Annual Report 2010 - Geojit Credits

8/7/2019 Annual Report 2010 - Geojit Credits

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GEOJIT CREDITS PRIVATE LIMITED

ANNUAL REPORT 2009-10

Board of Directors

C.J. George, Managing DirectorOliver Daniel Andre Le GrandGeoffroy De LassusMahesh VyasAlkeshkumar Sharma, Nominee Director (KSIDC Ltd.)A.K. Kundra

AuditorsM/s. Varma & VarmaChartered Accountants,Nettipadam Road,Kochi - 682 016.

Bankers

Axis Bank Ltd.Federal Bank Ltd.

Registered Office

5 th Floor, Finance Towers,Kaloor, Kochi - 682 017.

Driven by Trust

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Page

Notice..............................................................................................................3

Directors Report ..........................................................................................4

Auditors Report ............................................................................................6

Balance Sheet ............................................................................................13

Profit and Loss Account ..............................................................................14

Cash Flow Statement .................................................................................15

Schedules to Accounts ...............................................................................16

CONTENTS

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GEOJIT CREDITS PRIVATE LIMITEDDIRECTORS REPORT

Dear Members,

Your Directors have great pleasure in presenting the19 th Directors Report of the Company together withthe Audited Annual Accounts for the year ended 31March 2010.

Financial PerformanceThe performance of the Company for the financialyear ended 31 March 2010 is summarised below:

(Rs. in lakh)Particulars 2009-10 2008-09

Total Income 285.73 412.58

Profit before Tax 230.63 353.42

Provision for Tax 70.49 119.44

Profit After Tax 160.43 234.05

Balance brought forward 321.96 255.61

Profit available for appropriationAppropriations: -

Transfer to Statutory Reserve 32.08 46.81

Dividend on equity shares 0.00 120.89(Including Dividend Tax)

Balance carried to Balance Sheet 450.31 321.96

Operations

During the year under review, credit off take underLoan Against Share remained low due to poor retailparticipation. Other main source of income, financingagainst warehouse receipts also witnessed areduction in volume. As a result total revenue for theyear decreased by 30.75% from Rs.412.58 lakh toRs.285.73 lakh. Profit after tax decreased by 31.45%from Rs.234.05 lakh to Rs.160.43 lakh.

Board of Directors

The Board of Directors of the Company consists ofMr.C.J.George, Mr.Alkeshkumar Sharma, Mr. A.K.Kundra, Mr. Mahesh Vyas, Mr.Olivier Le Grand andMr.Geoffroy De Lassus.

KSIDC Limited has nominated Mr. AlkeshkumarSharma IAS, Managing Director of KSIDC Limitedas its Nominee Director on the Board of the Companyin place of Mr.A.K.Nair with effect from 5 April 2010.The Board of Directors place on record its sincereappreciation and gratitude for the valuablecontribution made by Mr. A.K.Nair during his tenure.

Mr.Mahesh Vyas and Mr. A.K.Kundra, Directors, retireby rotation at the ensuing Annual General Meeting

and being eligible offer themselves for re-appointment.

Auditors

M/s.Varma & Varma, Chartered Accountants, Kochi,(ICAI Registration No. 004532S) were appointed asStatutory Auditors of your company to conduct theaudit of accounts for the year ended 31 March 2010.Their term of appointment expires at the conclusionof the forthcoming Annual General Meeting. YourDirectors have proposed them for reappointment.

Details of employees, Conservation of Energyand Technology Absorption, etc.The Company has nothing to report under Section217(1)(e) and 217 (2A) of the Companies Act, 1956.

Fixed DepositsThe company has not accepted any fixed depositsduring the year.

Directors Responsibility StatementAs required under Section 217 (2AA) of theCompanies Act,1956, your Directors confirm having:

a) followed in preparation of the Annual Accounts,the applicable standards with proper explanationrelating to material departures, where applicable;

b) selected such accounting policies and appliedthem consistently and made judgmentsaestimates that are reasonable and prudent soas to give a true and fair view of the state of affairsof your Company at the end of the financial yearand of the profit of your Company for that period;

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c) taken proper and sufficient care for the

maintenance of adequate accounting records inaccordance with the provisions of the CompaniesAct, 1956 for safeguarding the assets of yourCompany and for preventing and detecting fraudand other irregularities; and

d) prepared the Annual Accounts on a going concernbasis.

Acknowledgement

The Board of Directors acknowledges the significantcontribution and co-operation made by theemployees of the company and for the co-operationfrom bankers, government and other bodies.

For and on behalf of the Board of Directors

C.J. George Alkeshkumar SharmaManaging Director Director

5

Place : NedumbasseriDate : 24-05-2010


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AUDITORS REPORT

The Members,Geojit Credits Private LimitedKochi.

1. We have audited the attached Balance Sheet ofGEOJIT CREDITS PRIVATE LIMITED, asat 31st March 2010, the Profit and Loss Accountand the Cash Flow Statement for the year endedon that date annexed thereto. Thesefinancial statements are the responsibility of the

Companys management. Our responsibility is to

express an opinion on these financialstatements based on our audit.

2. We conducted our audit in accordance withauditing standards generally accepted inIndia.Those standards require that we plan andperform the audit to obtain reasonableassurance about whether the financial statementsare free of material misstatement. An au di tincludes,examining on a test basis, evidencesupporting the amounts and disclosures in thefinancial statements. An audit also includes

assessing the accounting principles used andsignificant estimates made by management, aswell as evaluating the overall financial statementpresentation. We believe that our audit providesa reasonable basis for our opinion.

3. As required by the Companies (Auditors Report)Order, 2003 issued by the Central Government ofIndia in terms of Section 227 (4A) of theCompanies Act, 1956, we give in the Annexure, astatement on the matters specified in Paragraphs4 and 5 of the said Order.

