Easy Fincorp Ltd.
|BSE: 511074||Sector: Financials|
|NSE: N.A.||ISIN Code: INE407F01018|
|BSE 00:00 | 18 Feb||Easy Fincorp Ltd|
|NSE 05:30 | 01 Jan||Easy Fincorp Ltd|
|BSE: 511074||Sector: Financials|
|NSE: N.A.||ISIN Code: INE407F01018|
|BSE 00:00 | 18 Feb||Easy Fincorp Ltd|
|NSE 05:30 | 01 Jan||Easy Fincorp Ltd|
Your Directors hereby present their 36th Annual Report together with theAudited Financial Statements of the Company for the year ended 31st March 2021.
STATE OF COMPANY AFFAIRS & RESULTS OF OPERATION
The Company registered a total income of Rs 1098340/- as compared to Rs. 1162181/-in the previous year. The Company registered a Loss after tax of Rs. 223291/- ascompared to a Loss after tax of Rs 231225/- in the previous year which was due to thedecline in other income. There was no change in the nature of business of the Company andthe Company has not earned any revenue during the period under review. The FinancialStatements for the year ended 31st March 2021 have been prepared in accordance with theaccounting principles generally accepted in India including the Indian AccountingStandards (IND AS) specified under section 133 of the Companies Act 2013 as amended("the Act") read with the Companies (Indian Accounting Standards) Rules 2015.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT Overview:
The global growth story continues to decelerate from 2019 marked by a weakness intrade and investments. This trend was visible in advanced and emerging markets. With theuncertain growth and a slowdown in credit demand financing companies are expected to turncautious going forward. The sector faced liquidity pressure with higher funding cost andis expected to face headwinds for asset quality. The profitability is expected to be underpressure with lower credit growth and higher credit cost.
The coronavirus (COVID-19) outbreak at the start of 2020 unleashed a health andeconomic crises unprecedented in scope and magnitude with lockdowns and border closuresparalyzing economic activity and laying off millions of workers across the world. Withextensive restrictions on economic activities the global economy was at a virtualstandstill through the second quarter of 2020. To minimize the impact of this economiccatastrophe our Government and Reserve Bank of India proactively initiated a set ofmeasures and supply side reforms to lend flexibility resilience and stimulate theeconomy. This has led to v- shaped recovery across sectors with resurgence of consumerconfidence robust financial markets and uptake in exports. The key threats include thechanges/slowdown in the implementation of the government policies because of COVID- 19pandemic delay & short term fall out in implementation of economic booster packagesfailure to contain actual inflation within a reasonable range high NPAs of the banksdefaults & frauds governing rules of SEBI and RBI etc.
MATERIAL CHANGES AND COMMITMENTS AFFECTING FINANCIAL POSITION BETWEEN THE END OF THEFINANCIAL YEAR AND DATE OF THE REPORT
There are no material changes and commitments affecting the financial position of theCompany that have occurred between the close of the financial year ended 31st March 2021and the date of this Board's Report.
TRANSFER TO RESERVES
The Board does not propose to transfer any amount to reserves due to accumulatedlosses.
In view of the accumulated losses your Directors regret their inability to recommendany dividend on the Preference or Equity Shares.
During the year there was no change in the issued subscribed and paid up capital ofthe Company.
HOLDING COMPANY SUBSIDIARY COMPANY AND ASSOCIATE COMPANIES
Your Company does not have any Holding Subsidiary or Associate Company.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
The Board of Directors consists of Six Non-Executive Directors of which Mr. KedarisettyNaga Mahesh Kumar and Mr. Rama Chandra Kurup are the Independent Directors. In terms ofthe provisions of Section 152 of the Act Mr. Hemant Goenka (DIN: 02138953) retires byrotation and being eligible offers himself for reappointment.
Declaration by Independent Directors
The Company had received declarations from the Independent Directors confirming thatthey meet the criteria of Independence as prescribed under the provisions of Section149(6) the Companies Act 2013 and Regulation 16(1)(b) read with Regulation 25(8) of theSEBI Listing Regulations. The Board have taken on record these declarations afterundertaking the due assessment of the veracity of the same.
Key Managerial Personnel
During the year under review Mr. Giriraj Ratan Kothari was appointed on 1stJune 2020 as Company Secretary and Compliance Officer of the Company in place of Mr.Ankit Bhadani. Mr. Ashish Kumar Chaudhuri was reappointed as Chief Executive Officer witheffect from 1st October 2020 on the expiry of his previous term. Mr. DebabrataDutta was reappointed as Chief Financial Officer on 1st September 2020 on theexpiry of his previous term. Consequent to the resignation of Mr. Dutta Mr. Subir Das wasappointed as Chief Financial Officer of the Company with effect from 1stDecember 2020.
