sahara asset management company private limited

SAHARA ASSET MANAGEMENTCOMPANY PRIVATE LIMITED

CIN No. : U65991 MH1 995PTC 155207

ANNUAL REPORTMARGH 31 ,2A16

97-98,gth Floor,Atlanta,Nariman Point,Mumbai - 400021.

#ffi* Sahara Asset Management Company Private Limitedlnvestntent Manager to Sahara Mutual Fund. SEBI Rrgr No. MFl030l96l0

DIRECTORS' REPORT

CINNO.u65 99 1 MH 1 995 PTC I 5 5 207

ToThe Members,Sahara Asset Management Company Private Limited

The Directors of your Company are pleased to present theand operations of your Company together with the Auditedended March 31,201.6.

FINANCIAL HICHLIGHTS

Annual Report on the businessAccounts for the Financial Year

The Financial performance of the Company for the year ended March 3L, 2076 issummarized below:

EXTRACT OF ANNUAL RETURN AS ON THE FINANCIAL YEAR ENDED ON 31ST

MARCH,2016

Pursuant to the provisions of Section 92 (3) of Companies Act, 2013 and Rule 12(1) of theCompanies (Management and Administration) Rules, 2011, the extract is enclosed with thisReport as Annexure- I.

MEETINGS OF BOARD OF DIRECTORS AND COMMITTEES

The Board of Directors of the Company met four times and members of the AuclitCommittee met four times during the Financial Year 2015-16. The Annual Accounts of theCompany have been reviewed by the Audit Committee-

DIRECTORS' RESPONSIBILITY STATEMENT

The Directors' Responsibility Statement uncler Section 134 (3C) of the Companies Act, 2013

is given below:

i. That in the preparation of the Annual Accounts, the applicabie accounting standardshad been followed along with proper explanation relating to material departures;

Rcgistereil & Corporatr afia : 97-98, 9th Floot Atlanta, Narimtn Poht, Mumbai - 400 02I . Phone : +9l -22-2204 7I 97 - 98Fax: +91-22-2204 7199 E-mail : [email protected] Website: www.saharamutual.mm

2015--1,6 201,4-15

Particulars Amount (C Amount R)Gross Income 7,83,64,752 2,35,57,760

Loss before Depreciation (4,67,60,679) (4,30,74,987)

Less: Depreciation 4,39,1L0 7,82,076

Loss before taxation & prior period items 4,7L,19,789 (4,38,57,003)

Less: Prior period expenditureNet Loss for the Year (4,71",19,789\ (4,38,57,003\

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%ffi#"ffiffiffi"- Sahara Asset Management Company Private Limitedlnvestment N[nnager to Snhara Mutual Ftaul. SEBI Regn. Ino. N'lFl030l96l0

Rcgktered & Corporate Ofice : 97-98, 9th Hoor, Atlanta, Nariman Point, Mumbai - ,100 02I . Phone : t9l-22-2204 7I 97 - 98l:rx : +91-22-2204 7199 E-mail : [email protected] Website : www.saharamutual.com

C1NNO.u65 99 I MH 1 995 PTC I 5 5 207

lU.

iv.

V.

'Ihat the Directors had selectecl such acconnting policies and applied tl'remconsistently and made juclgments ancl estimaLes that are reasonable ancl prudent so

as to give a true and fair view of the state of affairs of the Company at the end of theFinancial Year and of the profit or loss of the Company for that period;

That the Directors had taken proper and sufficient care for the maintenance ofacJequate accounting records in accordance with the provisions of this Act forsafeguarding the assets of the Company and for preventing and detecting fraucl ancl

other irregularities;

That the Directors had prepared the Annual Accounts on a going concern basis; and

That the Directors hacl devised proper systems to ensure compliance with theprovisions of all applicable laws and that such systems were adequate and operatingeffectively.

STATEMENT OR DECLARATION CIVEN BY INDEPENDENT DIRECTORS UNDERSUB-SECTION 6 OF SECTION 149

The statements received from the Directors are enclosed as Annexure-Il.

EXPLANATIONS OR COMMENTS BY THE BOARD ON EVERY QUALIFICATION,RESERVATION OR ADVERSE REMARK OR DISCLAIMER MADE:

(i) by the auditor in his report NIL; and(ii) by the Company Secretary in practice in his Secretarial Audit Report: N.A.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 185

During the Financial Year 2075-76, the Company has not made any loans, guarantees andinvestments which come under the purview of the provisions of Section 186 of theCompanies Act,2013.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIESREFERRED TO IN SUB-SECTION (1) OF SECTION 188

No related party transactions were entered during the periocl which are covered under theprovisions of Section 188 of Companies Act, 2013.

STATE OF THE COMPANY'S AFFAIRS

The Company is the Investment Manager to Sahara Mutual Fund. The Company incurredlosses of Rs.4.72 Cr. for the current financial year ended 31.t March, 2016 as compared to thetotal loss of Rs. 4.39 Cr. for the financial year encled 31't March, 2015. The total Assets underManagement (AUM) was Rs. 100.36 Crs. as on 31.t March, 2016 as compared to total Assetsunder Management (AUNTI) of 136.37 Crs. as on 31't March, 2015. The Company has 21

offices in operation as on 31.t March, 2016.

14,'t^ t'vt,,w)

#ffi* Sahara Asset Management Company Private Limitedhvestment N[attager to Sdhara Mutttal Fml. SEBI Regr. M. MFl030l96l0

CINNO.u6s 99 1 MH 1 995 PTC I 5 5 247

As on 31,r March, 2016, Sahara Mutual Fund offers 11 Schemes which include 9 open endecl

Equity schemes, 1 open encled Equity linkecl savings scheme (ELSS) and 1 open encled

Liquid scheme.

PRQIOSED RESERVES

There are no amotmts which the Company proposes to carry to any reserves

DIVIDENB

In the view of the losses incurrecl by the Company, the Board of Directors does not

recommend the declaration of dividend.

MATERIAL CHANGES & COMMITMENTS

No material changes and commitments, affecting the financial position of the Company

occurred between the end of the financial year i.e. 31't March, 201-6 and the date of this

Report.

CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION

The requirements of disclosure, in terms of Section f3a (3)(m) of the Companies Act, 2013,

reaci with Rule 8(3) of Companies (Accounts) Rules, 201.4, pertaining to steps taken

regarding conservation of energy & technology absorption, cloes not apply to the Company.

FOREIGN EXCHANGE EARNINGS & OUTGO

There were no foreign exchange earnings or outgo dr,rring the period under review.

STATEMENT INDICATING DEVELOPMENT AND IMPLEMENTATION OF RISK

MANAGEMENT POLICY FOR THE COMPANY

There is a Risk Management Committee comprising of the Compliance Officer, Head-

Operations and Deputy Heacl- Investor Relations to review the risk management functions

of the schemes of the Mutual Fund. The areas of review for identifying and understancling

the various risks include monitoring the Risk Management tools used in PortfolioNfanagement, Iiquiclity rnanagement of the schemes, busir-ress continuity plan for MutualFuncl operations, Fund Accountant, Custodial Activity and Registrar and Transfer Agentservices, ensuring segregation of the research, portfolio management and dealing teams to

ensure arm's length to ensure transparency in operations, customer services including Know

your cIients norms.

CORPORATE SOCIAL RESPONSIBILTY INITIATIVES

The provisions of Section 135 of Companies Act, 2013 relating to Corporate Social

Responsibility are not applicable to the Company.

Rcgistcred & Arporate Ofia : 97-98, 9th Floor, Atlanta, Narimnn Point, Mumbai - 400 021 . Phone : +91-22-2204 7197 - 98F*r : +91-22-2204 7199 E-mnil : sahnramutual(dsaharamutual.com Website : www.saharamutual.com

Sul,V1fr;"t';

##ffi* Sahara Asset Management Company Private Limited[nvcstnrcnt Manager to SahariMtttual Fund. SEBI Regn.l'lo. MF103019610

CINNO.u6599 1 MH 1 995 PTC I 5 5 247

PORTFOLIO MANAGEMENT SERVICES (PMS)

Securities ancl Exchange Boarcl of Inclia (SEBI) vicle its orcler clated 27tt'February,2015

cancellecl the Certificate of Registration of the Company as a Portfolio Manager ancl orderecl

the Company to transfer its business to another SEBI registered Portfolio Manager or toallow the client to withdraw the securities and funds in its custody at the option of the client

withil30 clays from the orcler. Accordingly all Accounts were closed 30 days from the date

of the Order.

The Company filecl an application for re-consideration of the order to SEBI Boarcl on 30d'

March, 2015. SEBI vide its Notice dateci 5tr. June, 2015 granted a Personal Hearing in the

matter on 3'd July, 2015 before \A4-role-Time Member of SEBI.

The Personal Hearing was held before the \Mhole-Time llember of SEBI and necessary

submissions were made by the Company.

SEBI vide its Order clatecl 30th December, 2015 rejected the application for re-consideration of

SEBI Order da1sfl //trt February, 2015.

The Company on 27th Februa ry, 2076 filecl an Appeal before the Securities Appellate

Tribunal lbaf; Uumbai against SEBI Orders. The appeal is pending for decision/disposal

with the Securities Appellate Tribunal (SAT).

MUTUAL FUND SERVICES

SEBI vide its Orcler No. WTM/PS/25/IMD/DOF-III/July/2075 dated 28tr'July, 2015 had

directed cancellation of "Certificate of Registration" of Sahara Mutual Fund which was to be

effective on expiry of six months from the date of the Order. Further, SEBI also clirectecl by

the said Order that the Mutr-ral Fund shall not take any new subscription from investors.

Accordingly, the Mutual Fund has not taken anv new subscription from the investors

(including existing investors) in line with the said SEBI Order.

Company filed an Appeal before the Securities Appellate Tribunal (SAT), Mumbai to set

aslde the said SEBI Orcler. SAT vide its orcler dated 9*' December, 2015 granted an interim

stay in the matter. The appeal is pencling for decision/disposal with the Securities Appellate

Tribunal (SAT).

SSABEEA-TITAI

No further equity or preference share capital was issuecl by the Company during the year

under review.

DIRECTORS

Shri Sqbhash Chancler Gupta (DIN: 02271279) resigned from the Board of Directors of the

Company w.e.f. Sth Jan:uary, 2076.

