upto 18.07.2008) 6

2. Sri G A Rego Executive Director 19

3. Sri S R Gowda Independent-Non-Executive 194. Sri K B Shetty Independent-Non-Executive 1


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ANNUALGENERALMEETINGS

The last three Annual General Meetings were held at Manipal Junior College Auditorium, Manipal as under:

All the resolutions as set out in the respective notices were passed by the Shareholders. No special resolution wasrequired to be put through Ballot.

POSTAL BALLOT

T h e N o t ic e o f 6 5 t h A n n ua l G e n er a l M e e ti n g f o r t h e y e a r 2 0 0 9 d o e s n o t C o n ta i n a n y i t e m w h i ch r e q ui r e s a p p ro v a l b y

Postal Ballot.

DISCLOSURES

Due to non-compliance of certain clauses of Listing Agreement the Trading of the Company's scripts was suspended byNSE and BSE on 11.11.2002 and 6.7.2005 respectively.We have already taken adequate steps to fulfill the requirementsof NSE and BSE to get the suspension revoked as early as possible.

T h e C o m pa n y d o e s n o t h a v e a n y r e l at e d p a r ty t r a ns a c ti o n s t h a t a r e m a t er i a l i n n a t ur e e i t he r w i t h i t s p r o mo t e r s a n d /o r their subsidiary Companies, Directors, Management and relatives etc.

MEANS OF COMMUNICATION

a) Quarterly/Half-Yearly Financial Results of the Company are forwarded to Stock Exchanges in addition to getting thesame published in the National & Regional Newspapers as per the Listing Agreement.

b) Company does not have web site.c ) C o m pa n y h a s n o t m a d e a n y p r e se n t at i o ns t o a n y i n s ti t u t io n a l I n v e s t o rs / A n a ly s t d u r i ng t h e y e a r.

AGM No. DATE TIME Special Resolution required for

62 29.09.2006 4.30 p.m i) Appointment of Sri G A Rego asExecutive Director (whole time Director)

ii) Alteration of Memorandum & Articles of Associationdue to sub-division of Shares

63 28.9.2007 4.00 p.m iii) Alteration of Memorandum & Articles of Associationdue to Consolidation of Equity Shares.

64 29.9.2008 4.00 p.m Nil


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MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Consequent upon the cancellation of the NBFC licence the Company desisted from accepting deposit and doingHire Purchase/Lease/Loan Business. At present Company's activities are restricted to recovery of Hire Purchasei n s ta l m en t s / Lo a n s. T h e C o m pa n y i s a l s o c o n ce n t ra t i ng o n r e p ay m e nt o f D e p os i t /B o n ds a s p e r t h e S c h em e o f arrangement/restructure sanctioned by the Hon'ble High Court of Karnataka.

BUSINESS REVIEW

During the year the Company recovered a sum of Rs.494.14 lakhs by way of cash and Bond/Deposit adjustments.

R E PAY M E NT O F D E P OS I T /B O ND

I n t e r ms o f S c h em e o f a r r an g e m en t s a n ct i o ne d b y t h e H o n 'b l e H i g h C o u rt o f K a r na t a ka , t h e C o m pa n y h a s r e p ai dpublic investments aggregating to Rs.95.11 Crores till 31.3.2009. The details are given below:

(Rs. in Lakhs)

INTERNALCONTROLSYSTEM

All payments are made from Head Office only and existing Branches are not permitted to disburse any amount withoutobtaining prior approval from Head Office.

DISCUSSION ON FINANCIALPERFORMANCE

This subject has been covered in the Directors' Report.

HUMAN RESOURCE DEVELOPMENT

The number of staff has been reduced to the minimum which is essential to run the organisation. There are only 70 Staff members working in the entire organisation as on 31.3.2009.

Category Payable Paid till31.03.09

Face Value of Rs.5000/- & Less 1258.70 1160.69Instalments (Above Rs.5000/-)I 3448.10 3448.10

II 4503.00 4503.00III 5211.00 397.90IV 3516.40 1.90TOTAL 17937.20 9511.59


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GENERAL SHAREHOLDERS INFORMATION

a ) A n n ua l G e n er a l M e e ti n g : 6 5 t h A n n ua l G e n er a l M e e ti n gDate : 30.09.2009Time : 4.00 p.m.Venue : Manipal Junior College Auditorium, Manipal -576 104.

b ) F in an ci al Ye ar : 1 st A pr il t o 3 1s t M ar ch .c) Date of Book-Closure : 28.9.2009 to 30.9.2009 (both days inclusive) for the purpose of

Annual General Meeting of the Company.d ) D i v id e n d : T h e B o a rd o f D i r ec t o rs h a v e n o t r e c om m e n de d a n y d i v id e n d o n

Equity/Preference Shares for the period 2008-09.

e) Registered Office : Syndicate House, Manipal - 576 104f ) L i st i ng o n S t oc k -E x ch a ng e : T he E qu i ty S h ar e s a r e l i st e d a t t h e B o mb a y S t oc k E x ch a ng eExchange Ltd. & National Stock Exchange Ltd.

The Listing Fee for the year 2008-09 has been paid to both of the Stock Exchanges.

g) a) Stock Code BSE : 523384NSE : MAHAPEXLTD

b) Demat ISIN Number of Equity Shares of the Company: INE843B01013

As on 31st March, 2009, 45, 57,109 Equity Shares forming 32.21% Share Capital of the Company stands dematerialised.

h ) M ar ke t R at e D at a : N ot A va il ab le

Registrar and Share Transfer agents for physical and demat shares:M/s Purva Sharegistry (India) Pvt.Ltd.9 S h i v S h ak t i I n du s tr i al E st a te7 - B J R B o r ic h a M a rgMUMBAI - 400 011

I) DISTRIBUTION OF EQUITY SHAREHOLDING ON 31st MARCH, 2009

N o . o f s h a r es N o . o f S h a re h o l de r s N o o f S h a r es P e r c en t a ge

1 To 500 10252 2634866 18.68%501 To 1000 1349 958292 6.74%

1001 To 2000 411 575210 4.06%2001 To 3000 84 211307 1.48%3001 To 4000 33 114439 0.80%4001 To 5000 14 62064 0.44%5001 To 10000 34 246053 1.74%

Above 10000 31 9347869 66.06%

Total: 12208 14150100 100.00


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SHAREHOLDING PATTERN AS ON 31st MARCH, 2009

j) Plant Locations : Nil

K) Address of the Registrar & Share Transfer Agent for correspondence:

M/s Purva Sharegistry (India) Pvt.Ltd.Unit Maha Rashtra Apex Corporation Ltd.9 S h i v S h a kt i I n d us t r ia l E s t at e7-B J R Boricha MargMUMBAI-400 011Phone: (022) 2301 6761E-mail:[email protected]

DECLARATION

Pursuant to Clause 49 of the Listing Agreement with Stock Exchanges, all Board Members and Senior ManagementPersonnel affirmed compliance with the respective provisions of code of Conduct of the Company for the year ended31st March, 2009.

G A R e g oExecutive Director

C a t eg o r y N o . o f s h a re s P e r ce n t ag e o f held Shareholding

A. Directors, Relatives/Friends and associates 87,03,442 61.51

B . I n s ti t u t io n a l I n v e s t o rs - -C . M u t u al F u n ds a n d U T I - -D . B a n ks 2 , 0 98 0 . 0 1E . F I Is - -

F. Private Corporate Bodies 52,528 0.37G. Indian Public 53,90,942 38.10H. NRIs/OCBs 1,090 0.01I. Any other(Please specify) - -

GRAND TOTAL ... 1,41,50,100 100.00


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AUDITORS' CERTIFICATE

We have examined the compliance of corporate governance by Maha Rashtra Apex Corporation Ltd (the Company)for theyear ended 31st March, 2009, as stipulated in Clause 49 of the Listing Agreement of the Company with Stock Exchanges.

The Compliance of conditions of corporate governance is the responsibility of the management.Our examination waslimited to procedure and implementation thereof,adopted by the Company for the ensuring the compliance of theCorporate Governance.It is neither an audit nor an expression of opinion on the financial statements of the Company.

Based on such examination, to the best of our information and according to the explanations given to us,we certify thatthe Company has complied with the material conditions of Corporate Governance as stipulated in the above mentioned

listing agreement.

We state that no investor grievance is pending for a period exceeding one month against the Company as per the recordsmaintained by the Company.

