TO THE MEMBERS
Your Directors have pleasure in presenting their 23rd Annual Report on the business andoperations of the Company together with the Audited Accounts of the Company for thefinancial year ended March 31 2016.
|PARTICULARS ||Year ended 31st March 2016 ||Year ended 31st March 2015 |
|PROFIT BEFORE TAX ||38417318.04 ||29870745.19 |
|Less/Add: || || |
|Provision for taxation ||(7580132.00) ||(5875592.00) |
|MAT Credit Entitlement ||5718648.00 ||- |
|Provision for Deferred Tax Assets ||(51119.00) ||487819.00 |
|Earlier year taxation ||(183183.03) || |
|PROFIT AFTER TAX ||36319532.01 ||24482972.19 |
|Balance Brought Forward ||140753285.09 ||121193064.90 |
|Less: Transfer to Statutory Reserve ||7263906.00 ||4896594.00 |
|Less: Provision against Standard Assets ||(1924.00) ||26158.00 |
|Less: Provision against Doubtful Assets || || |
|BALANCE CARRIED TO B/S ||169810835.09 ||140753285.09 |
In order to consolidate the Companys financial position your directors considerit prudent not to recommend dividend for the year under review.
The company has transferred an amount of Rs.7263906.00 (Previous YearRs.4896594.00) to statutory reserve in terms of the Provision of Reserve Bank of IndiaAct 1934.
STATE OF COMPANYS AFFAIR
The results for the reporting year compared with the prior year were good andencouraging Further the management expect that the next succeeding year shall be betterand the market value of Current Investments are increased substantially as compared tolast year
CHANGES IN THE NATURE OF BUSINESS
There is no Change in the nature of the business of the Company during the year.
MATERIAL CHANGES AND COMMITMENTS
There is no material changes occurred subsequent to the close of the financial year ofthe Company to which the balance sheet relates and the date of the report.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS
There are no significant and material orders passed by the regulators or courts ortribunals impacting the going concern status and companys operations in future.
INTERNAL CONTROL SYSTEMS
The Company has an Internal Control System commensurate with the size scale andcomplexity of its operations. To maintain its objectivity and independence the InternalAudit function reports to the Chairman of the Audit Committee of the Board & to theChairman & Managing Director.
The Internal Audit Department monitors and evaluates the efficacy and adequacy ofinternal control system in the Company its compliance with operating systems accountingprocedures and policies of the Company.
SUBSIDIARY/ASSOCIATE/JOINT VENTURE COMPANIES:
Your Company have associate companies namely M/s. Shreyashi Tradecom Pvt. Ltd. (CIN:U51909WB1998PTC086331) holding 33.96% shares within the meaning of Section 2(6) of theCompanies Act 2013 ("Act").
Your Company has not accepted any deposits within the meaning of Section 73 of theCompanies Act 2013 and the Companies (Acceptance of Deposits) Rules 2014.
During the year under review the company has not issued shares with differentialvoting rights nor granted stock options nor sweat equity.
EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in form MGT-9 is annexedherewith as "Annexure B".
CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING & OUTGO
The information required u/s. 134(3)(q) of the Companies Act 2013 read with the Rule8(3) of Companies (Accounts) Rule2014 with respect to conservation of Energy Technologyabsorption are not applicable to the company. The Company has no foreign exchange outflowor inflow during the year under review.
PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS
The Company being a non-banking finance company registered with the Reserve Bank ofIndia and engaged in the business of giving loans is exempt from complying with theprovisions of section 186 of the Companies Act 2013. Accordingly the disclosures of theloans given as required under the aforesaid section have not been given in this Report.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES U/S 188(1)
All related party transactions that were entered into during the financial year were onarms length basis and were in the ordinary course of the business. There are nomaterially significant related party transactions made by the company with Promoters KeyManagerial Personnel or other designated persons which may have potential conflict withinterest of the company at large. The details of the related party transaction made bycompany are given in the notes to the financial statements.
RISK MANAGEMENT POLICY
Pursuant to section 134 (3) (n) of the Companies Act 2013 & the ListingRegulation The Board of Directors has adopted risk management policy for the Companywhich provides for identification assessment and control of risks which in the opinion ofthe Board may threaten the existence of the Company. The Management identifies andcontrols risks through a properly defined framework in terms of the aforesaid policy.
At present the company has not identified any element of risk which may threaten theexistence of the company.
CORPORATE SOCIAL RESPONSIBILITY
In terms of the provisions of Section 135 read together with Rule of the Companies Actthe "corporate social responsibility" (CSR) requirement is not applicable tothe Company.
CORPORATE GOVERNANCE CERTIFICATE
The Compliance certificate from the auditors regarding compliance of conditions ofcorporate governance as stipulated in the Listing Regulation shall be annexed with thereport.
VIGIL MECHANISM/WHISTLE BLOWER POLICY
The Board of Directors of the Company has adopted Whistle Blower Policy. The managementof the Company through the policy envisages encouraging the employees of the Company toreport to the higher authorities any unethical improper illegal or questionable actsdeeds & things which the management or any superior may indulge in. This policy hasbeen circulated to employees of the Company. However no employee has been denied accessto the Audit Committee.
NOMINATION & REMUNERATION COMMITTEE
The Board has on the recommendation of the Nomination & Remuneration Committeeframed a policy for selection and appointment of Directors Senior Management and theirremuneration. The Remuneration Policy is stated in the Corporate Governance Report.
