Your Directors have pleasure in presenting the 22nd Annual Report togetherwith the Audited Statement of Accounts for the Financial Year ended March 31 2016.
|Particulars || |
Financial year ended
| || |
| ||31st March 2016 ||31st March 2015 |
| || || |
|Total Income ||38716178 ||44427342 |
|Total expenditure ||37676252 ||43990761 |
|Profit/(Loss) before tax ||1039927 ||436580 |
|Profit/ (Loss) after tax ||718590 ||345972 |
|Paid- up Share Capital ||249 615000 ||249 615000 |
|Reserves and Surplus ||202377157 ||202292642 |
To maintain the liquidity of funds the Board of Directors has decided not to declareany dividend for this financial year 2015-2016. The Board assures you to present a muchstrong financial statements in coming years.
The Paid up Equity Share Capital as on March 31 2016 was Rs. 249615000. During theyear under review the company has not issued any shares debentures or any otherconvertible instruments.
a. BUY BACK OF SECURITIES
The Company has not bought back any of its securities during the year under review.
b. SWEAT EQUITY
The Company has not issued any Sweat Equity Shares during the year under review.
c. BONUS SHARES
No Bonus Shares were issued during the year under review.
d. EMPLOYEES STOCK OPTION PLAN
The Company has not provided any Stock Option Scheme to the employees.
e. ISSUE OF SHARES THROUGH PREFERENTIAL ALLOTMENT
The Company has not issued any equity shares by way of preferential allotment duringthe year under review.
The Company has not accepted any fixed deposit during the year under review fallingwithin the purview of Section 73 of the Companies Act 2013 read with Companies(Acceptance of Deposits) Rules 2014.
TRANSFER TO GENERAL RESERVES
As the company has not declared any Dividend therefore the Company has not proposedto carry any sum to the General Reserves of the Company for the period underconsideration.
CHANGE IN THE NATURE OF BUSINESS
Stellar Capital Services Limited (registered with the Reserve Bank of India (RBI) as aNon-Banking Financial Company) engaged mainly in the business of providing Secured andUnsecured Loans & Advances and investing in securities both quoted and unquotedduring the period under review there was no change in the nature of the Business of theCompany.
MATERIAL CHANGES AND COMMITMENTS
There were no material changes and commitments affecting the financial position of theCompany which has occurred between the end of the financial year of the Company and thedate of the Directors report.
DETAILS OF SUBSIDIARY JOINT VENTURE ASSOCIATE COMPANIES DURING THE YEAR
The Company has no subsidiaries joint ventures or associated companies thereforedisclosures in this regards are not provided in this report.
PERFORMANCE AND FINANCIAL POSITION OF EACH OF THE SUBSIDIARIES ASSOCIATESAND JOINT VENTURE COMPANIES
The company has no subsidiaries joint venture companies so there is no requirement ofdescription of performance of Subsidiaries and Joint Venture companies.
A. Statutory Auditors
At the Annual General Meeting held on August 25 2014 M/s V.N. Purohit & Co.Chartered Accountants were appointed as Statutory Auditors of the Company to hold theoffice till the conclusion of the Annual General Meeting to be held in the calendar year2019.
In terms of the first proviso to Section 139 of the Companies Act 2013 theappointment of the auditors shall be placed for ratification at every Annual generalMeeting. Accordingly the appointment of M/s V.N. Purohit & Co. chartered Accountantsas statutory auditors of the Company is placed for ratification by the shareholders. Inthis regard the company has received a certificate from the auditors to the effect thatif they are reappointed it would be in accordance with the provisions of Section 141 ofthe Companies Act 2013.
The Auditors Report to the Shareholders for the year under review does notcontain any qualification.
B. Auditors Report
All Observations made in the Independent Auditors Report and Notes forming partof the Financial Statements are self explanatory and do not call for any further commentsunder section 197(12) of the Companies Act 2013.
C. Secretarial Auditor
Mr. Dimple Bhatia Practicing Company Secretary (Membership Number 17826) was appointedto conduct the secretarial audit of the Company for the F.Y 2015-2016 as required underSection 204 of the Companies Act 2013 and Rules there under. The Secretarial audit Reportfor F.Y 2015-2016 forms part of the Annual Report as Annexure I.
D. Internal Auditor
Mr. Gopal Bansal Practicing Chartered Accountant also performs the duties of InternalAuditors of the Company for Financial Year 2015-2016 and his report is reviewed by theAudit Committee from time to time.