W e f u r th e r s t a te t h a t s u c h c o m pl i a nc e i s n e i th e r a n a s s ur a n ce a s t o t h e f u t u re V i ab i l i ty o f t h e C o m pa n y n o r t h eefficiency or effectiveness with which the management has conducted the affairs of the Company.

for RAO& SWAMI,Chartered Accountants

U d up i P V S HE NO Y

August 28, 2009 PartnerMembership No. 020205


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A U D IT O RS ' R E P OR T

To the members of MAHA RASHTRA APEX CORPORATION LIMITED

We have audited the attached Balance Sheet of MAHA RASHTRA APEX CORPORATION LIMITED as at 31st March,2009 and the annexed Profit & Loss Account for the year ended on that date. These financial statements are ther e s po n s ib i l it y o f h e Co m p an y ' s M a n ag e m en t . O u r r e s po n s ib i l it y i s t o ex p r es s a n o p i ni o n o n t h e se f in a n ci a l s t a te m e nt sbased on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards requirethat we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of

material misstatement. An audit includes, examining on a test basis, evidence supporting the amounts and disclosuresin the financial statements. An audit also includes assessing the accounting principles used and significant estimatesmade by the Management, as well as evaluating the overall presentation of the financial statements. We believe that ouraudit provides a reasonable basis for our opinion.

1 . A s r e q ui r e d b y t h e C o m pa n i es ( A u di t o r 's R e po r t ) O r d er , 2 0 0 3 a s a m e nd e d b y t h e C o m pa n i es ( A u di t o r 's R e p or t )(Amendment) Order 2004 issued by the Central Government in terms of Section 227 (4A) of the CompaniesAct, 1956, we give in the annexure a statement on the matters specified in Paragraphs 4 and 5 of the said order,tothe extent applicable to the Company.

2. Further to our comments in the Annexure referred to in Paragraph (1) above, we report that:

a) We have obtained all the information and explanations,which to the best of our knowledge and belief werenecessary for the purpose of our audit.

b ) I n o u r o p i ni o n , p r o pe r b o o ks o f a c c ou n t a s r e q ui r e d b y l a w h a v e b e e n k e p t b y t h e C o m pa n y s o f a r a s a p p ea r sfrom examination of those books.

c) The Balance Sheet and Profit & Loss Account referred to in this report are in agreement with the books of account.

d) On the basis of the written representations received from the Directors as on 31st March, 2009 and taken onrecord by the Board of Directors, we report that none of the Directors are disqualified as on 31st March, 2009

from being appointed as Directors of this Company in terms of Clause (g) of Sub-section (1) of Section 274 of theCompaniesAct, 1956.

e) In our opinion, the Balance Sheet and Profit & Loss Account, dealt with by this report, have been prepared incompliance with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956, exceptNote Nos.B(14) B(17) and B(20) of Schedule-M regarding creation of Capital Redemption Reserve for redemption of 14% Cumulative Preference Shares, Non-disclosure of information in respect of acturial valuationas required under Accounting Standared 15 Employee Benefits (Revised 2005) referred in the Note No. 8 and creation of Deferred taxAsset.


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f) In terms of direction issued by RBI, we state that:i) The Company has not obtained Credit Ratingii) The CapitalAdequacy Ratio is negative.iii) There has been some delay in submission of Statements to RBI.i v ) I n vi e w o f th e ne g a ti v e n e t wo r t h, a ll l e n di n g s a n d i n v es t m en t s a r e i n ex c e ss o f Cr e d it C on c e nt r a ti o n L i m it

stipulated by the Reserve Bank of India.v) The company has encashed all the approved securities and utilised for repayment of deposits.

g ) T ho u gh t h e n e tw o rt h o f t h e C o mp an y i s n eg a ti v e, i t h a s p r ep a re d t h e a c co un t s o n " g oi n g c o nc e rn " b a si s o nthe presumption that deficit in operations will be effectively monitored (refer Note No. B (3) of Schedule-M).

h) By its order dated 13th June, 2002, RBI has cancelled the Certificate of Registration granted to the Company toact as Non-Banking Financial Company.

i) Accrued interest on deposits and bonds were provided upto 31.3.2002 only as per the Scheme of Restructureo f t h e de b t s o f t h e Co m p an y a s s a n ct i o ne d b y t h e H on ' b le H i g h C o u rt o f K a rn a t ak a ( r ef e r N ot e B ( 1) ( a ) of Schedule-M).

j ) T h e c o m pa n y h a s s t o pp e d r e p ay m en t o f d e p os i t s/ b o nd s o n m a t ur i t y d a t es , t i l l t h e s a n ct i o n o f S c h em e o f Restructure by the Hon'ble High Court of Karnataka on 8th October, 2004. Now the company has started

repayment under the sanctioned Scheme and the short fall in repayment amounted to Rs. 84.26 crores (refer Note Nos.B(1) and (2) of Schedule-M).

k) Though the management is of the view that it will be able to monitor effectively the deficit in operation, we areunable to comment on the ultimate realisability of company's assets.

l) Provision has not been made as required under RBI Prudential Norms since 1.4.2000. Had this been provided for, the net assets would have been less and the accumulated loss would have been more by the provisionrequired (Refer Note No. B(6) of Schedule-M).

m) Subject to the comments made in Para (e), (f), (g), (h), (i), (j), (k) and (l) above, in our opinion and to the best of our information and according to the explanations given to us the said accounts read together with the notes

thereon give the information required by the Companies Act, 1956, in the manner so required and give a trueand fair view:

( i ) i n t h e c a s e o f t h e B a l an c e S h e et , o f t h e s t a te o f a f f ai r s o f t h e C o m pa n y a s a t 3 1 s t M a r ch , 2 0 0 9 a n d ,(ii) in the case of the Profit & Loss Account, of the Loss for the year ended on that date.iii) in the case of Cash Flow statement, of the Cash Flow for the year ended on that date.

for RAO & SWAMI,Chartered Accountants

UDUPI P V ShenoyAugust 28, 2009 Partner

Membership No.020205


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A N N EX U RE T O A U DI T OR S ' R E PO R TReferred to in Paragraph 1 of our report of even date:

i ) T h e C o m pa n y h a s m a i nt a i ne d p r o p er r e c o r ds s h o w i ng f u l l p a r ti c u la r s i n c lu d i ng q u a n t it a t iv e d e t a il s a n dsituation of fixed assets. We are informed that these fixed assets have been physically verified by the Managementonce in a year and no serious discrepancies have been noticed on such verification. We are informed that assetson lease are not physically verified as most of the lease accounts are under legal proceedings and the value of these assets are not significant.

i i ) T h e C o m pa n y h a s i n f or m e d u s t h a t s t o ck o n h i r e c o u ld n o t b e p h y si c a l ly V er i f i ed a s m o s t o f t h e h i r e p u r ch a s eaccounts are irregular and legal proceeding are in progress for recovery of dues.

I i i ) a ) A s p e r t h e e x p la n a ti o n s fu r n is h e d by t h e M an a g em e n t , d u r i ng t h e ye a r t he C o m pa n y h a s n ot g r a nt e d a nyloans, secured or unsecured to Companies, Firms or other parties listed in the Register maintained underSection 301 of the CompaniesAct, 1956.

b) We are informed that certain Companies to which loans were granted earlier are now having commondirectors with the lending company on account of change of directors subsequently. In the opinion of themanagement, section 297 and 299 are not applicable to these companies as per sub-section (6) of section 299 of the CompaniesAct, 1956.

c) Though the Company is persuading the borrowers to repay the loans, we are of the opinion that more effortsare required to be put for the recovery of these loans.

d ) A s p e r t h e i n f or m a t io n a n d e x p la n a ti o n s g i v en t o u s , t h e C o m pa n y h a s n o t t a k en a n y l o a ns , s e c ur e d o r unsecured, from companies, firms or other parties listed in the register maintained under section 301 of the CompaniesAct, 1956.

iv) In our opinion and according to information and explanations given to us, there is adequate internal control procedurecommensurate with the size of the Company and the nature of its business for the purchase and sale of assets.During the course of Audit, no major weakness has been noticed in the internal controls.

v) We are informed by the Management that Register required to be maintained u/s 301 is properly maintainedand during the year Company has not entered into any transactions which are required to be entered in the Register

maintained under section 301, as Section 297 and 299 are not applicable to transactions between twoCompanies covered under sub-section 6 of section 299 of the CompaniesAct, 1956.

vi) Though the company had stopped repayment of deposits/debentures matured after 15th April, 2002, in view of theScheme of Restructure filed before the Hon'ble High Court of Karnataka, it has started the repayment of d e p os i t s/ b o nd s a s u n d er t h e S c h em e s a n ct i o ne d b y t h e H o n 'b l e H i g h C o u rt o f K a r na t a ka a s r e f e rr e d i n N o t eNo. B(1) and B(2) of Schedule-M. The case filed by depositor before National Consumer Forum, New Delhi,c r i mi n a l c a s es f i l e d a t J M F C, Ye l l a pu r a n d J M F C, D a v an g e re a l s o a r e p e n di n g . W e a r e i n f or m e d b y t h emanagement that there are no orders by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any other Court or Tribunal.


