Steel City Securities Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

(iii) Rights attached to equity shares:

The company has only one class of Equity Shares having at par value of INR 10/- per share. Each equity holder is entitled to one vote per share and has a right to receive dividend as recommended by Board of Directors subject to necessary approval from the shareholders except in case of interim Dividend During the Period , the per share interim dividend paid to equity shareholders was Rs. 3.00 (previous year Rs.2.00) and final Dividend for FY 20232024 paid to equity shareholders is Rs.1.00 (previous year Rs.1.00) In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the shareholders

a) Salaries, wages and bonus includes an amount of Rs. 107.50 Lakhs (PY Rs.111.00 Lakhs) paid to the Directors as Remuneration as per Schedule V of the Companies Act, 2013

b) Provident Fund : Company pays fixed contribution to Provident Fund at predetermined rates to the EPF fund maintained by Employees'' Provident Fund Organisation, Government of India. Company obligation is limited to payment of contribution at the pre determined rates. The settlement to the employees shall be made by the EPF organisation.

c) Gratuity: Payable to employees, who render continuous service of 5 years or more, on separation, @15 days of last drawn pay of each completed year of service.

d) Leave encashment: Leave encashment amount is paid to the employees at the end of the each calendar year.

Note No.30				)
Contingent Liabilities and commitments (to the extent not provided for) (Rupees in Lakhs):
	Sl no.	Particulars	As at 31st March, 2025	As at 31st March, 2024
	1	Bank Guarantees in favour of Clearing Corporations of Stock Exchanges issued by Banks on behalf of the Company against 50% of Cash Margin i. e . Fixed Deposit Receipts	4,525.00	4,525.00
	2	Cases against the Company not acknowledged as debts (See Note No. 30.1(a))	19.82	19.82
	3	Income tax Demands pending in appeals (See Note No. 30.1(b))	-	3.78
	4	Show cause notices from Service tax department for which the Company has filed replies	115.29	115.29
	5	Service tax demands, pending in appeal (See Note No. 30.1(c))	539.77	539.77

30.1

(a) Demands against the Company not acknowledged as debts, amounting to Rs.19.82 Lakhs are pending at various courts/forums

(b) During the Financial Year 2023-2024, the Appeal has been disposed off by giving complete relief to the Company and a consequential order also has been passed giving effect to the appellate order.

(c) Service tax demands against the Company;

(i) The Company has deposited an amount of Rs. Rs.13.49 Lakhs as a condition precedent of hearing the appeal before The Commissioner (Appeals) in case of order dated 09.01.2017. However the appeal has been disposed off by the learned Commissioner (Appeals) in favour of Revenue on 21.05.2018. The Company has filed an appeal against the order passed by the Commission (Appeals) before CESTAT by depositing additional Pre-deposit of Rs.4.50 Lakhs on 01.08.2018

Note No.31

Provision for Taxation has been made after taking into account, the difference between depreciation in the accounts and the depreciation allowable as per the Income Tax Act, 1961 and other deductions / additions allowable/disallowable under the Income Tax Act, 1961.

The Company elected to exercise the option permitted under section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Company has recognised provision for Income Tax and remeasured its deferred tax assets and liabilities, basis the rate prescribed in the said section.

Note No.33

Defined Benefit Plan - Gratuity

The Company provides gratuity benefit to its employees, which is funded with Life Insurance Corporation of India. The following table sets out the funded status of the defined benefit scheme and the amounts recognised in the financial statements:

r-^

Note No.35

Segment Reporting 1. Business Segment:

(i) The business segment has been considered as the primary segment.

(ii) The Company''s primary business segments are reflected based on principal business activities, the nature of service, the differing risks and returns, the organisation structure and the internal financial reporting system

(iii) The Company''s primary business comprises of two business segments viz., Stock Broking & DP Operations and E-Governance Operations

(iv) Segment revenue, results, assets and liabilities include amounts identifiable to each segments allocated on a reasonable basis.

