ppfas asset management private limited directors' report

PPFAS Asset Management Private Limited

Directors' Report

To the Shareholders:

We are pleased to present the Third Annual Report on the business operations of the Company and the audited financial statements for the period ended March 31, 2014.

Particulars For the year ended March 31, 2014(Rs. In Lakhs)

For the year ended March 31, 2013(Rs. In Lakhs)

Operating Income 447.73 NIL

Other Income 118.23 132.2

Total Income 565.96 132.2

Profit before depreciation and tax 224.34 (55.80)

Depreciation 7.83 11.36

Profit before tax 216.51 (67.16)

Current Tax 49.10 -

Deferred Tax (0.57) 0.91

Profit/ (Loss) after tax 167.98 (68.07)

Share Capital 1500 1500

Reserves and Surplus 121.39 (46.59)

Dividend

SEBI has registered the Company as an asset management company for PPFAS Mutual Fund, vide its letter no. MF/069/12/01 dated October 17, 2012. The Company has launched flagship scheme 'PPFAS Long Term Value Fund' on May 13, 2013 for PPFAS Mutual Fund.

Board members are of the view to conserve resources and increase net worth of the Company. Capital adequacy is a key factor in the financial markets. Retention of earnings will help the company to provide adequate capital cushioning to the operations of the Company.

Your Directors do not recommend any dividend for the year.

Directors

As per Section 149(4) the Companies Act, 2013 which came into effect from April 1, 2014 and SEBI (Mutual Funds) Regulations, 1996, Mr. Rajnikant Rao and Mr. Kamlesh Somani are being appointed as Independent Directors of the Company to hold office as per their tenure of appointment mentioned in the Notice of the forthcoming Annual General Meeting of the Company. Appointment of Mr. Rajnikant Rao and Mr. Kamlesh Somani as Independent Directors of the Company in accordance with provisions of Section 149(4) the Companies Act, 2013 is approved by the Board and its committees. Mr. Rajeev Thakkar will continue in his office as Director of the company in accordance with the his terms of appointment as Whole Time Director as approved by the members of the Company.

Mr. Parag Parikh is retiring by rotation and being eligible, offer himself for reappointment. Necessary resolutions for the appointment of the aforesaid Directors have been included in the notice convening the Annual General Meeting.


Board Meetings

The meetings of the Board of Directors are held at the Company’s corporate office in Mumbai. During the financial year 2013-2014, six Board meetings were held.

Deposits

The Company has not accepted any deposits pursuant to the provisions of section 58A of the Companies Act, 1956.

Management Discussion and Analysis and Results of operations

Environment in the Capital Markets

The year 2013-14 saw some major upheaval in the market. From a position of pessimism mid last year we have moved to a state of raging optimism. Although the performance of the businesses underlying this pessimism and optimism have not changed so dramatically but the sentiment did affect the value of these business and created some interesting opportunities for long term investors. We closed the financial year hoping for a change in Government that was duly delivered and it reinforced the positive sentiment.

If Demat Account additions is any indicator, then retail investor participation this year was the slowest over the past 3 years. A lot of retail investors jumped out of the market for good. Also, Foreign Institutional Investors continued investing like never before despite the Federal Reserve announcing to taper the supply of money. We witnessed MNC promoters of various top companies in India increase their stakes in their Indian subsidiaries showing a healthy confidence about their expectations from the Indian market.

Operations of the Company

As on March 31, 2014, the corpus of the PPFAS Long Term Value Fund stood at INR 351.24 Crores. The Scheme started with initial corpus of INR 63.87 Crores (during the NFO period). The Company is an investment manager for the scheme/s of PPFAS Mutual Fund.

Investor Relations

Company has in house investor relations department which addresses all investor queries. In house investor relations department is supported by CAMS service centres. PPFAS Mutual Fund has appointed CAMS as it's registrar and transfer agent.

Finances

The Company has invested the funds received in the form of capital in Liquid Funds of registered Mutual Funds, tax free Bonds and Fixed Deposits Receipts with scheduled banks.

Expenses incurred during the year were primarily in the nature of administrative expenses, NFO expenses and expenses to acquire capital assets. Expenses incurred toward acquisition of assets have been capitalised.