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vii) We are informed that the Company has discontinued the InternalAudit system on account of discontinuance of itsregular business from 15th April, 2002.

viii) The Central Government has not prescribed the maintenance of cost records under Section 209(1)(d) of theCompaniesAct, 1956.

i x ) a ) A c c or d i ng t o t h e i n f or m a t io n a n d e x p la n a ti o n s g i v en t o u s , t h e C o m pa n y i s g e n er a l ly r e g ul a r i n d e p os i t i ng w i t happropriate authorities undisputed statutory dues including Provident Fund, Employees' State Insurance,I n c om e - Ta x , W e al t h Ta x , S e rv i c e Ta x a n d o t h er s t a t u to r y d u e s a p p li c a bl e t o i t a n d t h e r e a re n o a r r e ar s o f outstanding statutory dues for a period of more than six months from the date they became payable.

b ) A c c or d i ng t o t h e re c o rd s o f t he C om p a ny, d i s pu t e d I n c om e - Ta x h a s b e e n a d j us t e d f r o m t h e r e f u nd d ue a nd t h eSales-Tax dues which has not been deposited on account of dispute are given below:

(Rs. in lakhs)

x) T h e n e t w o r th of t he Co m p an y i s c o m pl e t el y e r o de d . T h e C o mp a n y h a s i n c ur r e d c a s h l o s s f o r t h e y e a r a m o un t i n g to Rs.226 lakhs (previous year Nil).

xi) As per the information given by the company, there are no defaults in repayment of dues to financial institutions orbanks. In respect of matured debentures and interest accrued there on upto 31.3.2002, company is in the process of payment to debenture-holders as per the Scheme of Compromise and Arrangement sanctioned by the Hon'bleHigh Court of Karnataka on 8th October, 2004 (refer Note No.B(1) of Schedule-M).

x i i) I n o u r o p in i on , t h e C o mp an y h a s m a in t ai n ed a d eq ua t e r e co r ds w he r e t h e C o mp a ny h a s g r an t ed lo a ns a n dadvances on the basis of security by way of pledge of shares, debentures and other securities.

x i i i ) A s t h e C o m pa n y i s n o t a Ch i t F u n d, C l a us e 4 ( x ii i ) o f t h e C o m pa n i es ( A u di t o r' s R e p or t ) O r d er 2 00 3 a s a m e n de d b ythe Companies (Auditor's Report) (Amendment) Order 2004 is not applicable to the Company.

xiv)The Company is not dealing or trading in shares, securities and other investments. The shares, debentures ando t h er se c u ri t i es h e l d b y t h e C o m pa n y a s l o n g t e r m i n v es t m e nt s a r e h e l d i n i t s o w n n a m e e x c ep t t o th e e x t en t of exemption granted under section 49 of the Companies Act, 1956 in respect of Subsidiary, Riviera Steels Pvt.Ltd.

x v ) A s p e r t h e i n f o rm a t i on a n d e x p la n a ti o n s g i v en to us , t h e C o m pa n y h a s n o t g i v en an y g u a ra n t ee fo r l o a ns t a k en byothers from bank or financial institutions.

x v i )D u r in g t h e y e a r t h e C o m pa n y h a s n o t t a k en t e r m l o a ns f r o m b a n ks o r f i n an c i al i n s t it u t i on s a n d t h e re a r e n ooutstanding loans as on 31st March, 2009.

Name of the Statute Nature of Period Forum where AmountA r r ea r s d i s pu t e i s p e n di n g

Andhra Pradesh Sales Sales Tax 95-96 Sales Tax Appellate 17.54

Tax Act 96-97 Tribunal


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x v i i) D u ri n g t he y e ar t h e C o m pa n y h a s n o t ra i s ed a n y s h o rt t e r m fu n d s. T h e C o m pa n y i s i n t h e p r o ce s s o f r ep a y in g t h eoverdue long term funds, (all are raised before 31.3.2002)as per the Scheme of Arrangement sanctioned by the

High Court of Karnataka (Refer Note No.B(2)).

xviii) The Company has not made any allotment of shares during the year.

x i x ) A s p e r t h e i n f or m a ti o n a n d e x p la n a ti o n s g i v en to us t h e C o m pa n y h a s c r e at e d s e c ur i t ie s i n r e s pe c t o f d e b en t u re sissued.As per the Scheme of Restructure sanctioned by the High Court, the unpaid deposits also are secured bycharge on company's financial assets (Refer Note No.B(1)(i)).

x x ) T h e C o m pa n y h a s n o t m a d e a n y p u b li c i s s ue s .

xxi) As per the explanations given to us and also on the basis of verification made by us, we report that no fraud on orby the Company has been noticed or reported during the course of audit.

for RAO & SWAMI,Chartered Accountants

UDUPI P V ShenoyAugust 28. 2009 Partner



24/76


BALANCE SHEET AS AT 31st MARCH, 2009(Rs.in lakhs)

Sche dule Current Ye ar Prev ious Yea r Ma rch 31 , 2 00 9 Ma rch 31 , 2 00 8

SOU R C ES OF FU N D S1. Shareholder's Funds

a ) S h a r e C a p it a l A 1 4 4 2 . 7 0 1442.70b) Reserves and Surplus B 0.00 0.00

------------- 1 44 2.70 ------------ 1442.702. Loan Funds

a) Secured Loans C 15799.84 17516.83------------- ------------

15799.84 17516.83 ------------ ------------

TOTAL 17242.54 18959.53 ======= =======

APPLIC ATION OF FU N D S1. Fixed Assets

G ro ss B lo ck D 2 6 8 9 . 0 9 2919.47Less: D epreciation 1 8 0 6 . 1 2 1841.26

----------- ------------ 882.97 1078.21

Less: Lease Terminal Adjustment 386.86 505.28 ---------- 496.11 ----------- 572.93

2 . I n v es t m en t s E 3048.63 3050.14

3. C urrent Assets, Loans and Advancesa ) C u r re n t A s s et s F 4 0 9 0 . 0 9 4731.39b ) L o a ns a n d A d v an c e s G 4 6 0 9 . 2 7 5051.61

------------ ------------ 8 6 9 9 . 3 6 9783.00

L e s s: C u r r en t L i a bi l i t ie s & P r o v is i o ns H 3 6 8 5 . 4 2 3384.18 ------------ -----------

Net Current Assets 5013.94 6398.82

4. Profit & Loss Account 11379.33 11097.52L e s s: R e s e rv e s a s p e r S c h ed u l e B 2 6 9 5 . 4 7 2159.88

------------ 86 8 3.86 ------------ 8937.64------------ -------------

TOTAL 17242.54 18959.53======= =======

For Notes on Accounts - Schedule M As per our attachedR eport of even date,

G A REGO K B SHETTY for RAO & SWAMIExecutive D irector D irector C hartered Accountants

S R GOWDA J M PANDEY P V SHENOYDirector Company Secretary Partner

Membership N o.020205

M a n ip a l U d u piAugust 28, 2009 August 28, 2009


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PROFIT AND LOSS ACCOUNT FOR THE PERIOD ENDING 31st MARCH, 2009(R s.in lakhs)

C u r r e nt Y e a r P r e v i o us Y e ar S c h e d ul e M a r c h 3 1 , 2 0 0 9 M a r c h 3 1 , 2 0 0 8

INCOME

Income from Operations I 188.33 170.77Other Income J 597.59 2433.21

----------- ------------TOTAL 785.92 2603.98

====== ======EXPEN D ITU R E

Interest K 361.01 351.37Administration & Other Expenses L 651.31 564.31

D epreciation 8 8 . 8 7 96.52 ----------- -----------

TOTAL 1101.19 1012.20 ====== ======

Profit after Interest & D epreciation (315.27) 1591.78Less: Lease Equalisation 4 9 . 4 6 58.39

----------- -----------P r o f it / L os s b e f or e t a x (265.81) 1650.17Provision for Taxation 0.00 300.00Provision for Fringe benefit tax 1.25 1.20

Prior period item adjustment (Net of Tax) 1 4 . 7 5 0.00Profit after Tax (281.81) 1348.97Add: Balance of Profit from previous year (11097.52) (12446.49)