4. Further to our comments in the Annexure referredto above, we report that:

i. We have obtained all the information andexplanations, which to the best of our knowledgeand belief were necessary for the purpose of ouraudit;

ii. In our opinion, proper books of account as requiredby law have been kept by the company, so far asappears from our examination of those books;

iii. The Balance Sheet, Profit and Loss Account and

Cash Flow Statement dealt with by the report arein agreement with the books of accounts;

iv. In our opinion, the Balance Sheet, Profit and LossAccount and Cash Flow Statement dealt with bythis report comply with the Accounting Standardsreferred to in sub-section (3C) of Section 211 ofthe Companies Act, 1956;

v. On the basis of written representations receivedfrom directors as on 31st March, 2010 and takenon record by the Board of Directors, we reportthat none of the directors is disqualified as on 31stMarch 2010, from being appointed as a Directorin terms of clause (g) of sub- section 1 of Section274 of the Companies Act, 1956.

vi. In our opinion and to the best of our informationand according to the explanations given to us, thesaid accounts , read together with the accountingpolicies and other notes attached thereto give theinformation required by the CompaniesAct,1956,in the manner so required and give a trueand fair view in conformity with the accountingprinciples generally accepted in India:

a. in the case of the Balance Sheet, of the state ofaffairs of the Company as at 31st March 2010;

b. in the case of the Profit and Loss Account, of theprofit for the year ended on that date; and

c. in the case of the Cash Flow Statement, of thecash flows for the year ended on that date.

Place: Kochi For VARMA AND VARMADate: 24-05-2010 (FRN.004532S)

(Vijay Narayan Govind)PartnerChartered Accountants

Membership No. 203094

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ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR AUDITREPORT OF EVEN DATE

1. a) The Company is maintaining proper recordsshowing full particulars including quantitativedetails and situation of fixed assets.

b) We are informed that major items of the fixedassets have been physically verified by themanagement at the end of the year, which, inour opinion is reasonable having regard to thesize of the company and the nature of its assetsand that no material discrepancies have beennoticed on such verification.

c) According to the information and explanationsgiven to us, there has been no significantdisposal of fixed assets during the year.

2. The Company does not hold any inventory.Accordingly, clause (ii) of paragraph 4 of theOrder is not applicable to the Company.

3. a) The company has granted unsecured loans tothe holding (also being a company listed in theregister maintained under section 301 of theCompanies Act, 1956) aggregating to Rs. 340lakhs during the year, the entire amount of which

has been repaid during the year. The companyhas not granted any other loans secured orunsecuredto companies, firms or other partiescovered in the register maintained undersection 301 of the Companies Act, 1956.

b) In our opinion, the rate of interest and otherterms and conditions of loan given by theCompany to the parties listed in the registermaintained under Section 301 of the Act, arenot prima facie prejudicial to the interest of theCompany.

c) In respect of the above loan the Company hasreceived repayment of principal amount andinterest on regular basis.

d) There are no overdue amounts in respect ofthe above loans.

e) The company has taken a loan from the holdingcompany amounting to Rs. 725 lakhs and thebalance outstanding at the end of the y e a rwas Rs. 625 lakhs. The Company has not takenanyother loans, secured or unsecured fromcompanies, firms or other parties requiring tobe entered in the register in terms of Section301 of the Companies Act, 1956.

4. In our opinion and according to the informationand explanations given to us, there areadequate internal control procedurescommensurate with the size of the Companyand nature of its business for the purchase offixed assets and for sale of services. Duringthe course of our audit, we have neither comeacross nor have we been informed of anycontinuing failure to correct major weaknessesin the internal control systems.

5. a) According to the information and explanationsgiven to us, we are of the opinion that theparticulars of contracts or arrangements thatneed to be entered in the register maintainedunder section 301 of the Companies Act, 1956have been so entered.

b) In our opinion and according to the informationand explanations given to us, the transactionsmade in pursuance of such contract orarrangements with parties referred to in (a)above, have been made at rates which arereasonable having regard to the prevailingmarket rates at the relevant time.

6. The Company has not accepted any depositsfrom the public during the year and hence thedirectives issued by the Reserve Bank of Indiaand the provisions of sections 58A, 58AA or anyother relevant provisions of the Companies Act,1956 and the rules framed there under are notapplicable.

7. In our opinion, the company has an internalaudit system, the scope and coverage of whichis commensurate with its size of the Companyand the nature of its business.

8. To the best of our knowledge and according tothe information and explanations given to us,the Central Government has not prescribed themaintenance of cost records under Section209(1)(d) of the Companies Act, 1956 for theservices of the Company;

9. a) As per the information and explana tionsfurnished to us and according to ourexamination of the records of the Company, the

company has been generally regular indepositing undisputed statutory dues, with the

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appropriate authorities during the year. Thereare no arrears of undisputed statutory duesoutstanding as at the last day of the financialyear, for a period of more than six months fromthe date on which they became payable.

b) According to the information and explanationsgiven to us and the records of the Companyexamined by us, there are no disputed amountsof taxes that have not been deposited with theauthorities as at 31st March 2010.

10. The Company has no accumulated losses atthe end of the financial year and it has not

incurred cash losses in the current and in theimmediately preceding financial year.

11. According to the information and explanationsgiven to us and the records of the Companyexamined by us, the Company has notdefaulted in repayment of dues to the financialinstitutions and banks.

12. In our opinion and to the best of our informationthe Company has maintained adequatedocuments and records in cases where theCompany has granted loans or advances on

the basis of security by way of pledge of sharesand other securities.

13. The Company is not a chit fund/nidhi/mutualbenefit fund/society and hence the provisionsthereof are not applicable.

14. Based on our examination of records and theinformation and explanations given to us, thecompany does not deal/trade in shares,securities, debentures and other investments.

15. According to the information and explanations

given to us and the records of the companyexamined by us, the company has not givenany guarantee for loans taken by others frombanks or financial institutions.

16. The Company has not availed any term loansand hence the relative reporting requirementsare not applicable.

17. According to the information and explanationsgiven to us and the records of the companyexamined by us, the funds raised on short termbasis have not been used for long- term

investment.

18. The Company has not made any preferentialallotment of shares to parties and companiesrequiring to be entered in the Register pursuantto Section 301 of the Act.

19. The company has not issued any debenturesduring the year.

20. The company has not raised any money bypublic issues during the year.

21. During the course of our examination of thebooks and records of the Company, carried outin accordance with the generally acceptedauditing practices in India, and according to the

information and explanations given to us, wehave neither come across any instance of fraudon or by the Company, noticed or reportedduring the year, nor have we been informed ofsuch case by the Management.