Human Resource

The Company is recruiting employees at a gradual pace. All employees to perform key functions of the company and the support staff has been appointed. As operations of the mutual fund grows, company will employ more employees to support its operations and service unit holders of PPFAS Mutual Fund. Board is of the opinion that it is a very sensible approach.


Future Outlook

The financial year 2013-14 saw a strong surge in Assets Under Management (AUM) of PPFAS Mutual Fund. We are positive in our out look towards gradual and steady growth in the Assets Under Management (AUM).

Directors' Responsibility Statement:

Pursuant to the requirement of Section 217 (2AA) of the Companies Act, 1956, with respect to Directors' responsibility statement, it is hereby confirmed:

1. that in the preparation of the accounts for the financial year ended on 31 st March 2014 the applicable accounting standards have been followed;

2. that the Directors have selected such accounting policies and applied them consistently and made judgements and estimates that were reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profits of the company for the year under review;

3. that the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and any irregularities;

4. that the Directors have prepared the accounts for the financial year ended on 31 st March 2014 on a 'going concern' basis.

Particulars of employee/s as required under section 217 (2A) of the Companies Act, 1956:

Employee Name Designation Total Remuneration (INR)

None.

Audit Committee:The composition of audit committee constituted under the provisions of Section 292A of the Companies Act, 1956 is as under:

Rajnikant Rao Committee member

Kamlesh Somani Committee member

Rajeev Thakkar Committee member

Matters required to be reported upon as per the Companies (Disclosure of the particulars in the report of the Board of Directors) Rules, 1988.

In pursuance of the above requirements, we report as follows;

Energy consumption:The company is engaged in providing investment management and advisory services to the mutual fund. Electricity cost is not a major component of total cost of the company. The company recognises the need and importance to conserve the energy. Company ensures that it uses electrical equipments which are energy efficient.

Technology absorption, adoption and innovation:The company is not engaged in any manufacturing activity and hence this section does not apply to the company.


Foreign exchange earning and outgo during the year:During the financial year under consideration, there was no foreign exchange remittance, either inbound or otherwise.

Statutory Auditors:

CVK & Associates, Chartered Accountants, the auditors of the company will retire at the conclusion of ensuing annual general meeting and have expressed their willingness to continue as statutory auditors of the company.

Board recommends the members of the company to approve the reappointment of CVK & Associates, Chartered Accountants as Statutory Auditors of the company in accordance with applicable rules and regulations.

Acknowledgement:

The Directors wish to acknowledge guidance of the Securities and Exchange Board of India (SEBI) and AMFI.

The Directors wish to place on record their sincere appreciation to all employees of PPFAS Asset Management Private Limited (which acts as the Investment Manager to PPFAS Mutual Fund) for their dedication and focused attitude.

The Directors also acknowledge the response showed by the investors for the flagship scheme of PPFAS Mutual Fund and we look forward for their continued support.

For and on behalf of the Board of Directors ofPPFAS Asset Management Private Limited.

Sd/- Sd/-

Parag Parikh Rajeev ThakkarDirector Director(DIN: 00079658) (DIN:00227548)

Place: Mumbai.

Date: 8th August 2014


INDEPENDENT AUDITOR’S REPORT

To the Members of PPFAS Asset Management Private Limited

Report on the Financial Statements

1. We have audited the accompanying financial statements of PPFAS Asset Management

Private Limited (“the Company”), which comprise the Balance Sheet as at March 31,

2014, and the Statement of Profit and Loss for the year then ended, and a summary of

significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

2. Management is responsible for the preparation of these financial statements that give a

true and fair view of the financial position and financial performance of the Company

in accordance with the Accounting Standards referred to in sub-section (3C) of section

211 of the Companies Act, 1956 (“the Act”), read with general Circular 8/2014 dated 4

April 2014 issued by the Ministry of Corporate Affairs. This responsibility includes the

design, implementation and maintenance of internal control relevant to the preparation

and presentation of the financial statements that give a true and fair view and are free

from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

3. Our responsibility is to express an opinion on these financial statements based on our

audit. We conducted our audit in accordance with the Standards on Auditing issued by

the Institute of Chartered Accountants of India. 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.

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

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

auditor’s judgment, including the assessment of the risks of material misstatement of

the financial statements, whether due to fraud or error. In making those risk


assessments, the auditor considers internal control relevant to the Company’s

preparation and fair presentation of the financial statements in order to design audit

procedures that are appropriate in the circumstances. An audit also includes evaluating

the appropriateness of accounting policies used and the reasonableness of the

accounting estimates made by management, as well as evaluating the overall

presentation of the financial statements.