Balance carried to Balance Sheet (11379.33) (11097.52)Earning per Share [Basic / D iluted] (1.99) 9.53

F o r N o t es o n A c c ou n t s - S c h ed u l e M A s p e r o u r a t t a ch e dR eport of even date,






26/76

M R A C L 6 5 t h A n n u al R e p o rt 2 0 0 8 -0 9 2 6

S C H E D UL E S F OR M I N G PA R T O F B A L A NC E S H EE T A S O N 3 1 st M A R C H, 2 0 0 9(R s. in lakhs)

C u r r e nt Y e ar P r e v i ou s Y e a r M a r ch 3 1 , 2 0 0 9 M a r ch 3 1 , 2 0 0 8

SCHEDULE - A: SHARE CAPITAL

Authorised

20000000 Equity Shares of R s.10/- each, 2000.00 2000.0020000000 Redeemable Cumulative Preference

Shares of R s.10/- each 2000.00 2000.00(P.Y. 2,00,00,000 Equity Shares of - - -- - -- - -- - 4 0 0 0. 0 0 ----------- 4000.00

of R s.10/- each and 2,00,00,000 R edeemableC umulative Preference Shares of R s.10/-

Issued14150100 Equity Shares of Rs.10/- each, 1415.01 1415.011763500 17.5% R edeemable C umulative

Preference Shares of R s.10/- each 176.35 176.356236500 14% R edeemable C umulative

Preference Shares of R s.10/- each 623.65 623.65 ---------- 2215.01 ---------- 2215.01Subscribed and Paid-up

( a ) 1 4 15 0 10 0 Eq u it y S h ar e s o f Rs . 10 / - e a ch , fu l ly C al l ed - up 1415.01 1415.01(P.Y. 1,41,50,100 Equity Shares of

R s.10/- each fully C alled-up)

Less: C alls U npaid 3.93 3.93[D ues from D irectors: Nil] ---------- 1411.08 ---------- 1411.08

Of the above

( i) 11 ,6 67 E qu it y S ha re s o f Rs .1 0/ - ea ch w er ea l l ot t e d a s f u l l y p a i d p u rs u a nt t o t e r msof amalgamation without payment beingreceived in cash

( ii ) 4 ,0 0, 00 0 Eq ui ty S ha re s o f Rs .1 0/ - e ac ha l lo t te d a s f u ll y p a id b o n u s s h ar e s o ncapitalisation of R eserves

(iii) 4,08,240 Equity Shares of R s.10/- each allotteda s f u l ly p a i d b o n us s h a re s o n c a p it a l is a t io n

of Share Premium Account

(b) 316200 14% R edeemable C umulative Preferenceshares of R s.10/- each 31.62 31.62

----------- -----------TOTAL 1442.70 1442.70


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S C H E DU L E S F O RM I N G P AR T O F B A L A NC E S H E E T A S O N 3 1 s t M A R CH , 2 0 0 9 ( C o n ti n u e d)(Rs. in lakhs)

C u r r e nt Y e a r P r e v i ou s Y e ar Ma rch 3 1 , 2 00 9 Ma rch 3 1 , 2 00 8

SCHEDULE - B: RESERVES AND SURPLUS

(a) Capital Reservei ) B a la n ce b ro u gh t do w n 600.01 222.48ii) Transfer during the year 535.59 377.53

---------- 1135.60 ---------- 600.01(b) C apital R edemption R eserve 176.35 176.35

[ R e de m p ti o n o f 1 7 . 5 % R C P S h a r es ]

(c) Share Premium 997.48 997.48

( d ) G e n e r a l R e se r v e 226.52 226.52

( e ) S p e c i a l R e s er v e 159.52 159.52[Pursuant to R BI (Amendment) Act, 1997]

------------ ------------TOTAL 2695.47 2159.88

SCHEDULE - C: SECURED LOANS

From OTHERS

U npaid C reditors being outstanding Bonds/D eposits 15799.84 17516.83maturing after 31.03.2002 and inter corporate deposit

( S e c ur e d b y f i r st c h a r g e o n C o 's f i n an c i al a s s et sbook debts, receivables and pledge of Kurlon Shares)

------------- -------------TOTAL 15799.84 17516.83


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SCHEDULE-D:FIXEDASSETS

(Rs.

inlakhs)

GROSSBLOCK

(atcost)

DEPRECIATION

NETBLOCK

Aso

n

Additions

Deductions

Ason

Upto

Forthe

OnAssets

Upto

Ason

Ason

01-APR-

2008

31-Mar-2009

31-Mar-2008

Year

Sold

31-Mar-2009

31-Mar-2009

31-Mar-2008

COMPANYASSETS

Land

37

.34

0.0

0

0.0

0

37.3

4

0.0

0

0.0

0

0.0

0

0.0

0

37.3

4

37

.34

Bu

ildings

490

.75

8.6

2

69

.35

430.0

2

96

.22

7.7

3

11

.80

92.1

5

337.8

7

394

.53

OfficeFurniture

&Equ

ipments

558

.70

3.7

8

17

.56

544.9

2

464

.02

14

.89

16

.65

462.2

6

82.6

6

94

.68

Motor

Cars

&

OtherVehicles

13

.18

0.5

4

0.7

9

12.9

3

7.4

2

0.9

3

0.7

9

7.5

6

5.3

7

5.7

6

TOTAL

1099.9

7

12.9

4

87.7

0

1025.2

1

567.6

6

23.5

5

29.2

4

561.9

7

463.2

4

532.3

1

ASSETSON

LEASE

Plant&Machinery

1778

.85

0.0

0

149

.59

1629.2

6

1238

.40

64

.66

91

.79

1211.2

7

417.9

9

540

.45

MotorVehicles

15

.67

0.0

0

0.0

0

15.6

7

15

.66

0.0

0

0.0

0

15.6

6

0.0

1

0.0

1

Gas

Cy

linders

3.2

0

0.0

0

0.0

0

3.2

0

3.2

0

0.0

0

0.0

0

3.2

0

0.0

0

0.0

0

Furniture

21

.78

0.0

0

6.0

3

15.7

5

16

.34

0.6

6

2.9

8

14.0

2

1.7

3

5.4

4

TOTAL

1819.5

0

0.0

0

155.6

2

1665.8

8

1273.6

0

65.3

2

94.7

7

1244.1

5

419.7

3

545.9

0

GRAND

TOTAL

2919.4

7

12.9

4

243.3

2

2689.0

9

1841.2

6

88.8

7

124.0

1

1806.1

2

882.9

7

1078.2

1


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C u r r e nt Y e a r P r e v i ou s Y e a r Marc h 3 1, 20 0 9 Ma rch 3 1 , 2 00 8

SCHEDULE - E: INVESTMENTS

LON G TER M INVESTMEN TS - AT C OST

A. GOVER N MENT SEC U R ITIES

6 year N ational Savings C ertificate at cost 0.14 0.14Investment in Government Bonds

B. TR U STEE SEC U R ITIES1 5 1 8 6 . 7 5 % Ta x F r e e U S 6 4 B o n d s o f R s . 1 0 0 /- e a c h 0.00 1.51

83800 U nits of U TI - Masterplus - 91, of R s.10/- each 14.41 14.416500 U nits of U TI - Mastershare, of R s.10/- each 0.92 0.92

-------- 15.33 -------- 16.84C. OTHER INVESTMENTS

a) Quoted Equity Shares20000 Voltas Limited shares of R s.1/- each 2.92 2.92

2200 TATA Pow er C ompany Limitedshares of R s.10/- each 2.62 2.62

16000 IC D S Ltd. shares of R s. 10/- each 6.59 6.5956000 C enturian Bank of Punjab Ltd. shares

of R s.10/- each 0.00 6.841 9 3 1 H D FC B a n k S h a r es o f R s . 10 / - e a c h 6.84 0.00

------- 18.97 ------- 18.97b) U nquoted D ebentures

750 Jay R apid R oller LimitedD ebentures of R s.1000/- each 7.50 7.50

------- 7.50 ------- 7.50c) U nquoted Equity Share

3000 General Investment & C ommercial C orporationShares of R s.10/- each 0.30 0.30

2000 Shamrao Vithal C o-operative Bank Ltd.Shares of R s.25/- each 0.50 0.50

3 6 3 68 R a j ma h a l H o t el s L t d . S h a r es o f R s . 10 / - e a c h 0.76 0.7658436 Mangala Investments Ltd.Shares of