Kochi-16 For VARMA AND VARMA

Date: 24-05-2010 (FRN.004532S)

(Vijay Narayan Govind)

PartnerChartered Accountants

Membership No. 203094

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REPORT TO THE BOARD OF DIRECTORS OF GEOJIT CREDITS PRIVATE LIMITED, ON THEMATTERS SPECIFIED IN PARAGRAPHS 3 AND 4 OF THE NON-BANKING FINANCIAL

COMPANIES AUDITORS REPORT (RESERVE BANK) DIRECTIONS, 2008.

The company is an NBFC holding acertificate of registration from RBI videletter-dated 17.10.2005. Reg. No. B 16.00123.

Not Applicable

No public deposits are accepted /held. Thecompany is incorporated as an NBFC thatcannot accept / hold deposits from thepublic vide letter from the RBI dated17.10.2005. Hence the provisions are notapplicable.

Not Applicable

3. (A). In the case of all non- banking financial companiesI. Whether the company is engaged in the business of non-banking financial institution and whether it has obtained aCertificate of Registration (CoR) from the Bank.

II. In the case of a company holding CoR issued by the bank,whether that company is entitled to continue to hold suchCoR in terms of its asset/ income pattern as on March 31,2010.

Note: A reference in this regard is invited to paragraph 15 ofthe Non-banking Financial (Deposit Accepting or Holding)Companies Prudential Norms (Reserve Bank) Directions,2007 in respect of deposit taking NBFCs and paragraph 15of Non-Banking Financial (Non-Deposit Accepting or Holding)Companies Prudential Norms (Reserve Bank) Directions,2007 in respect of non-deposit taking NBFCs.

III. Based on the criteria set forth by the Bank in Company CircularNo. DNBS.PD. CC No. 85/03.02.089/ 2006-07 datedDecember 6, 2006 for classification of NBFCs as AssetFinance Company (AFC), whether the non-banking financial

company has been correctly classified as AFC as defined inNon- Banking Financial Companies Acceptance of PublicDeposits (Reserve Bank) Directions, 1998 with reference tothe business carried on by it during the financial year2009-10

(B). In the case of a non-banking financial company accepting/ holding public deposits - Apart from the matters enumeratedin (A) above, the auditor shall include a statement on thefollowing matters, namely:

(i) Whether the public deposits accepted by the company togetherwith other borrowings indicated below, viz.,

(a) From public by issue of unsecured nonconvertible debentures/ bonds;

(b) From its shareholders (if it is a public limited company) and(c) Which are not excluded from the definition of public deposit

in the Non- Banking Financial Companies Acceptance ofPublic Deposits (Reserve Bank) Directions, 1998 are withinthe limits admissible to the company as per the provisions ofthe Non-Banking Financial Companies Acceptance of PublicDeposits (Reserve Bank) Directions, 1998.

The company is entitled to hold CoR interms of its asset/income pattern as on31.03.2010.

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Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

Not Applicable

(ii) Whether the public deposit held by the company in excess ofthe quantum of such deposits permissible to it under theprovisions of Non-Banking Financial Companies Acceptanceof Public Deposits (Reserve Bank) Directions, 1998 areregularise in the manner provided in the said directions.

(iii) Whether an Asset Finance Company having Capital to RiskAssets Ratio (CRAR) less than 15% or an InvestmentCompany or a Loan Company as defined in paragraph2(1)(ia), (vi) and (vii) respectively of Non-Banking FinancialCompanies Acceptance of Public Deposits (ReserveBank) Directions, 1998 is accepting public deposit. withoutminimum investment grade Not Applicable credit rating froman approved credit rating agency.

(iv) In respect of NBFCs referred to in clause (iii) above, whetherthe credit rating, for each of the fixed deposits schemes thathas been assigned by one of the Credit rating Agencies listedin Non-Banking Financial Companies Acceptance of PublicDeposits (Reserve Bank) Directions, 1998

a) Is in force: andb) Whether the aggregate amount of deposits outstandingas at any point during the year has exceeded the limit ecifiedby the such Credit rating Agency;

(v) In the case of NBFCs having Net Owned Funds of Rs 25 lakhand above but less than Rs 200 lakhs, whether the publicdeposit held by the companies is in excess of the quantum ofsuch deposit permissible to it in terms of Notification No. DNBS.199/ CGM (PK) 2008 dated June 17, 2008 and whether suchCompany:a) Has frozen its level of deposits as on the dateof that Notification; orb) Has brought down its level of deposits to the level of revisedceiling of deposits in terms of that Notification.

(vi) Whether the company has defaulted in paying to its depositorsthe interest and/ or principal amount of the deposits after suchinterest and/or principal became due;

(vii) Whether the company has complied with the prudential normson income recognition, accounting standards, assetclassification, provisioning for bad and doubtful debts, andconcentration of credit/investments as specified in thedirections issued by the Reserve Bank of India in terms of theNon- Banking Financial (Deposit Accepting or Holding)Companies Prudential Norms (Reserve Bank) Directions,2007.

(viii) Whether the capital adequacy ratio as disclosed in the returnsubmitted to the Bank in terms of the Non-Banking Financial Not Applicable

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Not Applicable

Not Applicable

Not Applicable

Not Applicable

No

(Deposit Accepting or Holding) Companies Prudential Norms(Reserve Bank)Directions, has been correctly determinedand whether such ratio is in compliance with the minimumCRAR prescribed therein;

(ix) Whether the company has complied with the liquid assetsrequirement as prescribed by the Bank in exercise of powersunder Section 45-IB of the RBI Act and whether the details ofthe designated bank in which the approved securities are heldis communicated to the office concerned of the Bank in termsof Notification No. DNBS.172/CGM(OPA)-2003 dated July31, 2003;

(x) Whether the company has furnished to the Bank within thestipulated period the return on deposits as specified in the NBS1 to the Non-Banking Financial Companies Acceptance ofPublic Deposits (Reserve Bank) Directions, 1998;

(xi) Whether the company has furnished to the Bank within thestipulated period the halfyearly return on prudential norms asspecified in the Non-Banking Financial (Deposit Accepting orHolding) Companies Prudential Norms (Reserve Bank)Directions, 2007;

(xii) Whether, in case of opening of new branches or offices tocollect deposits or in the case of closure of existing branches/

offices or in the case of appointment of agent, the companyhas complied with the requirements contained in the Non-Banking Financial Companies Acceptance of Public Deposits(Reserve Bank) Directions, 1998.