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

provide a basis for our audit opinion.

Opinion

6. In our opinion and to the best of our information and according to the explanations

given to us, the financial statements give the information required by the Act in the

manner so required and give a true and fair view in conformity with the accounting

principles generally accepted in India:

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at

March 31, 2014; and

(b) in the case of the Statement of Profit and Loss, of the Profit for the year ended on

that date;

Report on Other Legal and Regulatory Requirements

7. As required by the Companies (Auditor’s Report) Order, 2003, as amended by

Companies (Auditor’s Report) (Amendment) Order, 2004 (together ‘the Order’), issued

by the Central Government of India in terms of sub-section (4A) of Section 227 of ‘The

Companies Act, 1956’ of India (the ‘Act’) and on the basis of such checks of the books

and records of the Company as we considered appropriate and according to the

information and explanations given to us, we give in the Annexure a statement on the

matters specified in paragraphs 4 and 5 of the said Order.

8. As required by section 227(3) of the Act, we report that:

a. We have obtained all the information and explanations which to the best of our

knowledge and belief were necessary for the purpose of our audit;


b. In our opinion proper books of account as required by law have been kept by the

Company so far as appears from our examination of those books.

c. The Balance Sheet and Statement of Profit and Loss, dealt with by this Report are

in agreement with the books of account.

d. In our opinion, the Balance Sheet and Statement of Profit and Loss, comply with

the Accounting Standards referred to in subsection (3C) of section 211 of the

Companies Act, 1956;

e. On the basis of written representations received from the directors as on March 31,

2014, and taken on record by the Board of Directors, none of the directors is

disqualified as on March 31, 2014, from being appointed as a director in terms of

clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

For CVK & Associates

Chartered Accountants

Firm Regn No.: 101745W

Sd/-

K.P. Chaudhari Partner Place: Mumbai

Membership No: 31661 Date: 8th

August 2014


ANNEXURE TO AUDITORS’ REPORT

ANNEXURE REFERRED TO IN PARAGRAPH 7 OF OUR REPORT OF EVEN DATE.

The Annexure referred to in the Auditors' report to the Members of PPFAS Asset

Management Private Limited (the Company) for the year ended 31st March, 2014. We

report that:

(i) (a) The Company is maintaining proper records showing full particulars,

including quantitative details and situation of Fixed Assets.

(b) The Fixed Assets of the Company have been physically verified by the

management at reasonable intervals and no material discrepancies were

noticed on such verification.

(c) There was no disposal of any substantial part of the company's Fixed Assets

during the year.

(ii) The company did not have any inventory during the year.

(iii) The Company has neither granted, nor taken any loans, secured or unsecured

to/from companies, firms or other parties covered in the register maintained

under section 301 of the Companies Act, 1956.

(iv) There is adequate internal control procedure commensurate with the size of the

Company and the nature of its business, for the purchase of shares, plant &

machinery, equipment and other assets and for the sale of securities. No major

weakness has been noticed in the internal controls during the course of our audit.

(v) There are no such transactions during the year which are required to be entered

into the register in pursuance of section 301 of the Companies Act, 1956.

(vi) The Company has not accepted any deposits from the public, so as to attract the

directives issued by the Reserve Bank of India and the provisions of sections

58A and 58AA of the Companies Act, 1956, and the rules framed there under.

(vii) In our opinion, the Company has an internal audit system commensurate with the

size and nature of its business

(viii) Maintenance of cost records has not been prescribed for the company by the


Central Government, under section 209 (1) (d) of the Companies Act, 1956.

(ix) (a) As per the records of the Company, the company is generally regular in

depositing undisputed statutory dues including Provident Fund, Income-

tax, Service-tax, Wealth Tax, Cess and any other statutory dues with the

appropriate authorities. As per the records of the Company, there were no

arrears of outstanding statutory dues as at the last day of the financial year

concerned for a period of more than six months from the date they became

payable.

(b) According to the information and explanations given to us, there are no

dues outstanding of Income Tax, Service Tax and Wealth Tax on account

of any dispute.

(x) The company has no accumulated losses at the end of the financial year and it

has not incurred cash losses in the current and immediately preceding financial

year.