R s.10/- each 1.50 1.502 0 0 0 00 M a n ip a l M o t or s ( P ) L t d . Sh a r es o f R s . 10 / - e a c h 20.00 20.00600000 Manipal H ome Finance Ltd.Shares of R s.10/- each 60.40 60.40

3 3 9 90 M a n ip a l S p r i ng s L t d . S h a r es o f R s . 10 0 / - e a c h 34.16 34.164000 MPL Finance&Leasing Ltd.Shares of R s.10/- each 1.65 1.65

116102 Manipal C ontrol D ata Electronic C ommerce Ltd.shares of R s.10/- each 11.61 11.61

5692804 Kurlon Limited shares of R s.10/- each 1714.44 1714.447 5 0 0 00 M a n ip a l A u t o mo b i le s P v t .L t d . s h a re s o f

R s.10/- each 75.00 75.00 ----------- 1920.32 ----------- 1920.32


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S C H E D UL E S F O RM I N G P AR T O F B A L A N CE S H E E T A S O N 3 1 s t M A R CH , 2 0 0 9 ( C o nt i n u e d)(R s. in lakhs)

C u r r e nt Y e a r P r e v i ou s Y e a r Ma rch 3 1 , 2 00 9 Ma rch 3 1 , 2 00 8

SC H ED U LE - E: IN VESTMEN TS [C ontinued]d ) U n q uo t e d P r e fe r e nc e S h a r e s

200000 13.50% R edeemable N on-Cumulative PreferenceShares of El'dorado Investment C o.(P) Ltd.of R s.100/- each 200.00 200.00

E ) E q u i ty S h a r es o f S u b si d i ar i e s5025100 Maharashtra Apex Asset Management C o. Ltd.

shares of R s.10/- each 502.51 502.51100000 Riviera Steels Pvt. Ltd. shares of R s.100/- 119.00 119.00760000 El'D orado Investments (P) Ltd. shares of R s 76.13 76.131799950 C rimson Estates & Properties Pvt. Ltd.shares of R s.10/- each 180.30 180.30

--------- 877.94 --------- 877.94

D . MU TU AL FU N D S

5 4 0 01 . 2 8 F T I n d ia - B a l a n ce d ( G r o wt h ) @ 1 5 . 62 e a c h 8.43 8.43 --------- 8.43 --------- 8.43

[Total Market Value of Shares, D ebenturesS e c ur i t i es a n d M ut u a l F u n ds - R s . 8 8 .8 5 l a k hs(Previous Year R s. 92.38 lakhs)]

TOTAL 3048.63 3050.14

SC H ED U LE - F: C UR R EN T ASSETS

Considered GoodInterest accrued on Investments 11.94 0.79Unsecured and Considered Good

Commission and Rent Receivable- D ue for more than 6 months 574.26 651.05- others 0.15 2.60

--------- 574.41 --------- 653.65S u n dr y D e b to r s

- D ue for more than 6 months 900.89 896.52- others 6.53 51.81

--------- 907.42 --------- 948.33Motor Vehicles/Machineries given on H ire Purchasecontract [at agreement value less amount receivedunexpired & unearned Finance C harges and Insurance& Taxes for the future period] 1968.90 2415.21R epossessed vehicles at cost 4.89 4.71S t a mp s i n h a nd 0.19 0.20S t o ck o f S t a t io n e ry o n h a n d a t c os t 0.78 0.93Cash in hand 3.89 4.50With Scheduled Banks in Over D raft/C urrent account 84.56 60.74With Scheduled Banks in D eposit accounts 533.11 642.33

TOTAL 4090.09 4731.39


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C u r r e nt Y e a r P r e v i ou s Y e a r M arc h 3 1, 20 09 Ma rc h 31 , 2 00 8

SCHEDULE - G: LOANS AND ADVANCES

CONSIDERED GOOD

A. Secured

D emand Loan 544.95 559.54B i l l s D i s co u n te d 3 3 . 1 5 85.40

B. U nsecured

B i l l s D i s co u n te d 277.86 285.47Advances for w hich the C ompany holds noother security than D ebtors' personal Security 3 0 8 1 . 0 8 3377.49Other D eposits 2 1 . 6 3 27.04

Advance for purchase of Assets forH ire Purchase/Lease

Advance R ecoverable in C ash or Kind 149.34 189.03Advance Income-Tax and TD S - [Less provision] 495.73 523.70Advance Fringe Benefit Tax 5.53 3.95

TOTAL 4609.27 5051.61

SC H ED U LE - H : C U R R EN T LIABILITIES AN D PR OVISION S

A. C urrent Liabilities

S u n d ry C r e di t o r s 284.75 306.44Matured D eposit/Bonds w ith Interest 141.88 192.98

Amount due to Subsidiaries 402.83 379.37U nclaimed D eposits - Investors 0.99 0.47D elayed period interest on deposit 865.18 505.75C ollection and other Accounts 491.11 503.37Liabilities for Expenses 16.00 14.37

B. Provisions

For Income TaxFor N on-performing Assets 1262.28 1262.28For Reduction in Value of Investments 215.55 215.55Fringe Benefit Tax 4.85 3.60

TOTAL 3685.42 3384.18


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S C H E D UL E S F O RM I N G P AR T O F B A L A N CE S H E E T A S O N 3 1 s t M A R CH , 2 0 0 9 ( C o nt i n u e d)(R s. in lakhs)

C u r r e nt Y e a r P r e v i ou s Y e a r M arc h 3 1, 20 09 Ma rc h 3 1 , 20 08

SCHEDULE - I: INCOME FROM OPERATIONS

Income from H ire Purchase, Lease, Loans & Advance 138.70 133.57Interest - Investments(a)Long Term 44.83 32.65

[Tax D educted at Source R s. 9,30,860/-)(Previous Year R s. 9,43,713/-)]

Lodging Business 4.80 4.55[Tax D educted at Source R s. 1,10,931/-)(Previous Year R s. 1,09,064/-)]

TOTAL 188.33 170.77

SCHEDULE - J: OTHER INCOME

Miscellaneous R eceipts 0.21 0.49Service C harges 2.31 3.98

[Tax D educted at Source R s. 24,661/-)(Previous Year R s. 11,053/-)Income from H ouse Property 27.08 27.49[Tax D educted at Source R s. 6,26,347/-)(Previous Year R s. 6,17,857/-)

Dividend IncomeLong Term

- Others 116.40 114.70B a d D e b t s R e c ov e r ed 73.90 91.60Profit on Sale of Assets/Investments 201.31 2077.52Interest R emission 176.38 117.43

TOTAL 597.59 2433.21

SC H ED U LE - K: IN TEREST EXPEN D ITU RE

Others 361.01 351.37

TOTAL 361.01 351.37


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C u r r e nt Y e a r P r e v i ou s Y e a r Marc h 3 1, 20 0 9 Ma rch 3 1 , 2 00 8

SCHEDULE - L: ADMINISTRATION AND OTHER EXPENSES

S a l a ri e s & B o n u s 6 2 . 9 4 66.32C ontribution to Provident and Other Funds 6.88 7.08Gratuity 3.23 2.15Printing and Stationery 1.64 2.54Postage and Telephone Charges 7.66 11.90C omputers and Other Service C harges 1 7 . 0 1 11.28

D irector's Sitting Fees and Travelling Expenses 0.54 1.45Filing Fees 0.16 1.29G e n er a l C h a rg e s 1 4 . 7 1 14.78Fire and other Insurance Premium 0.51 0.70Share Issue Expenses 0.00 0.47N ew spapers, Books and Periodicals 0.24 0.24S t a m p Du t y P a i d 0.00 0.01Staff Welfare Expenses 4.74 4.93R emuneration to Auditors

- Audit Fees 1.75 1.75- C ertification C harges 0.25 0.25- Out of Pocket Expenses & Service Tax 0.37 0.40

------- 2.37 ------- 2.40R e n ta l E x p en d i tu r e 9.11 11.52Taxes and Licence 3.76 4.07Travelling Expenses 8.69 9.82L e g al E x p en s e s 11.35 16.54

Advertisement C harges 13.52 0.88B a n k C h a rg e s 1.52 0.76Electricity C harges 2.93 5.07R epairs to Buildings 3.47 3.72Other R epairs 0.68 0.40Vehicle Maintenance 4.42 4.31Commission 24.85 18.59Interest Tax 3.31 0.00Bad Debts 441.07 361.09

TOTAL 651.31 564.31


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S C HE D U LE - M : AC C OU N T IN G P O LI C Y A N D N OT E S F O RM I N G PA R T O F T H E A C C OU N TS F O R T HEYEAR ENDED 31ST MARCH, 2009:

A . S I G NI F I CA N T A C C O UN T I NG P O LI C I ES :

1. Accounting and Income Recognition:

a) The financial statements are prepared under the historic cost convention in accordance with the generallya c ce p te d a c co u nt i ng p r in c ip l es a nd p r ov i si o ns o f t h e C om p an i es A c t, 1 95 6 a s a d op t ed c o ns i st e nt l y b y t h eCompany and also in accordance with applicable mandatory accounting standards except Notes No. B(17) andB(20).

b) The income from Bank Deposits and Government Securities are accounted on accrual basis.

c) Dividend on shares, interest on Debentures, Non-Performing Assets, overdue compensation, income from suitfiled accounts and miscellaneous income are accounted as and when received.

