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Chartered Capital & Investment Ltd.

BSE: 511696 Sector: Financials
NSE: N.A. ISIN Code: INE953B01010
BSE LIVE 11:33 | 14 Jul 47.95 2.25
(4.92%)
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47.95

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47.95

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NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 47.95
PREVIOUS CLOSE 45.70
VOLUME 100
52-Week high 100.05
52-Week low 40.35
P/E 5.74
Mkt Cap.(Rs cr) 14
Buy Price 47.95
Buy Qty 800.00
Sell Price 0.00
Sell Qty 0.00
OPEN 47.95
CLOSE 45.70
VOLUME 100
52-Week high 100.05
52-Week low 40.35
P/E 5.74
Mkt Cap.(Rs cr) 14
Buy Price 47.95
Buy Qty 800.00
Sell Price 0.00
Sell Qty 0.00

Chartered Capital & Investment Ltd. (CHARTERCAPITAL) - Director Report

Company director report

To

Dear Shareholders of

Chartered Capital and Investment Limited

Your Directors are pleased to present herewith the 30th Annual reporttogether with the Annual Audited Accounts of the Company for the year ended March 312016.

FINANCIAL RESULTS

The Financial results for the year ended March 31 2016 are summarized as under:

(Rs. In Lacs)
Particulars For the year ended
31/03/2016 31/03/2015
Total Income 327.24 313.58
Profit (Loss) before depreciation and taxes 204.00 131.07
Less: Depreciation 5.53 5.69
Less: Tax Expenses 41.69 54.28
Profit (Loss) After Tax 156.78 71.11

OPERATIONS

During the year under review the gross total income of the Company increased toRs.327.24 lacs from Rs.313.58 lacs during the previous year. The profit after tax alsoincreased from Rs.71.11 lacs during the previous year to Rs.156.78 lacs mainly due toprofit on sale of investment. In addition the overall improvement in the capital marketwas the main reason for increase in the total income of the company which directors expectto continue in the coming years also.

CHANGES IN THE NATURE OF BUSINESS

There has been no change in the nature of business of the Company during the year underreview. The company is mainly engaged in the providing merchant banking services to itsclients. In addition income also arises from the sale of investment made by the company.

TRANSFER TO RESERVE

No amount was transferred to or from General Reserve or Securities Premium Accountduring the year under review. Entire profit of the company for the year under review wastransferred to Profit & Loss Account of the Company.

DIVIDEND

The Board of Directors does not recommend any dividend for the year 2015-2016 with aview to reinvest the profit for the operations of the Company.

DIRECTORS

Constitution of the Board

The Board of Directors of the Company is constituted in compliance with the CompaniesAct and the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. TheCompany has a balanced board with optimum combination of Executive Non-Executive andWoman Directors which includes independent professionals. As on March 31 2016 the Boardof Directors of the company comprises of 6 Directors. Their details as on March 31 2016are as under:

Name Category/ Designation No. of outside Directorship and Committee Membership/ Chairmanship Inter se relationship between Directors
Directorship# Committee Membership /Chairmanship*
Public Company Private Company Membership Chairmanship
Mr. Sanatan N. Munsif Independent Director & Chairman Nil Nil Nil Nil Nil
Mr. A. L. Sanghvi Promoter Director Non Executive Director & Vice Chairman Nil 1 Nil Nil Nil
Mr. Mohib N. Khericha Promoter Director Managing Director 4 9 2 3 Husband of Mrs. Sofia M Khericha
Mrs. Sofia M Khericha Promoter Director Non Executive Woman Director Nil 1 Nil Nil Wife of Mr. Mohib N Khericha
Mr. Deepak P. Singhvi Independent Director Nil 6 Nil Nil Nil
Mr. Ashok Kavdia@ Independent Director Nil 1 Nil Nil Nil

* Only Audit Committee and Stakeholders Relationship Committee of public limited listedcompanies have been considered.