(xi) As per the documents and records produced before us, the Company has not

defaulted in repayment of dues to institutions, banks or debenture holders.

(xii) The Company has not granted loans and advances on the basis of security by

way of pledge of shares, debentures and other securities.

(xiii) The provisions of any special statute applicable to chit fund, nidhi, mutual

benefit fund or society do not apply to the Company.

(xiv) In respect of dealing in Shares, Securities, Debentures and Other Investments,

proper records have been maintained by the Company of the transactions and

contracts and timely entries have been made therein and the Securities are held

by the Company in its own name.

(xv) According to the information and explanations given to us, the Company has not

given any guarantee for loans taken by others from bank or financial institutions.

(xvi) The Company has not obtained any term loans.

(xvii) The funds raised on short-term basis have not been used by the Company for

long-term investment or vice versa.

(xviii) The Company has not made any preferential allotment of shares to parties and


companies covered in the Register maintained under section 301 of the

Companies Act, 1956.

(xix) The Company has not issued any debentures.

(xx) The Company has not raised any money by public issue.

(xxi) Any fraud on or by the Company has not been noticed or reported during the

year.

For CVK & Associates


Firm Regn No.: 101745W

Sd/-

K.P. Chaudhari

Partner Place: Mumbai

Membership No: 31661 Date: 8th

August 2014


Particulars As at 31st March, 2014 As at 31st March, 2013

Rs. Rs.

EQUITY AND LIABILITIES

Shareholders' Funds

Share Capital 3 150,000,000 150,000,000

Reserves And Surplus 4 12,138,890 (4,659,371)

(a) 162,138,890 145,340,629

Non Current Liabilities

Deferred Tax Liabilities (Net) 5 77,483 245,002

(b) 77,483 245,002

Current Liabilities

Other Current Liabilities 6 3,220,345 -

Short Term Provisions 7 919,707 154,241

(c) 4,140,052 154,241

Total Equity & Liabilities (a+b+c) 166,356,425 145,739,872

ASSETS

Non-Current Assets

Fixed Assets

(i)Tangible Assets 8A 1,045,522 1,311,063

(ii)Intangibles 8B 629,131 1,004,579

(d) 1,674,653 2,315,642

Non-Current Investments 9 132,018,744 370,376

Long Term Loans & Advances 10 3,716,983 1,230,174

(e) 135,735,727 1,600,550

Current Assets

Current Investments 11 20,000,000 139,740,000

Cash & Cash Equivalents 12 1,250,696 623,081

Short-Term Loans & Advances 13 247,784 100,000

Other Current Assets 14 7,447,565 1,360,599

(f) 28,946,045 141,823,680

Total Assets (d+e+f) 166,356,425 145,739,872

Summary of significant accounting polices 2

As per Our Audit Report of even date

For CVK & Associates For and on behalf of the Board of Directors of


Firm Registration No:101745W

K P Chaudhari

Partner

Membership no. 31661

Place: Mumbai

Date: 8th August, 2014

Swapnil Walimbe

Company Secretary

PPFAS ASSET MANAGEMENT PRIVATE LIMITED

Balance Sheet as at 31st March, 2014

The accompanying notes are an integral part of the financial statements


Parag Parikh Rajeev Thakkar

Director Director

DIN : 00079658 DIN : 00227548

Note

No.


Note For the For the

Particulars No. year ended year ended

31st March, 2014 31st March,2013

Income

Revenue from operations 15 44,772,552 -

Other Income 16 11,823,808 13,219,593

Total Revenue 56,596,360 13,219,593

Expenses

Employee Benefits Expenses 17 24,581,141 12,687,038

Depreciation & Amortization Expenses 18 782,596 1,136,166

Other Expenses 19 9,694,353 6,110,078

Total Expenses 35,058,090 19,933,282

Profit Before Tax & Exceptional Items 21,538,270 (6,713,689)

Exceptional Items

Prior Period Expenses/(Income) (112,931) 2,472

Profit Before Tax 21,651,201 (6,716,161)

Tax Expense

(i)Current Tax 4,910,000 -

(ii)Deferred Tax (57,060) 90,615

4,852,940 90,615

Profit(Loss) for the Period 16,798,261 (6,806,776)

Earning Per Equity Share

Basic 1.12 (0.45)

Diluted 1.12 (0.45)