(C). In the case of a non-banking financial company not acceptingpublic deposits - Apart from the aspects enumerated in (A)above, the auditor shall include a statement on the followingmatters, namely:

(i) Whether the Board of Directors has passed a resolution for thenon-acceptance of any public deposits;

(ii) Whether the company has accepted any public deposits duringthe relevant period/year;

(iii) Whether the company has complied with the prudential normsrelating to income recognition, accounting standards, assetclassification and provisioning for bad and doubtful debts asapplicable to it in terms of Non-Banking Financial (Non-DepositAccepting or Holding) Companies Prudential Norms (ReserveBank) Directions, 2007.

(iv) In respect of Systemically Important Non- deposit taking NBFCsas defined in paragraph 2(1)(xix) of the Non-Banking Financial(Non-Deposit Accepting or Holding) Companies Prudential

Norms (Reserve Bank) Directions, 2007.

No

Yes.The company being a loan company notaccepting deposits from the public,the Prudential Norms except Paragraph16 and 18 are applicable to the companyand are being complied with.

Not Applicable

11

Yes, Board meeting dated 11.04.2009.


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Not Applicable

No unfavorable /qualified statements.

Place: Kochi-16Date: 24-05-2010

a) Where the capital adequacy ratio as disclosed in thereturn submitted to the Bank in form NBS-7, has beencorrectly arrived at and whether such ratio is in compliancewith the minimum CRAR prescribed by the Bank;b) Whether the Company has furnished to the Bank theannual statement of capital funds, risk assets/ exposuresand risk asset ratio (NBS-7) within the stipulated period.

(D). In the case of a company engaged in the businessof non-banking financial institution not requiredto hold CoR subject to certain conditions

Apart from the matters enumerated in (A) (I) above, theauditor shall include a statement on the following matters,

namely: Where a company has obtained a specific advice fromthe Bank whether the company is complying with theconditions stipulated as advised by the Bank.

4. Reasons to be stated for unfavourable or qualifiedstatements

Where, in the auditors report, the statement regarding any ofthe items referred to in paragraph 3 above is unfavourable orqualified, the auditors report shall also state the reasons forsuch unfavourable or qualified statement, as the case maybe. Where the auditor is unable to express any opinion on any

of the items referred to in paragraph 3 above, his report shallindicate such fact together with reasons thereof.

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For VARMA AND VARMA

(FRN.004532S)

(Vijay Narayan Govind)

PartnerChartered AccountantsMembership No. 203094


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SOURCES OF FUNDSShare Holders FundsShare Capital 1 206,656,550 206,656,550Reserves and Surplus 2 62,888,071 46,845,286

Loan FundsUnsecured Loans 3 62,500,000 -

Deferred Tax Liability (Net)(refer note no. 3 of Schedule 16 ) 292 31,721

TOTAL 332,044,913 253,533,557

APPLICATION OF FUNDSFixed Assets 4Gross Block 855,818 836,813Less: Depreciation 541,633 384,455Net Block 314,185 452,358

Investments 5 - 78,579,131

Current Assets, Loans and AdvancesCash and Bank balances 6 91,205,006 85,248,776Other Current assets 7 3,695,947 1,698,968Loans and Advances 8 279,087,827 134,750,757

373,988,780 221,698,501

Less: Current Liabilities and ProvisionsCurrent Liabilities 9 546,071 476,156Provisions 10 41,711,981 46,720,277

42,258,052 47,196,433Net Current Assets 331,730,728 174,502,068TOTAL 332,044,913 253,533,557Significant Accounting Policies and 16Notes to Accounts

Schedules 1 to 10 and 16 form an integral part of the Balance SheetThis is the Balance Sheet referred to in our report of even date.

GEOJIT CREDITS PRIVATE LIMITEDBALANCE SHEET AS AT 31ST MARCH 2010

Sch. No. As at31st March 2009

As at31st March 2010

For and on behalf of the Board ofDirectors of Geojit Credits Private Limited

Alkeshkumar SharmaDirector

C.J.GeorgeManaging Director

13

For VARMA AND VARMA(FRN.004532S)

(Vijay Narayan Govind)Partner

Chartered AccountantsMembership No. 203094

Place:Kochi Place:NedumbasseriDate: 24-05-2010 Date: 24-05-2010

(in Rupees)

Particulars


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GEOJIT CREDITS PRI VATE LIMI TEDPROFI T AND L OSS ACCOUNT FOR TH E YEAR ENDED 31ST MARCH 2010

INCOMEInterest Income 11 17,947,568 35,603,075Other Income 12 10,625,415 5,654,747

28,572,983 41,257,822

EXPENSESPayments to and Provisions for employees 13 2,927,395 2,016,415Administrative and Other Expenses 14 2,260,141 1,240,641

Finance Charges 15 322,648 2,658,8705,510,184 5,915,926

Profit before Tax 23,062,799 35,341,896

Less: Provision for Tax- Current Tax 7,049,000 11,944,000- Deferred Tax (31,429) (16,147)- Fringe Benefit Tax - 8,500- Income Tax prior years 2,443 -

-Profit after Tax for the year 16,042,785 23,405,543

Profit carried from Previous year 32,196,942 25,561,400Profit available for appropriation 48,239,727 48,966,943

Appropriations:-Transfer to Statutory Reserve 3,208,557 4,681,109Proposed Dividend - 10,332,828Corporate Dividend Tax - 1,756,064Balance carried to Balance Sheet 45,031,170 32,196,942

Earnings Per Share (Basic and Diluted)-refer Note No. 4 of Schedule 16 0.16 0.23

Significant Accounting Policies and Notesto Accounts 16

Schedules 11 to 16 form an integral part of the Profit and Loss AccountThis is the Profit and Loss Account referred to in our report of even date.

