Yule Financing & Leasing Company Ltd. के अकाउंट के लिये नोट

Mar 31, 2012

A) The Company has one class of equity shares having a par value of Rs. 10 each. Each shareholder is eligible for one vote per share held. In view of the loss incurred during the year your directors regret their inability to delcare any dividend for the year 2011 -12.

b) Details of shares held by share holders holding more than 5% of the aggregate shares in the Company.

NOTE 1(A)

1. By virtue of Brentford Electric (India) Ltd. (Acquisition and Transfer of Undertakings) Act, 1987, the Central Government took over the undertaking of Brent ford Electric (India) Ltd. (BEIL) which has vested in Andrew Yule & Co. Ltd., retrospectively from 1st April, 1986. On the basis of the said order it seems that no money against Company's investment in BEIL is realizable and hence such investment has been written down to a nominal amount of Re.1/-.

2. The Break up value of shares of The Bengal Coal Co. Ltd., as per latest available audited Balance Sheet is nil and hence such investment has been written down to a nominal amount of Re. 1 /- and the shortfall has been adjusted against Capital Reserve.

3. Following the nationalization of Transformer and Switchgear Ltd. (TSL) on 17.11.1983, the Company's investment in TSL's Shares has been written down to a nominal amount of Re. 1 /.

4. * Arising out of reorganization of share capital base of Essar Steel Ltd. approved by Hon’ble Gujrat High Court vide Order dated 28th February, 2005. Company's holding has been re- allocated above pursuant to the said Order.

5. ** Equity shares of Gabrial India Ltd. has been sub-divided to Re.1/- in lieu of old shares of Rs. 10/- each.

6. Disclosure relating to investment in partnership firm in terms of Clause 3(XII) of Part-ll, Schedule VI to the Companies Act, 1956.

i) Name of the Partnership Firm : BKNY & Co.,

ii) Name of all Partners :

a) The Bengal Coal Co. Ltd.

b) Katras Jherriah Coal Co. Ltd.

c) New Beerbhoom Coal Co. Ltd.

d) Yule Financing & Leasing Co. Ltd.

[iii] Total Capital of the partnership Firm : Rs.1,13,78,365

c) Since the Company is not a manufacturing Company, information required under clause 4C of Part of Schedule VI of the Companies Act, 1956, has not been furnished.

d) Segment Report based on the guiding principles given in Accounting Standerd on Segment reporting (AS-17) issued by the Institute of Chartered Accountants of India. The Company's other business segments are

i) Insurance Agency and other commission

ii) Artwork 7 Printing

iii) Others including Investment Income. There was no activity on lease and related business during the year. The registration of leasing and Hire Purchase business (under NBFC) has since been cancelled. In view of discontinuance of primary activities e.g., leasing and Hire purchase. Other segment result have not been identified being insignificant amount.

e) As required by Accounting Standard (AS-18) Relented party Disclosures issued by the Institute of Chartered Accountants of India are as follows:

A. Associate Company - Andrew Yule & Co. Ltd.

- Hooghly Printinq Co. Ltd.

B. Mr. Phlip Matthews (Dy General Manager is considered the Key Management personnel in regard with related party activities and has no relative.

f) The detail of amount recognized in the Financial Statement in respect of the following defined employees benefit schemes are discounted in the table beilow. During the year transactional provision of the Accounting Standard i.e AS-15 (Revised) in respect of gratuity, excess plan assets as on 01.04.2010 Rs. 2,41,785/- have been credited in the accumulated balance of Profit and loss Account as on 1st April, 2011.

Notes on Accounts

a. In view of the accumulated loss of the Company, the net worth has become negative. The Company, however, is making effort in one hand to settle and reduce the dues of depositors and on the other hand endeavoring to reduce the loss by cost economy and venturing into diversifying activities to generate surplus. The Company's loss has been consistently arrested from the year 2000-01 onwards. The accounts have thus been prepared on a going concern basis.

b. In response to the Company’s application for extension of time for repayment of matured fixed deposits and reconsideration of the rate of interest payable to deposit holders from the date of maturity to the date of payment, the Company Law Board (CLB) issued an adverse order not considering the financial position of the Company. Hence, Company applied to Hon’ble Kolkata High Court for revision of the said order. Hon’ble Court has since disposed of Company's appeal directing CLB to re-hear the matter, which is awaited.

c. The Company has relied on a legal opinion that the order of the Company Law Board having contested and pending before the Hon’bie Kolkata High Court, the directors of the Company are not disqualified under Clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956 for default in repayment of public deposits together with interest thereon.

d. Income Tax deducted at source on income from investments and others amounted to.

e. Contingent Liabilities not provided for in respect of:

[i] Income Tax

Forum where dispute

Name of Statute Nature of Dues Amount is pending

Income Tax Act, 1961 Income Tax Dues. 4,57,58,453 CIT(Appeal) In'view of legal opinion obtained from an eminent counsel and orders issued by appellate authority, the management does not assume any liability on this account.