Summary of significant accounting polices 2


For CVK & Associates For and on behalf of the Board of Directors of

Chartered Accountants PPFAS Asset Management Private limited


K P Chaudhari Parag Parikh Rajeev Thakkar

Partner Director Director

Membership no. 31661 DIN : 00079658 DIN : 00227548

Place: Mumbai



Statement of Profit and Loss for the period ended 31st March, 2014

The accompanying notes are an integral part of the financial statements

Swapnil Walimbe

Company Secretary



NOTES FORMING PART OF FINANCIAL STATEMENTS FOR THE YEAR

ENDED 31ST

MARCH, 2014

NOTE 1: CORPORATE INFORMATION

PPFAS Asset Management Private Limited was incorporated on 8th

August, 2011.

The Company is subsidiary of Parag Parikh Financial Advisory Services Limited.

The Company’s corporate office is located in Mumbai. This is the third year of

operations of the company. The Company is incorporated to function as an

investment manager to PPFAS Mutual Fund. After the launch of NFO on 13th

May,

2013, the company has started its functions as an Investment Manager & thus

started earning Management fees as its primary source of Income.

NOTE 2: SIGNIFICANT ACCOUNTING POLICIES

a. Basis Of Preparation

The financial statements of the Company have been prepared in accordance with

generally accepted accounting principles in India (Indian GAAP). The company

has prepared these financial statements to comply in all material respects with

the accounting standards notified under the Companies (Accounting Standards)

Rules, 2006 (as amended) and the relevant provisions of the Companies Act,

1956 read with the General Circular 08/2014 dated 04 April 2014 issued by the

Ministry of Corporate Affairs. The financial statements have been prepared

under the historical cost convention on an accrual basis. The accounting policies

have been consistently applied by the Company and are consistent with those

used in the previous year.

b. Use of Estimates

The preparation of financial statements, in conformity with Indian GAAP

requires management to make judgments, estimates and assumptions that affect

the reported amounts of revenues, expenses, assets, liabilities and disclosure of

contingent liabilities at the end of the reporting period. Although these estimates


are based upon management’s best knowledge of current events and actions,

uncertainty about these assumptions and estimates could result in the outcomes

requiring a material adjustment to the carrying amounts of assets or liabilities in

future periods.

c. Tangible fixed assets

Tangible assets are stated at acquisition cost, net of accumulated depreciation

and accumulated impairment losses, if any. Cost comprises the purchase price

and any directly attributable cost of bringing the asset to its working condition

for its intended use.

Gains or losses arising from derecognition of tangible assets are measured as the

difference between the net disposal proceeds and the carrying amount of the

asset and are recognized in the statement of profit and loss when the asset is

derecognized.

d. Intangible fixed assets

Intangible assets are stated at cost of acquisition less accumulated amortization

and accumulated impairment loss, if any.

Gains or losses arising from derecognition of an intangible asset are measured as

the difference between the net disposal proceeds and the carrying amount of the

asset and are recognized in the statement of profit and loss when the asset is

derecognized.

e. Depreciation

Depreciation on the fixed assets is provided on Written Down Value Method

applying the rates specified in Schedule XIV to the Companies Act, 1956 or

rates based on estimated useful life, whichever is higher.


f. Investments

Investments are classified into current and non-current investments. Current

investments are stated at the lower of cost and fair value. Non-current

investments are stated at cost.

g. Employee Benefits

i. Retirement benefits in the form of Provident Fund are a defined contribution

scheme and the contribution is charged to the Statement of Profit and Loss

of the year when the contribution to the fund is due. There are no other

obligations other than the contribution payable to the fund.

ii. The company’s gratuity scheme is a defined benefit plan. The Company’s

net obligation in respect of the gratuity benefit scheme is calculated by

estimating the amount of future benefit that employees have earned in return

for their services in the current and prior periods.

iii. The present value of the obligation is determined based on the actuarial

valuation. This amount is funded through an employee gratuity trust

managed by HDFC Standard Life Insurance.

h. Revenue Recognition

Revenue from Management fees, Interest is generally recognized on accrual

basis. Dividend on shares is accounted on cash basis for the sake of convenience,

and for want of information.

i. Taxes on Income

Tax expense for the year comprises current tax and deferred tax.

Current Tax is determined as the amount of tax payable in respect of the taxable

income for the period.