Pcgistureil & Corporatz Afia : 97-98, 9th Floor Atlanta, Narimnn Poit, Mumbai - 400 021. Phone : +91-22-2204 7197 - 98Fax : +91-22-2201 7 199 E-mail : [email protected] Website : www.saharamututrl.com

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ffiK mp.$Ketu 1 Suhu*, Asset Management Compalr r1iy.f,9^Limited crNNo?mffir treSffiW ) i;;,'t;,;,; ;;,;;;i, sut ,,,f,ttu,uat Funt ;EEI Resn No MFt030te6t0 u6seetMHleesPrclss2aT

AUDITORS

The Stafutory Auditors of the Company, N{/s Chaturvedi & Partners' Chartered

Accountants (FRN: 307068E) hold office ur-ttii tt-t" conclusion of the ensuing Annual General

Meeting of the Company and are eligible for re-appointment. They have expressed their

willingiess for being re-appointed u, th" Statutory Auditors. They have furnished a consent

letter and a declaratior-r ,I,d"' Rule 4 of the Companies (Audit and Auditors) Rules' 20L4 to

the effect that they ful{ill the eligibility criteria and their appointment, if made, shall be in

pursuance with the provisions of the Companies Act, 20_1-3 and rules made there under' The

Directors recommend the re-appointment of M/s Chaturvedi & Partners' Chartered

Accountants as the Statutory arriitors of the Company for the Financial Year 2016-17 for

approval of the members Uy *ay of an ordinary resolution at the ensuing annual general

meeting of the members of the Company'

DEPOliIIS

During the period under review, Company has not accepted any deposits'

ADESUACY OF FINANCIAL CONTROLS

The internal audit system of the Company has been devised to promote reliable financial

reporting, ,uf.grrurdi.g of assets and prevention and detection of frauds and errors and

which is adequate for internal financiai controls with reference to financial statements and

commensurate with the business and operations of the Company' The Audit Committee of

the Boarcl of Directors, at regular intervils ancl in co-ordination with Internal and Statutory

Auditors, reviews the adequlcy of Internal Financial Control systems within the Company'

ACKNOWLEDGEMENT

Your Directors would like to place on record their gratitucie for the valuable guidance and

support received from the Government and Regulatory Agencies' Your Directors wishes to

ptu." or-r recorcl the deep appreciation of the professional support and guidance received

from the T,rustees of Sahura Mutual Fund. Your Directors also acknowledge and wish to

place their appreciation of Brokers, Registrars, Bankers and other service providers for their

commendable efforts, teamwork ancl professionalism. Your Directors place on record its

deep appreciation for the cledication & contribution of all the staff of Sahara Asset

tr.rtonuge-".t Companv Private Limited towards the Company'

For and on behalf of the Board

itI ' t-l;"aii - ,)f - -r"1 *-"- > '

OP SrivastavaDirector

(DIN:00L44000)

Place: lMumbai

Director(DIN:00002683)

pate: t 1 JUN?016Rqistered &Corporau afia: 97-98, gth Floor, Atlanta, Nariman Poifi, Mumbai -'100 021. Phone : +91'22-220'1 7197'98

Ftx : +91-22-2204 7 l gg E-ntail : [email protected] Website : www.saharamutual.com

5ul,ylwfui;:

Anr*xuw A.

FORM MGT.g

[Pursuant to Section 92 (3) of the Companies Act, 2013and rule 12(1) of the Company (Management &

Administration ) Rules, 20141

Extracts of Annual Return

OF

SAHARA ASSET MANAGEMENT COMPANY PRIVATE LIMITED

CIN: U6599 1 MH 1 995PT C1552O7

As on the financial year ended on 31st March 2016

Pursuont ta

REGISTRATION & OTHER DETAILS:

PRINCIPAL BUSINESS ACTIVITY OF THE COMPANY

Att the business activities contributing 10 % or more of the total turnover

ilt. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES'

FORM NO. MGT 9

Section 92 (3) of the Componies Act' 2013 and rule 12(1) of the Company

(Manogement &. Administration ) Rules' 2014'

EXTRACT OF ANNUAL RETURN

As on the financial year ended on 3110312016

il. r--l

CIN31 I O8l 1995

S^har" Atset Mat ag""*nt Company Private Limitedll Registration Date

Il Name of the ComPanY

:ateqory of the company IPrlvale LomPdrry

Address of the Reglstereo or;tce c cor

Address : I,Ar& 9fiFtoor, Attanta, Nariman Point, Mumbai- 400

021

lown / LltY :

State :Manarasntra

lndia

o7z- 22047197"98

022-27047199

@

Country Name :

Tel.eohone (with STD Code)

Fax Number :

Fmail Address :

vvebsite, if any:No

V] Whether llSteo comPdrrY

vtl

Name, Address and Contact

Name of RTA:

Add*st ,

Lameo LorPorate )er vrLe) LLU'ffiTown / CitY

Chennai

TamitnaduState:in Code:

600 002

Tetephoneo44- .640UJYV

044-28460179Fax Number

Email Address :

Sl. No.

-1

Name and DescriPtion of main

products / servicesNtC Code of the Product / service

% to total turnoverof the comPanY

&lutuat Fund Services 66301 99.56

2

HOLDING/SUBSIDIAR

Y

/ASSOCIAT

E

NAME AND ADDRESS OF THE COMPANY

IGdia Financiat Corporation Limited,

a lndia Bhawan '1, Kapoorthala Complex,

Gr,-^ra cur" t-i*ited, Sahara lndia Bhawan 1,

Kapoorthata Comptex, Lucknow- 226 024

tV. SHARE HOLDING PATTERN (Equity Share Capitat Breakup as Percentage of Total Equity)

i. CategorY-wise Share Holding

No. of Shares held at the end of the year % Change

duringthe year

No. of Shares hetd at the beginning of the year

Category ofShareholders Demat Physical TotaI

% of TotatShares

Total Shares

{. Promoter s

(1 ) lndianai lndividuat/ HUF 0

07, 0%

0

0

0?'0

o%0y0

2590000(

o%

46y"

0

b) Central Govt 0

c State Govt(s) 02400000 2590000( 46% 0v"

d Bodies CorP. 2350000( 2400000 0 0

0

46y" 2350000(

0

Anv other 0 025900000 46% 0%

Sub -totat (A)(1 ):' 2350000( 2400000 25900000

(2) Foreign 0 0

a) NRI - lndividuat/ 0 0

T0

oY"b Other - lndividuat0%

0

c) Bodies CorP'

d) Banks / Fl

e) Any Others0

0% 0?0?

2590000(

o% 0%

0 0 01 0

23500000

0

46% 0%Total sharehotding of

Promoter (A)=

(A)(1)+(AX2)

2400000 25900000 46% 23500000 24000c

B. Pubtic Shareholding

1. lnstitutions

0 0ral Frrnds 0 0

0 00

c) Central Govt0 0

d) State Govt(s)0 0 0

f) lnsurance 0 0 00 0

0

0 0g) Flls U

0

h) Foreign Venture 00

i) Others (sPecify)

Sub-totat (B)(1 ):-(.1

a) booles Lorp.03 0 0%

) lndian0 0% 0 0 0?, 07<

ii) Overseas

0

b) lndividuats

o?,

0/o

0y,

0v,

i) lndividuaisharehotders holding

nominal share caPitaI 09

ii) lndividuatsharehotders hotding

nominaI share caPital

in excess of Rs 1 takh 09, 0

0

0%

o%

0 0% 0?

c) Others (sPecifY)0 0 0?, 02

Sub-total (B)(2):-

0? 07"

Totat PublicSharehotding (B)=(B)(1 )

(B)(2)0 0% 0

C. Shares hetd bY

Custodian for GDRs &

ADRs0v, 0 0 09 0%

46v, 0%Grand Total (A+B+C)23s00000 2400000 2590000( 461, 2350000( 240000( 2590000(

Shareholding of Promoters

iii Change in Promoters' Shareholding: No change during the period

il No Sharehotder's'Name

Shar.ehotding at the beginning of theyear

Share holding at the end of the'year% change in'' share

hotding':during the

yearNo:, ofShares

Y": of totatShares of,

-,: the'-company

% of Shares, '"PtEdged 1eniurnbered to

iotaf shares

No:, of Shares

. %.of totatShares oi.the

company

%of Shares''Ptedged /encumbeie' d to total,r.-shares

1 Sahara lndia Financiat

Corporation Limited 2590000( 46?, 01 2590000( 469 09 o%

7

3

TOTAL Z59UUUU( 46fi 01 2590000c 4b7 on oil

. iv shareholding Pattern of top ten sharehotders (other than Directors, Promoters and Hotders of GDRs and ADRs):

sl. No.: 1: Sahara Care Limited

Sharehotding at the beginningof the Year

Cumulative Shareholding, duringtheYear

No. of shares. % of totat '

shares of thecompany

No. of shares

% of totalshares of:'the,comPany

1 8000tlut 5 L7c

I tne Deqlnnlng

uafe\l.totmenIS'nus--StEer

uatekansfet-TE---

1 800000( 32v, 1 800000( ) L/o

At the End of the year (or on the date oT separ

if separated during the Year)

Sl. No.: 2: Sahara lndia CorP lnvestment Limited

Shareholding at the beginningof the year

Cumulative Shareholdingduring the year

No. of shares

% of totalshares of the

companyNo. of shares

% of totalshares of

thecompany

At the beqinninq of the year 645000( 11% 6450000 l1

lhanees During the Year

lncreaseuate Reason for lncrease

Attotment 0

Bonus

Sweat

Other

DecreaseDate Reason tor Decrease

Transfer

Other

\t the End of the year (or on the date of separation, 645000c 11 645000( 11

St. No.: 3 Sahara Prime CitY Limited Shareholding at the beginning Cumulative Sharehotding

No- of shares % of totatshares of the

No. of shares % of totalshares of

At the beginning of the year 645000( l1 6450000 'l 1

Changes During the Year

ncreaseDate Reason for lncrease

\tlotment 0

lonus 0

iweat 0

)ther 0

Decrease

Date Reason for Decrease

Iransferliher

\t the End of the year (or on the date of;eparation, if separated during the year)

5450000 11 6450000 1'l

Shareholding of Directors ond Key Nanagerial Personnel:

S. No.: 1 Mr.O.P. Srivastava

Sharehotding at the beginning Cumulative Shareholdinq

No. of shares


company

No. of shares

% ot totalshares of

thecompany

At the beginning of the Year

NA NA

nr rrino thc Year

lncreaseDate Reason for lncrease

Attotment

Bonus

iweat)ther

Decrease


IransferOther

\t the End of the YearU

S- No.: 2 Mr.R.M; Joshi

Sharehotdine at' the besinning Crrmrrlative Shareholdinq

No. of shares


comPanyNo. of share:

% of totalshares of

thecompany

he heoinninp of the vear NA NA

:hanses Durinq the Year

lncrease

Date Reason for lncrease

Attotment

Bonus

;weatIther

Decrease


Iransfer

Ither

At the End of the Year0

INDEBTEDNESS

lndebtedness of the company including interest outstanding/accrued but not due for payment

":, 1 lndebtedness, at tfle 'beginning oi, therfinanciatri- '-Year.'ll:l

,Secured

. Loans'excludin{'deposits

UnsecuredLoani,:'-

Deposits . ,Total' ':

tndibtness

i) Principal Amount

li) lnterest due but not Paid

iii) lnterest accrued but not

0

Total (i+ii+iii) 0

Change in lndebtedness.during the financiat Year

Secured: Loansexcludingdeposits

unseeuredLoans ,'

Deposits Total .

lndebtness::'

. Addition

. Reduction

0

0

0

0

\let Change

Indebtedhess at the end ofSecured:Loans r:l

exctudingdepositt

Unsecuredl-oans , ,

DepositsTotal

lndebtness

i) Principat Amountii) lnterest due but not Paid

iii) lnterest accrued but not

Totat (i+ii+iii) U

REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

Remunerotion to Managing Ditector, Whole'time Directots andl or Manager:

REMUNEFaTTONTOKE/MANAG€RIALPERSONNELOTHERTHANtu'AIMANAGERI'r'rrD:Provisions

rclating to the appointment ol Key Monagetial PerenneL dre not aPPlicable to the Company

VII. PENALTIES / PUNISHMEITU COMPOUNDING OF OFFENCES:

SI. no-Particulars ofRemuneration

Name of MD/ffiD/ hnaqer Total

B c D

5ross satary C 0

(a) Saiary as per provrslons

:ontained in s{tion 17(1)

,f the lncome-til kt,1961

( 0

(b) Vatue of perquisites u/s

17{2i lncome-tu Act, 1961

(c) Profits in tjeu of satary

under s(tion 17(3) lncome

tax Act, 196'l

7. Stock Ootioa 0

;weat Equitv t

as % of Drotrt(

others. sD*ifv 0

5 )thers. Dlease sp*ifvTotat (A)

:Filino as Der the Act

Retuuneration to other directots:

Sl. no.PadiculaB ofRemuneration

Name of. DirectoE TotatAmountB c D

1 rpendent DirectoE RM Joshr ;C Gupta

F* for attending board

committe m€tings77000 54( 1 2600(

Commission

others. Dleae srectlvroral {1 } 7zcc( 5400( 1 2600(

2 Other Non-Executive 0P Srivastava

Fe for attendinq board

committe meetings

n@c tzo{x

Commission

Others, ptease sP<ifYtotat (21 720cr 72(W

lotal {B)=(1"2) 19E@( ( I 980C(

Total ManagerialRemuneration

1 980fr 0

)veratt Ceiting as Per the N. A. N.A.

SL: no. Partku la6: oL ReEooeration cEoCompanySecreErY

cFo

:ross saLary(

(a) Satary as Per Provisions contained inEction 17(1) of the lncome_til Act, 1961

(b) vatue of perquisites u/s 17(2) lncome'

tax Act, 1961

(c) Profits in lieu of saiary under section

17(3) lncome-tu Act, 1961

2 ;tock ODtion

3 ;weat Equity

as % of profit

others, spsify...5 others- olease so*it!

fotaI

Typa Sectionef ihe

Compani* Ad

BriefD9i<rrp

tion

Dekits of' 'Penalty lP!iliehmenUCompoundingfees imilosed

Authority:'IRD I NCLT/: couRll

App€al madE,if:ny (9iv6 Debil!)

A. COMPANY

Nil Nil Nil Nil Nrl Nil

)unishment Nil Nil Nil Nit Nil Nit

dine Nil Nil Nit Nil Nit Nit

B. DIRECTORS

:naltv Nil Nil Nil Nil Nit Nit

)unishment Nit Nil Nil Nil Nil Nir

Nit Nil Nil Nit NiI Nit

Penatty Nit Nit Nil Nit Nil Nit

Prnishment Nit Nil Nit Nir NiL Nit

:ompounding Nit Nit Nil Nil Nir Nil

Anno*r,rsr* *7J

6 of Section 149 otDeclaration given bY lndependent Director under sub-section

ComPanies Act,2013

To,

The Board of Directors

Sahara Asset Management

Mumbai

Company Private Limited

4I.

2.

J.

4.

5.

Dear Sirs,

I, Ramesh Multanchand Joshi, son of Shri Multanchand Joshi, resident of D-1303, Panchsheel

Heights, Mahavir Nagar, Kandivili (w), Mumbai 400 067, Director of sahara Asset Management

Coripany Private t-imiteO ("the Company"), do hereby declare:

That I am not a Managing Director or whole time Director or a Nominee Director of the

Company,

That I am/was not a promoter of the company or its holding, subsidiary or associate company;

That I am not related to promoters or directors in the company, its holding, subsidiary or

associate comPanY;

That I have/had no pecuniary relationship with the company (apart from receiving director's

remuneration), its holding su-bsidiary or associate company, or their promoters' or directors'

during the two immeOiateiy preceding financial years or during the current financial year;

That none of my relatives has/had pecuniary relationship or transaction with the Company, its

holding, subsidiary or associate company, or their promoters, or directors, amounting to two

p"r.",it or more of its gro.s turnover_oriotal income or fifty lakh rupees, whichever is lower'

during the two immeJiafuty preceding financial years or during the current financial year;

6" That Neither I nor my relative(s):

(i) hold or has held the position of a key managerial personnel or is or has been employee of

the Compa,-ry o1. it, holding, subsidiary or alsociate company in any of the three financial

years immediately preceding this financial year,

(ii) ls or has been an employee or proprietor or a partner, in any of the three financial years

immediately preceding the financial year, of:

or its holding, subsidiary or associate company, or

froiOing, subsidiary or asJociate company amounting to ten percent or more of the gross

turnover of such firm.

(iii) hold together with my relatives two percent or more

Company; or

of the total voting Power of the

(iv) am/is a Chief Executive or Director, by whatever name called, of any non-profit organization

that receives twenty five percent or more of its receipts from the Company, any of its'

promoters, directori or its holding., subsidiary or issociate company or that holds two

percent or more of the total voting power of the Company; or

7. That I possess the requisite qualifications as have been prescribed in the Companies

(Appointment and Qualification of Directors) Rules, 2014 for being an lndependent Director,

which reads as follows:

,,An lndependent Directorshallpossess appropriate skills, experience and knowledge in

one or more fietds of finance, law, management, sales, marketing, administration,research, corporate governance, technical operations or other disciplines related to the

Company's business."

g. That I am not a material supplier, service provider or customer or a'lesser or'lessed of the

Company, which may affect my independence.

9. That I am not less than 21 years of age.

10. That the above information is true to the best of my knowledge and belief'

Yours Sincerely

tanchand Joshi: 00002683)

Date:[1 lo+lwl L

CHATUKVEDI ET PAKTNEKSC H ART E R E D AG C O U NTA IVTS

B-102, Safalaya, Behind profit Center, Mahavir Nagar, Kandivali (W), ttJumbai-4oo 067

Tel.'22A20687'42643253

E-mail : candPl [email protected]

INDEPENDENT AUDITOR,S REPORT

ToThe Members ofSahara Asset Management Company Private Limited

Report on the Financial Statements

Wehaveauditedtheaccompanyingfinancial^StatementsofSaharaAssetManagement company private l,iniitea ("the comP&nY"), which comprise the

Balance Sheet ,." u.r ii* Ii4arch, 2016 and' the Statement of Profit and Loss for the year

then ended, and a summary of the significant accounting policies and other

expianatory information'

Management's Responsibility for the Financial Statements

The company's Board of Directors is responsible for the matters stated in Section

134(5) of the co*pt"i." Rct, ZO13 ("the Rct'1 wltn respect to the preparation of these

financial statements that give a true and fair view of the financial position and

financial performance of the compr.rry in accordance.with the accounting principles

generally u..""pt"J i, Irrdir., inclujiig th" A..o^rnting standards specified under

Section 133 of the Act, read with nutJ Z of the Companies (Accounts) Rules' 2014'

This responsibility also includes maintenance of adequate accounting records in

accordance with ti."-f.orrlsions of the Act for safeguarding the assets of the Company

and for preventing and detecting frauds and other [regularities; selection and

application or .ppr-op.lute accountLg porl.i"s; making judgments and estimates that

are reasonable and prudent; urrd- i."ign, implemertu"tio^ and maintenance of

adequate internal financial controls, tr."l"*"." operating effectively for ensuring the

accuracy and completeness of the ,..o,"ti"g records, rel-evant to the preparation and

presentation of th! financial statements thit give a true and fair view and are free

i'rom mat"rial misstatement, whether due to fraud or error'

Auditor's ResPonsibilitY

our responsibiiity is to express an opinion on these financial statements based on our

audit.