# Outside Directorship of Directors does not include directorship in any foreigncompany.

@ Mr. Ashok Kavdia has been appointed as Independent Director of Chartered LogisticsLimited w.e.f. August 6 2016. He has also been appointed as Member of Audit Committee andStakeholders Relationship Committee of Chartered Logistics Limited w.e.f. August 6 2016.

Appointment/Re-appointment of Directors

In accordance with the provisions of the Companies Act 2013 and the Articles ofAssociation of the company Mr. A.L Sanghvi Director of the Company who retires byrotation at the ensuing Annual General Meeting and being eligible has offered himself forre-appointment. Accordingly consent of the members is being sought for re-appointment ofMr. A. L. Sanghvi as a director liable to retire by rotation.

Payment of remuneration to Managing Director

The members of the company had approved vide their resolution passed at the 28thAnnual General Meeting (AGM) of the company held on September 30 2014 re-appointment ofMr. Mohib N. Khericha as Managing Director of the company for a period of 5 years witheffect from April 1 2014 upto March 31 2019 and payment of remuneration by way ofsalary perquisites and allowances to him for a period of 3 years with effect from April1 2014 upto March 31 2017. Accordingly consent of the members is being sought forpayment of the remuneration to him for the remaining period of his tenure as ManagingDirector of the Company i.e. for the period from April 1 2017 upto March 31 2019.

As per the requirement of Regulation 36(3) of the SEBI (Listing Obligations AndDisclosure Requirements) Regulations 2015 and Secretarial Standard on General Meetings(SS-2) details including the profile of Director brief resume of the Director nature oftheir expertise in specific functional areas names of companies in which they holddirectorships and memberships / chairmanships of Board Committees shareholding andrelationships between directors inter-se of Director seeking re-appointment due toretirement by rotation and that of MD seeking approval of his remuneration is provided inthe Notes to the Notice of the Annual General Meeting.

Changes in Directors and Key Managerial Personnel

During the year under review shareholders of the company at their previous AnnualGeneral Meeting approved the re-appointment of Mrs. Sofia M. Khericha who was liable toretire by rotation and had offered herself for re-appointment.

Mr. A.L. Sanghvi Director of the company retires by rotation at the ensuing AnnualGeneral Meeting of the Company and being eligible has offered himself for reappointment.

Board evaluation

A formal evaluation mechanism is in place for evaluation the performance of the Boardcommittees thereof individual directors and the Chairman of the Board.

The evaluation of board is carried out annually as per the provisions of the CompaniesAct 2013 rules thereof and SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015. Performance evaluation of each Director is based on the criteria aslaid down from time to time by the Nomination and Remuneration Committee.

Criteria for performance evaluation includes aspects such as attendance for themeetings participation and independence during the meetings interaction with ManagementRole and accountability to the Board knowledge and proficiency and any other factors asmay be decided by the Nomination and Remuneration Committee. Further performanceevaluation of an Executive Director is done based on business achievements of the company.

The independent directors have also met separately on February 12 2016.

Remuneration Policy

The Board has on the recommendation of the Nomination and Remuneration Committee frameda policy for the selection and appointment of directors KMP & senior managementpersonnel and their remuneration. The requisite detail as required under section 178(3)and (4) of the Companies Act 2013 and SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 is attached herewith as "Annexure-A".

Number of meetings of the Board

The Board of Directors met 6 times during the year. The attendance of each Director atthe Board Meetings and last Annual General Meeting held during the year under review areas under:

Director No. of Board Meetings Last AGM attended
Held Attended
Mr. Sanatan Munsif 6 4 No
Mr. A.L.Sanghvi 6 6 Yes
Mr. Mohib N. Khericha 6 6 Yes
Mr. Ashok Kavdia 6 6 Yes
Mr. Deepak Singhvi 6 2 No
Mrs. Sofia M Khericha 6 5 No

Declaration by Independent Directors

All the Independent Directors of the company have furnished declarations that theycomply the conditions of being Independent as per Section 149(6) & (7) of theCompanies Act 2013.