Deferred Tax is recognized, subject to the consideration of prudence, on timing

differences, being the difference between taxable income and accounting income


that originate in one period and are capable of reversal in one or more

subsequent periods.

j. Provision

Provision involving substantial degree of estimation in measurement is

recognized when there is a present obligation as a result of past events and it is

probable that there will be an outflow of resources.

k. Contingent Liabilities

Contingent liabilities are disclosed when there is a possible obligation arising

from past events, the existence of which will be confirmed only by the

occurrence or non occurrence of one or more uncertain future events not wholly

within the control of the company or a present obligation that arises from past

events where it is either not probable that an outflow of resources will be

required to settle the obligation or a reliable estimate of the amount cannot be

made.

l. Impairment

Fixed assets are reviewed for impairment whenever events or changes in

circumstances indicate that their carrying amount may not be recoverable.

m. Earnings per share

Basic earnings per share is calculated by dividing the net profit for the period

attributable to equity shareholders by the weighted average number of equity

shares outstanding during the period.

n. Share transactions

Gain or loss on sale of shares, Derivatives, Mutual Fund units etc. held as

investments, is shown at net values.


NOTE 3 : SHARE CAPITAL

As at 31st March,

2014

As at 31st March,

2013

Rs. Rs.

AUTHORISED

15,000,000 Equity Shares of Rs.10/- each 150,000,000 150,000,000

15,000,000 Equity Shares of Rs.10/- each fully paid 150,000,000 150,000,000

150,000,000 150,000,000

Number (Rs) Number (Rs)

At the beginning of the Period 15,000,000 150,000,000 15,000,000 150,000,000

Issued during the period NIL NIL NIL NIL

Outstanding at the end of the period 15,000,000 150,000,000 15,000,000 150,000,000

b. Details of Shareholders holding more than 5 % of Ordinary Shares

Name of the Shareholders Number % of Holding Number % of Holding

Parag Parikh Financial Advisory Services Limited 14,999,999 99.99 14,999,999 99.99

As at 31st March,

2014

As at 31st March,

2013

At the Beginning of the Accounting Period (4,659,371) 2,147,405

Additions During the Year 16,798,261 (6,806,776)

12,138,890 (4,659,371)

As at 31st March,

2014

As at 31st March,

2013

Opening Balance 245,002 154,387

(57,060) 90,615

(110,459) -

Net Deferred Tax Liability 77,483 245,002

As at 31st March,

2014

As at 31st March,

2013

TDS on Salary 3,064,000 -

TDS on Professional Fees 152,502 -

TDS on Contractors 3,843

3,220,345 -

As at 31st March,

2014

As at 31st March,

2013 Provision for Expenses 601,866 27,664

PF Payable 113,841 100,905

Provision for Audit Fees 200,000 22,472

Profession Tax Payable 4,000 3,200

919,707 154,241

NOTE 6: OTHER CURRENT LIABILITIES

As at 31st March, 2014 As at 31st March, 2013

Impact of difference between Depreciation charged as per Company Law &

Depreciation charged as per Taxation Law

NOTE 5: DEFERRED TAX LIABILITIES

Impact of difference between Depreciation charged as per Company Law &

Depreciation charged as per Taxation Law in 2012-13

Particulars

ISSUED, SUBSCRIBED AND PAID UP CAPITAL

a. Reconciliation of Shares outstanding as at the beginning and at the end of the reporting period.

NOTE 4: RESERVES & SURPLUS

Surplus/(deficit) in the statement of Profit and Loss

Profit / (Loss) At the End of the Accounting Period

NOTE 7: SHORT TERM PROVISIONS


Sr.

No

Asset Rate of

Depreci

ation

Gross Block

as at

01/04/2013

Additions

during the

year

Deductions

during the

year

Gross Block

as at

31/03/14

Provision for

Depreciation

upto

01/04/2013

Depreciation

for the year

13-14

Accumulated

Depreciation

on Sold

Assets

Total

depreciation

upto 31/03/14

Net Block as

at 31/03/14

Net Block as

at 31/03/13

A. Tangible Assets

1 Computer Hardware 40.00% 265,203 91,025 - 356,228 110,700 82,241 - 192,941 163,287 154,503

2 Electrical Fittings 13.91% 34,130 9,880 - 44,010 5,343 4,919 - 10,262 33,748 28,787

3 Office Equipments 13.91% 124,316 - - 124,316 18,352 14,740 - 33,092 91,224 105,964

4 Motor Car 25.89% 1,378,773 - - 1,378,773 356,964 264,546 - 621,510 757,263 1,021,809

TOTAL 1,802,422 100,905 - 1,903,327 491,359 366,446 - 857,805 1,045,522 1,311,063

B. Intangible Assets

Computer software 40.00% 1,753,500 40,702 - 1,794,202 748,921 416,150 - 1,165,071 629,131 1,004,579

