DB (International) Stock Brokers Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

Mar 31, 2018

1. Background of the Reporting entity

DB (International) Stock Brokers Limited (the ‘Company’), a Public Limited listed Company is engaged in stock broking and Depository Participant services of CDSL. The Company is domiciled in India and its registered office is situated at 756, Sector 23-A Gurugram-Haryana-122017. The Company was incorporated in India on February 28, 1992.

(i) Terms/Rights attached to equity shares

The Company has one class of equity shares having a par value of Re. 1 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of Interim dividend.

In the event of liquidation of the Company, the equity shareholders are eligible to receive the 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.

# As per the records of the company, including register of members

(ii) The Company has not issued/allotted any class of shares as fully paid up pursuant to contract(s) without payment being received in cash or by way of bonus shares during the period of five years immediately preceding the reporting date. Further, no shares of any class were bought back during the period of five years immediately preceding the reporting date.

2 Detail of dues to Micro and Small Enterprises defined under the MSMED Act 2006

Disclosure of payable to vendors as defined under the “Micro, Small and Medium Enterprise Development Act, 2006” is based on the information available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received from them on requests made by the Company. There are no overdue Principal amounts/interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made to such suppliers during the year or for any earlier years and accordingly, there is no interest paid or outstanding interest in this regard in respect of payments made during the year or brought forward from previous years.

*The above amount includes demand from tax authorities for assessment year 2013-2014. The Company has filed an appeal and the appeal is pending before the appellate authority. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required. Considering the facts of the matter, no further provision is considered necessary by management.

3 Post-employment benefit plans

i) The Company has a defined benefit gratuity plan (unfunded). Gratuity is payable to all eligible employees of the Company on retirement or separation from the Company after completion of five years of service with the Company and the maximum limit is Rs. 20 Lacs.

The discount rate is based on the market yields of Government bonds as at the balance sheet date for the estimated term of the obligation. The salary escalation rate takes into account inflation, seniority, promotion and other relevant factors.

iii) Sensitivity analysis: Significant actuarial assumptions for the determination of the defined benefit obligations are discount rate and expected salary increase rate. Effect of change in mortality rate is negligible. Please note that the sensitivity analysis presented below may not be representative of the actual change in the defined benefit obligations as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated. The results of sensitivity analysis are given below:

l. Description of Risk Exposures:

i) Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such Company is exposed to various risks as follow:

a) Salary Increases- actual salary increased will increase the plan’s liability. Increase in salary increased rate assumption in future valuations will also increase the liability.

b) Investment risk - as the plan is not funded, there is no investment risk

c) Discount rate - reduction in discount rate in subsequent valuations can increase the plan’s liability.

d) Mortality & Disability - actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

e) Withdrawals - actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan’s liability.

ii) During the year the Company has recorded an expense of Rs. 7.54 lacs (previous year Rs. 7.40 lacs) towards provident fund, a defined contribution plan.

iii) Leaves are encashed at the end of the year and not carried forwarded.

iv) Post employment benefits are determined by an Independent Actuary on overall basis and hence have not been separately provided for Key Management Personnel.

4 Related party disclosure

Name of Related parties and description of relationship with whom transactions have taken place during the year:-

(a) Subsidiary:

Daga Business (International) Stock Brokers (IFSC) Private Limited (wholly owned subsidiary company)

(b) Associate:

Flourishing Apartments Private Limited

(c) Name of Key Management Personnel and their relatives (KMP) (where transactions have taken place during the year):

Mr. Shiv Narayan Daga (Managing Director)

Ms. Shikha Mundra (Director) (Daughter of Mr. Shiv Narayan Daga)

Mr. Sanjeev Kumar Rawal (CFO) (resigned on March 28, 2017)

Mr. Vishnu Kumar Sharma (CFO) (joined on January 25, 2018)

Ms. Sonal Seth (Company Secretary & Compliance Officer) (resigned on January 25, 2018)

Ms. Himanshi Mittal (Company Secretary & Compliance Officer) (joined on January 25, 2018)

Mrs. Sharda Daga (wife of Mr. Shiv Narayan Daga)

5 Investor Education and Protection Fund

An amount of Rs. 154,320/- has been transferred to the Investor Education and Protection Fund by the Company during the year towards unpaid/ unclaimed dividend of FY 2009-10.

6 Long term and Derivative Contracts

The Company does not have any long term contracts. There are no derivative contracts outstanding as at the year end.

7 First time adoption of Ind AS:

A. Explanation of transition to Ind AS

These are the Company’s first Financial Statements prepared in accordance with Ind AS.