PARTICULARS OF EMPLOYEES
None of the employees who were in receipt of remuneration in excess of the limits asspecified under Rule 5(2) of the Companies (Appointment and Remuneration of ManagerialPersonnel) Rules 2014 throughout or part of the financial year under review was engagedin the company.
Changes in Directors and Key Managerial Personnel
Mrs. Sudha Agarwalla retires by rotation and being eligible offers herself for reappointment. The Directors recommend Mrs. Sudha Agarwalla for re-appointment.
Independent Director(s) declaration
Mr. Shambhu Nath Modi and Mr. Rajesh Kumar Routh who are Independent Directors havesubmitted a declaration that each of them meets the criteria of independence as providedin Sub-Section (6) of Section 149 of the Act and the Listing Regulation. Further therehas been no change in the circumstances which may affect their status as independentdirector during the year.
Pursuant to the provisions of the Companies Act 2013 and the Listing Regulation theBoard has carried out an evaluation of its own performance the directors individually aswell as the evaluation of the working of its Audit Nomination & RemunerationCommittees. The manner in which the evaluation has been carried out has been explained inthe Corporate Governance Report.
CODE OF CONDUCT
The Directors and members of Senior Management have affirmed compliance with the Codeof Conduct for Directors and Senior Management of the Company. A declaration to thiseffect has been signed by Managing Directors and forms part of the Annual Report.
During the year Eleven Board Meetings were convened and held. The intervening gapbetween the Meetings was within the period prescribed under the Companies Act 2013. Thedetails of which are given in the Corporate Governance Report.
SECRETARIAL AUDITOR & SECRETARIAL AUDIT REPORT
Pursuant to provisions of section 204 of the Companies Act 2013 and the Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 the company hasappointed Mr. Anand Khandelia a firm of company Secretaries in practice to undertake theSecretarial Audit of the Company. The Secretarial Audit report is annexed herewith as"Annexure A"
STATUTORY AUDITORS & AUDITORS REPORT
Pursuant to the provisions of Section 139 of the Act and the rules framed thereunderM/s. VMD & Associates Chartered Accountants were appointed as statutory auditors ofthe Company at the 21st annual general meeting (AGM) of the Company from the conclusion ofthe said AGM.
The Statutory Auditors M/s. VMD & Associates have indicated their inability tocontinue as Auditors of the Company. M/s A.K. Meharia & Associates CharteredAccountants have submitted a written consent that they are eligible to hold office asStatutory Auditors of the Company in terms of Section 139 of the Act and that they alsosatisfy the criteria provided in Section 141 of the Act. The Board recommends theappointment of A.K. Meharia & Associates Chartered Accountants as Statutory Auditorsof the Company to hold office from the conclusion of the ensuing Annual General Meetingtill the conclusion of the 29th Annual General Meeting subject to ratification of theirappointment by the members at every AGM held thereafter . The necessary resolution isbeing placed for consideration of the members at the ensuing Annual General Meeting.
The Auditor of the company has not made any qualification reservation or adverseremark or disclaimer in his report and hence do not call for any further comments underSection 134 of the Companies Act 2013.
DIRECTOR'S RESPONSIBILITY STATEMENT
In terms of Section 134 (5) of the Companies Act 2013 the directors would like tostate that:
i) In the preparation of the annual accounts the applicable accounting standards havebeen followed.
ii) The directors have selected such accounting policies and applied them consistentlyand made judgments and estimates that were reasonable and prudent so as to give a true andfair view of the state of affairs of the Company at the end of the financial year and ofthe profit or loss of the Company for the year under review.
iii) The directors have taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of this Act for safeguardingthe assets of the Company and for preventing and detecting fraud and other irregularities.
iv) The directors have prepared the annual accounts on a going concern basis.
v) The directors had laid down internal financial controls to be followed by thecompany and that such internal financial controls are adequate and were operatingeffectively.
vi) The directors had devised proper system to ensure compliance with the provisions ofall applicable laws and that such system were adequate and operating effectively.
During the year under review your Company enjoyed cordial relationship with workersand employees at all levels.
CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION & ANALYSIS REPORTS
The Corporate Governance and Management Discussion & Analysis Report which form anintegral part of this Report are set out as separate Annexure together with theCertificate from the auditors of the Company regarding compliance with the requirements ofCorporate Governance as stipulated in the Listing Regulation.
DISCLOSURE AS PER SEXUAL HARRASSMENT OF WOMEN AT WORKPLACE (PREVENTION PROHIBITION ANDREDRESSAL) ACT 2013
The Company has zero tolerance for sexual harassment at workplace and has adopted apolicy on prevention prohibition and redressal of sexual harassment at workplace in linewith the provisions of Sexual Harassment of Women at Workplace (Prevention Prohibitionand Redressal) Act 2013 and the rules framed thereunder. During the financial year2015-16 no complain had been received.
PECUNIARY RELATIONSHIP OR TRANSACTIONS OF NON-EXECUTIVE DIRECTORS
During the year the Non-Executive Directors of the Company had no pecuniaryrelationship or transactions with the Company.
Your Company and its Directors wish to extend their sincerest thanks to the Members ofthe Company Bankers Executives Staff and workers at all levels for their continuouscooperation and assistance.
|Place: Kolkata ||For and on behalf of the Board |
|Dated: 31st May 2016 ||(Arun Kumar Agarwalla) |
| ||Managing Director |
| ||DIN: 00607272 |