We have taken into account the provisions of the Act, the accounting and auditing

standards and matters which ,r" ,"qrl*Jto u. included in the audit report under the

ptoui"io"" of the Act and the Rules made thereunder'

we conducted our audit in accordance with the Standards on Auditing specified under

section 143(10) of the Act. Those standards require that we comply with ethical

requirements and plan and perform the audit to obtain reasonable assurance about

whether the financial statements are free from material misstatement'

An audit involves performing procedures to obtain audit evidence about the amounts

and the disclosures in the financial statements' The procedures selected depend on

the auditor's judgment, including the utt"tt*""t of the risks of material

misstatement of the financial staterients, whether due to fraud or error' In making

those risk assessments, the auditor-.o.r"ii.." internal financial control relevant to the

KOLKATA r NEW DELHI o CHENNAI r LUGKNOW r KANPUR

Continualion Sheet.....'..... "CilA'IURVEDI & PARTN ELIS, Chartered Accountants

Company,spreparationofthefinancialstatementsthatgiveatrueandfairviewinorder to design audit procedures tfrui "." uppropriate in the circumstances' An audit

also includes evaluating the approprrat.^"*-of ihe accounting policies used and the

reasonableness of the accounting estimut." ,rrud" by the Compiny's Directors' as well

as evaluating the overall presentition of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to

p.""iJ" " basis for tur audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the expianations

given to us, the afoiesaid financiaf "t"t"*""ts give th-e-information required by the Act

in the manner so required and gi; ; true "and fair view in conformity with the

accounting principles generally u.""pi"a in_ India, of the state of affairs of the

Company as at 3 r"I U",Zf', 2016 and' loss for the year ended on that date'

Emphasis of Matters

we draw attention to the following matters in the Notes to the financial statements:

a) Note 22(vi) to the financial statements which refer to the sEBI order dated 28th

July, 2015 }i;;;ting cancettuiion of 'certificate of Registration 'of Sahara

Mutual Fund, against which irr" co*puny filed_ an Appeal before the securities

Appellate trituriat (SAT) Mumb.i to ."t u"id" th" *u'id SBet order' SAT vide its

order dated gth Decemb er, 2oi;;;; granted,an-interim stay in this matter' The

Appeal is pending for decisiol, a-t.p""al with the Securities Appellate Tribunal

(SAT) Muml;i. a;"." no further J"u"lop*"nts have taken place, the company

has continued to prepare its accounts as a going concern'

b) Note 22(vii) in the financial statements which indicate that the company has

accumulatedlossesanditsnetworthhasbeensubstantiallyeroded;theCompanyhasincurredanetca*k'to"sduringthecurrentandpreviousyear.These conditions, along with other matters set forth in the note' indicate the

existence of a material uncertainty that may cast significant doubt about the

.o-purry,""'Jiiriv ," continue as a going .orr."rrr. However, the financial

statements of the company have been prepared on a going concern basis for

the reasons stated in the said Note'

Our opinion is not modified in respect of these matters'

Report on Other Legal and Regulatory Requirements

AsrequiredbytheCompanies(Auditor'sReport)Order'2076'issuedbytheCentral Government of India in terms oi "rf-""ttion

(11) of Section 143 of the Act'

(hereinafte, ,"f"rr.Jto as the "Ord'er") and on the basis of such **t :llle books

of accounts and records of the Company as we considered appropriate and

according to the lrrior-ution and explanations given to us, we give in the Annexure

hereto, a statement on the matters specified in trre paragraphs 3 and 4 of the said

Order, to the extent aPPiicable'

1.

ffi

C f tAf U RV EDI & PARTN EllS, C ha rt e red A cc o u n t an ts

(b) In our oPinion,the ComPanY so

tered'Accountantstration No.

yati M. Shah)ner

No. 117510

Date: ll JUIJl0l$

2. As required by Section 143 (3) of the Act' we report that:

(a) we have sought and obtained all the information and explanations which to the

best of our kiowledge and belief were necessary for the purposes of our audit'

proper books of account as required by law have been kept by'L. u" it appears from our examination of those books'

Conlinuation Sheet.. -'.........

Statement of Profit and Loss dealt with by this

the books of account.(c) The Balance Sheet and the

Report are in agreement with

(d) As the company's accounts are centralized and maintained at

office, no returns for the purposes of our audit are prepared at

and other offices of the company'

(e) In our opinion, the aforesaid financial statements comply with the Accounting

standards specified under Section 133 of the Act, read with Rule 7 of the

ComPanies (Accounts) Rules, 2074'

(0 on the basis of the written representations received from the directors as on

31"t March, 2076 taken on record by the Board of Directors, none of the

d.irectors is disqualified as on 31"t Mlrch, 2016 from being appointed as a

director in terms of Section 164 (2\ of the Act'

(g) with respect to the adequacy of the internal financial controls over financial

reporting of the company and the operating effectiveness of such controls' refer

to our separate Report in "Annexure B"'

(h) with respect to the other matters to be included in the Auditor's Report in

accordance with Rule 11 of the companies (Audit and Auditors) Rules' 2Ol4' in

our opinion and to the best of our information and according to the

explanations given to us:

i. The company does not have any pending litigations which would impact its

financial Position.ii. The Comiany did not have any long-term- contracts including derivative

contracts-for which there were any material foreseeable losses'

iii. There were no amounts which were required to be transferred to the

Investor Education and Protection Fund by the company.

For Chaturvedi & Partners

the corPoratethe Branches

Conlinualiott Sheet'. -... " " "'CIIAIURVEDI & PARTNERS, Clarte red Accountants

1)

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT

The Annexure referred to in our Independent -Auditors' Report to the members of

sahara Asset Management company'rri,ate Limited ("the company") for the year

ended 31"t March , 20!6' We report that:

a)TheCompanyhasmaintainedproperrecordsshowingfullparticulars,including quantitative details and situation of fixed assets'

b) A11 the assets have been physically verified by the management during the year'

No material discrepancies were noticed on such verification'

Accordingtotheinformation&explanationgiventousandonthebasisofourverification, the company d'oes not own any immovable property'

Thecompanyisaservicecompany,primarilyrenderingmutualfundandportfoliomanagemerrt *.rri."*. eccordingty, ii aoes .rot t ota any physical inventories' Thus'

p"t"gi"pf, 3 (ii) of the Order is not applicable'

3)TheCompanyhasneithergrantedanyloans,securedorunsecured,to,nortakenany loans from, companieJ, ri.*",-i-i'-ited Liability^Partnerships or other parties

covered in the ;";*t;;;intained'rrra., section tgg or the Companies Act' 2013'

In view of the foregoing, the question of reporting on clause 3 (i) to (iii) of the said

order does not arise'

4) The company has not granted any loans or made any investments or provided any

guarantees or -"."rrliy

to th" p*ti;s covered .und.er Section 185 and 186'

Therefore, the provisions of Cl""J 311;) of the said order are not applicatrle to the

company.

5)Duringtheyear,theCompany-hasnotacceptedanydepositsfromthePublicwithin the meaning of Sections 73 to 76 of the companies Act' 2013 and the rules

framed there undei as also the directives issued by tfre Reserve Bank of India' The

Companyhascompliedwiththeapplicablestatutoryprovisions.TheCompanyhasnot receivea .rrv oia"r passed ny'-iompu.ny Law noard or National Company Law

Tribunal or Reslrue gank of India o. u.rry court or anv other tribunal.

6) The centrai Government has not prescriLred maintenance of cost Records under

sub section 1ry oisectlon 148 of the Companies Act, 2013 for any of the activities of

the comPanY.

c)

2l

7\a)Accordingtotheinformationandexplanationsgiventousandtherecordsof

theCompa.ry"*."'it'edbyus,theCompanyisgenerallyregularindepositingundisputed -t;i;;.t dles including piovident fund, employees' state

insurance, income-tax, sales_tax, servic-e tax, duty of customs, duty of excise,

value added tax, cess and any other statutory dues to the appropriate

authorities. There were no arrears as at 31"t Mar& 2016 for a period of more

thansixmonthsfromthedatetheybecamepayable.

CHAIURVEDI & PARTNERS, Chartered AccountantsCo ntinuation Sft eet" " " " " "'

any funds from Financial

b)Accordingtothebooksofaccountsandrecordsasproducedandexaminedbyus in accordance with the generally accepted auditing practices in India, as at

31"t March 2016, the followirrg u* the particulars oidues that have not been

deposited on account of any dispute'

B) The ComPanY hu: borrowed

Institutions/Banks/Debenture Holders'

9) The ComPanY has not raisedpublic offer (including debtduring the Year.

any money by way of initial public offer or further

irr"i**"rrts) ana iras not obtained any term loan

1O)During the course of our examination of the books of accounts and records of the

Company,..,,i"aoutbyusin_ac.ordancewiththegenerallyacceptedauditingpracticesinlndia,wehaveneitherComeacro."..yinstanceoffraudontheCompany nV ,t" "iii"ers

or employ"e*, noticed or reportld during the year' nor have

we beeninftrmed of such case by the management.

11)TheCompanyisaprivatelimitedCompanyand!!eprovisionsofsectionTgTreadwith Schedule v to the co^p""i""- act,.zotg with respect to payment of

managerialremunerationdonotapplytoaprivatelimitedcompany.

12)The Company is not a Nidhi Company and in view of the foregoing, the question of

reporting on Clause 12 of the said order does not arise'

13)According to the information & explanatiorrs civ:l to us, transactions with related

parties are irr-lompliance witkr seciions 777 u"a tgS of Companies Act' 2013 and

the details have been discl0seJ in trr" Financial Statements' as required by the

applicableaccountingstandards'Refernoteno.23infinancialstatementsfordetails.

14) According to the information and explanations- given to us and based on the

records and documents prod"."J t.iore us, the company has not made any

preferential allotment or privat" piu""*"t't of shares or fully or partly convertible

debentures during the Year'

15)As per the information & explanations given to us, the company has not entered

into any non-cash transactions with directors or persons connected with them'

n,'i*'r>.

ir!$}f"-{.:'"1\

ii"qr,,. l,,",".,i! .. ^:;

Forumwhere disPute

Amount(Rs. in lacs)

Nature of DuesName ofthe Statute

CIT(Appeals)Penalty demand raisedlor A.Y.20 7l-12

Income Tax

CIT(ApPeals)Penalty demand raisedfor A.Y.2012-13

Income Tax

CHAI URVEDI & PARTN EllS,, Chartered Accountants

Chartered untantsResistdhtion No.: 307068E)

ii M. st at;PartnerM. No. 117510

Place:Date:'

Mumbai

Continualion Sheet.. -... -....'.

us, the ComPanY is not requiredBank of India Act, 7934.16)As per the information & explanations given to

be iegistered under section 45-IA of the Reserve

For CHATURVEDI & PARTNERS

to

I 1 J{J},t 20tg

C tlA'f U RV ED I & PARTN EllS., C ha rt e red A c c o un ta n ts Continuation Sheet..'..........

ANNEXUREBToTHEINDEPENDENTAUDIToRS,REPoRT

Report on the Internal Financial controls under clause (i) of sub-section 3 of

Section 143 of the Companies Act, 2O13 ("the Act")

we have audited the internal financial controls over financial reporting of sahara

Asset Management company Private Limited ("the company") as of March 3l' 2076

in conjunction with our audit of the financial statements of the company for the year

ended on that date.

