CHEMOX SECURITIES LIMITED
The Directors are pleased to present their Tenth Annual Report together
with the Audited Accounts of the Company for the year ended 31st March,
The financial services industry has passed through a very critical and bad
phase because of supressed and subdued capital market conditions, but
despite these adverse conditions your company could perform reasonably well
and have earned a profit of Rs. 500.71 lacs during the year. The total
income earned by the company for the year was Rs. 1486.13 lacs as against
Rs. 1478.77 lacs in the previous year, which include income from Leasing,
Hire Purchase, Investment Banking, Corporate Finance and Syndication of
various corporate services t the fag end of the year, the company also
received registration as Category-l Merchant Bankers from SEBI. Your
Company will be able to expand this activity fully in the coming years. The
Company has also launched Public Deposit Scheme and is hopeful of getting
Your Directors recommend Dividend of Rs. 2/- per equity share of Rs. 10/-
(previous year Rs. 2/- per share) and Rs. 15.00 per Preference Share of Rs.
100/- on pro-rata basis, subject to deduction of tax at source and approval
by the Shareholders. This will result in a payout of Rs. 87.82 lacs.
3) FUTURE PROSPECTS:
The Company proposes to concentrate mainly on fund based activities like
Leasing & Hire Purchase, discounting of Bills etc. and non-fund based
activities like Merchant Banking, Stock Broking Syndication of various
credit facilities, money changing etc.
a) Leasing & Hire Purchase:
As money market situation is very tight and most of the Banks have got
resources constraint, Non-Banking Finance Companies can play a vital role
in bridging the gap of fund scarcity and can earn high rate of return by
extending the credits to corporates by way of leasing, hire purchase etc.
Still the Company has kept a very modest target of leasing and hire
purchase to the extent of Rs. 25 Crores. The Company also proposes to do
syndication for leasing business for cash surplus corporates, who are doing
leasing for tax shelter purposes.
b) Corporate Finance:
The Company proposes to deal in Bill Discounting, Inter Corporate Deposits
and Credit against shares. This activity has got good scope and the Company
is expected to earn substantial income in this segment.
c) Investment Banking:
The Company has got strong portfolio of around Rs. 1300 lacs in the shares
of various companies. Because of its prudent and timely decisions, the
company is able to earn Rs. 260 lacs even in such an adverse capital market
conditions. The Company expects improvement in the Capital Market
conditions and would like to enter into the areas of Portfolio Management
d) Merchant Banking:
The Company has received its registration as a Category - I Merchant
Bankers from SEBI in February this year The Company wants to concentrate
fully in the activities of Merchant Banking like issue management,
amalgamation and take over, underwriting, placement of shares and
debentures, syndication of loan and other corporate advisory services. As
the Company expects that the conditions of capital market would improve, it
would further help the business prospects of the company.
e) Stock Broking:
As per the rules and regulations of SEBI, fund based activities can not be
carried out along with broking business. Hence, the company has formed, a
subsidiary company named CHEMOX STOCK BROKING LIMITED to do primary and
secondary market operations including marketing of initial pubic offerings
and underwriting of the issues. The Company is offering full fledged
broking services. The Company has already purchased BSE Membership Card and
applied for its transfer. The Company's application for membership of NSE
is also pending. During the year the company will be able to start broking
operations in full swing.
Mr. S.N. Agarwal, Mr. Nana Chudasama and Mr. Pramod Jain retire by rotation
at the forthcoming Annual General Meeting and being eligible offer
themselves for reappointment.
The Company had, during the year, invited and accepted Public Deposit to
the tune of Rs. 5.33 lacs as on 31st March, 1996. There were no overdue
6) AUDITORS' REPORT:
The Notes referred to by the Auditors in their Report are self-explanatory
and do not require any further explanation.
M/s. M.G. Bhandari & Company, Chartered Accountants, the Auditors of the
Company, retire at the end of the forthcoming Annual General Meeting and
being eligible offer themselves for reappointment.
8) CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION:
The particulars under the Companies (disclosure of particulars in the
Report of Board of Directors) Rules, 1988, on conservation of energy and
technology absorption are not applicable to the Company.
9) FOREIGN EXCHANGE:
During the year under review there has been no foreign exchange income or
10) PARTICULARS OF EMPLOYEES:
The particulars of employees as per the requirements under Section 217(2A)
of the Companies Act, 1956, read with the Companies (particulars of
employees) Rules 1975 are given in Annexure I, which will be sent to
members at their request.
The Company gratefully acknowledge the co-operation and support extended by
bankers, shareholders and customers of the Company and place on record its
appreciation for the active support and assistance of the employees for the
For and on behalf of the Board
Place : Mumbai
Date : 29th June, 1996.