The accounting policies have been applied consistently in preparing the Financial Statements for the year ended March 31, 2018, the comparative information presented in these Financial Statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS balance sheet at April 31, 2016 (the Company’s date of transition). An explanation of how the transition from Financial Statements prepared in accordance with accounting standards notified under the Section 133 of the Act, read together with paragraph 7 of the Companies(Accounts)Rules,2014(PreviousGAAP)toIndAShasaffectedtheCompany’sfinancialposition, financial performance and cash flows is set-out in the following tables and notes:

B. Ind AS Optional Exemptions

1 Deemed cost for property, plant and equipment and intangible assets:

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets and investment property covered by Ind AS 40 Investment Properties. Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets property at their previous GAAP carrying value.

2 Investments

Ind AS 101 permits a first-time adopter to continue previous GAAP carrying value for investment in equity instrument of subsidiary and associate. Accordingly, the Company has elected to apply the said exemption.

C. Reconciliations between previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total Comprehensive Income and Cash Flows for periods before reporting period. The following tables represent the reconciliations from previous GAAP to Ind AS.

Note-1 Other Comprehensive Income

Under Ind AS, all items of Income and Expense recognized in a period should be included in Profit or Loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in Profit or Loss but are shown in the Statement of Profit and Loss as ‘other comprehensive income’ includes re-measurements of defined benefit plans, and their corresponding income tax effects. The concept of other comprehensive income did not exist under previous GAAP.

Note-2 Tax impact on adjustments

Retained earnings and Statement of Profit and Loss has been adjusted consequent to the Ind AS transition adjustments with corresponding impact to deferred tax, wherever applicable.

For instruments measured at amortised costs, carrying value represents best estimate of the fair value. These instruments are level 3 instruments.

Financial Risk Management Objectives and Policies

The Company’s principal financial liabilities comprises trade and other payables, security deposits, employee liabilities. The Company’s principal financial assets include trade and other receivables, cash and short-term deposits/ loan that derive directly from its operations.

8(a) Credit Risk: Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company’s exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and financial assets measured at amortised cost. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls. The Company’s trade receivables does not have any expected credit loss as these are secured by a collateral.

8(b) Fair value: The Company has made investment in quoted security (level I investment) for which discrete financial information is not available with the Company and hence, the Company has used adjusted net assets value method to arrive at fair value.

9 Liquidity Risk:

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due. All current the financial liabilities of the Company are current in nature as disclosed in the financial statements.

10 Capital Commitments:

Capital expenditures contracted for at the balance sheet date but not recognised in the financial statements (excluding those relating to investments (Note 3(i))

11 Figures of GST input credit claim is not reconciled with the GSTN data.

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Mar 31, 2015

Terms/Rights Attached to Equity Shares

The company has only one class of equity share having a par value of Rs. 2 per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees.

During the year ended 31st March,2015 , no dividend is recognised as distributable to the equity shareholders

1. Employees Benefit

An amount of Rs.1423491/-has been ascertained by the management in respect of the gratuity and other employee''s benefit. As given in the accounting policy of the company, all such payments shall be made on due basis, hence is not provided for in the books of account.

2. Related Party Disclosure required as per Accounting Standard (AS-18) on "Related Party Disclosure" issued by the Institute of Chartered Accountants of India are as below:

Name of Related parties and description of relationship with whom transactions have taken place during the year:-

(a) Key Management Personnel:

Sh. Shiv Narayan Daga (Managing Director)

(b) Relative of Key Management Personnel:

Mrs. Sharda Daga

Mrs. Shikha Mundra

3. a) Contingent Liabilities not provided for in respect of :Guarantee issued by banks Rs. 72.50 Crores (PreviousYearRs. 67.00 Crores)

b) Loans and Advances, Debtors, Security Deposit and other assets have value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

c) The expenses incurred by branches have been incorporated in the respective heads of account.

d) The previous year figures have been reworked, regrouped, rearranged, reclassified wherever necessary. Amounts and other disclosures for preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amount and other disclosures relating to the current year.

e) There is unpaid amount of Rs. 4,60,535/- outstanding against Dividend declared for the financial year 2009-10,2010-2011 and 2011-12. The said balance is lying in titled "Indusind Dividend Account" with Indusind Bank. The said unpaid dividend is not reflected in the current liability and Bank balance in the figure of Current & previous Financial year.

f) Figures have been rounded off to the nearest rupee.

g) Note from 1 to 21 form an integral part of the accounts.

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Mar 31, 2014

1. Employees Benefit

An amount of Rs.1248568/-has been ascertained by the management in respect of the gratuity and other employee''s benefit .As given in the accounting policy of the company, all such payments shall be made on due basis, hence is not provided for in the books of account.

