Amit Shah's Son Delayed Filings, His Total Income Rose By 15000% From 2014-19

[Ryzen_renoir]

On November 1, the Caravan published an article which alleged that Amit Shah’s son – Jay Shah’s firm Kusum Finserv LLP’s income rose to Rs 119.61 crore in 2019 from Rs 79.60 lakh in 2014 when the Bhartiya Janta Party came to power. As per the Ministry of Corporate, Affairs, LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership.

The LLP’s must file their financial statements by October 30 each year else the entity may face a fine of up to Rs 5 Lakhs. The article alleges that Kusum Finserve LLP’s total income rose exponentially in 2017 and 2018 when they missed the deadlines to file the mandatory financial statements. In 2017 the Ministry of Corporate Affairs cracked down on 226,000 shell companies. The article also alleges that the firm was given credit facility since 2016 despite the company’s poor financial condition in 2015 and 2014. Source: Caravan Magazine The Indian National Congress on November 3 hit out at Amit Shah’s son – Jay Shah for deliberately delaying the filing for the past two years and only filed after the Lok Sabha Election in 2019 to hide a huge jump in the firm’s income.

Jay Shah recently was also appointed as the secretary of Board of Control for Cricket in India(BCCI). At a press conference on November 3 at the Congress headquarters, party spokesperson Pawan Khera alleged that Jay Shah’s firm, Kusum Finserv did not file the statment of accounts for 2017 and 2018. Advertisement Khera took a jibe at the central government and said that if a common person would have failed to file the income statements then it will be dealt as a serious offence and a penalty of upto Rs 5 lakh could be imposed. “This provision does not apply to Prince Jay Shah as he did not submit his accounts in 2017, nor does he do it in 2018.

Jay Shah waits for elections to over to avoid the filing of income,” Khera added. Khera further questioned the types of business the Kusum Finserv Ltd does. As the income rose by 15000 per cent, he said the firm is involved in share trading, agro commodity trading, and consultancy. He mocked Jay Shah saying that he can also convince that there is no economic slowdown. 

[Ryzen_renoir]

It is clear that in the years for which its statements were not available to the public, Kusum Finserve’s business expanded greatly. In the financial year 2015, the firm’s total income was Rs 3.23 crore. By the end of the financial year 2019, it had risen to a staggering Rs 119.61 crore. In the financial year 2017, Kusum Finserve clocked an all-time high total income of Rs 143.43 crore.

Between the financial years 2015 and 2o19, Kusum Finserve’s net worth multiplied from Rs 1.21 crore to Rs 25.83 crore. The financial year 2018 was evidently prosperous for the firm—its net worth jumped to a handsome Rs 20.25 crore from Rs 5.17 crore the previous year. The net worth of a firm is one of the parameters that indicates its financial health. Banks usually use this figure to ascertain whether a firm is eligible for loans—a positive net worth indicates a successful business.

Kusum Finserve, which was first incorporated in 2013 as a company and later converted to an LLP, has seen a good few years of profit as well. According to the documents filed with the MCA, Kusum Finserve suffered a loss of Rs 23,729 in the financial year 2014. It did exponentially better the next year making, a profit of Rs 1.2 crore after taxation. In 2016, it incurred a loss of Rs 34,934, but it has been in the green since. In the financial year 2017, its profit was Rs 2.19 crore, and in 2018, it was Rs 5.39 crore. In the latest financial year, it made a profit of Rs 1.81 crore. The latest decrease in profits may be explained by the rise in its operational expenses. According to the balance sheets, in the financial year 2019, the firm’s operational costs—its personnel and administrative expenses, and its expenditures on raw materials, power, fuel and insurance—increased, suggesting that the its business is scaling up.

One of the most prominent developments has been the growth in the firm’s net fixed assets—the net value of all assets such as land, buildings, machinery and the like, which have a long gestation period and cannot easily be converted to cash. From Rs 51.74 lakh in the financial year 2015, Kusum Finserve’s net fixed assets rose to Rs 23.25 crore in the latest financial year. This growth included two major surges. In the financial year 2016, it jumped to Rs 9.51 crore—a hike of 1,738 percent from the previous year. From Rs 2.60 crore in 2018, its net fixed assets jumped to Rs 23.25 crore in the financial year 2019.

Another key parameter that stands out in the balance sheets is the precipitous growth in the firm’s current assets—these are employed to run day-to-day business operations and include cash, stock inventory and amount due from buyers, among others. From Rs 37.80 lakh in the financial year 2015, Kusum Finserve’s current assets rose up to an incredible Rs 33.43 crore in the latest financial year—an 88-times increase. The peak was registered in the financial year 2017, when the current assets were valued at Rs 81.65 crore, nearly 216 times the 2015 figure.

The firm’s growth has been fuelled by a rich stream of loans, both secured and unsecured—given by an individual or an entity, with or without a collateral, respectively. The firm’s financial statements show that it had access to unsecured loans until the financial year 2018. In 2013, when Kusum Finserve was a still a company, it declared a liability of Rs 16.36 lakh in unsecured loans—simply put, it had received this amount without giving a collateral, and was liable to pay it. In the financial year 2014, this liability increased to Rs 1.22 crore, and further to Rs 2.71 crore in the next financial year.

Notes to the balance sheet—an annexure that usually provides a detailed breakdown of a firms’ accounts—filed in the financial year 2014 show that a company named KIFS Financial Services Limited gave the firm the majority of its unsecured loans for the year: Rs 1.06 crore. The next year, KIFS raised its unsecured loans to Rs 2.68 crore, once again making it the major contributor in Kusum Finserve’s total unsecured loans. The firm’s unsecured loans doubled to Rs 4.92 crore in the financial year 2016. The documents that the firm filed to the MCA are silent on the sources of these loans, but in a response to The Wire, in 2017, Jay’s lawyer acknowledged that KIFS had granted this amount. “This entity has also been regularly raising ICDs / loans from KIFS Financial Services for the last several years and the amount of Rs.4.9 crores was the outstanding closing balance from them,” the lawyer wrote. “These amounts were used for regular working capital. Tax has been deducted on the interest paid (TDS) and principal and interest amount has been repaid in full.”