(v) The accounting policies adopted for segment reporting are in line with the accounting policies adopted for preparation of financial information

2. Geographical Segment

Further the Company has no geographical segments which are subject to different risk and returns. Hence, no separate disclosure in terms of Indian Accounting Standard 108 on segment reporting is considered necessary.

NOTE: The turnover ratios are calculated considering the company''s nature of industry which is service-oriented.

Explanations for change in the ratio by more than 25% as compared to the ratio of preceding year:

The decrease in the Debt-Equity ratio is due to repayment of loan

The decrease in debt service coverage ratio is due to repayment of loan during 2024-25

The increase in the Return of Equity (ROE) ratio is due to increase in the revenue from operation

The increase in the Net Profit ratio is due to increase in the revenue from operation

The increase in the Return on Capital Employed ratio is due to increase in the revenue from operation

The increase in the Reurn on Investment ratio is due to increase in the revenue from operation

Note No.37

Previous Period figures have been regrouped/reclassified wherever necessary to confirm to the current year''s classification/disclosures.

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Mar 31, 2024

q) Provisions and Contingencies

Provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reasonable estimate can be made. Contingent Liabilities are disclosed in the notes. Contingent Assets are not recognised in the financial statements.

r) Earnings per Share

The Basic earnings per share is computed by dividing the net profit / loss attributable to the Equity Shareholders for the year by the weighted average no of equity shares outstanding during the reporting year.

For the purpose of calculating diluted earnings per share the net profit/loss for the year attributable to equity shareholders and weighted average no of shares outstanding during the reporting year is adjusted for the effect of all dilutive potential equity shares. In considering whether potential equity shares are dilutive or antidilutive, each issue of series of potential equity shares is considered separately rather than aggregate.

s) Statement of Cash Flows

Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow from operating activities is reported using indirect method adjusting the net profit for the effects of:

a. changes during the period in operating receivables and payables transactions of a cash nature;

b. non-cash items such as depreciation, provisions, deferred taxes, unrealised foreign currency gains and losses, and undistributed profits of associates and joint ventures; and

c. all other items for which the cash effects are investing or financing cash flows

Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items which are not available for general use as on the date of Balance Sheet.

t) Dividend payable

Dividend is recognised at the time of payment to equity shareholders.

u) Prior Period omissions & errors

Income/Expenditure relating to earlier years which does not exceeds 0.50% of the turnover of the Company in each transactions are treated as income/expenditure of the current year.

30.1

(a) Demands against the Company not acknowledged as debts, amounting to Rs.19.82 Lakhs are pending at various courts/forums

(b) During the Financial Year 2023-2024, the Appeal has been disposed off by giving complete relief to the Company and a consequential order also has been passed giving effect to the appellate order.

(c) Service tax demands against the Company;

(i) The Company has deposited an amount of Rs. Rs.13.49 Lakhs as a condition precedent of hearing the appeal before The Commissioner (Appeals) in case of order dated 09.01.2017. However the appeal has been disposed off by the learned Commissioner (Appeals) in favour of Revenue on 21.05.2018. The Company has filed an appeal against the order passed by the Commission (Appeals) before CESTAT by depositing additional Pre-deposit of Rs.4.50 Lakhs on 01.08.2018

Note No.31

Provision for Taxation has been made after taking into account, the difference between depreciation in the accounts and the depreciation allowable as per the Income Tax Act, 1961 and other deductions / additions allowable/disallowable under the Income Tax Act, 1961.

The Company elected to exercise the option permitted under section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Company has recognised provision for Income Tax and remeasured its deferred tax assets and liabilities, basis the rate prescribed in the said section.

Note No.35 Segment Reporting 1. Business Segment:

(i) The business segment has been considered as the primary segment.

(ii) The Company''s primary business segments are reflected based on principal business activities, the nature of service, the differing risks and returns, the organisation structure and the internal financial reporting system

(iii) The Company''s primary business comprises of two business segments viz., Stock Broking & DP Operations and E-Governance Operations

(iv) Segment revenue, results, assets and liabilities include amounts identifiable to each segments allocated on a reasonable basis.