MANAGEMENT DISCUSSION AND ANALYSIS

Pursuant to Regulation 34(2) of SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 Management Discussion and Analysis Report has been enclosed herewith as"Annexure-B" and forms part of Director’s Report.

EXTRACT OF ANNUAL RETURN

The details forming part of the extract of the Annual Return in form MGT-9 as requiredunder section 92(3) of the Companies Act 2013 is attached as "Annexure –C".

CORPORATE GOVERNANCE

Please note that the provisions of Corporate Governance as specified in Regulations 1718 19 20 2122 23 24 25 26 27 and clauses (b) to (i) of sub-regulation (2) ofregulation 46 and para C D and E of Schedule V of SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015 are not mandatorily applicable to the"Companies having paid up equity share capital not exceeding Rs.10 Crores and networth not exceeding Rs.25 Crores as on the last day of the previous financial year".As on March 31 2016 the paid up equity share capital and net worth of our company wasRs.3.01 Crores and Rs.23.96 Crores respectively and therefore the provisions of abovestated Regulations of SEBI (LODR) Regulations relating to the Corporate Governance are notmandatorily applicable to our company.

Even though the provisions of Corporate Governance are not mandatorily applicable toour Company to ensure good governance and accountability towards the stakeholders of thecompany we are attaching a separate report on Corporate Governance in the annual reportmarked as "Annexure-D" to the Director’s Report.

CEO/CFO CERTIFICATION

As mentioned above though the provisions of Corporate Governance of SEBI (ListingObligations and Disclosure Requirements) Regulations 2015 are not mandatorily applicableto the Company however company has voluntarily complied with the provisions relating toCEO/CFO certificate and a certificate from the Managing Director and Chief FinancialOfficer Pursuant to Regulation 17(8) read with Schedule II of the SEBI (ListingObligations and Disclosure Requirements) Regulations 2015 has been placed before theboard at its meeting held on August 24 2016 and has been disclosed in the CorporateGovernance Report forming part of Annual Report.

SEBI’S ORDER IN THE MATTER OF IPO OF RDB RASAYANS LIMITED

SEBI has vide its order dated May 13 2015 in respect of Chartered Capital AndInvestment Limited in the matter of IPO of RDB Rasayans Limited disposed off the matterwithout any further direction in the matter.

Our Company had filed an appeal against SEBI order May 13 2015 with Hon’bleSecurities Appellate Tribunal (SAT) for directing SEBI to remove remarks made against theCompany. Hon’ble SAT vide its order dated July 14 2016 disposed of the appeal asinfrucutous. This was because the Company has already undergone restraint / prohibitionunder the ex-parte ad-interim order dated December 28 2011 for a period of nine months.The said SEBI Order dated December 28 2011 was set aside by Hon’ble SAT vide itsorder dated October 25 2012 while hearing an appeal made by the Company.

STOCK EXCHANGES

The Company’s shares are presently listed on BSE Limited. The company has paidnecessary listing fees of BSE for the year 2016-2017.

DIRECTORS’ RESPONSIBILITY STATEMENT:

As per section 134(3) of the Companies Act 2013 the Directors state that:

i) In the preparation of the annual accounts the applicable accounting standards havebeen followed along with proper explanation relating to material departures;

ii) The directors have selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the company as at March 31 2016 and of the profit ofthe company for the year ended on that date;

iii) The Directors have taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of the Companies Act 2013for safeguarding the assets of the company and for preventing and detecting fraud andother irregularities;

iv) The Directors have prepared the annual accounts on a going concern basis;

v) The directors have laid down internal financial controls to be followed by thecompany and that such internal financial controls are adequate and were operatingeffectively;

vi) The directors have devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems were adequate and operating effectively.