SIGNIFICANT AND MATERIAL ORDERS
There are no significant and material orders passed by the regulators and courts ortribunals impacting the going concern status and Companys operations in future.
EXTRACT OF ANNUAL RETURN
In accordance with Section 134(3) (a) of the Companies Act 2013 an extract of annualreturn in the prescribed format is appended as Annexure II.
DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS
The Company has adequate system of internal control to safeguard and protect from lossunauthorized use for disposition of its assets. All the transactions are probablyauthorized recorded and reported to the Management. The Company is following allapplicable accounting standards for properly maintaining the books of accounts andreporting financial statements. The internal Auditor of the company checks and verifiesinternal control and monitors them in accordance with policy adopted by the company. TheCompany continues to ensure proper and adequate systems and procedures commensurate withits size and nature of business.
CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGSAND OUTGO
Information required to be given pursuant to section 134(3)(m) of the Companies Act2013 read with the Companies (Accounts) Rules 2014 and forming part of BoardsReport for the year ended March 31 2016 are given as below:
A. Conservation of Energy
The provision related conservation of energy does not apply to company therefore theinformation as required under the Companies (Accounts) Rules 2014 is not given. Howeverthe company is conscious about its responsibility to conserve energy power and otherenergy sources wherever possible. We emphasis towards a safe and clean environment andcontinue to adhere to all regulatory requirements and guidelines.
B. Technology Absorption
Your company has not imported any technology. However we believe and use informationtechnology extensively in all spheres of our activities to improve efficiency levels.
Expenditure on Research and Development
During the period under review company has not incurred any expenditure on R & D.
|S.No. ||Parameters ||F.Y. 2015-2016 ||F.Y.2014-2015 |
|a) ||Capital Expenditure ||0.00 ||0.00 |
|b) ||Recurring ||0.00 ||0.00 |
C. Foreign Exchange Earnings and Outgo
Details of Foreign Exchange earnings and outgo are given as below:-
|S.No. ||Particulars ||Year 2016 ||Year 2015 |
|1. ||Foreign Exchange earning ||Nil ||Nil |
|2. ||Foreign Exchange outgoing ||Nil ||Nil |
The Company continues to comply with all the requirements prescribed by the ReserveBank of India from time to time.
RISK MANAGEMENT POLICY
Managing of Risk is an Integral part of Companys strategy; Company has alreadyimplemented Risk Management Policy (annexed as Annexure III) and the Board ofDirectors has prepared a comprehensive framework of risk management for assessment ofrisks and to determine the responses to these risks so as to minimize their adverse impacton the organization.
The policy as approved by the Board of Directors is also uploaded on Companyswebsite.
CORPORATE SOCIAL RESPONSIBILITY
The provision of Companies Act 2013 regarding Corporate Social Responsibility shallnot be applicable to companies having net worth not exceeding Rs. 500 Cr or turnover notexceeding Rs. 1000 Cr or net profit not exceeding Rs. 5 Cr or more during any financialyear as on the last date of previous financial year. In this connection we wish toinform you that in respect of our company as on the last audited balance sheet as at March31 2016 neither the net worth exceeds Rs. 500 Crore nor turnover exceeds neither Rs.1000 Crore nor net profit exceeding Rs. 5 Cr. Hence the provisions of Companies Act2013 regarding Corporate Social Responsibility would not be applicable.
NUMBER OF MEETINGS OF THE BOARD
The Boards of Directors duly met 14 times during the Financial Year 2015-16 thedetails of which are given in the Corporate Governance Report that forms part of thisAnnual Report. The intervening gap between any two board meetings was within the periodprescribed by the Companies Act 2013.
POLICY ON DIRECTORS APPOINTMENT AND REMUNERATION
The current policy is to have an appropriate mix of Executive and Independent Directorwith atleast one Women Director to maintain the independence of the board separate itsfunction of Governance and Management and the composition of the Board shall be inaccordance with requirements of the Articles of Association of the Company the CompaniesAct2013 SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 and thestatutory regulatory and contractual obligations of the Company.
Company has put in a place the policy on board diversity for appointment of Directorstaking into consideration qualification and wide experience of the directors in the fieldsof Banking Finance
Regulatory Administration Legal apart from compliance of legal requirements of theCompany.
As on March 31 2016 the Board consists of 4 members two of whom are ExecutiveDirectors and other two are independent Directors. The Board periodically evaluates theneed for change in its composition and its size.