(v) The accounting policies adopted for segment reporting are in line with the accounting policies adopted for preparation of financial information

NOTE: The turnover ratios are calculated considering the company''s nature of industry which is service-oriented. Explanations for change in the ratio by more than 25% as compared to the ratio of preceding year:

The change in the Debt-Equity ratio is due to increase in the debt and overall increase in Other equity.

The decrease in Debt-service coverage ratio is due to the decrease in the amounts of loan repayments during the year.

The change in Return on Equity (ROE) is due to the increase in the profit for the year and overall increase in Other Equity.

The change in Return on Capital employed is due to the increase in EBIT for the year and overall increase in Capital employed.

Note No.37

Previous Period figures have been regrouped/reclassified wherever necessary to confirm to the current year''s classification/disclosures.

For RAO & KUMAR For STEEL CITY SECURITIES LIMITED

Chartered Accountants Firm Reg.No.003089S

CA C M RAVI PRASAD K SATYANARAYANA SATISH KUMAR ARYA

Partner EXECUTIVE CHAIRMAN MANAGING DIRECTOR

Membership NO.211322

UDIN:24211322BKBUJM9936 N RAMU M SRIVIDYA

PLACE: VISAKHAPATNAM CHIEF FINANCIAL OFFICER COMPANY SECRETARY

DATE : 16.05.2024

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Mar 31, 2023

a) deposit accounts includes an amount of Rs.2,700.00 Lakhs placed with banks (HDFC Bank Rs.2,150.00 Lakhs, Karur vysya bank Rs. 400.00 Lakhs and Karnataka bank Rs.150.00 Lakhs) pledged against the bank guarantees issued and loan provided by them.

b) Section 125 of the Companies Act, 2013 mandates that companies transfer dividend that has been unclaimed for a period of seven years from unpaid dividend account to the Investor Education and Protection Fund (IEPF). Accordingly, if dividend is unclaimed for a period of seven years, it will be transferred to IEPF.

(ii) Rights attached to equity shares:

The company has only one class of Equity Shares having at par value of INR 10/- per share. Each equity holder is entitled to one vote per share and has a right to receive dividend as recommended by Board of Directors subject to necessary approval from the shareholders except in case of interim Dividend During the Year, the per share interim dividend paid to equity shareholders was Rs. 2.00 (previous year Rs.2.00) and final Dividend for FY 20212022 paid to equity shareholders is Rs.1.00 (previous year Rs.1.00) In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the shareholders

a) Working Capital facilities from The Karnataka Bank Ltd is secured by hypothecation of Trade Receivables (50% paripasu) , Collateral Security of specific Immovable Property belongs to the Company, personal guarantee of Directors and Properties belonging to Directors/ others aggregated of Rs.215.00 Lakhs

b) Working Capital facilities from Karur Vysya Bank is secured by specific Immovable Property belongs to the Company, Personal guarantee of Directors and Properties belonging to Directors/others aggregated of Rs.695.00 Lakhs

c) Working Capital facilities from The HDFC Bank Ltd is secured by hypothecation of Trade Receivables (50% paripasu), personal guarantee of Directors and Properties belonging to Directors/ others aggregated of Rs.445.00 Lakhs

a) There is no interest payable on Vsat Deposits taken from Franchises and the same was paid to Vsat Providers for purchase of VSATs

b) Unclaimed dividends includes an amount of Rs.1.68 Lakhs due and outstanding to be credited to investor education and protection funds. But, due to technical glitches in the MCA website the remittance could not be made with in the due date i.e. 23/03/2023. However, the Company has filed form No.IEPF-1 with in the due date. The delay in remittance is due to the conditions beyond the control of the Company.