For and on behalf of the Board of Directors ofGeojit Credits Private Limited

Alkeshkumar Sharma C.J.GeorgeDirector Managing Director


(in Rupees)

Sch. No. As at31st March 2009

As at31st March 2010

14

Particulars





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GEOJIT CREDITS PRI VATE LIMI TEDCASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2010

CASH FLOWS FROM OPERATING ACTIVITIESProfit before tax 23,062,799 35,341,896Add/(Less): Non operating expenses

Depreciation 157,178 137,432Dividend from Investments- non trade (2,417,089) (777,089)Provision for Leave Encashment 29,153 41,838Interest on Secured Loans 322,648 2,658,870

Cash flow before changes in Working Capital 21,154,689 37,402,947Adjustments for changes in Working capital

(Increase)/Decrease in Loans/Advances/Current Assets( excluding advance tax) (137,364,090) 295,439,649Increase/(Decrease) in Current Liabilities 69,915 (721,095)Total (137,294,175) 294,718,554Income tax paid (net of refunds) (8,969,959) (12,537,807)Cash generated from Operations (125,109,445) 319,583,694

CASH FLOWS FROM INVESTING ACTIVITIESPurchase of Fixed Assets (19,005) (117,637)Purchase of Investments (92,917,089) (180,111,066)Sale of Investments 171,496,220 101,531,935Dividend on current Investments- non trade 2,417,089 777,089

Cash used in Investing Activities 80,977,215 (77,919,679)

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from loans 128,758,356 668,314,755Repayment of loan (66,581,004) (831,425,181)Dividend paid on Equity Share Capital (10,332,828) (10,321,400)Dividend tax (1,756,064) (1,754,122)Cash flow from Financing Activities 50,088,460 (175,185,948)

Net Increase in Cash and Cash Equivalents 5,956,230 66,478,067

Add: Opening Cash & Bank balances 85,248,776 18,770,709

Closing Cash & Bank balances 91,205,006 85,248,776

Note:- Cash and Cash Equivalents at the end of the year includes Rs. 1,752,680 (Rs. 1,610,159) under lien.As per our report of even date attached

For and on behalf of the Board of Directors ofGeojit Credits Private Limited

Alkeshkumar Sharma C.J.GeorgeDirector Managing Director


2009-10 2008-09

(in Rupees)

15

Particulars





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GEOJIT CREDITS PRI VATE LIMI TEDSCHEDULES ATTACHED TO AND FORM ING P ART OF THE BALAN CE SHEET

AS AT 31ST MARCH 2010

(in Rupees)As at As at

31st March 2010 31st March 2009

SCHEDULE 1SHARE CAPITAL

Authorised 250,000,000 250,000,00025,000,000 Equity Shares of Rs.2/- each (Previous Year

125,000,000 Equity Shares of Rs. 2/- each)

Issued,Subscribed and Paid-up 206,656,550 206,656,550103,328,275 Equity Shares of Rs.2/- each fully paid-up(Previous Year 103,328,275 of Rs. 2/- each) .Of the above shares, 6,71,97,420 equity shares of Rs.2/- each(Previous year 6,71,97,420 equity shares of Rs.2 each) are heldby Geojit BNP Paribas Financial Services Ltd., the HoldingCompany

206,656,550 206,656,550

SCHEDULE 2RESERVES AND SURPLUSSecurities PremiumAs per last Balance Sheet 418,260 418,260Add: Transferred during the year - -

418,260 418,260Statutory ReserveAs per last Balance Sheet 14,122,909 9,441,800Add: Transferred during the year 3,208,557 4,681,109

17,331,466 14,122,909

General ReserveAs per last Balance Sheet 107,175 107,175Add: Transferred during the year - -

107,175 107,175Surplus in Profit & Loss Account 45,031,170 32,196,942

62,888,071 46,845,286

SCHEDULE-3UNSECURED LOANSShort Term Loan from:-Geojit BNP Paribas Financial Services Ltd 62,500,000 -[Repayable within one year- Rs 6,25,00,000,(Previous Year-Nil)]

62,500,000 -

16

Particulars


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17

GEOJIT CREDITS

PRIVATE LIMITED

SCHEDULES ATTACHED TO AND FORMING PART OF THE BALANCE SHEET AS AT 31ST MARCH 2010

SCHE

DULE 4

FIXED ASSETS

DESCRIPTION

GR

OSS BLOCK AT COST

DEPRECIATION

NET BLO

CK

Com

puter & Accessories 318,569

-

- 318,569

130,870

66,738

-

197,608

120,961

1

87,699

229,310

89,259

- 318,569

79,720

51,150

-

130,870

187,699 149,590

Furniture & Fittings

29,660

-

- 29,660

8,554

5,287

-

13,841

15,819

21,106

14,231

15,429

-

29,660

4,340

4,214

-

8,554

21,106

9,891

Office Equipments

29,284

19,005

-

48,289

19,205

8,298

-

27,503

20,786

10,079

25,635

3,649

-

29,284

12,963

6,242

-

19,205

10,079

12,672

Com

puter Software

450,000

-

- 450,000

225,000

75,000

-

300,000

150,000

2

25,000

450,000

-

- 450,000

150,000

75,000

-

225,000

225,000

300,000

Improvements to

Leasehold Premises

9,300

-

-

9,300

826

1,855

-

2,681

6,619

8,474

-

9,300

-

9,300

-

826

-

826

8,474

-

TOTAL

836,813

19,005

- 855,818

384,455 157,178

-

541,633

314,185

4

52,358

Previous Year

719,176

117,637

- 836,813

247,023

137,432

-

384,455

452,358 472,153

Note: Previous year figures are shown in italics.