2. Related Party Disclosure required as per Accounting Standard (AS-18) on "Related Party Disclosure" issued by the Institute of Chartered Accountants of India are as below:

Name of Related parties and description of relationship with whom transactions have taken place during the yearr-

(a) Key Management Personnel:

Sh. Shiv Narayan Daga ( Managing Director)

(b) Relative of Key Management Personnel: Mrs Shikha Daga

Mrs. Sharda Daga

3. GENERAL

a) Contingent Liabilities not provided for in respect of :Guarantee issued by banks Rs. 67.00 Crores (Previous yearRs. 53.00 Crores)

b) Loans and Advances, Debtors, Security Deposit and other assets have value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

c) The expenses incurred by branches have been incorporated in the respective heads of account.

d) The previous year figures have been reworked, regrouped, rearranged, reclassified wherever necessary. Amounts and other disclosures for preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amount and other disclosures relating to the current year.

e) There is unpaid amount of 7 460535/- outstanding against Dividend declared during the financial year 2009-10,2010-2011 and 2011-12, The said balance is lying in titled " Indusind Dividend Account" with Indusind Bank. The said unpaid dividend is not reflected in the current liability and Bank balance in the figure of Current & previous Financial year.

f) Figures have been rounded off to the nearest rupee.

g) Note from 1 to 22 form an integral part of the accounts.

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Mar 31, 2013

1 Employees Benefit

An amount of Rs, 1,248,568/- has been ascertained by the management in respect of the gratuity and other employees benefit as given in the accounting policy of the company all such payments shall be made on due payment basis hence is not provided for in the books of account

2. Change in method of provision of Depreciation

There is charge in the method of providing depreciation from straight line method to written down value method during the current financial year accounting due to change in the method of providing depreciation the profit during the year may be excess with a sum of Rs.1,439,005/-.

3. Related party Disclosure as required as per Accounting standard (AS-18) on related party disclosure issued by the institute of chartered accountants of India are as blow.

(a) key Management personal

Sh.Shiv Narayan Daga (Managing Director)

(b) Relative of key Management personnel

Ms Shikha Daga

4 GENERAL

a) Contingent Liabilities not provided for in respect of:

Guarantee issued by banks Rs.53.00 Crores (Previous year 41.25 crores)

b) Loans and Advances: Debtors security Deposit and other assets have value on realization in the ordinary Amounts and other disclosures for preceding year are included as an integral part of the current year financial statement and are to be read in relation to the amount and other disclosures relating to the current year.

c) There is unpaid amount of Rs.4,60,577/- outstanding against Dividend declared during the financial year 2009-10 2010-2011 and 2011-12 The said balance is lying in titled inducing Divided Account with inducing Bank The said unpaid dividend is not reflected in the current liability and Bank balance in the figure of current & previous Financial year.

f) Figures have been rounded off to the nearest rupee.

g) Note from 1 to 23 from an integral part of the accounts.

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Mar 31, 2012

1. Employees' Benefit

An amount of Rs. 11,76,857/- has been ascertained by the management in respect of the gratuity and other employee's benefit. As given in the accounting policy of the company, all payments shall be made on due basis, hence is not provided for in the books of account.

NOTES ON BALANCE SHEET AS AT 31st MARCH, 2012

2. GENERAL

a) Contingent liabilities not provided for in respect of:-

Guarantees issued by banks: Rs. 41.25 Crores (Previous year: 36.25 Crores)

b) Loans & Advances: Debtors, Security deposits and other assets have value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

c) The expenses incurred by branches have been incorporated in respective heads of account.

d) The previous figures have been reworked, regrouped, rearranged, reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amount and other disclosures relating to the current year.

e) Figures have been rounded off to the nearest rupee.

f) Schedules from 1 to 22 form an integral part of the accounts.

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Mar 31, 2011

1. The previous figures have been reworked, regrouped, rearranged, reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amount and other disclosures relating to the current year.

2. Employees' Benefit

An amount of Rs. 10,95,035/- has been ascertained by the management in respect of the gratuity and other employee's benefit. A certificate to this effect has been obtained from Mr. Ashok Kumar Garg, a Fellow of Institute of Actuaries of India. As given in the accounting policy of the company all payments shall be made on due basis, hence is not provided for in the books of account.

3. GENERAL

a) Contingent liabilities not provided for in respect of:-

Guarantees issued by banks: Rs. 36.25 Crores (Previous year: 16 Crores)

b) Loans & Advances: Debtors, Security deposits and other assets have value on realization in the ordinary business at least equal to the amount at which they are stated in the Balance Sheet.

c) The expenses incurred by branches have been incorporated in respective heads of account.

d) Figures have been rounded off to the nearest rupee.

e) Schedules from 1 to 13 form an integral part of the accounts.

"As per our report of even date attached"