2. Fixed Assets are stated at Original Cost less depreciation after taking into consideration the Lease adjustment accountwherever necessary.

3 . A l l E x p en s e s a r e a c c ou n t ed o n a c c ru a l b a s is e x c ep t i n t er e s t f o r t h eyear on deposits/bonds as per Note-B(1)(a).

4 . I n v es t m en t s a r e v a lu e d a t c o st . D i m i nu t i o n i n t he v a l u e o f i nv e s tm e n t s i s s h o wn u n d er n o t e n o .B ( 6 )( b ) o f t h is s c h ed u l e.

5 . D ep re ci at io n:i) Written Down Value Method: In respect of assets acquired prior to 31st March, 1991 depreciation is charged

under Written Down Value method at the rates specified in Notification No.GSR 756(e), dated 16thDecember 1993, in Schedule XIV of the CompaniesAct, 1956.

ii) Straight Line Method: On assets acquired after 1.4.91:a) which are not given on lease, the depreciation is charged at the rates specified in Schedule XIV to the

C o m pa n i es A c t , 1 9 56b) which are given on lease, the depreciation is charged at the rates specified in Schedule XIV to the Companies

Act, 1956. In the case of financial Leases, Lease Equalisation method is followed as per the Guidance Note on

accounting of leases issued by the Institute of Chartered Accountants of India.

6 . C ur re nt A ss et s:i) Stock on Hire is valued at agreement values less amount received, unrealised and unmatured finance charges

and future taxes and insurance.ii) Repossessed Stock is valued at cost.

7. Cost of borrowings are charged to revenue except interest not accounted as per Note A(3).


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8 . E mp lo ye es B en ef it s:i ) L i a bi l i t y i s c o m pu t e d o n t he b a si s o f a ct u a ri a l v a l ua t i on i n r e s pe c t of l e av e e nc a s hm e n t a s o n t he d a te o f B a l an c e

Sheet as per Accounting Standard As - 15 (revised).

i i ) T h e c o m pa n y h a s t a k en a p o l ic y f r o m L I C o f I n d ia t o c o v er t h e l i a bi l i t y t o w ar d s g r a tu i t y a r i s in g i n t e r ms o f payment of Gratuity Act 1972 and the premium paid to LIC of India is charged to Profit & Loss A/c. Provident Fundcontribution made to the Govt. Provident Fund in accordance with the rules and the contribution is charged torevenue. Disclosure as per Accounting Standard As 15 (Revised) is not followed in respect of these benefits.

iii)Bonus is provided in the books as per normal practice followed by the company.

9 . E a r ni n g Pe r S ha r e : T h e ea r n in g p er s h ar e i s c o m pu t e d b y d i v id i n g t h e Pr o f it ( L os s ) af t e r t a x f o r t he p e ri o d by t h eweighted average number of equity shares outstanding during the period.

10. Contingent Liabilities, if any, are disclosed by way of Notes on Accounts.

11. TaxationProvision for taxation not been made under the Income Tax Act in view of loss for the current year.

12. Fringe Benefit TaxFringe Benefit tax is determined at current applicable rates on expenses falling within the ambit of 'Fringe Benefit'as defined under the Income Tax Act 1961.

13. Deferred TaxDue to uncertainty of availability of sufficient future taxable income Deferred Tax Asset resulting from accumulated

losses have not been considered in the accounts.

1 4 . U s e o f E s t im a t esEstimates and assumptions used in the preparation of the financial statements are based on managements evaluationo f t h e r e l e va n t f ac t s a n d c ir c u m st a n ce s a s o f t h e d a t e of f i n an c i al s t a t em e n t s w h i ch m a y d i ff e r f ro m t h e a c t ua l r e s ul t sat a subsequent date.

15. Impairment of AssetsImpairment of asset is reviewed and recognised in the event of changes and circumstances indicating that the carrying

amount of an asset is not recoverable. Difference between the carrying amount of an asset and the recoverable valueis recognised as impairment loss in the statement of profit & loss in the year impairment.


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B. NOTES ON ACCOUNTS:

1. The salient features of the Scheme of Compromise and arrangement sanctioned by the High Court of Karnatakaunder sections 391 to 394 of the Companies Act, 1956 vide its order dated 8th October 2004 and filed with the Registrar of Companies, Karnataka on 15th December 2004, which is the effective date are as under:

a ) N o i n t er e s t sh a l l a c c ru e o r be p a y ab l e o n th e b o nd s / de p o si t s m a t ur i n g on o r a f te r 1 s t A p r il , 2 0 02 a n d re m a in i n g unpaid/outstanding as on 31.3.2002

b) Bonds/deposits matured prior to 31st March, 2002 and remaining unclaimed shall be repaid with interest upto the` d at e o f m at ur it y a nd Bo nd s/ de po si ts a cc ep te d/ re ne we d i n b et we en 1s t A pr il , 2 00 2 a nd 15 th A pr il , 2 00 2 s ha ll b e

repaid without any interest, on receipt of the claim from the holders thereof.

c) Any loans/advances granted to any bond/deposit holders shall be set off/adjusted against the deposits/ bonds and the outstanding debts payable by the Company shall be reduced accordingly.

d ) A l l d e p os i t s a n d b o n ds o f t h e f a c e v a l ue o f R s . 5, 0 0 0/ - a n d l e s s s h a ll b e p a i d w i t hi n s i x m o n th s f r o m t h e d a t e o f order in one instalment with interest accrued upto 31st March, 2002

e ) D e p os i t s/ b on d h ol d e r s r e c ei v i ng i nt e r es t at m on t h l y/ q u ar t e rl y r e s ts s h a ll b e pa i d t h e f a c e v a l ue i n 2 0 e q u al quarterly instalments.

e ) O u t st a n di n g d e p os i t s/ b o nd s o t h er th a n t h o se st a t ed in pa r a d & e ab o v e s h a ll b e p a i d a s f o l lo w s :

i ) 1 5 % o f th e f ac e va l u e o n or b ef o r e t h e e x p ir y o f 6t h m o n th o f t he E ff e c ti v e da t eii) 20% of the face value on or before the expiry of the 18th month of the Effective dateiii) 25% of the face value on or before the expiry of the 30th month of the Effective dateiv)20% of the face value on or before the expiry of the 42nd month of the Effective datev) Balance 20% of the face value and interest payable upto 31st March 2002 on or before the expiry of the

54th month of the Effective date against the surrender of the bond/deposit certificates.

g ) F o r d e l ay i n p a y me n t o f i n s ta l m en t s i n t e re s t s h a ll b e p a i d @ 6 % p . a .

h) The Board of Directors shall constitute a Hardship Committee to consider hardship cases on the request madeby deposit/bond holders and subject to availability of funds they shall be paid a maximum of 75% of the face valueof the outstanding bond/deposit as on the appointed date according to the formula as may be laid down by theCommittee.

i ) U p o n t h e S c h em e b e c om i n g e f f ec t i ve , a l l T ru s t D e e ds e x e cu t e d b e t we e n t h e C o m pa n y a n d T ru s t ee s f o r Bond holders shall be and deemed to be cancelled.

j ) U p o n t h e S c h em e b e c om i n g e f fe c t iv e , t h e G e n er a l I n v es t m en t a n d C o m me r c ia l C o r po r a ti o n L i m it e d s h a ll a c t as trustees for unpaid creditors in respect of outstanding bonds/deposits and such outstanding bonds/depositsshall be secured by first charge on company's financial assets, book debts and receivables.


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k ) T h e C o m pa n y s h a ll n o t c a r ry o n t h e b u s in e s s a s a n o n -b a n ki n g f i n an c i al C o mp a n y w i t ho u t t h e p r i or p e r mi s s io n o f the RBI.