Management,s Responsibility for Internal Financial controls

The company's management is responsible for establishing and maintaining internal

financial controls based on the "internal control over financial reporting criteria

established by the Company considering the essential components of internal control

stated in the Guidance Note on Audit of Internal Financial controls Over Financial

Reporting issued by the Institute of chartered Accountants of India"' These

responsibilities include the design, implementation and maintenance of adequate

internal financial controls that were operating effectively for ensuring the orderly and

efficient conduct of its business, including ad'herence to company's policies' the

safeguarding of its assets, the prevention and detection of frauds and errors' the

accuracy and completeness of the accounting records, and the timely preparation of

reliable financiai information, as required. und.er the companies Act, 2013'

Auditor's ResPonsibilitY

our responsibility is to express an opinion on the company's internal financial

controls over financial reporting based on our audit. we conducted our audit in

accordance with the Guidance Note on Audit of Internal Financial controls Over

Financial Reporting (the "Guidance Note") and the Standards on Auditing' issued by

ICAI and deemed to be prescribed under section 143(10) of the companies Act' 2013'

to the extent applicable to an audit of internal financial controls, both applicable to an

audit of Internal Financial Controls and, both issued by the Institute of Chartered

Accountants of India. Those Standards and the Guidance Note require that we comply

with ethical requirements and plan and perform the audit to obtain reasonable

assurance about whether adequate internal financial controls over financial reporting

was established and maintained and if such controls operated effectively in all

material respects'

CHA'[ URVEDI & PARTNEIIS, Chartered Accountants Con t inualiotr S heet,.......'....

our audit involves performing procedures to obtain audit evidence about the adequacy

of the internal financial controls system over financial reporting and their operating

effectiveness. our audit of internal financial controls over financial reporting included

obtaining an understanding of internai financial controls over financial reporting,

assessing the risk that a material weakness exists, and testing and evaluating the

design and operating effectiveness of internal control based on the assessed risk' The

procedures selected depend on the auditor's judgement, including the assessment of

the risks of material misstatement of the financial statements, whether due to fraud or

error.

we believe that the audit evidence we have obtained is sufficient and appropriate to

provide a basis for our audit opinion on the company's internal financial controls

system over financial rePorting.

Meaning of Internal Financial controls over Financial Reporting

A company's internal financial control over financiai reporting is a process designed to

providl reasonable assurance regarding the reliability of financial reporting and the

preparation of financial statements for external purposes in accordance with generally

acclpted accounting principles. A company's internal financiai control over financial

reporting includes those policies and procedures that (1) pertain to expenditures of the

company are being made only in accordance with authorisations the maintenance of

records that, in reasonable detail, accurately and fairly reflect the transactions and

dispositions of the assets of the company; (2) provide reasonable assurance that

transactions are recorded as necessary to permit preparation of financial statements

in accordance with generaliy accepted accounting principles, and that receipts and of

management and directors of the company; and (3) provide reasonable assurance

regarding prevention or timely detection of unauthorised acquisition, llse, or

disposition of the company's assets that could have a material effect on the financial

statements.

Inherent Limitations of Internal Financial controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial

reporting, including the possiLrility of collusion or improper management override of

controls, material misstatements due to error or fraud may occur and not be detected'

Also, projections of any evaluation of the internal financial controls over financial

reporting to future periods are subject to the risk that the internal financial control

over financial reporting may become inadequate because of changes in conditions' or

that the degree of compliance with the policies or procedures may deteriorate'

CHA f U RV EDI & PARTN EllS, C hart e red A c co untan ts

For CHATURVEDI & PARTNERSChartered Accountants(Fr{+t Rggisfration No. :

Shah)PartnerM. No. 117510

Place: MumbaiDate: ll JI)N20:

Continuation 9heet.............

Opinion

In our opinion, the company has, in all material respects, an adequate internal

financial controls system over financial reporting and such internal financial

controls over financial reporting were operating effectively as at Margh- 3l' 2016'

based on ,,the internal control over financial reporting criteria established by the

company considering the essential components of internal control stated in the

Guidance Note on auait of Internal Financial Controls Over Financial Reporting

issued by the Institute of chartered Accountants of India".

ffiPanYPrivateLimitedFinancial Year 2015'16

lance sheet As at 31st March, 2016

As at 31st March,2015

645,500,000(484,177,477

645,500,000(531,377,266

EOUITY AND LIABILITIES

a) Share caPital

(b) Reserves and surPlus

Non-current liabilities(a) Long{erm Provisions

a) Trade payables

(c) Shortterm Provisions

a) Fixed assets

Firm Registration No.:307068E)

c) Deferred tax assets (net)

(d) Long Term Loans & Advances

a) Current investments

(c) Cash and cash equivalents

(d) Shortterm loans and advances

e) Other current assets

TOTAL

See accompanying notes forming part of the

161,322,523

2,034,025

5,766,4764,038,921

760,000'13,089,0'1 5

173.921,945

997,22376,749

1,400,052

112,853

1,073,972

113,777

12.944.15718,740,833

146,125,0611,012,4105,089,4101,505,730

13,057,934

70,834,3822,173,658

39,592,6671,332,737

600153.781 ,061113.934,044

ln terms of our rePort attached'

or Chaturvedi & Partners

No.: 30

M. Shah)

No. 117510)

For and on behalf of Board of Directors of

Sahara Asset Management Company Private Limitedt'lr.--' b.+-- dl-,..* 51,'',\*--*;4:-----'

OP SrivastavaDirectorDrN 00144000

CompanY Secretary

Place : Mumbai

amesh M. joshiDirectorDtN 00002683

Place : Mumbai

Date:'1 1 JUN ?016Date

anY Private Limited

FinancialYear 2015-16

Statement of protit unO t-ott fot th'For the Year ended31st March,2015

For the Year ended31st March,2016

8,061,660

15,496,099

11,650,746

6,713,406

Revenue from oPerations

Other income

otal revenue (1+2)

Expenses(a) EmploYee benefits expense

(b) Finance costs(c) Depreciation and amortisation expense

(d) Other expenses

Total exPenses

Profit / (Loss) For The Year (3-4)

Earnings per share (of Rs' 101 each):

(a) Basic / Diluted

See accompanying notes forming part of the financial

statements

23,557,759

45,597,6305

782,01621,035,111

33,933,6021,983

439,1'10

31j89,246

67,414,762

(43,857,003)(47,199,

For Chaturvedi & Partners

Accountants

M. Shah)

Partner(MembershiP No. 1 17510)

For and on behalf of Board of Directors of

Sahara Asset Management Company Private Limited

DIN 00002683

' TT''Jti tt zo16

tion No.

'.1..."-.!fo'gOP SrivastavaDirectorDrN 00144000

CompanY SecretarY

Place: MumbaiDate:.1 1 ll!

SAHARA ASSET MANAGEMENT COMP

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 20,I6

Current Year2015-2016

Previous Year2014-2015

Notes:

1 All figures in bracket are outflow.

Significant accounting policies

For Chaturvedi & PartnersChartered Accountants(Fr.+1m Registr{tion No.: 307068E)

tvi 1.J.,: i...

(Khyati M. Shah)Partner

No.117510)

: Mumbai

'.1 1 J",. 2016

2

For and on behalf of Board of Directors ofSahara Asset Management Company Private Limited

OP SrivastavaDirectorDIN'00144000

DirectorDtN 00002683

Company Secretary

Place : MumbaiDate4 I ltlNl

CASH FLOW FROM OPERATING,ACTIVITIESprofiV(loss) before tax

Adjustments for:Depreciationlnterest income(Profit)/Loss on sale of asstes(Profit)iloss on sale of lnvesments

Operating profit before working capital changes(lncrease)/decrease in trade receivables(lncrease)/decrease in other current assets(lncrease)/decrease in short term loans and advances(lncrease)/decrease in long term loans and advanceslncreasei(decrease) in trade payableslncrease/(Decrease) in other current liabilitieslncrease/(Decrease) in short term provisionslncrease/(Decrease) in long term provisions

Cash generated from / (used in) operationslncome taxes (paid)/ Refund receivedNET CASH GENERATED USED IN OPER,ATING ACTIVITIES

C,ASH FLOW FROM INVESTING ACTIVITIESPurchase of fixed assetsSale of fixed assetslnterest receivedSale of lnvesmentsProfit/(Loss) on sale of lnvesments

NET CASH GENERATED FROM INVESTING ACTIVITIES

CASH FLOW FROM FINANCING AGTIVITIESProceeds from borrowings

NET CASH GENERATED FROM FINANCING ACTIVITIES

NET INCREASE IN CASH AND CASH EQUIVALENTSCash and cash equivalent at beginning of yearCash and cash equivalent at end of year

Cash and cash equivalents of closing balance comprise of:Cash on handBalances with bank in current account

(c)

( A+B+C)

(47 ,199,7

(51,163,741(1,161 ,248

1,449,1841 ,07 4,434

1.179.825

(23,8871,276,212

(1 57,5991,542,5891,47 4,972

(56,237,4513.044.1 05

194,45A23,802,08314,227,200

(1 1 5,160)

34,503,2575,089,4'10

(15,523,93s)20.613.345

70,9305.0.18.480


Financial Year 2015-16

Notes forming part of accounts

Note ,articulars

Corporate informationsahara Asset l\,4anagement company Private Limited is incorporated under the companies Act, 1956 and

cperating as an Asset i\,,1anagement company (AN,4C) after obtaining approval of securities and Exchange

Board of lndia (SEBI). The company is engaged in the business activities relating to investment matlers which

are in ihe nature of mutual fund, portfolio management services and other activities incidental and related to the

activiiies of mutual fund. The company is an Asset management company for sahara l\,4utual Fund lt has its

corporate office sltuated at 97-98, I th Floor, Atlanata , Nariman Point, lvlumbai -400021. li has 21 branches

al various states of lndia.

SEBI vide order dated 27th February, 201 5 has cancelled the certificate of registration granted to Sahara AMC

as a Portfolio l\,4anager.

2 Significant accounting Policies

2.1

a

b.

t.

2.2

2.3

2.4

- 3 years

recoqnition

lncome from services :

Revenues are accounted on accrual basis. Fund Management fees are as approved by the Trustees of the

Sahara I!'lutual Fund.

Basis of accounting and preparation of financial statements

The financial statements of the company have been prepared in accordance with the Generally Accepted

Accounting Principles in lndia (lndian GAAP) to comply with the Accounting standards notified under the

companies (Accounting standards) Rules, 2006 and the relevant provisions of the companies Act. 201 3. The

financial statements have been prepared on accrual basis under the historical cost convention The accounting

policies adopted in the preparation of the financial statements are consistent with those followed in the previous

year.

The management has prepared the accounts on a going concern assumption'

Use of estimatesThepreparation ofthefinancial statementsinconformitywith lndianGAAP requirestheManagementtomake

estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent

liabilities) and the reported income and expenses during the year. The Management believes that the

estimates used in preparation of the financial statements are prudent and reasonable. Future results could

differ due to these estimates and the differences between the actual results and the estimates are recognised in

the periods in which the results are known / materialise.