^c) During the Year, an amount of Rs.1.42 Lakhs has been transferred to Investor Education and Protection Fund. )

a) Salaries, wages and bonus includes an amount of Rs. 96.00 lakhs (PY Rs.96.00 Lakhs) paid to the Directors as Remuneration as per Schedule V of the Companies Act, 2013.

b) Provident Fund : Company pays fixed contribution to Provident Fund at predetermined rates to the EPF fund maintained by Employees'' Provident Fund Organisation, Government of India. Company obligation is limited to payment of contribution at the pre determined rates. The settlement to the employees shall be made by the EPF organisation.

c) Gratuity: Payable to employees, who render continuous service of 5 years or more, on separation, @15 days of last drawn pay of each completed year of service.

d) Leave encashment: Leave encashment amount is paid to the employees at the end of the each calendar year.

Contingent Liabilities and commitments (to the extent not provided for) (Rupees in Lakhs):
Sl no.	Particulars	As at 31st March, 2023	As at 31st March, 2022
1	Bank Guarantees in favour of Clearing Corporations of Stock Exchanges issued by Banks on behalf of the Company against 50% of Cash Margin i. e . Fixed Deposit Receipts	5,295.00	5,295.00
2	Cases against the Company not acknowledged as debts (See Note No. 27.1(a))	19.82	19.82
3	Income tax Demands pending in appeals (See Note No. 27.1(b))	3.78	15.38
4	Show cause notices from Service tax department for which the Company has filed replies	115.29	115.29
5	Service tax demands, pending in appeal (See Note No. 27.1(c))	539.77	539.77

(a) Demands against the Company not acknowledged as debts, amounting to Rs.19.82 Lakhs are pending at various courts/forums.

(b) The Company has deposited an amount of Rs.0.76 Lakhs for granting staty for collection of Balance of Amount of Demand till the disposal of Appeal by the Appellate Authorities.

(c) Service tax demands against the Company;

(i) The Company has deposited an amount of Rs.13.49 Lakhs as a condition precedent of hearing the appeal before The Commissioner (Appeals) in case of order dated 09.01.2017. However the appeal has been disposed off by the learned Commissioner (Appeals) in favour of Revenue on 21.05.2018. The Company has filed an appeal against the order passed by the Commission (Appeals) before CESTAT by depositing additional Pre-deposit of Rs.4.50 Lakhs on 01.08.2018.

Note No.28

Provision for Taxation has been made after taking into account, the difference between depreciation in the accounts and the depreciation allowable as per the Income Tax Act, 1961 and other deductions / additions allowable/disallowable under the Income Tax Act, 1961.

The Company elected to exercise the option permitted under section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Company has recognised provision for Income Tax and remeasured its deferred tax assets and liabilities, basis the rate prescribed in the said section.

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Mar 31, 2018

Notes on Standalone Financial Statements

Note No.29

Provision for Taxation has been made after taking into account, the difference between depreciation in the accounts and the depreciation allowable as per the Income Tax Act, 1961 and other deductions /additions allowable/disallowable under the Income Tax Act, 1961.

Note No.30

Related party disclosures:

	Nature of relationship	Name of Party
(a)	Related Parties where control exists :
	Subsidiaries Croup Companies	Steel City Commodities Private Limited Steel City Financial Services Private Limited
(b)	Other related parties :
	Key Management Personnel	Mr. C. Sree Rama Murthy
		Mr. K. Satyanarayana
		Mr. Satish Kumar Arya

c ) Significant transaction with related parties:

			Nature of Transaction
SI No.	Nature of Relationship	Name of the Related Party	Remuneration	Corporate guarantee given	Advance Returned	Advance Taken	Dividend Paid/(received)	Brokerage Received
1	Subsidiary Company	Steel City Commodities Private Ltd	0.00	4,00,00,000.00	1,70,08,522.34	1,70,08,522.34	(16,73,000)	0.00
2	Associate Company	Steel City Financial Services Private Ltd	0.00	0.00	0.00	0.00	23,95,500	0.00
3	Chairman and Managing Director upto 05-11-2017	G Sree Rama Murthy	23,47,000.00	0.00	0.00	0.00	92,59,662	3,318.10
4	Executive Chairman w.e.f. 24-11-2017	K Satyanarayana	31,00,000.00	0.0	0.00	0.00	47,30,700	3,470.80
5	Managing Director w.e.f. 24-11-2017	Satish Kumar Arya	26,00,000.00	0.00	0.00	0.00	23,87,520	5,91,317.31
6	Relative of fey Management -Wife of Sri K Satyanarayana	K Mahalakshmi	0.00	0.00	0.00	0.00	154,800	6,350.93
7	Relative of fey Management - son of Sri K Satyanarayana	K S V Ramesh Babu	5,82,500.00	0.00	0.00	0.00	2,83,900	4004.80
8	Relative of fey Management - wife of Sri Satish Kumar Arya	Nirmala Devi Arya	0.00	0.00	0.00	0.00	1,40,400	50056.00
	Total		86,29,500.00	4,00,00,000.00	1,70,08,522.34	1,70,08,522.34	1,76,79,482.00	6,58,517.94

Note: Transactions between group companies comprise of extension and return of temporary adjustment of common clients accounts as identified by the Company''s management from the Holding/Subsidiary Company''s Account

(d) Amount due to / from related parties

	(Amount in Rs.)
Nature of Transaction	Due to / (from)
Steel City Commodities Private Ltd.	0.00
Steel City Financial Services Private Ltd.	2,80,760.00
C. Sree Rama Murthy	0.00
K. Satyanarayana	0.00
Satish Kumar Arya	0.00

Note No. 31

Statement of utilisation of Initial Public Offering (''IPO'') as on 31st March, 2018:

In February, 201 7 the Company approached the capital market by way of an SME IPO. The utilisation of the proceeds from IPO in the current year is set out below:

		(Amount in Rs. Lakhs)
Particulars	Proposed amount as per Prospectus	Proposed amount as per the Resolution passed through Postal Ballot on 02.01.2018	Amount utilized as on 31.03.2018
Investment in Technology Upgradation and office infrastructure for expansion of E-Covernance business	390.00	194.02	194.02
Setting up AADHAAR Enrolment centre at all our existing Branches	264.00	0.87	0.87
Enhancement of our Company''s brand through advertising and other brand-building activities	250.00	1.00	1.00
Working Capital Requirement	200.00	887.04	887.04
Offer Expenses	220.00	241.07	241.07
General Corporate Purposes	175.40	175.40	175.40
Total	1499.40	1499.40	1499.40

Note No.32

Defined Benefit Plan - Gratuity

The Company provides gratuity benefitto its employees, which is funded with Life Insurance Corporation of India. The following table sets out the funded status of the defined benefit scheme and the amounts recognised in the financial statements:

	31st March 2018	31st March 2017
Net Asset / (Liability) recognised in the Balance Sheet:
Present Value of Defined Benefit Obligation	89,98,968	83,65,556
Fair Value of Plan Assets	90,49,859	70,21,518
Funded Status [Surplus / (Deficit)]	50,891	(13,44,038)
Unrecognised Past Service Costs	—	—
Net Asset / (Liability) recognised in the Balance Sheet	50,891	(13,44,038)
Change in Defined Benefit Obligations (DBO) during the Year:
Present Value of DBO at the beginning of the Year	83,65,556	65,40,376
Current Service Cost	9,88,116	9,08,784
Interest Cost	5,94,912	4,97,540
Actuarial (Gains)/ Losses	—	—
Past Service Cost	—	—
Benefits Paid	(4,32,147)	(4,84,811)
Actuarial loss/(gain) on obligation (balancing figure)	(5,17,469)	9,03,667
Present Value of DBO at the end of the Year	89,98,968	83,65,556
Change in Fair Value of Assets during the Year:
Plan Assets at the beginning of the Year	70,21,518	63,13,573
Expected Return on Plan Assets	5,81,761	5,43,674
Actual Company Contributions	18,00,000	6,50,000
Actuarial Gain / (Loss)	78,727	(918)
Benefits Paid	(4,32,147)	(4,84,811)
Plan Assets at the end of the Year	90,49,859	70,21,518
Actual Return on Plan Assets	6,60,488	5,42,756
Composition of Plan Assets is as follows:
Government Bonds	Not Received	Not Received
Debentures and Bonds	Not Received	Not Received
Fixed Deposits	Not Received	Not Received
Others	Not Received	Not Received
* - Funds are managed by Life Insurance Corporation of India and
composition of the fund as at the balance sheet date was not provided
by the insurer.	90,49,859	70,21,518
Assumption used in accounting for Gratuity Plan:
Discount Rate	7.71	7.30
Salary Escalation Rate	5.00	5.00
Expected rate of return on plan assets	7.55	7.55