The policy of the company on Directors appointment and remuneration includingcriteria for determining qualifications positive attributes independence of a directorand other matters provided under Sub-section (3) of Section 178 of the companies Act2013 adopted by the Board is appended as Annexure IV to the Boards Report.We affirm that remuneration paid to the directors is as per the terms laid out in theremuneration policy of the company.
DECLARATION BY INDEPENDENT DIRECTORS
The Company has received necessary declaration from each Independent Director undersection 149(7) of the Companies Act 2013 that he/she meets the criteria of independencelaid down in Section 149(6) of the Companies Act 2013.
Regulation 17 of SEBI (Listing obligations and Disclosure Requirements) Regulations2015 directs that the Board shall monitor and review the Board evaluation framework. TheCompanies Act 2013 states that a formal annual evaluation needs to be made by the boardof its own performance and that of its committees and individual directors. Schedule IV ofthe Companies Act 2013 states that performance evaluation of Independent Directors shallbe done by the entire Board of Directors excluding the Directorsbeing evaluated.
The evaluation of all the Directors and the board as a whole was conducted based on thecriteria and frame work adopted by the Board.The Board approved the evaluation results ascollated by the nomination and remuneration committee.
None of the independent directors are due for re-appointment.
FAMILIARISATION PROGRAMME FOR INDEPENDENT DIRECTORS
The Company has put in place a system to familiarize its Independent Directors aboutthe Company; every new Independent directors of the board attends familiarization program.To familiarize the new inductees with the strategy operations and functions of ourCompany the executive directors/ senior managerial personnel make presentations to theinductees about the Companys strategy operations product and service offeringsmarkets software delivery organization structure finance human resources technologyquality facilities and risk management.
Further at the time of appointment of an Independent Director the Company issues aformal letter of appointment outlining his/her role function duties and responsibilitiesas a director. The format of the letter of appointment is available on our website.
DETAILS OF DIRECTORS OR KMP WHO WERE APPOINTED OR HAVE RESIGNED DURING THEYEAR.
There were no Appointment Resignation of Directors during the Period underreview however Mr. Ashish Bansal Managing Director retires by rotation and being eligiblehas offered himself for re-appointment.
Further Mr. Ashish Bansal was designated as the Executive Chairman and ManagingDirector(MD) by the members of the Company on dated 10.07.2013; tenure of Mr. AshishBansal as a Managing Director expired on dated 09.07.2016pursuant to the recommendationof Nomination and Remuneration Committee the Board at its meeting held on dated02/09/2016 approved the re-appointment of Mr. Ashish Bansal as Executive Chairman andManaging Director (designated as "Executive Chairman") of the Company for afurther period of two years extendable up to five years with effect from 30.9.2016 to29.09.2018 subject to the approval of the members at this Annual General Meeting.
Mr. Vikram sharma is the Whole Time Director (WTD) of the Company; pursuant tothe recommendation of Nomination and Remuneration Committee Mr. Vikram Sharma whose termas Whole Time Director (WTD) expired on dated 09.07.2016 was re-appointed as Whole TimeDirector by the Board on its meeting held on dated 02/09/2016 for a further period of twoyears extendable up to Five Years i.e. w.e.f 30.09.2016 to 29.09.2018 subject to theapproval of the shareholders.
b) COMPANY SECRETARY AND COMPLIANCE OFFICER:
The Board of Directors at their meeting held on dated 04/09/2015 had appointed Ms.Manisha Rajpal member of "Institute of Company Secretaries of India" as theCompany Secretary and Compliance Officer in the Company in compliance with Companies Act2013 and Agreement entered with the Stock Exchange.
c) KEY MANAGERIAL PERSONNEL
The following 3 persons are the formally appointed/ designated as Key ManagerialPersonnel of the Company in compliance with the provisions of Section 203 of the CompaniesAct 2013.
1. Mr. Ashish Bansal Managing Director 2. Ms. Sushma Aggarwal- Chief FinancialOfficer 3. Ms. Manisha Rajpal-Company Secretary
DISCLOSURE OF RELATIONSHIPS BETWEEN DIRECTORS INTER-SE
No Directors are directly related to each other.
TRANSFER OF CONTROL
On 10/11/2015 Mrs. Rajni Aneja w/o Late. Sh. Harish Aneja and Mr. Pranay Aneja S/oLate. Harish Aneja ("the Acquirers") both residing at B-34 Soami Nagar NewDelhi- 110017 with an intention to Takeover the Management & Control of the Companyentered into a Share Purchase Agreement ("SPA") with the Promoters &Promoter Group of the Company and has further made Open offer for acquisition of 6489990 fully paid equity shares of
10/- (Rupees Ten each) in compliance with applicable provisions of the Securities andExchange Board of India (substantial Acquisition of shares and Takeovers) Regulations2011.