As at

31.03.2009

Additions

Sales/

Adjustment

As at

31.03.2010

As

at31.03.2009

For theYear

On Sale/

Adjustment

As

at31.03.2010

(in Rupees)

As at

31.03.2010

As at

31.03.2009


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GEOJIT CREDITS PRIVATE LIMITEDSCHEDULES ATTACHED TO AND FORM ING P ART OF THE BALAN CE SHEET

AS AT 31ST MARCH 2010(in Rupees)

As at31st As at31stMarch 2010 March 2009

SCHEDULE 5INVESTMENTSUnquoted, Non - trade, CurrentCan Robeco Treasury Advantage Fund - 42,406,081Birla Sunlife Savings Fund - 29,112,536LIC Income Plus Fund - 7,060,514(refer note no.5 of Schedule 16 )

- 78,579,131

Aggregate Net Asset/Market value of Mutual Fund Investments - 78,579,131SCHEDULE 6CASH AND BANK BALANCESCash in hand 536 188Balances with Scheduled Banks

Current account 7,187,007 2,113,386Fixed Deposits-lien noted in favour of NMCE 1,752,680 1,610,159Fixed Deposits 82,264,783 81,525,043

91,205,006 85,248,776SCHEDULE 7OTHER CURRENT ASSETSInterest accrued on Fixed Deposits 3,695,947 1,698,968

3,695,947 1,698,968SCHEDULE 8LOANS AND ADVANCESa) Secured Considered good

Loans 234,316,507 97,973,062b) Unsecured Considered good

Advances recoverable in cash or in kind or for 234,230 1,210,564value to be received 500,000 500,000Deposit with NMCE

c) Income taxAdvance Income Tax 44,037,090 35,067,131

44,037,090 35,067,131

279,087,827 134,750,757

SCHEDULE 9CURRENT LIABILITIESSundry creditorsDues to Micro & Small Enterprises (refer Note No.2 of Schedule 16) - -Dues to Others 457,450 443,140Other Liabilities 88,621 33,016

546,071 476,156SCHEDULE 10PROVISIONSProvision for Taxation 41,640,990 34,589,547Proposed Dividend - 10,332,828Provision for Corporate Dividend Tax - 1,756,064Provision for Employee Benefits (refer Note No.7 of Schedule 16) 70,991 41,838

41,711,981 46,720,277

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Particulars


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GEOJIT CREDITS PRIVATE LIMITEDSCHEDULES ATTACHED TO AND FORMIN G PART OF PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED 31ST MARCH 2010

(in Rupees)

SCHEDULE 11INTEREST INCOMEInterest on Loans 17,947,568 35,603,075[Tax deducted at source-Rs.1,39,550(previous year- Rs.14,14,690)]

17,947,568 35,603,075

SCHEDULE 12OTHER INCOMEDividend on Current, Non Trade Investments 2,417,089 777,089Processing Fees 1,093,775 314,865Interest on Fixed Deposits 6,986,720 4,243,311[Tax deducted at source-Rs.8,68,493(previous year- Rs.9,07,999]Miscellaneous Income 127,831 319,482

10,625,415 5,654,747

SCHEDULE 13PAYMENTS TO AND PROVISION FOR EMPLOYEESSalaries, Allowances and Bonus 2,808,179 1,885,348Contribution to Provident Fund and other Funds 60,650 58,620

Staff Welfare Expenses 58,566 72,4472,927,395 2,016,415

SCHEDULE 14ADMINISTRATIVE AND OTHER EXPENSESRates and Taxes 22,756 45,828Repairs and Maintenance 53,845 54,239Telephone charges 32,383 18,393Advertisements 159,503 -Subscriptions 129,286 18,469Legal & Professional fees 572,679 422,657Software Charges 188,774 -Depreciation 157,178 137,432Travel & Conveyance 206,040 157,733Rent 161,495 70,589Electricity 346,457 47,589Sitting fees 160,000 95,000Sponsorship Fee - 50,000Insurance 3,532 14,203Bank Charges 6,144 29,402Printing and Stationery 49,084 26,344Bad Debts w/off - 43,307Miscellaneous Expenses 10,985 9,456

2,260,141 1,240,641SCHEDULE 15FINANCE CHARGES

Interest (other than on fixed loans) 322,648 2,658,870322,648 2,658,870

Particulars For the year ended31st March 2010

For the year ended31st March 2009

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GEOJIT CREDITS PRIVATE LIMITEDSCHEDULES ATTACHED TO AND FORMING PART OF ACCOUNTS

FOR THE YEAR ENDED 31 st MARCH 2010

SCHEDULE 16

SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNTS

I. Significant Accounting Policies

A. Basis of Accounting:

The financial statements are prepared under the historical cost convention on accrual basis and in accordancewith the Companies Act, 1956, and the applicable Accounting Standards specified in Section 211(3C) of theCompanies Act 1956 .

B. Use of Estimates:

The preparation of the financial statements in conformity with generally accepted accounting principles require

management to make estimates and assumptions that affect the reported amounts of assets and liabilities and

disclosure of contingent liabilities on the date of financial statements and reported amounts of income and

expenditure for the year. Actual results could differ from these estimates. Any revision in accounting estimates

are recognized in the period in which the results are known / materialized.C. Fixed Assets:

Fixed Assets are stated at cost less depreciation. Impairment in value, if any determined, is adjusted.

D. Depreciation:

Depreciation has been provided on straight-line method as under

a. On assets acquired up to 31.03.2007 at the rates prescribed under Schedule XIV of theCompanies Act, 1956.

b. On assets acquired after 31.03.2007 at the following rates as technically assessed by the management.

Office equipment 20.00%Furniture and fittings 20.00%Computer & Accessories 33.33%

Improvement to leasehold premises 20.00%

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E. Intangible assets:

Computer software are treated as intangible assets and amortised as follows:a. On assets acquired up to 31.03.2007 over a period of six years.

b. On assets acquired after 31.03.2007 over a period of five years

F. Investments:

Current Investments are valued, scrip wise, at cost or net realisable value which ever is less as at the BalanceSheet date. Shortfall in the net realisable value in comparison with the carrying cost of Investments as at theyear-end has been fully recognized.

G. Revenue Recognition:

Interest on loans granted by the company is recognized on accrual basis except in respectof loans classified as non-performing assets.

H. Non Performing Assets:

The company has followed the directives of the Reserve Bank of India on Prudential Norms of Income Recognition,Asset Classification, Provision against Non-Performing Assets etc. issuedfrom time to time. Accordingly, thecompany has not accrued income in respect of loans, which are Non Performing Assets as defined thereinand has made provision in respect of the said Assets in accordance with these guidelines.