Depreciation and amortisation

Depreciation on fixed assets is provided on Straight Line lvlethod. Depreciation for asset purchased or sold

during the year is charged on a pro-rata basis to the statement of profit & loss. Assets costing individually up to

Rs.50001 are fully depreciated in the year of purchase as per the schedule ll of companies Act, 201 3

The manaoement believes that the useful lives as given below best represent the period over which

manaqemJnt expects to use these assets. Hence, the useful lives for these assets is different from the useful

lives as prescribed under Part C of Schedule ll of the Companies Act, 201 3'

I

lTanoible assets

lP.;;*&N/obil"-2yearsIvehictes - 5 years

lFurniture & Fixtures - 5 yearst.-.lLlectrrcal lrfirnqs - 5 years

lvoiceloggers-3years

Sahara Asset Management Company Private LimitedFinancial Year 2015-16


Note Pa rticu la rs

I.

2.5

2.6

2.7

2.8

a

b

2.9

Other income

Other lncomes includes lnterest, Profit on sale of investments, Dividend income and Prior period incomeDividend lncome is accounted for in the year in which the right to receive is established. lnterest lncomeaccounted on accrual basis.

Tangible fixed assets

Fixed assets are stated atcost less accumulated depreciation/amortisation and impairment loss (if any). Directcosts aTe capitalised until the asset is ready to use. When an asset is sold/discarded, its cost and accumulateddepreciation is removed from the accounts and any gain or loss resulting from its disposal is included in theStatement of Profit and Loss.

lntangible assets

lntangible assets are carried at cost less depreciation/amortisation.

lnvestments

lnvestments are valued at cost. The diminution, if any in the market value of Long Term lnvestment is not

recognised unless such diminution is considered permanent. FIFO method is followed fordisposal/redemption

of investment. AS-1 3, that is, Accounting for lnvestments, does not apply to an Asset Management Company.

Employee benefitsEmployee benefits include provident fund, gratuity fund, compensated absences. Short- term employee

benefits are recognized as an expense at the undiscounted amount in the Profit and Loss Account of the year in

which the related service is rendered.

Defined contribution olans

The eligible employees of the Company are entitled to receive beneflts under the provident fund, a defined

contribution plan in which both the employees and the company make monthly contributions at a specified

percentage of the covered employees' salary (currently 1 2% of employees' basic salary). The contributions as

specifled under the law are paid io the Regional Provident Fund Commissioner, Chennai.

Defined benefil olansThe Company has an obligation towards graluity, a defined benefit plan covering eligible employees. The pian

provides for a lump sum payment to vested employees upon retirement, death while in employment or on

termination of employment. Vesting occurs upon completion of five years of service. The fund is invested with

Life insurance Corporation of lndia under its Group Gratuity Scheme. The company makes annual contributions

to gratuity fund based on the demand for premium raised by Life insurance Corporation.

The company provides for the encashment of leave or leave with pay subject to Company's internal rules. Theemployees are entitled to accumulate leave for availment as well as encashment subject to the said rules. Theiability is provided for based on the number of days of unutiiized leave at the Balance Sheet date on the basisf,f company's internal rules & regulations.

Segment reporting

Ihe Company has identified business segments as its primary segment and reported as I\,,lu1ual Fund & PMS

seruices. Revenues and expenses directly attributable to segments are reported under each repodablesegment. Expenses which are not directly identifiable to each reportable segment have been allocated on theoasis of associated revenues of the segment and manpower efforts. All other expenses which are not

ettributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabilities that

are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets

and liabilities are disclosed as unallocable. Fixed assets that are used interchangeably amongst segments are

lot allocated to primary and secondary segments. Geographical revenues are allocated based on the locationlf the customer.

Sahara,Asset Management Company Private LimitedFinancial Year 2015-16


Note Particulars

2.10

2"11

2.14

2"12

2.13

2.15

2.16

Earning Per Share

and diluted earnings per share have been computed by dividing nei profit after tax attributable to equity

areholders for the year by the weighted average number of equity shares outstanding for the period in

with AS-20, "Earning Per Share" issued by The lnstitute of Chartered Accountants of lndia

Taxes on lncome

tax comprises the current tax provision and the net change in the deferred tax asset or liability in the

The deferred tax assets and liabilities are calculated on the accumulated timing difference at the end of an

ing period based on prevailing enacted tax rates. Deferred tax assets are not recognised on un-

labsorbed depreciation and carry forward of losses unless there is virtual certainty that sufficient future taxable

lincome will be available against which such deferred tax assets can be realised.

I

llmpairmentI

lnt eacn balance sheet date, the management reviews the carrying amounts of its assets to determine whether

Ithere is any indication that those assets were impaired. lf any such indication exists, the same is appropriately

ldealt within the books after determining to the extent of imparement of loss.

lReversal of impairment loss is recognized immediately as income in the profit and loss account.

Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it isprobable thai an outflow of resources will be required to settle the obligation in respect of which a reliableestimate can be made. Provisions (excluding retirement benefits) are not discounted to therr present value andare determined based on the best estimate required to settle the obligation at the Balance Sheet date. Theseare reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilitiesare disclosed in the Notes-

Service tax input credit

Service tax input credit is accounted for in the books in the period in which the underlying service receivedaccounted and when there is no uncertainty in availing / utilising the credits.

lnsurance claims

lnsurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent

Cash and Cash EquivalentsCash flows are reported using the "indirect method", whereby net profit is adjusted for the effects of transactionsof a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item ofincome or expenses associated with investing orfinancing cash flows. The cash flows from operat,ng, investingand financing activities are segregated. The company considers all highly liquid financial instruments, which arereadily convertible into cash and have original maturities of three months or less from the date of purchase, tobe cash equivalents.

b)

(i)

b)


Note 3 Share capital

Particulars'i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting

Particulars Ooenino Balance Fresh issue Closino BalanceEquity shares with voting rights

Year ended 31 March, 2016- Number of shares- Amount (Rs.)


s6,800,000s68,000,000

56,800,000568.000.000

56,800,000568,000,000

56,800,000568.000.000

Redeemable preference shares



7,750,00077,500,000

7,750,00077,500.000

7,750,00077,500,000

7,750,00077,500,000

Terms/rights attached to equity shares:

The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to onevote per share.

ln the event of the liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the Company,after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Terms/rights attached to Preference Shares:The Company has converted on22nd September 2008 77,50,000 Cumlative Preference into Non Cumlative Preference shares. ThePreference Shareholders have a Preferential rights for repayment of capitai in priority to equity shares on liquidation of the Compay orrepayment of capital . However, the perference shares cany no further or other right to particiapte either in the profits or asstes of thecompany

ParticularsAs at 31st March, 2016 As at 31st March, 201 5

Number of shares RS Number of shares Rs.

(a) Authorised

Equity shares of Rs. 101 each with voting rightsRedeemable preference shares of Rs. 101 each

(b) lssued

Equity shares of Rs. '101 each with voting rightsRedeemable preference shares of Rs. '101 each

(c) Subscribed and fully paid up

Equity shares of Rs. 101 each with voting rightsRedeemable preference shares of Rs. 101 each

67,250,0007,750,000

672,500,00077,500,000

67,250,0007,750,000

672,500,00c77.500.00c

56,800,0007,750,000

56,800,0007,750,000

568,000,00077.500.000

568,000,00077,500,000

56,800,0007,750,000

56,800,0007,750,000

568,000,00077,500,000

568,000,00077.500.000

Total 64.550,00C 645,500,000 64,550,000 645,500,000



Note 3 - Share capital (contd.)

Particulars

1i; Oetiits of shares held by each shareholder holding more than 5% shares:

Class of shares / Name ofshareholder

As at 31st March, 2016 As at 31st March, 2015

Number ofshares held

% holding inthat class of

shares

Number ofshares held

% holding inthat class of

shares

Equity shares with voting rights

Sahara lndia Financial CorporationLimited

25900000 46% 25900000 46Yc

Sahara lndia Corp lnvestmentLimited

6450000 11% 6450000 1IY,

Sahara Prime City Limited 6450000 11% 6450000 11Ya

Sahara Care Limited 1 8000000 32Yo 1 8000000 oao/JZ /O

IOTAL Eouitv Shares 56800000 1000/, 56800000 100Yo

Redeemable preference shares

Sahara lndia CommercialCorooration Limited

7000000 90% 7000000 90%

Sahara Care Limited 750000 10%n 750000 1jYc

Sahara Asset Management Company Private LimitedFinancialYear 2015-16

Note 4 - Reserves and surplus

ParticularsAs at 31st March,

2016As at 31st March,

2015

Rs. Rs.

(a) Securities premium accountOpening balanceAdd : Premium on shares issued during the year

Closing balance

(b) Surplus / (Deficit) in Statement of Profit and LossOpening balanceAdd: Profit I (Loss) for the yearClosing balance

Total

22,000,000 22,000,000

22,000,000

(506,177 ,477)(47,199,789\

22,000,000

(462,320,474(43,857,003

(553,377,266) (506,177 ,477)

(531,377 ,266) (484,177,477)


Note 5 - Long-term provisions



2015Rs. Rs.

a) Provision for employee benefits:(i) Provision for Leave Encashment

Total

854,200 2,034,025

854.200 2,034,025

Sahara Asset Management Company Private LimitedFinancialYear 2015-16

Note6-TradePayables

ParticularsAs at 31st March, 2016 As at 31st March, 2015

Rs. Rs.

Trade payables

Total

7,215,659 5,766,476

7.215,659 5,766,476

Sahara Asset Management Company Private LimitedFinancial Year 2015'16

Note 7 - Other Current Liabilities

ParticularsAs at 3'tst March,


2015

Rs. Rs.

(i) Statutory remittances (Contributions to PF and ESIC,

Withholding Taxes, Excise Duty, VAT, Service Tax, etc.)

