REPORT OF THE DIRECTORS
Your Directors have pleasure in presenting the TWENTY FIRST Annual Report of theCompany together with the Audited Accounts for the Financial Year ended 31stMarch 2014.
Financial results of the company during the year vis--vis previous year are asfollows: -
| || ||(Rs. In Lacs) |
| ||Year Ended ||Year Ended |
| ||31.03.2014 ||31.03.2013 |
|Total Income ||7.33 ||23.14 |
|Profit / (loss) before Depreciation and Tax ||(11.56) ||2.78 |
|Less: Depreciation ||2.98 ||3.42 |
|Profit / (loss) before Tax ||(14.55) ||(0.63) |
|Less: Provision for Deferred Tax ||1.70 ||.54 |
|Profit / (loss) after Tax ||(12.85) ||(0.09) |
|Balance brought forward from previous years ||(360.49) ||(360.40) |
|Transfer to Statutory Reserve ||- ||- |
|Balance carried to Balance Sheet ||(373.34) ||(360.49) |
In view of brought forward losses the directors do not recommend any dividend for theyear ended 31st March 2014.
Year 2013-14 encompassed mixed fortunes for the Indian economy. In the initial monthsit showed good prospects of growth but in the later part of the year it started showinggloomy signals for growth.
Persistently rising inflation started taking draconian shape that prompted RBI to takestern steps to check its impact on the economic growth of India. Interest rates startedclimbing upwards at almost every RBI policy meet. This in turn dampened the financialmarket sentiments. At the global scenario US got into clutches of double-dip depressionfears and Euro zone never could get out of the sovereign debt crisis as such. Theuncertainty again started gripping the global financial market.
All these factors had adverse impact on the business environment in general and as aresult the Company could not maintain its profitability.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
A. INDUSTRY STRUCTURE & DEVELOPMENT
Last financial year the global economies had shown upward revision more because of thecontinued stimulus measures administered during 2013-14 by the developed and emergingeconomies. India too was not an exception. Liquidity infusion resulted in the economicrecovery across the globe but soon it was realized that it was not enough for thecontinued upsurge. However in the year 2013-14 amidst the rising inflation increase inrate of interests higher commodity prices and volatility in the global commodity marketsdampened the overall outlook of several economies. Despite all these the Indian economy isstill expected to grow at around 8%.
B. OPPORTUNITIES & THREATS
Your Company is mainly engaged in the business of Finance and Investment in CapitalMarket. Currently the valuations of the Indian equity market are becoming more and moreattractive by the day. There are several opportunities for short and long terminvestments. Further other business opportunities for Finance Companies are enormous asthe new areas and segments are being unlocked. There is a large scope of small sizeFinance & Investment Companies like yours for certain segment of customers whichremain unattended by Banks and large size Investment & Finance Companies.
The major threat being faced by Investment & Finance Companies are regulatorychanges in NBFCs Interest Rate hikes by RBI high Inflation aggressive marketing ofbanks and volatility in global equity and commodity market.
C. RISKS AND CONCERNS
Your companys performance to a large extent depends upon scenario of the capitalmarkets finance scenario RBI policies industry performance and the general economicoutlook of the country. The volatility in the stock Market rate of interest and GDP wouldaffect the profitability of the company.
Your Directors are of the opinion that there are enough opportunities amongst theprevailing uncertainties that can fetch excelled rewards in the long run. Soon inflationand interest rates would peak out in India and the general sentiments will turn positive.The Company will be able to post higher income and good profit in the current year.
E. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
Company has a proper and adequate system of internal controls to ensure that allactivities are monitored and controlled against any unauthorized use or disposition ofassets and that the transactions are authorized recorded and reported correctly. Theaudit committee of the Board of Directors reviews the adequacy of internal controls.
F. HUMAN RESOURCES
Your company continues to lay great stress on its most valuable resource"People". The team has remained as committed as ever and produced results thatare considered significant.
G. CAUTIONARY NOTE
Certain statements in the "Management Discussion and Analysis" section may beforward looking and are stated as required by applicable laws and regulations. Manyfactors may affect the actual results which could be different from what theDirectors envisage in terms of future performance and outlook.
Being a Listed Company adequate measures are taken to comply with the ListingAgreements with the Stock Exchanges. A report on the Corporate Governance together with acertificate of compliance from the Auditors forms part of this report.
The company has not accepted any deposits within the meaning of Section 58A ofCompanies Act 1956 and/or rules framed there under.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies Act 1956 withrespect to
Directors Responsibility Statement it is hereby confirmed:
That in the preparation of annual accounts for the financial year ended 31stMarch 2014 the applicable accounting standards have been followed along with properexplanation relating to material departures;
That the Directors have selected such accounting policies and applied themconsistently and made judgments and estimates that were reasonable and prudent so as togive a true and fair view of the state of affairs of the Company at the end of theFinancial Year and of the profit of the company for the year under review;
That the directors have taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of the Companies Act 1956for safeguarding the assets of the Company and for preventing and detecting fraud andother irregularities;
That the directors have prepared the accounts for the financial year ended 31stMarch 2014 on a going concern basis.
M/s Dinesh Bangar & Co Chartered Accountants Auditors of the company retire fromthe office of the Auditors at the ensuing Annual General Meeting and being eligible havegiven a certificate in accordance with the provisions of section 224 (1-B) of theCompanies Act 1956. The Board recommends the re-appointment of M/s. Dinesh Bangar &Co Chartered Accountants as the Auditors.
PARTICULARS OF EMPLOYEES
There is no employee covered pursuant to Section 217(2A) of the companies Act 1956read with the Companies (Particulars of Employees) Rules 1975 as amended.
CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION FOREIGN EXCHANGE EARNINGS AND OUTGO
In view of the nature of activities are being carried on by the Company Rules 2A and2B of the Companies (Disclosures of Particulars in the Report of Board of Directors)Rules 1988 concerning conservation of energy and research and development and technologyabsorption respectively are not applicable to the Company
FOREIGN EXCHANGE EARNING AND OUTGO
The Directors takes this opportunity to thanks all its colleagues at Brijlaxmi Leasing& Finance Ltd. for their professionalism and dedication to the task at hand. The boardalso wishes to place on record its appreciation for valuable support given by theBankers Clients and Shareholders.
| ||For and on behalf of the Board of Directors |
| ||J.K. Chaturvedi |
|Vadodara 2nd September 2014 ||Director |