Accordingly post open offer report dated March 23 2016 has been submitted by Managerto offer i.e. Aryaman Financial Services Ltd. to SEBI however as theCompany is registered with RBI (Reserve Bank of India) bearing COR No B. 14.02359 theapproval of RBI in relation to Transfer of Control is Under Process.
COMMITTEES OF THE BOARD
Currently the Board has 3 Committees; the Audit Committee Nomination and RemunerationCommittee and Stakeholders Relationship Committee.
A detailed note on the Board and its committees is provided under the CorporateGovernance report section of this annual report. The Composition of committees andcompliances as per applicable provisions of the act and rules are as follows:
|Name of the Committee ||Composition of Committee |
|Audit Committee ||The "Audit Committee" of the Company is constituted in line with the provisions of Regulation 18 of the SEBI (LODR) Regulation read with Section 177 of the Companies Act2013 (the Act) |
| ||The Audit Committee of Company Comprises of : |
| || Mr. Amar Pal Singh |
| || Mrs. Seema Mangal |
| || Mr. Ashish Bansal |
|Nomination and Remuneration Committee ||The "Nomination Remuneration and Committee" has been constituted by the Board as per the requirements of the provisions of Section 178 (1) of the Companies Act 2013 and Regulation 19 of the SEBI (LODR) Regulation. |
| ||The Nomination and Remuneration Committee of Company Comprises of : |
| || Mr. Amar Pal Singh |
| || Mrs. Seema Mangal |
| || Mr. Ashish Bansal |
|Stakeholders Relationship Committee ||The "Stakeholders Relationship Committee" is constituted in line with the provisions of Section 178 (5) of the Companies Act 2013 and Regulation 20 of SEBI (LODR) Regulation. |
| ||The Stakeholders Relationship Committee of Company |
| ||Comprises of : |
| || Mr. Amar Pal Singh |
| || Mrs. Seema Mangal |
| || Mr. Ashish Bansal |
DETAILS OF ESTABLISHMENT OF VIGIL MECHANISM/ WHISTLE BLOWER POLICY FORDIRECTORS AND EMPLOYEES
In order to ensure that the activities of the company and its employees are conductedin a fair and transparent manner by adoption of highest standards of professionalismhonesty integrity and ethical behavior the company has adopted a vigil mechanism policy.The aim of the policy is to provide adequate safeguards against victimization of whistleblower who avails of the mechanism and also provide direct access to the Chairman of auditCommittee in appropriate and exceptional cases.
Accordingly whistle Blower policy has been formulated with a view toprovide a mechanism for the Directors and employees of the Company to approach the EthicsCounselor or the Chairman of the audit Committee of the Company.
The purpose of this policy is to provide a framework to promote responsible and securewhistle blowing. It protects employees willing to raise a concern about irregularitieswithin the Company.
This policy is annexed as Annexure-V and is also posted on the website of thecompany.
CODE OF CONDUCT
The Board of Directors has approved a Code of Conduct which is applicable to members ofthe Board and all employees in the course of day to day business operations of thecompany. The Code has been placed on the Companys websitewww.stellarcapitalservices.com The Code lays down the standard procedure of businessconduct which is expected to be followed by the directors and the designated employees intheir business dealings and in particular on matters relating to integrity in the workplace in business practices and in dealing with stakeholders.
All the Board Members and the Senior Management personnel have confirmed compliancewith the Code.
PARTICULARS OF LOANS GUARANTEE OR INVESTMENTS UNDER SECTION 186
Particulars of Loans and Guarantees are provided in the financial statements (pleaserefer the Notes to the financial Statements).
The Company provides a brief resume of Mr. Ashish Bansal (Din no: 06607944) ExecutiveChairman and Managing Director of the Company and Mr. Vikram Sharma (Din no : 00243482 )Whole Time Director in Compliance of Regulation 36(3) Of SEBI (Listing Obligations AndDisclosure Requirements) Regulations 2015 in respect of Director Being Re-appointed.
RELATED PARTY TRANSACTIONS
All related party transactions that were entered into during the financial year were onarms length basis and also 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 Related Party Transactions are disclosedand forming part of the Annual Financial Statements and also stated in Form AOC-2 annexedas Annexure-VI.