2. The Company has started repaying the deposits/bonds as per the terms of the Scheme sanctioned by the High Courtof Karnataka by DD/ multi-city cheques and the reduction in the liabilities during the year under items (b), (c), (d), (e),(f), (g) and (h) of Note B(1) amounted to Rs. 1768.09 lakhs. Shortfall in repayment as per the Scheme upto 31.3.2009amounted to Rs. 8425.61 lakhs.

3. Though the Company is incurring losses since 2001 and its funds are blocked in non-performing assets, it has preparedt h e a c c ou n t s o n g o i ng c o n ce r n b a s is a s i t h a s s t a rt e d i m p l em e n t in g t h e s c h em e s a n ct i o n ed by t h e H i g h C o u rt of Karnataka and the management is of the view that the company will be able to the dues from most of the borrowers/

debtors and monitor effectively the deficit in operations.

4 . A s p e r th e t er m s o f t he s an c t i on e d sc h e me a s t h e de p o si t s /b o n ds m a t u ri n g af t e r 3 1 . 3. 2 0 02 a r e r e p ay a b le i ninstalments (other than those stated in Note No.1(d) above) as stated in Note No.1(e) and (f), the contracteddate of maturity got extended and hence the details of maturity dates of bonds are not shown.

5 . S un d r y C r e di t o rs i n c lu d e R s . 18 9 . 80 la k h s, b e i ng un e n ca s h ed DD / m ul t i - ci t y c h e qu e s i s s ue d f o r r e p ay m e nt of d e p os i t s /b o n ds i n t e r m s o f t h e S c h em e .

6 . T h e C o m pa n y h a s n o t m a d e t h e p r o vi s i on s a s r e q ui r e d u n d er t h e R B I P r u de n t ia l N o r ms a f t er 1 s t A p r il , 2 0 0 0 a s t h eManagement is hopeful of recovery and is of the view that provisions already made in the books are sufficient to meet the loss. When compared to the previous year, there is reduction in total provisions at the end of the year as detailed

below:

a) Provision for Non-Performing Assets ... Rs.(-) 880.98 lakhsb) Provision for Dimunition in the value of Investments ... Rs.(-) 229.15 lakhsc ) D e- re co gn it io n o f I nc om e o n N on -P er fo rm in g A ss et s . .. Rs .( -) 9 6. 94 l ak hs

Total short provision as on 31.3.2009 ... Rs. 74.11 crores

7 . O u t o f t h e t o t a l d e p os i t s m a t ur e d a n d r e m a in i n g u n p ai d f o r a p e r io d o f s e v en y e a rs d u r i ng t h e y e a r e n d ed31st March, 2009 amounting to Rs.5,92,381/-, a sum of Rs.4,93,458/- was remitted before 31st March, 2009 toInvestors' Education and Protection Fund as per section 205C and the balance amount of Rs.98,923/- wasremitted on 17.06.09.

8 . i ) L a n d i n c lu d e s a g r ic u l t ur a l l a n d o f t he b o ok v a l ue o f Rs . 0 .1 0 l ak h s a c q ui r e d i n 1 96 3 i n s a t is f a ct i o n o f d eb t . T h eCompany has claimed compensation in respect of the said property. But as the compensation is not yet determined,

the profit or loss is not adjusted in the accounts.

i i ) B u i ld i n gs i n c lu d e R s . 10 9 . 14 l ak h s ( P r ev i o us Ye a r R s . 10 9 . 14 l ak h s ) b e i ng t he v al u e o f s ha r e s i n Co - O pe r a ti v eHousing Societies.

9 . I n ve s tm e nt s i n cl u de ( i ) N SC o f R s .0 . 14 l a kh s g i ve n a s s e cu r it y f o r Sa l es Ta x . (i i ) 5 ,0 0, 0 00 e q ui t y s h ar e s o f K ur l onL i m it e d p le d g ed a s s e c ur i t y f o r I CD . ( i ii ) Te r m D ep o s it s w i t h Ba n k s i n c lu d e Rs . 2 . 20 l a k hs g i v en a s s e c ur i t y f o r Ba n k


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Guarantee in favour of RTO and Sales Tax Authorities.

1 0 . L o a ns a n d A dv a n ce s a n d S u n d ry D e b to r s a r e s u b j ec t t o c o n fi r m a ti o n .

11. Current Assets, Loans and Advances:

L o a ns a n d A dv a n ce s & S u n d r y D e b to r s i n c lu d ea ) D ue f r om t h e O ff i ce r s o f t h e C om p an y R s. 1 .2 5 l a kh s ; M a xi m um b a la n ce a t a n y t i me d u ri n g t h e y e ar

Rs.2.36 lakhs.b ) D u e s f r o m p ri v a t e l i m i te d c o m pa n i es i n w h i ch di r e ct o r i s i n t er e s te d S u n dr y d e b to r s R s . 2. 0 8 l a k hs .c ) D ue s f r om su b si d ia r ie s R s .N i l ( p r ev i ou s y e ar Rs . 3. 9 7 l a kh s ).

1 2 . T h o ug h t h e b o o k v a l ue of a s s et s a r e l e s s t h a n t h e s e c ur e d l o a ns , t h e c o m pa n y i s o f t h e o p i ni o n t h a t t h e r e a li s a bl evalue of the assets are more than the liability drawn under secured loans.

13. In the opinion of the Board, the Current Assets and the Loans and Advances are of the value stated if realised inthe ordinary course of business and the provision for all known liabilities is adequate.

14. Cumulative Preference Shares amounting to Rs.31.62 lakhs are not redeemed and no redemption reserve isc r e at e d a s t h e C o m pa n y i s i n c ur r i ng l o s se s s i n ce 2 0 0 1.

15. Remuneration paid to the Whole Time Director:(Rs. in lakhs)

1 6 . T h e d i f fe r e nc e b et w e en t h e f a c e v a l ue o f bo n d s/ d e po s i t s a n d th e a mo u n t p a i d i n f ul l a n d fi n a l s e t tl e m e nt o f th e s am e

as per Note B(1)(h) of the Scheme Rs. 535.59 lakhs is transferred to Capital Reserve.

1 7 . L i a bi l i t y i n r e s pe c t o f l e a ve e n c as h m en t s c o m pu t e d o n t h e b a s is o f a c t ua r i a l v a l ua t i on a s p e r A c c ou n t in g S t a nd a r dAs - 15 (revised) Rs. 9.51 lakhs. The company has taken a policy from LIC of India to cover the liability towardsgratuity arising in terms of payment of Gratuity Act 1972 and the premium paid to LIC of India is charged to Profit &Loss A/c. Provident Fund Contribution made to the Govt. Provident Fund in accordance with the rules and thecontribution is charged to revenue. Disclosure as per Accounting standard As 15- (Revised) is not followed in respectof these benefits.

Current Year Previous YearMarch 31, 2009 March 31, 2008

i ) S a l ar y 1 . 6 6 1 . 5 8ii) Contribution to Provident Fund 0.19 0.19iii) Monetary value of other benefits 0.89 0.77


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1 8. C on ti ng en t L ia bi li ti es :i) Suits against the Company for damages not acknowledged as debt Rs. 1.29 lakhs.ii) No provision is made in the accounts for disputed Income-Tax Liability aggregating to Rs.468.97 lakhs for

t h e A s s es s m en t y e a rs 1 9 9 2- 9 3 t o 20 0 1 -0 2 as t h e a p p ea l s f i l e d b y t h e C o m pa n y a r e p e n di n g d i s po s a l. Th esame has been adjusted by the Department towards Refund due.

i i i ) N o p r o vi s i on i s m a d e i n t h e a c c ou n t s f o r t h e d i s pu t e d s a l es t a x l i a bi l i t y a m o un t i ng t o R s . 17 . 5 4 l a k hs f o r t h eAssessment Year 1995- 96 to 1996-97 as the appeals filed by the Company are pending disposal.

iv) Arrear of Cumulative Fixed Dividend from 31.3.2001 to maturity date for redemption Rs.17.14 lakhs.

19. The corresponding figures for the previous year have been regrouped/rearranged wherever necessary.

20. Deferred Tax:D e f er r e d Ta x A s s et r e s u lt i n g f r om a c c u m ul a t ed l o s s es h a v e n ot b e e n a c c ou n t ed b e c a us e o f u n c er t a i nt y o f availability of sufficient future Taxable Income.

21. Related Party Disclosures:The Company being a Finance Company, the transactions in the normal course of business have not been disclosed.