TOTAL 1,753,500 40,702 - 1,794,202 748,921 416,150 - 1,165,071 629,131 1,004,579

TOTAL (A+B) 3,555,922 141,607 - 3,697,529 1,240,280 782,596 - 2,022,876 1,674,653 2,315,642

Total Of Previous Year 2,109,024 1,446,898 - 3,555,922 104,114 1,136,166 - 1,240,280 2,315,642 -

NOTE 8: FIXED ASSETS

Gross Block Depreciation Net Block


Note 9 : Non Current Investments

Particulars No of Cost for No of Cost for

shares/units 3/31/2014 shares/units3/31/2013

Investment in Bonds

Indian Infrastructure Finance Company Limited 20,000 20,000,000 - -

National Highway Authority of India 25,000 25,000,000 - -

National Housing Bank 1,444 7,220,000 - -

Indian Railway Finance Corporation Limited 25,000 25,000,000 - -

NTPC Limited 6,333 6,333,000 - -

Total (i) 83,553,000 - -

Investment in Mutual Funds

Birla SunLife Cash Manager Fund 158,927 47,965,744 1,372 370,376

Total (ii) 47,965,744 370,376

Investments in Equity

Unquoted Investments:

MF Utilities India Private Limited 50,000 500,000 - -

Total (iii) 500,000 - -

Grand Total (i+ii+iii) 132,018,744 370,376


As at 31st March,

2014

As at 31st March,

2013

Previous year Taxes Receivable 1,205,884 24,290

Advance Taxes Paid(Net of Provision) 2,511,099 1,205,884

3,716,983 1,230,174

As at 31st March,

2014

As at 31st March,

2013

20,000,000 139,740,000

20,000,000 139,740,000

As at 31st March,

2014

As at 31st March,

2013

(i) On Current Accounts 1,242,168 616,612

(ii) Cash in hand and as Imprest 8,528 6,469

1,250,696 623,081

As at 31st March,

2014

As at 31st March,

2013

(i) Deposits 100,000 100,000

(ii) Advances 147,784 -

247,784 100,000

As at 31st March,

2014

As at 31st March,

2013

Management Fees Receivable 5,775,552 -

Interest accrued on Fixed Deposits & Bonds 1,067,182 928,360

Prepaid Expenses 604,831 432,239

7,447,565 1,360,599

NOTE 12: CASH & CASH EQUIVALENTS

NOTE 10: LONG TERM LOANS & ADVANCES

NOTE 13: SHORT TERM LOANS & ADVANCES

NOTE 11: CURRENT INVESTMENTS

NOTE 14: OTHER CURRENT ASSETS

Fixed Deposits with maturity less than 12 months


For the year ended 31st

March, 2014


March, 2013

Management Fees Received 44,772,552 -

44,772,552 -


March, 2014


March, 2013

Net Gain/Loss on Sale of Investment 1,171,432 244,479

Interest on Fixed Deposits & other Interest 9,488,233 12,975,114

Interest on Tax free Bonds 1,164,143 -

11,823,808 13,219,593


March, 2014


March, 2013

Salary and Wages

Office Staff Salary 23,801,435 12,035,352

Contribution to Provident Fund and other funds

Contribution to Provident Fund 727,130 650,100

Other Expenses

Staff Welfare 52,576 1,586

24,581,141 12,687,038


March, 2014


March, 2013

Depreciation of Tangible Assets 366,446 466,447

Amortization of Intangible Assets 416,150 669,719

782,596 1,136,166


March, 2014


March, 2013

Professional Charges 4,776,244 665,452

Repairs & Maintenance 880,953 727,641

Advertising Expenses 646,345 -

Rent, Rates & Taxes 616,160 683,400

Insurance Charges 433,353 -

Vehicle Expenses 430,268 313,233

Business Promotion Expenses 369,915 173,755

Membership & Subscription 357,015 68,952

Miscellaneous Expenditure 287,275 19,565

Printing & Stationery 177,159 13,383

Communication Expenses 158,824 176,268

Director/employee Education 124,897 -

Director's Fees (Sitting Fees) 50,000 50,000

Investor Education Expenses 39,414 -