I. Accounting for Taxes on Income:a. The provision for current income tax is based on the assessable profit as computed by the company in

accordance with the Income Tax Act, 1961.

b. Deferred tax assets and liabilities representing timing differences between accounting income and taxableincome are recognized to the extent considered capable of being reversed in subsequent years.

J. Employee Benefits

a. Short term employee benefits

All employee benefits due wholly within twelve months of rendering the service are classified as short-termemployee benefits and recognized in the period in which the employee renders the related service.

b. Defined Contribution PlansThe Company makes contribution towards provident fund to a defined contribution retirementbenefit plan for qualifying employees. The contributions paid/payable to these plans duringthe year are charged to the Profit and Loss Account for the year.

c. Defined Benefit Plans

The company does not have any liability towards defined benefit plans.

d. Long-term employee benefits

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The company has a scheme of compensated absences for employees, the liability of which is determined ongross undiscounted basis having regard to the small number of employees in the company.

II. Notes on Accounts

1. There are no Contingent Liabilities and unexecuted capital commitments to be disclosed.

2. As per the information available with the management, there are no dues to Micro and Small enterprises coveredby the Micro, Small and Medium Enterprises Development Act,2006.

3. Deferred Tax Liability (Net) as on 31.03.2010 represents:

Particulars 31.03.2010 31.03.2009

Deferred tax liabilities:

Excess of net book value over tax writtendown value of fixed assets 24,422 45,942

Deferred tax Assets:

Provision for employee benefits 24,130 14,221

Total Deferred tax (Asset)/Liability 292 31,721

4. Earnings Per Share (Basic and Diluted) for the year ended 31 st March 2010.

Particulars As at As at31.03.2010 31.03.2009

Profit after Tax for the year 16,042,785 23,405,543

Weighted Average number of Equityshares of Rs. 2/- (Rs. 2/-) each fully paid up 103,328,275 103,328,275

Earnings Per Share (Basic and Diluted) 0.16 0.23

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Subsidiaryof subsidiary of theHolding Company

2009-2010Rs

2008-2009Rs

2009-2010Rs

2008-2009Rs

2009-2010Rs

2008-2009Rs

f) Joint Venture of fellow subsidiary.

g) Enterprise in which relative of KeyManagement Personnel hassignificant influence

BNP Paribas Securities India (P)

LimitedGeojit Comtrade Limited

24

II) Details of the transactions with above parties during the year and balance outstanding asat 31-03-2010.

Particulars Holding Company Subsidiary of the HoldingCompany Company

Loan Taken 7,25,00,000 50,000,000 NIL NIL NIL NILLoan Granted 3,40,00,000 27,000,000 NiL 30,000,000 NIL NILLoan repaid to thelender 1,00,00,000 50,000,000 NIL NIL NIL NILLoan repaid by theborrower 3,40,00,000 27,000,000 Nil 30,000,000 NIL NILInterest on LoanTaken 2,41,644 395,274 NIL NIL NIL NILInterest on LoanGranted 32,748 117,371 NiL 16,096 NIL NILDividend paid 67,19,742 5,258,315 NIL NIL NIL NILAMC Charges paid NIL NIL NIL NIL 44,120 44,120Software ChargesPaid NIL NiL NIL NIL 188,774 NILAsset Transferred NiL 48,700 NIL NIL NIL NILExpenses reimbursed 532,468 125,578 NIL NIL NIL NILExpenses Recovered 74,672 NiL NIL NIL NIL NILBalances outstanding as at the year end

Receivable NIL NIL NIL NIL NIL NIL

Payable 62,500,000 NiL NiL NiL NiL NiL

Note: The above does not include transactions with clients undertaken through the Holding Company, subsidiaryof holding company, enterprise in which relative of Key Management Personnel has significant influence andbalances thereof.

Transactions during the year


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7. Employee benefits

a. Disclosures required under Accounting Standard 15 - Employee Benefits (Revised 2005)

1. Defined Contribution Plans

During the year, the following amounts have been recognised in the Profit and Loss Account on account ofdefined contribution plans.

Employers contribution to Provident Fund - Rs.54,139/-.

2. Defined Benefit Plans

There is no liability towards defined benefit plans.

3. Long term compensated absences.

The company has made a provision of Rs.70,991/- in respect of long term employee benefits.

8. Legal and Professional Charges include remuneration to Statutory Auditors:

Particulars 2009-10 2008-09For audit 121,330 110,300For Tax Audit 38,605 33,090For Other services 55,704 34 870

Total 215,639 178,260

9. The company is a non-banking financial company engaged in the business of giving loans. The company has only

one reportable Business Segment as per Accounting Standard 17 Segment Reporting issued by the Institute of

Chartered Accountants of India.

10. The Company has given loan to its holding company - Geojit BNP Paribas Financial Services Ltd and fellow subsidiary-

Geojit Investment Services Ltd as under

Geojit BNP Paribas FinancialServices Ltd - 340.00 - 217.00

Geojit Investment Services Ltd - - - 300.00

11 In accordance with guidelines issued by Reserve Bank of India, appropriation to statutory reserve at the rate of 20%

of the profits of the current year has been made during the year.

BalanceOutstanding

Maximum amountdue at any time of

the year

Maximum amountdue at any time of

the year

BalanceOutstanding

Particulars

25

(Rs in Lakhs)

2009-10 2008-09


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12. Expenditure in Foreign Currency

(a) Amount Paid as sitting Fees : Rs.45,000 (Previous Year Rs. Nil)

(b) Dividend Paid

Particulars 2009-10 2008-09No: of non-resident shareholders 1 1No: of shares held by non-residents 1,32,50,000 1,32,50,000Dividend remitted in foreign currency Rs.13,25,000/- Rs.13,25,000/-Financial Year to which dividend relates 2008-09 2007-08

There are no other additional particulars to be disclosed in accordance with Part II to Schedule VI of theCompanies Act,1956.

13. Figures in the brackets represent figures for the previous year. Previous years figures have been regrouped wherevernecessary to suit current years layout.