According to its website, KIFS is a “Non Banking Financial Company registered with RBI under the Category of Loan Company and is a Subsidiary Company of KIFS Securities Limited.” Its chairman and managing director, Rajesh Khandwala, is related to Parimal Nathwani, a member of parliament in the Rajya Sabha. Nathwani is the senior group president of Reliance Industries Limited and a former vice president of the Gujarat Cricket Association. Amit Shah was formerly the president of the GCA and Jay served as a joint secretary. Nathwani and the Shahs stepped down from the GCA in late September 2019.

In the financial year 2017, Kusum Finserve’s unsecured loans increased to an all-time high of Rs 15.68 crore. The 2017 statement did not include any notes. In the next two financial years, the company declared no unsecured loans.

The rise in secured loans is equally steady, but unclear. The statement for the financial year 2016 stated that it had a liability for a secured loan of Rs 3.95 lakh. The 2017 sheet stated that the firm’s secured loans rose to Rs 11.23 crore. By the latest financial year, this figure increased to Rs 25.50 crore. The notes to the sheet are sorely missed—without these, the sources of these loans are not known.

https://caravanmagazine.in/amp/business/new-mca-filings-show-business-booming-for-jay-amitbhai-shah?__twitter_impression=true

 

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[Assam_Bhayya]

vaadi range ku adhi chaala thakkuva. . . . 

nenu ayithe minimum 2000 Cr. e kali kaalam lo  "Panikiraadu kanikarame dorinkinantha dhochadam, anthaku minchi avasarame " anta. .. 

asalu aa figures picha lite Hyd lo galli leaders and thuthomber builder galla deggara free money thru kabzas and settlements black 10 to 100 times untadhi.  . 

[Ryzen_renoir]

Before pulkas , jaffas , langas and whatever the f.ck congress supporters are called  come to criticize jay shah , all of your party leader sons did even worse  Lokesh  , Jagan , ktr , Robert Vadra all made assets which are beyond their means . 

This just shows most BJP leaders are not so different from other party leaders , aside from few old timers . 

[Ryzen_renoir]

3 minutes ago, Assam_Bhayya said:

vaadi range ku adhi chaala thakkuva. . . . 

nenu ayithe minimum 2000 Cr. e kali kaalam lo  "Panikiraadu kanikarame dorinkinantha dhochadam, anthaku minchi avasarame " anta. .. 

asalu aa figures picha lite Hyd lo galli leaders and thuthomber builder galla deggara free money thru kabzas and settlements black 10 to 100 times untadhi.  . 

You know if they are showing 120 crores in white , the black money is going to be 10-20 times more .

Chandrababu values his Hyderabad house at 27 lakhs in election affidavit , while in reality his bathroom costs more.  

The so called companies are probably mostly shell cos to launder papas money , very ambitious man 

[Somedude]

Amit Sha range ki 119.61 Cr peanuts.

Alane mee Jagganivi veyi before 2004 and now. 15000% kaadhu, 1500000000% growth untadhi.

[Ryzen_renoir]

Just now, Somedude said:

Amit Sha range ki 119.61 Cr peanuts.

Alane mee Jagganivi veyi before 2004 and now. 15000% kaadhu, 1500000000% growth untadhi.

Even Jagan didn't show such returns , the only people  in south who has shown this much exponential growth are DK Shivakumar and gali Janardhan Reddy 

[ZoomNaidu]

Mana Nakka Baboru Singapore hotels, dora vaaru farmhouse & Jaggad Bangalore lo house antha viluva  kuda ledhu - zuzubi idhi.

[ZoomNaidu]

1 minute ago, Ryzen_renoir said:

Even Jagan didn't show such returns , the only people  in south who has shown this much exponential growth are DK Shivakumar and gali Janardhan Reddy 

Em matladuthunnaav kaaka - oka time lo jaggad was the highest tax payer and did in advance ani kuda vachindhi kadha - or mana Boothu Kitti gaadi magic antaava aa news 😂😂

[mustang302]

India lo nae possible antha increase, span of few yrs lo🤣🤣

[jefferson1]

couple of zeros marichi poyaru anukunta...

[Assam_Bhayya]

2 minutes ago, mustang302 said:

India lo nae possible antha increase, span of few yrs lo🤣🤣

US lo suits esukuni corporate frauds, india lo kaddar lo political frauds, evvad pathith kaadu

[Ryzen_renoir]

2 minutes ago, ZoomNaidu said:

Em matladuthunnaav kaaka - oka time lo jaggad was the highest tax payer and did in advance ani kuda vachindhi kadha - or mana Boothu Kitti gaadi magic antaava aa news 😂😂

Jagan did not show this much growth because his base was high to begin with , he was already managing a thermal power plant in 2002 I think .  

So percentage wise he wasn't as high , DK Shivakumar , gali Janardhan Reddy came from nothing 

[Anta Assamey]

Veedu evadiko business cheyatam ranattu undi .....Home Minister koduku ayyi undi aa cheap numbers endi...

[NiranjanGaaru]

1 minute ago, Anta Assamey said:

Veedu evadiko business cheyatam ranattu undi .....Home Minister koduku ayyi undi aa cheap numbers endi...

Lol 

Jains ki business cheyadam radha???? 🤣🤣🤣