REPORTING OF FRAUD BY AUDITORS OF THE COMPANY

There are no incidence of fraud reported by the auditors as required under section 143(12) of the Companies Act 2013.

REPORTS BY AUDITORS

Statutory Auditor

M/s Mayank Shah & Associates Chartered Accountants (Firm Registration No. 106109W)were re-appointed as statutory auditor of the Company in the last Annual General Meetingof the Company held on September 30 2015 to hold office from last AGM upto theconclusion of next Annual General Meeting on such remuneration as may be fixed by theBoard.

There are no qualifications reservations or adverse remarks or disclaimers made by theauditors in their report on the financial statements of the company for the financial yearended March 31 2016. The notes on the Financial Statements referred to in the AuditorsReports are self-explanatory and do not call for any comments or explanations.

Secretarial Auditor

Pursuant to Section 204 of the Companies Act 2013 Secretarial Audit Report for thefinancial year ended on March 31 2016 given by M/s Nahidakhtar Vhora & CompanyPracticing Company Secretaries is attached as "Annexure-E". The SecretarialAuditor Report are self-explanatory and do not call for any comments or explanations.

PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS UNDER SECTION 186 OF COMPANIES ACT2013

Particulars of loans and guarantee given and the investments made by the company as atMarch 31 2016 are forming part of financial statements.

STATE OF THE COMPANY’S AFFAIR

During the year under review the gross total income of the Company increased toRs.327.24 lacs from Rs.313.58 lacs during the previous year. The profit after tax alsoincreased from Rs.71.11 lacs during the previous year to Rs.156.78 lacs mainly due toprofit on sale of investment. In addition the overall improvement in the capital marketwas the main reason for increase in the total income of the company which directors expectto continue in the coming years also.

MATERIAL CHANGES AND COMMITMENTS IF ANY AFFECTING THE FINANCIAL POSITION OF THECOMPANY

No material changes and commitments affecting the financial position of the companyhave occurred between the end of financial year to which the financial statements relateand the date of the Directors’ Report.

CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION RESEARCH AND DEVELOPMENT AND FOREIGNEXCHANGE EARNINGS AND OUTGO

A. Conservation of energy

(a) the steps taken or impact on conservation of energy: As the operations of theCompany are not energy intensive the same is not applicable. However adequate measureshave been initiated for conservation of energy.

(b) the steps taken by the company for utilizing alternate sources of energy:Though the operations of the Company are not energy intensive the company shall explorethe alternate sources of energy as and when necessity arises.

(c) the capital investment on energy conservation equipments: Nil B. Technologyabsorption-

(a) The efforts made towards technology absorption: The operations of the companyare of a nature where no major technology is used and therefore same is not applicable.

(b) The benefits derived like product improvement cost reduction product developmentor import substitution: Not Applicable

(c) In case of imported technology (imported during the last three years reckoned fromthe beginning of the financial year) : Not Applicable i. the details of technologyimported; ii. the year of import; iii. whether the technology been fully absorbed; iv. ifnot fully absorbed areas where absorption has not taken place and the reasons thereof;and

(d) The expenditure incurred on Research and Development : Nil/ Not Applicable C.Foreign exchange earnings and Outgo-

There was no inflow or outflow of foreign exchange during the year under review.

RISK MANAGEMENT POLICY

The organization is in the process of strengthening its Risk Management framework withan endeavour to enhance the control environment via risk mitigation and reducing theimpact of risks concerning the business of the company within the acceptable levels. Ithas been carried out in a phased manner wherein due emphasis is being given onidentification assessment and mitigation thereof through economic control of those risksthat endanger to the assets and business of the Company.

To achieve the aforesaid objectives the Board of Directors of your company has framedthe Risk Management policy to identify assess and mitigate the risk associated with theBusiness of the Company.