Tds payableService taxProfession Tax PaYableBrokerage PayablePF Payable

(ii) Other Current LiabilitiesBrokerage PayableUnclaimed Unit holder Funds of closed Schemes

Other Current Liabi lites

Total

695,151

5,139

1 18.366

434,673108,847

7,323

160,641

818,656

302,7001,888,3092,103,690

711,484

472,934.00

2,854,5034,294,699 3,327,437

5.113,355 4.038,92't


FinancialYear 2015'16

Note 8 - Short-term Provisions



2015Rs. Rs.

a) Provision - Others:i) Provision for tax

Total

760,000 760,000

760,000 760,000

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Note 1O - Non-Current investments

lnvestment in mutual funds

Axis Equity Fund Units of Face Value @

Rs. 101 each

Bir'a Sunlte Drv,oerd Yield Fund Units

of Face Value @ Rs. 101 each

Birla Sun Life l,4NC Fund Units of Face

Value @ Rs. 1 0/- each

BNP Paribas Dividend Yeild Fund Units

of Face Value @ Rs. 10/- each

Can Rob lnfra Fund Units of Face Value

@ Rs. 101 each

DSPBR Small & Midcap Reg Fund

Units of Face Value @ Rs. 101 each

FT lndia Prima Fund Units of Face


HDFC Top 200 Fund Units of Face

Value @ Rs. 10/- each

lClCl Pru Midcap Fund Units of Face

Vaiue @ Rs. 1 0/. each

IDFC Sterling EquityFund Units of Face

Value @ Rs. 1 0/. each

JM Multistrategy Fund Units of Face


463.822

340.712

59.938

6'19.993

288.351

330.775

122.555

'1 19.683

299.760

5,000

5,496

5,000

7,368

5,000

5,000

5,000

5,439

5,000

5,000

5,496

5,000

7,368

5,000

5,000

5,000

5,439

5,000

5,000

463.822

340.712

573.252

288.351

330.775

122.555

1 1 9.683

299.760

352.619

368.41 0

161.572

223.371

5,000

5,496

5,000

6,656

5,000

5,000

5,000

5,439

5,000

5,000

4.400

5,000

5,496

5,000

6,656

5,000

s,000

5,000

I L&T (F deiity) Equity Funo-DlvlDEND- | 270 S 13 |

I PO of Face Val-e @Rs. 10/- each I I

Kotak 50 EQUITY - DIVIDEND - PO

L&T Large cap Fund Units of Face

Value @ Rs. 101 each

Principa Large Cap Fund Units of Face


Quantum Long Term Equity Fund Uniis

of Face Value @ Rs. 10/- each

Reliance Vision Fund Units of Face


Religare MID CaP Fund Units of Face

Value @ Rs. 101 each

SBI Contra Fund Units of Face Value @

Rs. 10/- each

Sundaram BNP SMILE Reg Fund Units

of Face Value @ Rs. '10/- each

TATA Infra Fund Units of Face Value @Rs. 10/- each

Taurus lnfrastructure Fund Units ofFace Value @ Rs. 10/- each

UTI Opportunities Fund Units of Face

Value @ Rs. 10/- eachTotal -investments

Aggregate amount of quoted investmenis

Aggregate market value of listed and quoted

investmentsAggregale value of lisled but not quoted investments

Aggregate amount of unquoted investmenis

352.619

368.410

161.572

223.371

241.442

249.377

115.472

5,000

4,404

5,000

4,400

5,000

z)at

5,000

s,000

t,ioo

5,000

z,tat

5,000

2,767

5.616 I

s,616 |

372.856

118.575

401.323

225.034

345.304

384.025

5,000

5,000

5,000

5,000

2,690

5,000

5,000

5,000

5.000

5,000

5.000

,,ooo

5.000

z,iso

5,000

u,ooo

5.000

u.ooo

247.402

249.311

115.473

372.856

105.520

401.323

225.034

345.304

3a4.A25

5,000

5,000

5,000

5,000

2,479

5,000

5,000

5,000

5,000

5,000

5,000

,,ooo

s,000

,,irn

5.000

,,ooo

5.000

a,ooo

As at 3'lst March,20'15As at 31st March,2016

113,777

market value rnvestments


Note 11 - Long-term loans and advances

Particulars As at 31 March,2016

As at 31 March,2015

Rs. Rs.

(a) Security deposits

Unsecured, considered good

(b) Prepaid expenses - Unsecured, considered good (For e.g.

lnsurance premium, Annual maintenance contracts, etc.)

(c) Balances with government authorities


(i) Service Tax credit receivable

(ii) TDS receivable

(d)Other loans and advances


(i) Advance -lnitial amount provided to Mutual Fund

(ii) Deposit with CBLO

Total

795,735

17,496

9,814,5882,216,338

868,290

36,894

8,147,9351,974,861

12,030,926

100,000

10,122,796

100,0007,500,000

100,000 7,600,000

12,944,157 18,627,980

Sahara Asset Management Company Private LimitedFinancial Year 201 5-'16

Note 12 - Current lnvestments

ParticularsQuantitu

As at 31st March,20'16 As at 31 st March. 20'l 5

Ouoted Unquoted Tolal Or rofeal Total

(a)

Other Current Investments (At lower of cost and fairvalue, unless otheruise stated)

lnvestment in Equity lnstruments (give detailsseparately for fully / partly paid up instruments)

Kinetic Engineers Ltd

Shares of Face Value @ Rs.10 each

Suryalaxmi Cotton N4ills Ltd


lnox Leisure


Finolex Cables Equity Shares


lnvestment in Mutual Funds (give details)

Sahara Growth Fund - Dividend payout

Sahara Growth Fund - Direct - GroMh

Sahara Star Value Fund GroMh- Equity

Sahara Liquid Fund -Growth:Direct

Sahara Banking & Fin Seruice Fund-Growth-Direct

Sahara lnfrastructure Fund-Growth

Sahara MIDCAP Fund-GroMh

Sahara Power & Natural Resources Fund-Groffh

Sahara Real Fund-GroMh

Sahara Super 20 Fund-Growth

Sahara Tax Gain Fund-GroMh

Sahara Wealth Plus Fund-Growth

Sahara Short Term Bond Fund -GroMh - Direct

Sahara Gilt Fund - Growth

Sahara lncome Fund - GroMh - Direct

Sahara Interual fund - Quarterly Plan - Series 1 - Growth -

Total - Other current lnvestments (B)

(b)

6451

1 7000

3500

1 8000

12,580.59

1 0B,1 45.53

104,778.31

17,982.48

30,802.34

25,312.74

'16,896.33

16,940.31

27,679.75

4,624.72

18,641 .35

27,842.53

2,250,220

2,452,284

272,349

1,030,953

2,2s0,220

2,452,280

212,349

1,030,953

2,250,220

2,452,280

272,349

1,030,953

2,250,220

2,452,280

272,349

1.030.953

6,00s,802 6.005.802 6.005.802 6.005.802

327,473

1 3,000,000

1,215,156

44,560,951

1,400,000

500,000

900,000

250,000

400,000

75,000

'1 .100.000

1,100,000

327,473

13,000,000

1,21s,1s6

44,560,9s1

1,400,000

500,000

900,000

250,000

400,000

75,000

1.100.000

1,100,000

327,473

1 3,000,000

2,500,000

1 22,603,089

B95,02 1

61,762

711,914

20,000

327,473

1 3,000,000

2,500,000

1 22 603,089

895,021

61,762

7 11 ,914

20,000

64,828,580 64,828,580 140,119,259 140,119,259

6,005,802 64,828,580 70,834,382 6,005,802 1 40,1 1 9,259 1 46,1 25,061

Aggregate amount of quoted investments

Aggregate market value of listed and quoted investments

Aggregate value of listed but not quoted investments

Aggregate amount of unquoted investments

Aggregate market value of listed and unquotedinvestments

Aggregate provision for diminution (write down) in thevalue of other current investments

6,005,802

7,975,554

64,828,580

68,222,880

6,005,802

7,290,962

1 40,1 1 9,259

143,481,772


Note 13 - Trade Receivables


As at 31 March,2015

Rs. Rs.

Trade receivables outstanding for a period Not exceeding

six months from the date they were due for payment


Less: Provision for doubtful trade receivables

Total

2,173,658 1,012,4102,173,658 1,O12,410

2.173,658 1,012,410


Note 14 - Cash and Cash Equivalents


As at 31 March,2015

Rs. Rs.

(a) Cash on hand(b) Balances with banks

(i) ln current accounts

Total

63,608

39,529,059

70,930

5,018,480

39,592,667 5,089,410


Note 15 - Short-term Loans and Advances


As at 31 March,2015

Rs. Rs.

(a)Advances Others

U nsecured, considered good

Less: Provision for other doubtful loans and advances

(b) Prepaid expenses - Unsecured, considered good(For e.g. lnsurance premium, Annual maintenancecontracts, etc.)


Total

59,382 83,85959,382 93,859

59,382

1,273,355

83,859

1,421,871

1.332.737 1,505,730

Sahara Asset Management Company Private LimitedFinancial Year 2015'16

Note 16 - Other Current Assets


As at 31 March,2015

Rs. Rs.

a) Accruals(i) lnterest accrued on dePosits(ii) Dividend Receivable

Total

60048,450

600 48,450


Note 17 - Revenue from OPerations

ParticularsFor the year ended31st March,2016

For the year ended31st March,2015

Rs. Rs.

(a) Sale of services (Refer Note (i) below)

Total

11,650,746 8,061,660

11 ,650,7 46 8,061,660

(i) Sale of services comPrises:Management Fees from Mutual Fund

TDS (C.Y. Rs.2,41 ,4771-) (Previous Year Rs.1 ,31'2951-)Management Fees from Portfolio Management Services

Total

'11,650,746 7,957,066

104,594

11,650,746 9,061,660

Sahara Asset Management Company Private LimitedFinancial Year 201 5-1 6

Note 18 - Other lncome


For the yearended 31 stMarch.2015

Rs. Rs.

(a)

(b)

(c)

(d)

lnterest income (Refer Note (i) below)Dividend rncome:

from current investrnentsothers

Net gain on sale of:

current investments

Other non-operating income (net of expenses directly attributable to such income) (Refer

Note (ii) below)

Total

362,647

52,8001"EF

4,036,545

2,249,160

534,679

49,20012,012

14,227,200

673,008

6,713,406 15,496,099

Note(i) lnterest income comprises:

lnterest on CBLO Marginlnterest on income tax refundTotal - Interest income

84,697277,950

194,450340.229

362,641 534,67(

(ii) Other non-operating income comprises:

Liabilities / provisions no longer required

Profit / Loss on Sale i Loss of Asset

Prior period lncome

Miscellaneous income

Total - Other non-operatinq income

written back 1,266,112

3,87C

1,00(

978.17t

669,52C

-60c

4,OBE

2,249,16t 673.008


Note'19 - Employee Benefits Expense


For the yearended 31st March,

2015Rs. Rs.