Management does no percive any liability on settlement of the above case.

Management does not percive any liability on settlement of the above case.

[f] The Company has opened an ESCROW Account for investors' repayment protrction under RBI’s specific instructions and has balance as on 31.03.2011 Rs. 64,578/-. Therefore the Company does not percieve transfer of separate and/or additional fund designed as Investors Protection and Education Fund" u/s 205A of the Companies Act, 1956.

[g] There were no stipulations as regards repayment of unsecured loan and interest taken from Andrew Yule & Co. Ltd.

[h] The accounting treatments as well as technical matters of Leased Assets and Hire Purchase Assets will be appropriately taken care of by the management.

[i] The details of amount recognized in the financial statement in respect of the following defined employee benefit schemes are disclosed in the table below. During the year transitional provision of the Accounting Standard i.e. AS-15 (Revised) in respect of gratuity, excess plan assets as on 01.04.2010 Rs. 2,41,785/- have been credited in the accumulated balance of Profit and Loss Account as on 1st April, 2011.

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Mar 31, 2011

[a] In view of the accumulated loss of the Company, the net worth has become negative. The Company, however, is making effort in one hand to settle and reduce the dues of depositors and on the other hand endeavoring to reduce the lass by cost economy and venturing into diversifying activities to generate surplus. The Company's loss has been consistently arrested from the year 2000-01 onwards. The accounts have thus been prepared on a going concern basis.

[bl In response to the Company's application for extension of time for repayment of matured fixed deposits and reconsideration of the rate of interest payable or deposit holders from the date of maturity to the dare of payment, the Company Law Board (CLB) issued an adverse order not considering the financial position of the Company. Hence; Company applied to Hon'ble Kolkata High Court for revision of the said order. Hon'ble Court has since disposed of Company's appeal directing CLB to re-hear the matter, which is awaited.

[c] The Company has relied on a legal opinion that the order of the Company Law Board having contested and pending before the Hon'ble Kolkata High Court, the directors of the Company are not disqualified under Clause (g) of sub-section (1) of Section 274 of the Companies Act. 1956 for default in repayment of public deposits together with interest thereon.

[d] Income Tax deducted at source on income from investments and others amounted to Rs.9146/- jRs.46475;'-).

[e] Contingent Liabilities not provided for in respect of:

[i] income Tax

Forum where dispute Name of Statute Nature of Dues Amount is pending

Income Tax Act, 1961 Income Tax Dues. 4,57,58,453 CIT(Appeal)

(4.57,58,4531)

In view of legal opinion obtained from an eminent counsel and orders issued by appellate authority, the management does not assume any liability on this account.

[f] The Company has opened an ESCROW Account for investors' repayment protraction under RBI's specific instructions and has balance as on 31.03.2011 Rs. 87,696/-. Under this eventuality the Company does not perceive transfer of separate and/or additional fund designed as "Investors protection and Education Fund" u/s 205A of the Companies Act. 1956.

[g] There were no stipulations as regards repayment of unsecured loan and interest taken from Andrew Yule & Co. Ltd.

(h) The accounting treatments as well as technical matters of Leased Assets and Hire Purchase Assets will be appropriately taken care of by the management.

[i] The details of amount recognised in the financial statement in respect of the following defined employee benefit schemes are disclosed in e below. During tries year transitional provision of the Accounting Standard i.e. AS 15 (Revised) in respect of gratuity, excess plan assets as on 01.04.2010 Rs. 2,41,785/- have L-ten ..'edited in the accumulated balance of

[j] Segment Reporting based on the guiding principles given in Accounting Standard on Segment Reporting (AS-17) issued by the Institute of Chartered Accountants of India. The Company's other business segments are : [i] Insurance Agency and other commission Jim] Artwork & Printing [m] Others including Investment Income. There was no activity on lease and related business during the year. The registration of Leasing and Hire Purchase business (under NBFC) has since been cancelled. In view of discontinuance o! primary activities e.g.. Leasing and Hire Purchase, other segment results have not been identified being insignificant amount.

