aasheesh securities ltd Management discussions

AASHEESH SECURITIES LIMITED ANNUAL REPORT 2009-2010 MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL RESULTS The Financial Results for the year ended on March 31, 2010 are as under: Year Ended 31.03.2010 (Rs.) Total Income 8,640.00 Less : Total Expenses 71,890.00 Loss before Tax 63,250.00 Loss after Tax 63,250.00 PERFORMANCE As conveyed earlier, the companys operations remained suspended during the year on account of very precarious financial position. The costs have been reduced to the extent possible so as to check the losses being incurred by the company. The company being a listed company, the statutory compliances require maintenance of basic records for which minimal staff is being maintained and overhead expenses are minimised to the extent possible. As reported earlier, some sub-brokers/clients of the company had defaulted in making payment of their dues to the company. In all such cases where legal proceedings were considered useful for recovery, cases had been filed against such parties, which are at advance stages of proceedings in the Courts. There has not been any progress in the matter of recovery of inter- corporate deposit made by the company.The company is saddled with large amount of debtors. All out efforts so far made by the company to realise the money have remained futile. In the meantime, as advised by the auditors, debtors amounting to Rs.1,70, 87, 831.51 have been considered doubtful and had accordingly been written off during the previous year. As reported earlier, a search was carried out by the Income Tax Department on 15.12.1999 in the Corporate Office of the Company at Delhi. The block assessment proceedings had been completed by the Dy. Commissioner of Income-tax wherein adhoc additions have been made on the basis of loose, rough sheets seized at the time of search and on the basis of such additions a demand of Rs. 1,63,06,964/- had been created against the company. The company had filed appeal against the said Order before ITAT and the matter has been remanded back to CIT (Appeals). In the meantime, the Income-tax authorities had attached the debtors of the company to recover their dues. This has led to virtual no recovery from the debtors of the Company. FUTURE PROSPECTS As reported earlier, your company had disposed off the assets of the company to augment resources for retiring some of the liabilities of the company and consequently the financial position of the company is very precarious and the company is finding it very difficult to even meet out its statutory obligations of payment of listing fee etc. In view of financial stringency, no new business activity could be taken-up during the year.