Salaries and wages

Contributions to provident and other funds (Refer Note 22)(i) Provident fund(ii) lnsurance & Group Gratuity scheme for employeesStaff welfare expenses

Total

31,655,398

859,037896,751522,416

42,898,364

1,027,092'1,088,654

583,520

33,933,602 45,597,630


Note 20 - Finance Costs



Rs. Rs.

(a) lnterest expense on:

lnterest on delayed / deferred payment of income tax

Total

1,983 q

1,983 5


Note 21 - Other Expenses

ParticularsFor the year ended31st March ,2016


Rs. Rs.

Power and fuelRent including lease rentals

Repairs and maintenance - Others

lnsuranceRTA ExpensesRates and taxesRegistration Fees to SEBICommunicationTravelling and conveyancePrinting and stationeryBusiness promotion

Legal and professionalDirectors Sitting FeesTrusteeship FeesPayments to auditors (Refer Note (i) below)

PMS Expenses

Subscription Fees

Office maintenance and Upkeepment Charges

lPrior period items (net)(Refer Note (ii) below)

lService providers payments

I M iscellaneous expenses

I

I

lTotal

1,008,3414,784,1951,760,588

305,1263,983,195

57,740250,000

1,240,330993,044782,122

1,122,0297,787,934

198,000252,821310,000

88,4203,890,2782,054,940

61,971258,172

356,4105,782,4971,466,325

38,017

109.992250,000

1,005,270732,730557,316

1,336,4191,677 ,932

261,000194,505310,000364,107

4,222,9141,978,770

191 ,587199,320

31,189,246 21.035,1',|1

Notes:


For the year ended3'tst March,2015

Rs. Rs.

(i) Payments to the auditors comprisesAs auditors - statutory auditFor taxation mattersFor cerlification & consultancy etcFor SEBI Audit

Total

250,00025,00035,000

250,00025,00035,000

310,000 310,000

Sahara Asset Management Company Private LimitedFinancial Yea( 2015-16

Notes Forming Part ofThe Financial Statements

Nole 22 - Additional information to the financial statements

)articu la rsAs at 31 March,

2016As at 3l March,

20t5. Contingent liabilities and commitments (to the extent not provided for))ontingent liabiliiiesncome Tax

i) Appeal with ITAT - A.Y. 2006-07ii) Appeal with CIT(A) - A.Y.2011-12ii) Appeal with CIT(A) - 4.Y.2012-13b) Guarantees (give details)c) other monev for which the ComDanv is continoentlv liable (oive details)

167p92168,451

1 ,355,854167,992

,a rtic u larsAs at 3'l March,

2016As at 31 March,

20'15

ii. Commitments(a) Esiimated amount of contracts remaining to be executed on capital account and

not provided for:

Tangible assetslntangible assets(b) Uncalled liability on shares and other investments partly paid(c) Oiher commitments (soecifv nature)

)artic u IarsAs at 31 March,

201 6

As at 31 March,2015

ii. Expenditure in foreign currency:loyalty(now-how)rofessional and consultation feesnte rest)iher maiiers - Travellino Exoense f Directors)

)articulars As at 31 March,2016

As at 31 March,2015

v. Other mattersr. Pending litigations on the financial position of the company). Appropriate provision has been made in the accounts for foreseeable losses, ifrny, on long term contracts (including derivative contracts).

r. Any delay in transferring moneys to the lnvestor Education & Protection FundIPF),

v. The company had been acting as a Portfolio Manager vide Registration No. 1NP000001 868 issued by SEBI. An

application for renewal of its registration was made vide letter dated 06 July,2A12. By an order dated 27lh Febtuary,2015SEBI had cancelled the certificate of registration granted io Sahara AMC as a Portfolio i\,4anager. The Company filed an

application with SEBI for reconsideration of the matter. SEBI vide its order dated 30th December 2015 rejected theapplication for reconsidration of its order dated 27 th February 2015. The Company on 27th Febtuary 2016 filed an Appeal

before the Securities Appellate Tribunal (SAT),Mumbai agalnst Sebi Orders . The appeal is pending for decision/ disposalwith the Securities Appellate Tribunal (SAT).

vi.SEBlVideitsorderdt28thJuly20l5 directedcancellationof 'Certificateof Registration'of Saharal\,4utual Fund.Company has filed an Appeal before the Securities Appellate Tribunal (SAT) N/lumbai to set aside the said SEBI order .SATvide its order dated gth December 2015 granted an interim stay in this matter. The Appeal is pending for decision / disposalwith the Securities Appellate Tribunal (SAT) Mumbai . Accordingly, the management has prepared the accounts on a goingconcern basis.

vii. The company has incurred cash losses during the current year as also during the previous year and its net worth standssubstantially eroded as at 31 st March, 20 1 6. However, the net worth as at the year end is above the threshold specified inRegulation 21(1)(f) of the SEBI (Mutual Fund) Regulations, 1996. The managemenl is committed to making arrangements ofinfusing necessary funds, if required; to ensure continued compliance with said Regulations.

viii. On account of the change in bifurcation of expenses charged to the schemes of the Mutual Fund during the financialyear 2015-16, there is an increase in the lnvestment l\,4anagement & Advisory fees (l\,'lanagement fees) {(which is within theoverall limits as prescribed under Regulation 52(6) and 6(a)i received by the Al\,4C and accordingly some ofthe expensesearlier borne by the schemes of Sahara Muiual Fund have been borne by the AMC during the current financial year.

Sahara Asset Management Company Private LimitedFinancia! Year 2015-16

Notes Forming Part of The Financial Statements

Note 23 - Employee Benefits

Note Particulars

a

Employee Benefit PlansDeflned Contribution Plans

The Company makes Provident Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is

required to contribute a specified percentage ofthe payroll costs to fund the benefits. The Company recognised Rs.8,59,037 /- (Year ended 31s

March, 2015 Rs.10,27,092 /-) for Provident Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the

Company are at rates specified in the rules of the schemes.

b Deflned Benefit PlansThe Company offers the following employee benefit schemes to its employees:i. Gratuityii. Post-employment medical benefits Not Applicable

iii. Other defined benefit plans (specify nature) Not Applicable

The following table sets out the funded status of the deflned benefit schemes and the amount recognised in the financial statements:

ParticularsActuarial Value of Accrued Gratuity LiabilityFund with LICNet LiabilityThe following contributions were made by the Company

Net LiabilityRisk PremiumService Tax @ 1450% (Previous year 12.36%)

TotalActuarial AssumptionsRetirement AgeGrauity RateDiscount rateMortality RateSalary EscalationAttritionMethod of Valuation

Year ended 31st March.2016 Year ended 31st March, 2015

AT

15oo/

LIC(2006-08) Mortality tableoo/o/o

l ao/l-J /o

Proiected unit credit method

,291,831999,257)o2 471

292,57411,861

1,720306,1 55

2,041 ,3681,615,171

426,197

426,19715,440

1,908443,545

EE

1E

oo/

LIC(1 994-96) Mortality table8%

1_3%

Proiected unit credit method

Asset Management Company Private LimitedYear 201 5-1 6

forming part of the financial statements

24 - Segment Reporting Disclosure

upon SEBI directive for cancellation of the certificate of registration granted to Sahara AMC as a

Manager by an order dated 27th February, 2015, the company has discontinued its PMS acitivities during

year. Accordingly, the Company, during the year operated in a single segment i.e. Asset management business.

is, therefore, no sepearate Segment information provided for the current financial year.

Sahara Asset Management Company Private LimitedFinancial Year 201 5-16

Notes forming part of the financial statements

Note 25 - Related Party Disclosures

Related parties with whom the company had transactions during the year

1" Key Management Personnel

1 . Chief Executive Officer - Shri N.K. Garg (Till 7th August 2015)

2. Enterprises having Common Directors

Sahara lndia Financial Corporation Ltd.

3. Disclosure of transactions between the company and related parties

Sahara lndia Financial Corporation Ltd'

)articularsFor the year ended

31st March 2016For the year ended

31st March 2015

)eoosit for appointment of Director by Shareholder 100,000.00


lFinancial Year 201 5-16


Note 26 - Earnings per share

Note Particulars For the year ended31 March,2016

For the year ended31 March,2015

Rs. Rs.

26 Earnings per share

Basic EPS :

Net profit / (loss) for the yearLess: Preference dividend and tax thereonNet profit / (loss) for the year attributable to the equity shareholdersWeighted average number of equity sharesPar value per shareEarninqs per share - Basic / Diluted

(47199789

0

(43857003

0

(47199789

56800000'10

(0.83

(43857003

56800000

10

(0.77



Note 27- Accounting for Taxes on lncome

Note Particu la rs As at 31 March,2016

As at 31 March,2015

Rs. Rs.27 Deferred tax (liability) / asset

Tax effect of items constitutinq deferred tax liabilitvOn difference between book WDV & lncome Tax WDVProvision for compensated absences, gratuity and other employeebenefits

Tax effect of items constituting deferred tax liability

Tax effect of items constitutinq deferred tax assetsOn difference between book depreciation & income tax depreciation

Provision for compensated absences, gratuity and other employeebenefitsBrought forward & carry forward business losses

Tax effect of items constituting deferred tax assets

Net deferred tax (liability) / asset

275,384 185,7361,666,617

85,094

854,200

304,728,625

572,377

347,383,921

94,425,093 107341632

94.339.999 106.769.255

The Management does not consider it appropriate to account for the Deferred Tax Assets due to

uncertainity of future profits.

Sahara Asset Management Gompany Private LimitedFinancial Year 2015-16


Note 28 - Provisions, Contingent Liabilities and Contingent Assets

Note ParticularsDetails of provisionsThe Company has made provision for various contractual obligations and disputed

liabilities based on its assessment of the amount it estimates to incur to meet such

obligations, details of which are given below:

Particulars As at 1 April,20'15

Additions Utilisation Reversal(withdrawn as

no longerreorrired)

As at 31

March,2016

LeaveEncashment

Provident Fund

Rs. Rs. Rs. Rs. Rs.

2,034,025 548,758

1,718,074

1,728,583

1,599,708

854,200

1 18,366

Total 3,700,642 2,266,832 3,329,291 972,566

Note 29Note Particulars

29 The Company is a Small and Medium Sized Company (SMC) as defined in the Generallnstructions in respect of Accounting Standards notified under the Companies Act, 2013.Accordingly, the Company has complied with the Accounting Standards as applicable toa Smalland Medium Sized Company.

Note 30 - Previous Year's Figures

Note Particulars30 Previous year's figures have been regrouped / reclassified wherever necessary to

correspond with the current year's classification / disclosure.

sahara asset management company private limited

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