A . R e la t ed Pa r ty a n d N a tu r e o f R el a ti o ns h ip :

Sl.No. Name of the Related Party Nature of Relationship

1. Maharashtra Apex Asset Management Co.Ltd. Subsidiary2. Crimson Estates & Properties Pvt.Ltd. Subsidiary

3. El'Dorado Investments Pvt.Ltd. Subsidiary4. Riviera Steels Pvt.Ltd. Subsidiary5. El'dorado Shares & Services Pvt.Ltd. Fellow Subsidiary6. Dagny Investments Pvt.Ltd. Fellow Subsidiary

B. Key Management Personnel:

S r i G A R e g o

C. Details of Significant Transactions are as follows: (Excluding reimbursements) (Rs. in lakhs)

Outstanding Balances Current Year Previous Yearas at 31.3.2009 March 31, 2009 March 31, 2008

Due to Company- Subsidiary Company (100%) 0.00 3.97

Payable by Company- S u b si d i ar y C o m pa n y 4 0 2 .8 3 3 7 9 .3 7


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2 3. T h e C om p an y i s p r im a ri l y e ng a ge d i n t h e s i ng l e s e gm e nt bu s in e ss o f f i na n ci a l a c ti v it i es a nd ma n ag e d a s o n eentity for its various activities. Therefore, there are no reportable segment in accordance with the AS-17 on segmentreporting issued by the Institute of Chartered Accountants of India.

24. There are no dues to Micro,Small and Medium Enterprises as of 31.03.2009.

25. The Company does not carry on manufacturing activities. Hence paragraph 4C of Part-II of Schedule VI of theCompaniesAct, 1956 is not applicable.

As per our attachedR eport of even date,



Membership N o.020205


22. Earning Per Share:(Rs. in lakhs)

Current Year Previous Year

Description March 31, 2009 March 31, 2008

a ) N et P ro fi t/ Lo ss a va il ab lefor Equity Shareholders(in lakhs) numeratorused for calculation (281.81) 1348.97

b) Weighted Average No. of E q u it y S h a re s u s e d a sdenominator for calculation 1,41,50,100 1,41,50,100of Earning per ShareBASIC/DILUTED EPS (Rs. ) (1.99) 9.53


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B A L A NC E S H E E T A B S T RA C T A N D C O M PA N Y ' S G E N E R AL B U S I N ES S P R O F I L EINFORMATION AS REQUIRED UNDER PART IV OF SCHEDULE VI TO THE COMPANIES ACT, 1956

I. R egistration D etails

Registration No. 1 1 7 7 State Code 0 8

Balance Sheet D ate 31 03 2009

II. Capital raised during the year Public Issue Rights Issue

NIL NIL

Bonus Issue Private Placement

N I L N I L

I II . P os it io n o f M ob il is at io n a ndDeployment of Funds

(Amount in R s. Thousands) Total Liabilities Total Assets

1724254 1724254

S o u r ce s o f f u n ds P a i d -u p C a p it a l R e s er v e s a n d S u r pl u s

144270 N IL

Application of Funds Secured Loans U nsecured loans

1579984 NIL

Net Fixed Assets Investments

49611 304863

Net Current Assets Miscellaneous E xpenditure

501394 N IL

Accumulated Loss

868386

I V. P er fo rm an ce o f Co mp an y

(Amount in R s. Thousands) Turnover Total Expenditure

78592 110119

+/- Profit/Loss Before Tax +/- Profit/Loss After Tax

-26581 -28181

Earning per share in R s. D ividend R ate %-1.99 N IL

V. G en er ic N am e of T hr ee P ri nc ip al

Products/Services of Company

( a s p e r m o n et a r y t e r ms )

Item C ode N o. N OT APPLIC ABLE

(ITC Code)

Product/Service D escription The C ompany w as in N BFC business w hich has been discontinued.


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S T AT E M E N T P U R S U A N T T O S E C T I O N 2 1 2 OF T H E C O M PA N I E S A C T, 1 9 56 , R E L AT I N G T O C O M PA N Y ' S IN T E R E S T I N S U B SI D I A RY C O M PA N Y

1 . N am e o f t he S ubs idi ary C om pa ny M AH AR AS HT RA A P EX C RI MS ON E STAT E & E L' DO RA DO R IV IE RA S TE EL SASS ET MAN AGE ME NT PR OP ERT IES INV ES TM ENT S P VT.LT D.

CO MPANY LT D. PV T.LTD . PVT.LT D.

2 . T h e F i na n ci a l p e ri o d o f t h e S u bs i di a ry C o mp a ny e n de d o n M a rc h 3 1 , 2 0 09 M a rc h 3 1 , 2 0 09 M a rc h 3 1 , 2 0 09 M a rc h 3 1 , 2 0 09

3 . Ye ar fro m wh ic h th e y b e c a me Su b s id ia ry Co mp a n y 2 0 0 3 2 0 0 1 2 0 0 1 1 9 9 9

4 . N u m b e r o f E q ui t y S h a r es h e l d b y M R A C L t d . at t h e e n d of th e Fin a n c ia l Ye ar o f th e Su b s id ia ry Co mp a n y Rs . 5 0 ,2 5 ,1 0 0 1 7 ,9 9 ,9 5 0 7 ,6 0 ,0 0 0 1 ,0 0 ,0 0 0

5 . Ex te n t o f in te re s t o f Ho ld in g Co mp an y a t th e e n d o f th ef i n an c i a l y e a r o f t h e s u b si d i a ry 9 9 . 99 % 9 9 . 99 % 7 6 . 00 % 1 0 0 .0 0 %

6 Th e n e t a g g re g a te a mo u n t o f th e Su b s id iary Co mp a n yP r o f it / ( L os s ) s o f a r a s c o n c er n s t h e m e m be r s o f t h eHo ld in g Co mp a n y

1 . No t d e a lt with in th e Ho ld in g Co mp a n y 's a c c o u n tsa) Fo r th e fina nc ial ye ars e nd e d 31 s t Ma rch , 2 00 9 R s. (15 ,64 ,20 0) (73 ,4 3 1) (31 ,07 ,03 0) (1 3 ,2 50 )b ) F o r t h e p r e vi o u s f i n an c i a l y e a r s o f t h e s u b si d i a ry

Co mp a n y s in c e it b e c a me the Ho ld in g Co mp a n y 'sSu b s id ia ry (1 ,7 3 ,6 2 ,8 9 6 ) (2 1 ,6 2 ,1 6 3 ) 1 1 ,6 1,7 7 1 (2 4 ,4 4 ,9 1 0 )

2 . D e a l t w i th i n t h e H o l d in g C o m p an y ' s a c c ou n t s

a) Fo r th e fina nc ial y e ars e nd e d 31 s t Ma rch , 2 00 8 N .A. N.A. N.A. N.A.b ) F o r t h e p r e vi o u s f i n an c i a l y e a r s o f t h e s u b si d i a ry

Co mp a n y s in c e it be c a me th e Ho ld in gC o m p an y ' s S u b s id i a ry N . A . N . A . N . A . N . A .

7 . Ch a n g e s in th e in te re s t of Ho ld in g Co mp a n y ; b e twe en th ee n d o f th e fin an c ia l y e a r o f th e s u b s id ia rya n d 3 1 s t Ma rc h , 2 0 0 8

a) No s. of Sh a re s No N o N o Nob ) Ex te n t o f h o ld in g N.A. N.A. N.A. N.A.

8 . M a t e r i a l C h a n ge s b e t w ee n t h e e n d o f t he f i n a nc i a l y e a r o f t h e S u b si d i a ry C o m p an y a n d t h e C o m p an y ' s F i n a nc i a lSta te me n t e n d e d 3 1 s t Ma rc h , 2 0 0 9

a ) Fix e d As s e ts N.A. N.A. N.A. N.A.b ) In v e s tme n ts N.A. N.A. N.A. N.A.

c ) Mo n e y L e n t N.A. N.A. N.A. N.A.d ) Mo n e y b o rro we d o th e r th a n th o s e fo r me e tin g

Cu rre n t L ia b ilitie s N.A. N.A. N.A. N.A.

Ma n ip al G A R EG O S R GO WDA K B SH ET TY J M PAND EYAu g u s t 2 8 , 2 0 0 9 Ex e c u tiv e Dire c to r Dire c to r Dire c to r Co mp a n y Se c re ta ry


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C A S H F L O W S T AT E M E N T F O R T HE Y EA R E ND I N G 3 1 S T M A R C H , 2 0 0 9(Rs . in la k h s )

Cu rre nt Ye ar Prev iou s Yea r 31 .3 .20 09 31 .3.2 00 8

A. C ash Flow from Operating Activities

Profit/(Loss) bef

Documents

Maharashtra apex annual report 2009