Internet Expenses 32,687 32,136

Filing Fees 27,597 106,793

Conveyance 26,263 10,670

Auditor's remuneration 200,000 22,472

Seminar Fees 18,568 -

Travelling Expenses 18,440 17,246

Books & Periodicals 10,298 1,795

Postage & Courier charges 8,453 239

Professional Tax 2,000 2,000

Interest/fines on Taxes 1,505 25,078

Maharashtra Labour welfare Fund 720 -

Registration Charges (SEBI) - 3,000,000

9,694,353 6,110,078

NOTE 15: REVENUE FROM OPERATIONS

NOTE 16: OTHER INCOME

NOTE 17: EMPLOYEE BENEFIT EXPENSES

NOTE 18: DEPRECIATION & AMORTIZATION EXPENSES

NOTE 19: OTHER EXPENSES


NOTE 20: SUPPLEMENTARY INFORMATION

a. Particulars of Directors’ Remuneration

Director’s Name Amount in Rs. Head of Expenses

Parag Parikh 32,60,000/- Salary & Sitting Fees

Rajeev Thakkar 68,64,067/- Salary & Sitting Fees

Rajnikant Rao 25,000/- Sitting Fees

Kamlesh Somani 25,000/- Sitting Fees

b. Particulars of Auditors Remuneration

Particulars F.Y.2013-14 F.Y.2012-13

As Auditors 2,00,000/- 22,472/-

For other Services - -

TOTAL 2,00,000/- 22,472/-

c. Value of Imports


Value of Imports NIL NIL

d. Expenditure in Foreign Exchange


Professional Charges NIL NIL

Travelling Charges NIL NIL

e. Foreign Exchange Earnings


Earnings in Foreign Exchange

(USD)-Advisory services

NIL NIL


NOTE 21: RELATED PARTY DISCLOSURES

As per Accounting Standard 18, issued by the Institute of Chartered Accountants of

India, the disclosures of transactions with the related parties as defined in the

Accounting Standard are given below:

Name of the Related

Party. Relationship

Nature of

Payment Amount (Rs.)

Empeegee Portfolio

Management Services

Pvt. Ltd.

Enterprise over which Key

Managerial Personnel are

able to exercise significant

influence.

Rent

6,00,000/-

Parag Parikh Director who is able to

exercise significant influence

Salary 32,60,000/-

Rajeev Thakkar Director who is able to

exercise significant influence

Salary 68,64,067/-

NOTE 22: EARNINGS PER SHARE

Particulars FY 2013-14 FY 2012-13

Profit attributable to equity shareholders Rs. 1,67,98,261/- Rs. (68,06,776)/-

Weighted Average number of Equity

Share Outstanding during the year 1,50,00,000 1,50,00,000

Basic & Diluted EPS Rs.1.12/- Rs. (0.45)/-

Nominal value per share 10/- 10/-


NOTE 23: MAJOR COMPONENTS OF DEFFERED TAX

Deferred Tax Assets

(Amount in Rs.)

I. Opening Balance 2,45,002

II Changes during the Year

a. Timing Difference in Depreciation

As per Accounts 6,06,756

As per Income tax Act 7,82,596

Over charged for tax purpose 1,75,840

Deferred Tax @ 32.45% 57,060

b. Adjustment for previous year Difference

(F.Y. 2012-13) 1,10,459

III. Deferred Tax Income charged to Statement

of Profit & Loss 57,060

IV. Net Deferred tax Assets as per Balance

Sheet. 77,483


NOTE 24:

The amount payable to the Small Scale Undertaking is NIL.

NOTE 25: PREVIOUS YEAR FIGURES

Previous year's figures have been regrouped and rearranged wherever necessary.

Signatures to notes 1 to 25


For CVK & Associates For & on behalf of the Board of Directors

Chartered Accountants of PPFAS Asset Management Private Limited


K P Chaudhari Parag Parikh Rajeev Thakkar

Partner Director Director

Membership No:31661 DIN : 00079658 DIN : 00227548

Swapnil Walimbe

Company Secretary

Place: Mumbai



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