Note No.33

Corporate Social Responsibility

a) Cross Amount required to be spent by the Company during the year Rs.15,11,01 7.00

b) Total Amount spent during the year is Rs.15,11,017.00 as detailed below:

Particulars	Amount (Rs.)
Amount Contributed to Sweekaram Education Society of Greater Visakhapatnam Municipal Corporation, Visakhapatnam.	5,00,000.00
Amount Contributed to Prime Minister National Relief Fund	6,11,017.00
Amount Contributed to Lebenshilfe, Visakhapatnam.	2,00,000.00
Amount Contributed to The Akshaya Patra Foundation, Visakhapatnam.	2,00,000.00
Total	15,11,017.00

Note No.34 Segment Reporting 1 .Business Segment:

(i) The business segment has been considered as the primary segment.

(ii) The Company''s primary business segments are reflected based on principal business activities, the nature of service, the differing risks and returns, the organisation structure and the internal financial reporting system

(iii) The Company''s primary business comprises of two business segments viz., Stock Broking & DP Operations and E-Covernance Operations

(iv) Segment revenue, results, assets and liabilities include amounts identifiable to each segments allocated on a reasonable basis.

(v) The accounting policies adopted for segment reporting are in line with the accounting policies adopted for preparation of financial information

Information about the Primary Segment:

Particulars	Stock Broking & Dp Operations	E-Governance Operations	Grand Total
A. Segment Revenue
External Segment	31,29,23,663.01	32,32,43,235.73	63,61,66,898.74
Internal Segment	-	-	-
Total Revenue
	31,29,23,663.01	32,32,43,235.73	63,61,66,898.74
B. Segment Results Profit/Loss	8,91,99,914.69	7,66,11,882.87	16,58,11,797.56
Less: Depreciation			86,27,809.94
Less: Income Taxes (Current, Deferred Tax)			4,63,97,592.96
ProfitALoss) After Tax			11,07,86,394.66
C. Segment Assets	97,46,86,474.10	26,79,67,538.99	1,24,26,54,013.09
D. Segment Liabilities	35,64,25,151.31	20,18,23,356.59	55,82,48,507.90
E. Capital Expenditure	92,96,043.74	38,21,654.52	1,31,17,698.26
F. Depreciation	74,09,492.17	12,18,317.77	86,27,809.94

2. Geographical Segment

Further the Company has no geographical segments which are subject to different risk and returns. Hence, no separate disclosure in terms of Accounting Standard (AS -17) on segment reporting is considered necessary.

Note No.35

Previous year''s figures have been regrouped/reclassified wherever necessary to confirm to the current year''s classification/disclosures

In terms of our report attached
For SARC & ASSOCIATES		For STEEL CITY SECURITIES LIMITED
Chartered Accountants
Firm Reg.No.006085N
CHANDRA SEKHAR AKULA	K SATYANARAYANA	SATISH KUMAR ARYA	GSR PRASAD
Partner	EXECUTIVE CHAIRMAN	MANAGING DIRECTOR	DIRECTOR
Membership No.206704
PLACE: VISAKHAPATNAM	NRAMU		M SRIVIDYA
DATE : 29.05.2018	CHIEF FINANCIAL OFFICER		COMPANY SECRETARY