[k] Figures given in brackets relate to previous year which have been rearranged or regrouped whenever necessary.

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Mar 31, 2010

[a] In view of the accumulated loss of the Company, the net worth has become negative. The Company, however, is making effort in one hand to settle and reduce the dues of depositors and on the other hand endeavouring to reduce the loss by cost economy and venturing into diversifying activities to generate surplus. The Companys loss has been consistently arrested from the year 2000-01 onwards. The accounts have thus been prepared on a going concern basis.

[b] In response to the Companys application for extension of time for repayment of matured fixed deposits and reconsideration of the rate of interest payable to deposit holders from the date of maturity to the date of payment, the Company Law Board (CLB) issued an adverse order not considering the financial position of the Company. Hence, Company applied to Honble Kolkata High Court for revision of the said order. Honble Court has since disposed of Companys appeal directing CLB to re-hear the matter, which is awaited.

[c] The Company has relied on a legal opinion that the order of the Company Law Board having contested and pending before the Honble Kolkata High Court, the directors of the Company are not disqualified under Clause |g) of sub-section (1) of Section 274 of the Companies Act, 1956 for default in repayment of public deposits together with interest thereon.

[d] Income Tax deducted at source on income from investments and others amounted to Rs.46475/-(Rs. 14445/-).

[e] Contingent Liabilities not provided for in respect of: [i| Income Tax

Forum where dispute

Name of Statute Nature of Dues Amount is pending

Income Tax Act, 1961 Income Tax Dues. 4,57,58,453 CIT Appeal)/Tribunal

(4,57,58,453) Kolkata.

In view of legal opinion obtained from an eminent counsel and orders issued by appellate authority, the management does not assume any liability on this account.

[ii] Interest Tax

Forum where dispute

Name of Statute Nature of Dues Amount is pending

Interest Tax Act, 1974 Interest Tax Dues. Nil CIT(Appeal)/Tribunal

(98,74,237) Kolkata.

Management does not percive any liability on settlement of the above case.

(iii) Sales Tax

Forum where dispute

Name of Statute Nature of Dues Amount is pending

West Bengal Sales Sales Tax Dues. 5,60,716 Commercial Tax Officer,

Tax Act, 1994 (5,60,716) Kolkata.

Management does not percieve any liability on settlement of the above case.

[f] The Company has opened an ESCROW Account for investors repayment protection under RBIs specific instructions and has balance as on 31.03.2010 Rs.95,955/-. Under this eventuality the Company does not percieve transfer of separate and/ or additional

fund designed as "Investors protection and Education Fund u/s.205A of the Companies I Act, 1956.

[g] |i] In view of compromise settlement (OTS) made during the year. United Bank waived Rs.nil (previous year 47 Lakhs). The amount being loan (principal) adjusted directly with the opening balance of Profit and Loss Account. (ii) In view of Compromise settlement (OTS) made during the year, ICICI Bank has waived Rs. 5.19 Lakhs (previous yer nil). The amount being loan (principal) adjusted directly with the opening balance of Profit and Loss Account.

[h] There were no stipulations as regards repayment of unsecured loan and interest taken from Andrew Yule & Co. Ltd.

[i] The accounting treatments as well as technical matters of Leased Assets and Hire Purchase Assets will be appropriately taken care of by the management.

[j] The details of amount recognised in the financial statement in respect of the following defined employee benefit schemes are disclosed in the table below. During the year transitional provision of the Accounting Standard i.e. AS-15 (Revised) in respect of gratuity, excess plan assets as on 01.04.2009 Rs.2,39,278/- have been credited in the accumulated balance of Profit and Loss Account as on 1st April, 2009.

[k] One Time Settlement with 1C1CI Bank for accrued interest amount Rs.22,05,570/- {previous year Rs.Nil) and other liabilities written back during the year Rs.13176754/- (Rs. 13176754).

[l] Since the Company is not a manuJacturing Company, information required under clause 4C of Rart-II of Schedule VI of the Companies Act, 1956, has not been furnished.

[n] Segment Reporting based on the guiding principles given in Accounting Standard on Segment Reporting (AS-17) issued by the Institute of Chartered Accountants of India. The Companys other business segments are : fi) Insurance Agency and other commission [ii] Artwork & Printing [Hi) Others including Investment Income. There was no activity on lease and related business during the year. The registration of Leasing and Hire Purchase business (under NBFC) has since been cancelled. In view of discontinuance of primary activities e.g., Leasing and Hire Purchase, other segment results have not been identified being insignificant amount.