CORPORATE SOCIAL RESPONSIBILITY POLICY (CSR)

The provisions of Section 135 of the Companies Act 2013 read with the Companies(Corporate Social Responsibility Policy) Rules 2014 are not applicable to the Company asit doesn’t fall in any of the criteria under section 135(1) of the Companies Act2013.

PARTICULARS OF REMUNERATION OF MANAGERIAL PERSONNEL AND RELATED DISCLOSURES

The ratio of remuneration of each director to the median employee’s remunerationand other details in terms of section 197(12) of the Companies Act 2013 read with rule5(1) of the Companies (Appointment and remuneration of Managerial personnel) Rules 2014forms part of this report and is attached as "Annexure-F".

None of the employees of the Company was in receipt of remuneration in excess of thelimits prescribed under rule 5(2) & 5(3) of the Companies (Appointment andremuneration of Managerial personnel) Rules 2014 during the year under review.Accordingly no such disclosure is required to be made.

POLICY FOR PREVENTION OF SEXUAL HARASSMENT

The Company has framed a policy on prevention of sexual harassment of women staff atworkplace. No case was reported during the year under review under the policy.

WHISTLE BLOWER POLICY/VIGIL MECHANISM

The Company has formulated a vigil mechanism through Whistle Blower Policy dealing withthe instances of unethical behavior actual or suspected fraud or violation of thecompany’s code of conduct. The details of the policy is explained in the CorporateGovernance Report and also posted on the website of the Company.

AUDIT COMMITTEE

The detail of the Audit Committee including its composition and terms of reference ismentioned in the Corporate Governance Report forming part of the Directors’ Report.

The Board during the year under review had accepted all recommendations made to it bythe Audit Committee.

INTERNAL CONTROL SYSTEMS

The Company maintains adequate and effective Internal Control System commensurate withits size and nature of business. Company believe that internal control system provideamong other things a reasonable assurance that transactions are executed with managementauthorization and that they are recorded in all material respects to permit preparationsof financial statements in conformity with established accounting principles and that theasset of the company are adequately safeguarded against significant misuse or loss.

Some significant features of the Internal Control Systems are:

• Implementation and control of all transactions including finance requisitionsquality and costing;

• Internal audits are conducted by external auditors and they audit all aspects ofbusiness;

• Extensive Audit programme and periodic review by Management and Audit Committee.

The Audit Committee closely interacts with and guides management and alongwithstatutory auditors and internal auditors’ reviews significant findings and follows upthereon.

RELATED PARTY TRANSACTIONS

There is no related party transaction during the year under review except theremuneration paid to KMPs of the Company and write off of amount invested in ShabinaEnterprises. Related party transactions policy is available on website of the company.

The details of related parties transaction for the financial year 2015-16 is given innote 24 to the financial statement of the Company.

DEPOSITS

During the year Company has not accepted any fixed deposits. As on March 31 2016there are no fixed deposits with the Company.

SIGNIFICANT ORDERS PASSED BY THE REGULATORS COURTS OR TRIBUNALS IMPACTING GOINGCONCERN AND COMPANY’S OPERATIONS

To the best of our knowledge the company has not received any such orders passed bythe regulators courts or tribunals during the year which may impact the going concernstatus or company’s operations in future.

ACKNOWLEDGEMENT

The Board of Directors wish to express their gratitude and appreciation for thecontinuous support and co-operation extended by the Banks the Securities and ExchangeBoard of India the Stock Exchange various Government authorities Financial Institutionsand all shareholders.

Your Directors would also like to take this opportunity to express their appreciationfor the dedicated efforts of the employees of the Company.

CAUTIONARY NOTE

The statements forming part of the Directors’ Report may contain certain forwardlooking remarks within the meaning of applicable security laws and regulations. The actualresults performance achievements of the company may be materially different from anyfuture results performance or achievements that may be expressed or implied by suchforward looking statements.

For and on behalf of Board of Directors
Place : Ahmedabad Mohib N Khericha A L Sanghvi
Date : August 24 2016 Managing Director Vice Chairman