Dhruva Capital Services Ltd.
|BSE: 531237||Sector: Financials|
|NSE: N.A.||ISIN Code: INE972E01014|
|BSE 00:00 | 30 Sep||12.10||
|NSE 05:30 | 01 Jan||Dhruva Capital Services Ltd|
Dhruva Capital Services Ltd. (DHRUVACAPSERV) - Director Report
Company director report
Your Directors have pleasure in presenting their Twenty Seventh AnnualReport together with Audited Accounts of the Company for the year ended on 31st March2021.
2. PERFORMANCE :
The Net Profit of the Company during the year under review was Rs. 3.37Lakhs as compared to Net Profit of Rs. 2.98 Lakhs in the previous year.
REVIEW OF OPERATIONS & FUTURE OUTLOOK :
Interest was the major source of earning during this year. Theinitiatives taken by the Company to improve its operations in the coming financial yearsare good. Your Company is intensifying its focus on the NbFC business & liquidate itsreal estate investment.
There is no significant impact of COVID-19 pandemic on the company'soperations of F.Y. 2020-21.
The company continues to closely monitor the rapidly changingsituation.
3. DIVIDEND :
Since your Company has not made enough profit during the year underreview your directors have not recommended any dividend.
4. PUBLIC DEPOSITS :
The Company has not accepted any deposit from public during the yearended 31st March 2021 as per provisions of Sections 73 to 76 of the Companies Act 2013.
5. SECRETARIAL AUDIT REPORT :
As done in earlier years Secretarial Audit Report for the FY 2020-21pursuant to section 204 (1) of the Companies Act 2013 is being obtained by the Companyfrom Shri Mohit Vanawat a Company Secretary in practice (M. No.: 45179 C.P. No.: 16528)which will be attached with this report.
6. CONSERVATION OF ENERGY :
Not applicable since your Company being a Financial Services Company.
7. TECHNOLOGY ABSORPTION :
No comment is necessary considering the nature of activities of yourCompany during the year under review.
8. FOREIGN EXCHANGE EARNINGS AND OUTGO :
Your Company does not have any foreign exchange earnings and outgoduring the year under review.
9. DIRECTORS :
Mrs. Meena Karnawat Director of the Company in terms of sec. 152(6)of the Companies Act 2013 being eligible offers herself for reappointment on retirementby rotation at the ensuing AGM.
10. NOMINATION & REMUNERATION POLICY :
This policy has been formulated in accordance with the provisions ofsec. 178 of Companies Act 2013 and the listing agreement with the Bombay Stock Exchange(BSE Ltd.).
The Major Criteria for recommending a person to become a Director are :
Qualification - He/She must have appropriate qualification andtechnical knowledge which would be useful to the Company.
Qualities - Honesty and dedication for work should be possessed by aperson along with a strategic vision. Experience - Work experience in different areas isalso a matter of consideration.
Track Record - A clean track record is required for recommendation tothe post of director. Appropriate Remuneration shall be paid to the directors on abovebasis.
Attendance punctuality Advises Exercising of duties & powersgiven by board conduct in compliance with the policies of Company viz. code of conduct& whistleblower policy etc. Ensuring Compliance with applicable laws/statutoryobligations by the Company Acting in good faith & in the best interest of theCompany Independence in judgments Promoting best interest of shareholders Resolution ofInvestor Complaints Encouragement of talent retention/morality & Commitments/newinitiatives expansion & innovation/recognitions etc. and overall performance of anydirector are the criterion of evaluation.
11. DIRECTOR'S RESPONSIBILITY STATEMENT :
Pursuant to the requirements under Section 134 (3) (C) of the CompaniesAct 2013 the Board of Directors of the Company hereby state and confirm that :
i. in the preparation of the Annual Accounts the applicable accountingstandards had been followed along with proper explanations relating to materialdepartures.
ii. the Directors had selected accounting policies and applied themconsistently and made judgments and estimates that are 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 or Loss of the Company for the year under review.
iii. the Directors had taken proper and sufficient care for themaintenance of adequate accounting records in accordance with the provisions of theCompanies Act 2013 for safeguarding the assets of the Company and for preventing anddetecting fraud and other irregularities.
iv. the Directors had arranged preparation of the accounts for thefinancial year ended March 312021 on a "going concern" basis.
v. the directors had laid down internal financial controls to befollowed by the Company & that such internal financial controls are adequate and wereoperating effectively; &
vi. the directors had devised proper systems to ensure compliance withthe provisions of all applicable laws and that such systems were adequate and operatingeffectively.
12. MANAGEMENT DISCUSSIONS & ANALYSIS REPORT :
INDUSTRYSTRUCTURE & DEVELOPMENT :
No concessions are being given to NBFC Industry by govt. so that theindustry can withstand competitions from banks and other lending institutions. Moreoverdue to unhealthy business environment for the last many years the margins have squeezedand the cost of operations has increased consistently.
OPPORTUNITIES & THREATS :
Fluctuations in the interest rate in economy has created uncertainty inthe business of finance. The biggest threat for Non Banking Finance Companies arise fromthe vast gap existing between demand and supply. Another threat for Non Banking FinanceCompanies comes from increased competition from banking industry which is in a positionto lend at competitive rates due to availability of huge funds at a cheaper cost. TheCompany expect stable interest rates in the coming period and is confident of meeting thechallenges by increasing volume of business at nominal margin.
RISK AND CONCERNS :
Like any other industry the Company's business is also exposed tovarious business risks.
Continuous efforts are made to reduce the cost of funds increase thevolume of the business and to control the NPAs within a bearable limit to minimize theimpact of declining spread.
INTERNAL CONTROL SYSTEM :
The Company has proper and adequate internal control system in all theareas of its activities. The Company's Audit Committee reviewed the internal controlsystem and looked in to the observations of the statutory auditor.
DISCUSSION ON FINANCIAL PERFORMANCE :
The financial performance of the Company for the year has beendiscussed in the Director's Report and cash-flow statement is annexed with the AnnualAccounts.
HUMAN RESOURCES / INDUSTRIAL RELATIONS :
The relation between the Company and its employees remained cordialthrough-out the year and the management expects the same to continue and receive fullsupport and cooperation from its employees in future also.
13. AUDITORS :
M/s T K. Bohara & Co. Chartered Accountants appointed by themembers at 24th AGM held on 30-09-2018 as Auditors of the Company For a term of 5 yearsshall hold office untill the conclusion of 29th Annual General Meeting on such terms& conditions as decided by board.