For Varma & Varma For and on behalf of the Board of DirectorsChartered Accountants of Geojit Credits Private Limited

C.J.George Alkeshkumar SharmaManaging Director Director

Place: Kochi Place: NedumbasseriDate: 24-05-2010 Date : 24.05.2010

26

For VARMA AND VARMA

(FRN.004532S)




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Schedule to the Balance Sheet of a non-deposit taking non-banking financial company (as required in termsof paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms

(Reserve Bank) Directions, 2007)Particulars (Rs.)

Liabilities side :

1 Loans and advances availed by the nonbanking financialcompany inclusive of interest accrued thereon but not paid:

(a) Debentures Nil

: Secured: Unsecured (other than falling within the meaning of public deposits*)(b) Deferred Credits Nil

(c) Term Loans Nil(d) Inter-corporate loans and borrowing 62,500,000

(e) Commercial Paper Nil

(f) Other Loans (specify nature) - Working Capital Loan Nil

* Please see Note 1 below

Amount outstanding

Assets side :

2 Break-up of Loans and Advances including

bills receivables [other than those included in(4) below] :(a) Secured 234,316,507 Nil(b) Unsecured Nil Nil

3 Break up of Leased Assets and stock on hireand other assets counting towards AFC activities

(i) Lease assets including lease rentals undersundry debtors : Nil Nil

(a) Financial lease Nil Nil

(b) Operating lease Nil Nil(ii) Stock on hire including hire charges under

sundry debtors: Nil Nil

(a) Assets on hire Nil Nil(b) Repossessed Assets Nil Nil

(iii) Other loans counting towards AFC activities Nil Nil

(a) Loans where assets have been repossessed Nil Nil

(b) Loans other than (a) above Nil Nil

4 Break-up of Investments :

Current Investments : Nil Nil1. Quoted :

(i) Shares : Nil Nil(a) Equity Nil Nil

(b) Preference Nil Nil

Amountoutstanding

Amountoverdue

Nil

Nil

NilNilNilNil

27


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(ii) Debentures and Bonds Nil Nil(iii) Units of mutual funds Nil Nil

(iv) Government Securities Nil Nil(v) Others (please specify) Nil Nil

2. Unquoted :

(i) Shares : Nil Nil

(a) Equity Nil Nil


(ii) Debentures and Bonds Nil Nil

(iii) Units of mutual funds Nil Nil

(iv) Government Securities Nil Nil

(v) Others (please specify) Nil Nil

Long Term investments : Nil Nil

1. Quoted :

(i) Shares : Nil Nil

(a) Equity Nil Nil



(iiI) Units of mutual funds Nil Nil



2. Unquoted :(i) Shares : Nil Nil

(a) Equity Nil Nil



(iii) Units of mutual funds Nil Nil



5 Borrower group-wise classification of assetsfinanced as in (2) and (3) above :(Please see Note 2 below)

Amount net of provisions

Category Secured Unsecured Total1. Related Parties **

(a) Subsidiaries Nil Nil Nil

(b) Companies in the same group Nil Nil Nil

(c) Other related parties Nil Nil Nil

2. Other than related parties 234,316,507 - 234,316,507

Total 234,316,507 - 234,316,507

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6 Investor group-wise classification of all investments(current and long term) in shares and securities(both quoted and unquoted): Please see note 3 below

Category

1. Related Parties **

(a) Subsidiaries Nil Nil

(b) Companies in the same group Nil Nil

(c) Other related parties Nil Nil

2. Other than related parties Nil NilTotal - -

** As per Accounting Standard of ICAI(Please see Note 3)

7 Other information

Particulars Amount

(i) Gross Non-Performing Assets

(a) Related parties Nil Nil

(b) Other than related parties Nil Nil

(ii) Net Non-Performing Assets

(a) Related parties Nil Nil

(b) Other than related parties Nil Nil

(iii) Assets acquired in satisfaction of debt Nil Nil

Notes:

1 As defined in paragraph 2(1)(xii) of the Non-Banking Financial Companies Acceptance of Public Deposits(Reserve Bank) Directions, 1998.

2 Provisioning norms shall be applicable as prescribed in Non-Banking Financial (Non-Deposit Acceptingor Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.

3 All Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation ofinvestments and other assets as also assets acquired in satisfaction of debt. However, market value inrespect of quoted investments and break up/fair value/NAV in respect of unquoted investments shouldbe disclosed irrespective of whether they are classified as long term or current in (4) above.

Book Value (Net ofProvisions)

Market Value/Break upor fair value or

NAV

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30

16 : PART IV OF SCHEDULE VI OF THE COMPANIES ACT 1956.

BALANCE SHEET ABSTRACT AND COMPANYS GENERAL BUSINESS PROFILE

01: REGISTRATION DETAILS

Registration No: 6106 of 1991State Code : 9Balance Sheet Date : 31/03/2010

02: CAPITAL RAISED DURING THE YEAR (AMOUNT IN Rs. THOUSANDS)

Public Issue NILRights Issue NILBonus Issue NILPrivate Placement -

03: POSITION OF MOBILISATION AND DEPLOYMENT OF FUNDS(AMOUNT IN Rs.THOUSANDS)

Total Liabilities 332,044.91Total Assets 332,044.91

SOURCES OF FUNDS

Paid up Capital 206,656.55Reserves and Surplus 62,888.07Secured Loans -Deferred Income Tax liability/(asset) -

APPLICATION OF FUNDS

Net Fixed Assets 314.19Investments -Capital work-in-Progress NILNet Current Assets 331,730.73Accumulated Losses NIL

04: PERFORMANCE OF THE COMPANY (AMOUNT IN Rs. THOUSANDS)

Turnover/Other Income 28,572.98Total Expenditure 5,510.18Profit before Tax 23,062.80Profit after Tax 16,042.79Earnings Per Share(Rs.) 0.16Dividend Rate -

05: GENERIC NAMES OF THREE PRINCIPAL PRODUCTS/SERVICES OF THE COMPANY (AS PERMONETARY TERMS)

Item Code No.(ITC Code) :Product Description : Financial Services

Annual Report 2010 - Geojit Credits

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