FUTURE BAJAJ FINANCE Notes to Accounts

Note


* Includes payable to related parties aggregating RS,6.65 crore (Previous year RS,4.18 crore).


"" Includes payable to related parties aggregating RS, 4.37 crore (Previous year RS, 3.03 crore).


@ The Company manages its cash flows judiciously with the objective of maximizing returns of floats available as a result of timing differences between cheques issued against loan commitments and their presentation to bank for honour. As a result, cheques issued but not presented at the Balance Sheet date give rise to temporary overdrafts as per books of accounts only. The Company safeguards against any risks on this account by ensuring availability of undrawn credit lines from banks aggregating RS, 2,102.07 crore at the close of the year.


Includes payable to related parties aggregating RS, 2.71 crore (Previous year RS, 0.91 crore).


There are no amounts that are due and remain unpaid to Investor Education and Protection Fund as at the close of the year.


1. Computation of Earnings Per Share (EPS)


Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to the equity shareholders by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the Company''''s earnings per share is the net profit for the period after deducting preference dividends and any attributable tax thereto for the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating the diluted earnings per share, the net profit or loss for the period attributable to the equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.


i) The Company is of the opinion that the above demands are not sustainable and expects to succeed in its appeals/defense.


ii) The Commissioner of Service Tax, during the year, confirmed the demand of service tax on interest subsidy received from manufacturers and dealers, which was previously questioned by show cause notice issued on the Company. Consequently, the Commissioner has demanded service tax amounting of RS, 644.65 crore for the period up to 30 September 2016, interest approximating RS, 303.50 crore (Interest up to 31 March 2017) and penalty of RS, 198.95 crore. The Company has disputed the said demand and in accordance with legal advice, is in the process of filing an appeal refuting the said claim.


The Company in line with the opinion obtained from an Eminent Counsel, is of view that the said demands are not tenable and has accordingly disclosed it as a contingent liability.


iii) It is not practicable for the Company to estimate the timings of the cash flows, if any, in respect of the above pending resolution of the respective proceedings.


2. The Company and its consolidated Group are engaged primarily in the business of financing and accordingly there are no separate reportable segments as per Accounting Standard-17 as prescribed by Companies (Accounting Standards) Rules, 2006, dealing with segment reporting.


3.Liability for long-term employee benefits has been determined by an actuary, appointed for the purpose, in conformity with the principles set out in the Accounting Standard 15 (Revised) as prescribed by Companies (Accounting Standards) Rules, 2006, the details of which are as hereunder:


4. In accordance with the Reserve Bank of India circular no. RBI/2006-07/225 DNBS (PD) C.C. No. 87/03.02.004/2006-07 dated 4 January 2007, the Company has created a floating charge on the statutory liquid assets comprising of investment in Government securities to the extent of RS, 557.38 crore (Previous year RS, 347.11 crore) in favor of trustees representing the public deposit holders of the Company.


5. Disclosures relating to Specified Bank Notes (SBNs) held and transacted during the period from 8 November 2016 to 30 December 2016 as directed vide notification no. G.S.R. 308(E) of Ministry of Corporate Affairs dated 30 March 2017:


Note i. Includes RS,5.04 crore in-transit cash depositions as on 8 November 2016, where the Company had initiated deposition of cash into its bank accounts on or before


8 November 2016 through Cash Management Services (CMS) of banks which were collected by the CMS personnel by 17 November 2016 due to unprecedented work load.


ii. (a)The Company''''s collection agencies deposit cash collected from the Company''''s customers to the Company''''s branches which are in turn along with other direct


collections deposited into the Company''''s bank accounts with details of denominations. The said information has been tabulated above. The cash collected by collection agencies on or before 8 November 2016 was submitted to the Company across more than 430 branches between 9 November 2016 and 16 November 2016. The Company has taken due efforts in ensuring that amounts received from collection agencies (more than 6,000 agencies) in SBNs were evidenced by collections made by its agencies on or before 8 November 2016.


(b)The Company provides a facility to its collection agencies to directly deposit collections made by them from the Company''''s customers, as also to customers to directly deposit their installments into the Company''''s bank accounts.


The Reserve Bank of India vide notification no. RBI/2016-17/112 dated 8 November 2016 specifically restricted acceptance of SBNs by bank in third party accounts unless specific authorization there for accorded by the third party is presented to the bank.


However, the Company had not authorized any of its banks to accept any SBN deposits directly into its bank account by third parties in SBNs except in respect of its two-wheelers and three-wheelers financing business, where due to its penetration into remote markets and corresponding profile of customers, the Company had authorized banks to accept deposit of cash collected by its agents on or before 8 November 2016 directly into the Company''''s bank accounts but not beyond 16 November 2016, aggregating to RS, 9.77 crore. Whilst the Company has taken due efforts in ensuring that amounts received from collection agencies in SBNs were evidenced by collections made by its agencies on or before 8 November 2016, the information in this regards has been presented only to the extent of information available and received from the collection agents in absence of any information forthcoming from banks in this regard and hence disclosures are not verifiable by the statutory auditors.


iii. The Company has not authorized any transaction, collections or otherwise, in SBNs post 8 November 2016. All cash collected in accordance with the Company''''s policies and procedures are deposited into the bank accounts.


6. (i) Previous year''''s figures have been regrouped, wherever necessary, to make them comparable with those of the current period.


(ii) The Consolidated Financial Statements of the Company and its subsidiaries for the year ended 31 March 2017 are attached herewith.


7. Amounts less than RS, 50,000 have been shown at actual against respective line items statutorily required to be disclosed.

CIN: U67190WB2003PTC096617. Trading in Commodities is done through our Group Company Dynamic Commodities Pvt. Ltd. The company is also engaged in Proprietory Trading apart from Client Business.
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Disclaimer: There is no guarantee of profits or no exceptions from losses. The investment advice provided are solely the personal views of the research team. You are advised to rely on your own judgment while making investment / Trading decisions. Past performance is not an indicator of future returns. Investment is subject to market risks. You should read and understand the Risk Disclosure Documents before trading/Investing.

Disclosure: We, Dynamic Equities Private Limited are also engaged in Proprietory Trading apart from Client Business. In case of any complaints/grievances, clients may write to us at compliance@dynamiclevels.com

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