NUMBER OF MEETINGS OF THE BOARD
During the year under review eleven meetings of the Board of Directors were convenedand held. The dates of the meetings were 1st April 2020 25th May2020 29th May 2020 30th July 2020 28th August 20205th September 2020 15th September 2020 14th November2020 30th November 2020 1st December 2020 and 12thFebruary 2021.
ANNUAL PERFORMANCE EVALUATION
In terms of the Nomination & Remuneration Committee Charter the Board has adoptedevaluation framework on the recommendation of the Nomination & Remuneration Committee(NRC) for evaluating its own performance and as well as that of its Committees andIndividual Directors. Accordingly Performance Evaluation Templates were circulated to allthe Directors covering the areas relevant to its functioning and evaluation of performanceof each Individual Director/ Committee or Board as a whole. The Independent Directorscarried out annual performance evaluation of the other Non- Executive Directors. Theperformance of each Committee was evaluated by the Board and based on report on evaluationreceived from respective Committees and a summarized report was shared with the Board forits review and feedback was given to each Director.
The Audit Committee of the Board of Directors consists of: Mr. Kedarisetty Naga MaheshKumar Mr. Rama Chandra Kurup Mr. Akhilanand Joshi
The Committee met six times during the period under review and the dates of themeetings were as follows: 1st April 2020 30th July 2020 15thSeptember 2020 14th November 2020 30th November 2020 and 12thFebruary 2021. The terms of reference of the Committee are in accordance with theprovisions of Section 177 of the Companies Act 2013. Chief Financial Officer is permanentinvitees to the Committee meetings. Your Company has a well-structured internal auditsystem commensurate with its size and operation. During the year there was no occasionwhen the Board had not accepted the recommendations of the Audit Committee.
NOMINATION AND REMUNERATION COMMITTEE
The Nomination and Remuneration Committee of the Board of Directors consists of: Mr.Kedarisetty Naga Mahesh Kumar Mr. Rama Chandra Kurup Mr. Akhilanand Joshi
The Committee met five times during the period under review and the dates of themeetings were as follows:
1st April 2020 26th May 2020 24th August 2020 9thSeptember 2020 and 30th November 2020.
The Company has in place a policy on directors' appointment and remuneration includingcriteria for determining qualifications positive attributes independence of a directorand other matters as required under the provisions of Companies Act 2013 and SEBI (Listing Obligations and Disclosure Requirements) 2015 is available on the website of theCompany at the link: www.easyfincorp.com
CORPORATE SOCIAL RESPONSIBILITY
As the Company does not meet the criteria mentioned in the section 135 of the CompaniesAct 2013 the provisions of Corporate Social responsibility are not applicable.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 134(3) (c) of the Act the Directors to the best of theirknowledge and belief confirm that:
a) In the preparation of the annual accounts for the financial year ended 31st March2021 the applicable accounting standards have been followed along with proper explanationrelating to material departures;
b) appropriate accounting policies have been selected and applied consistently andjudgments and estimates have been made that are reasonable and prudent so as to give atrue and fair view of the state of affairs of the Company at the end of the financial yearand of the loss of the Company for the period;
c) proper and sufficient care have been taken for the maintenance of adequateaccounting records in accordance with the provisions of this Act for safeguarding theassets of the Company and for preventing and detecting fraud and other irregularities;
d) The annual account have been prepared on a going concern basis;
e) Internal financial controls laid down by the directors have been followed by theCompany and that such internal financial controls were adequate and operating effectivelyand;
f) Proper systems to ensure compliance with the provisions of all applicable laws werein place and were adequate and operating effectively.
Your Company has not accepted any public deposits under Chapter V of the Companies Act2013.
PARTICULARS OF LOANS GUARANTEE OR INVESTMENTS
Details of Loans given and Investments made are covered under the provisions of section186 of the said Act are provided in the notes to the financial statement.
Further the Company has not given any guarantees or provided any security during thefinancial year.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
All Related Party Transactions that were entered into during the financial year were onan arm's length basis and were in the ordinary course of business. Hence the provisionsof Section 188 of the Act are not attracted. Thus disclosure in Form AOC-2 is notrequired. Further there are no materially significant Related Party Transactions duringthe year under review made by the Company with its Promoters Directors Key ManagerialPersonnel or other designated persons which may have a potential conflict with theinterest of the Company at large. Related Party Transactions if any are placed beforethe Audit Committee for its approval.
PARTICULARS OF EMPLOYEES
Particulars of employees as per Rule 5(1) of Companies (Appointment and Remuneration ofManagerial Personnel) Rules 2014 are given as Annexure I to this Report.
There were no employees of the Company drawing remuneration in excess of limitsprescribed under Rule 5(2) of the Companies (Appointment and Remuneration of ManagerialPersonnel) Rules 2014.
CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
Considering the nature of your Company's activities during the year under review yourCompany did not consume energy of any significant level nor were there much scope fortaking any measures for energy conservation technology absorption and making anyadditional investment for the above purposes. There has been no foreign exchange earningsor outgo during the year under review.
Risk Management is the process of identification assessment and prioritization ofrisks followed by coordinated efforts to minimize monitor mitigate and control theprobability and/or impact of unfortunate events or to maximize the realization ofopportunities The Company has laid out a proper mechanism in place to identify theelements of business and other risks and a risk management system to ensure compliancewith the applicable laws and relevant standards. In the opinion of the Board there are nosuch risk which may threaten the existence of the Company.
VIGIL MECHANISM POLICY/WHISTLE BLOWER POLICY
In compliance with the provisions of Section 177(9) of the Companies Act 2013 theCompany has framed a vigil mechanism policy and system of vigil mechanism to deal withinstances of fraud and mismanagement if any and concerns about violation of Company'spolicies. The Policy is available in the website at www.easyfincorp.com
DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS COURTS ANDTRIBUNALS
No significant and material order has been passed by the Regulators Courts andTribunals impacting the going concern status and the Company's operations in future.
DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THEFINANCIAL STATEMENTS
The Company has an adequate Internal Control System commensurate with the size scaleand complexity of its operations. The scope of the Internal Audit function is well definedin the engagement letter of the internal auditor duly approved by the Audit Committee.With a view to maintain its objectivity and Independence the Internal Auditor reports tothe Audit Committee. The Internal Auditor evaluates the adequacy of the internal controlsystem in the Company on the basis of statement of operation procedure instructionmanuals accounting policy and procedure.
In view of the amendment in provisions of Sections 92 and 134 of the Companies Act2013 and Rule 12 of the Companies (Management and Administration) Amendment Rules 2021effective from 5th March 2021 the Company has not annexed Extract of Annual Return inthe prescribed form for the financial year ended on 31st March 2021 to this Report. TheAnnual return of the Company is available on the website of the Company at the link:www.easyfincorp.com
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION PROHIBITIONAND REDRESSAL) ACT 2013
The Company has in place a policy in line with the requirements of The SexualHarassment of Women at the Workplace (Prevention Prohibition & Redressal) Act 2013covering all the employees at workplace. An internal committee has been set up as per theAct to redress complaints of sexual harassment if any. All women employees (permanenttemporary contractual and trainees) are covered under this Policy. All employees aretreated with dignity with a view to maintain an environment free of sexual harassmentwhether physical verbal or psychological. No complaints were received or remained pendingfor disposal during the year under review.
Neither maintenance of Cost Records nor audit of cost records as required under Section148 of the Companies Act 2013 read with relevant rules made thereunder is applicable tothe Company.
Messrs. Haren Parekh & Co. Chartered Accountants (Firm Registration No.114076W)were appointed as the Auditors of the Company at the 32nd Annual GeneralMeeting to hold office from the conclusion of 32nd Annual General Meeting tillthe conclusion of 37th Annual General Meeting.subject to the ratification bythe members at the every AGM. However the requirement for the annual ratification ofauditors' appointment at the AGM has been omitted pursuant to
Companies (Amendment) Act 2017 notified on May 7 2018.
The Auditors' Report for the financial year 2020-21 does not contain any qualificationreservation or adverse remark. No instances of fraud have been reported by the StatutoryAuditors of the Company under Section 143(12) of the Companies Act 2013. The Report isenclosed with the financial statements in this Annual Report.
Mr. Vijay Kumar Mishra of Messrs. VKM & Associates Practicing Company Secretariesis appointed as Secretarial Auditor of the Company for financial year 2020-21 as requiredunder Section 204 of the Companies Act 2013 and Rules thereunder. The attachedSecretarial Audit Report marked as Annexure II which forms part of this Report isself-explanatory and does not contain any qualification reservation adverse remark ordisclaimer which requires our further comments
During the year under review the Company has complied with the applicable SecretarialStandards issued by the Institute of Company Secretaries of India pursuant to Section 118of the Companies Act 2013.
COMPLIANCE WITH CODE OF CONDUCT
The Company has adopted the "Code of Conduct for Board Members and SeniorManagement Personnel". The Code of Conduct contains the duties of the IndependentDirectors as laid down in the Act. The Code is available on the website of the Company atwww.easyfincorp.com All the Directors and the Senior Management Personnel of the Companyhave given a declaration of compliance with the Company's Code of Conduct in accordancewith Regulation 26(3) of the
SEBI Listing Regulations during the year ended 31st March 2021.
Your Directors wish to place on record their appreciation for the valuable servicesrendered by the employees of the Company across levels. The Directors would also like toexpress their appreciation and thanks to the Bankers Regulatory Authorities Suppliersand the Shareholders for their continued support and co-operation.
Date: 22nd June 2021