GAZI FINANCIAL SERVICES AND INVESTMENTS LIMITED
ANNUAL REPORT 2009-2010
Your Directors have pleasure in presenting the 16th Annual Report along
with the Audited Accounts of the Company for the year ended 31st March
FINANCIAL RESULTS (In Rs.)
Particulars 2009-2010 2008-2009
Gross Income From
Operation 953000.00 193000.00
Other Income 6133.00 NIL
Total Expenditure 389673.00 158528.00
Gross Profit (Loss) 569460.00 34472.00
Net Profit (Loss) after Tax 321181.00 34472.00
Add/Less: Balance brought forward (33400072.00) (33434544.00)
Balance Carried to Balance Sheet (33078891.00) (33400072.00)
Owing to the development and expansion plans already undertaken by the
company and the need of ploughing back in the company of the generated
profits during the year, your Directors do not recommend any dividend for
the year under review.
Mr. Taslim N. Gazi, the Directors of the Company, retire by rotation and
being eligible offer himself for re-appointment.
Your Directors recommend the re-appointment of the aforesaid Directors.
M/s. M.K. Gohel & Associates, Chartered Accountants, Mumbai Statutory
Auditors of the Company holds office until the conclusion of the ensuing
Annual General Meeting, and is eligible for re-appointment. The Company has
received their consent under section 224(1B) of the Companies Act, 1956 for
Thenotes to the accounts referred to in the Auditors' Report are self-
explanatory and therefore do not call for any further comments.
The company has not accepted Fixed Deposits from public within the purview
of section 58A, of the Companies Act, 1956, during the year under review.
PARTICULARS OF EMPLOYEES
There are no employees whose particulars are required to be shown in terms
of provisions of Section 217 (2A) of the Companies Act, 1956 read with the
Companies (Particulars of Employees) Rules, 1975 as amended.
CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION AND ANALYSIS
Your Company believes in Corporate Governance not only in law but also in
spirit. Your Company endeavors to maximize the wealth of the shareholder by
managing the affairs of the Company with a pre-eminent level of
accountability, transparency and integrity.
A report on Corporate Governance including the relevant Auditors'
Certificate regarding compliance with the conditions of Corporate
Governance as stipulated in Clause 49 of the listing agreement with stock
exchanges is annexed.
Management Discussion and Analysis is also annexed.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement under section 217 (2AA) of the Companies Act,
1956, your Directors state that:-
1) In the preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to;
material departures, if any.
2) The directors have selected such accounting policies and applied them
consistently and made judgements and estimates that are reasonable and
prudent so as to give a true and fair view of the-state of affairs of the
company as at the end of the financial year and profit for the year under
3) The Directors have taken proper and sufficient care for the maintenance
of adequate accounting records in accordance with the provisions of the act
for safeguarding the assets of the Company and for the preventing and
detecting fraud and other irregularities.
4) The Directors have prepared the accounts for the financial year ended
31st March 2010 on a 'going concern' basis.
CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION
The Company did not carry out any Business activities in relation to
conservation of energy, technology absorption in accordance with the
Companies (Disclosure of Particulars in the report of Board of Directors)
FOREIGN EXCHANGE EARNINGS AND OUTGO
During the year under review Company has:
Foreign exchange earnings : NIL
Foreign exchange outgo : NIL
The Board wishes to place on the record its sincere appreciation of the
effort put in by your company's senior management team, executives and
consultants at all levels, with your wishes and trust we endeavors to
delivers long term shareholder value.
Your Directors would like to thank all investors, customers, financial
institutions, vendors, banks, government authorities, the registrars,
business/alliance and technology partners for the support.
By Order of the Board
12-A, Media House
1st Floor, 36, Pandita Ramabai Road,
Date : 29th August, 2010
MANAGEMENT DISCUSSION AND ANALYSIS
OVERVIEW OF FINANCIAL SECTOR IN INDIAN ECONOMY
The year 2009 was a difficult year for the entire world. Not only did this
have an impact on die on the demand environment on die industries, it also
had a huge impact on economic metrics like foreign exchange rates, economic
growth expectations and cost structures globally.
Rapidly changing global economic & business conditions and technological
innovation are creating an increasingly competitive environment that is
driving companies to transform their operations globally. While the
expectations of the customers have increased manifold; your Company is
committed to satisfy the clients widi improved quality and accelerated
delivery schedules with a focus on developing long terms relationships and
strengdiening strategic partnerships.
There has been no occurrence of any event or circumstance since the date of
the last financial statements that may materially and adversely affect or
is likely to affect die trading or profitability of our Company or the
value of our assets or our ability to pay our liabilities.
Financial sector reforms have long been regarded as an integral part of the
overall policy reforms in India. India has recognized that these financial
sector reforms are imperative for increasing the efficiency of resource
mobilization and allocation in the real economy and for the overall
macroeconomic stability. The reforms have been driven by a thrust towards
liberalization and several initiatives such as liberalization in the
interest rate and reserve requirements have been taken on this front. At
the same time, die government has emphasized on stronger regulation aimed
at strengdiening prudential norms, transparency and supervision to mitigate
the prospects of systemic risks.
The Company is mainly engaged in business of financial consultancy.
OPPORTUNITIES AND THREATS
Financial sector reforms have been an important part of die overall reform
process. Yet, after a decade of reforms, many of the deep seated problems
in the financial sector remain. The hopes diat were raised by the
impressive progress in the initial years of the reforms have not been
fulfilled. The state has not relinquished its grip on the financial sector.
Except in isolated pockets, competition has not been unleashed in the
financial sector on a scale sufficient to produce visible benefits in terms
of efficiency, innovation and customer service. Moreover, many of the
deeper rooted problems of the Indian economy strongly relating to die
financial sector are:
1. Relatively inadequate level of prudential regulation in the financial
2. Poorly developed debt and money markets; and
3. Outdated (often primitive) technological and institutional structures
that made the capital markets and the rest of the financial system highly
Over the last six years, much has been achieved in addressing many of these
problems, but a lot remains to be done.
The operation of the company consists of the single segment. Hence,
Accounting standard on Segment Reporting (AS-17) issued by Institute of
Chartered Accountants of India does not apply.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
The Company has an adequate system of Internal Control which enables
reliable financial reporting, safeguards assets and encourage adherence to
The Company also has a system for a speedy compilation of accounts and
management information reports to comply with applicable laws and
The Company has a reasonable budgetary control system. The actual
performance is reviewed with reference to budgets monthly by the
The Company has a well defined organization structure, authority level,
internal rules and guidelines for conducting business transactions.
MATERIAL DEVELOPMENTS IN HUMAN RESOURCES, INCLUDING NUMBER OF PEOPLE
The Company is maintaining very healthy and cordial relationship with the
employees at all levels of the organization. There is an active Human
Resource (HR) team deployed which takes care of recruitment of eligible
candidates based on their qualification and experiences, timely payment of
salary, incentives etc; Complaints of employees, if any are resolved within
stipulated time frame and strict compliance of various Labour and
Employment laws are taken care of. The employees are directed towards
achieving the objectives for which the Company is formed.
We are committed to deliver quality services on a consistent basis and at
competitive prices, our strategy has been to develop strong customer
relationship and to be a customer driven Company.
On balance, the rate at which India's financial sector is exposed to global
financial markets should be based on meeting the following objectives,
namely how best to:
a) Increase competition and thereby enhance the efficiency of financial
intermediation and promote overall savings;
b) Widen and deepen the reach of the formal financial sector;
c) Ensure that the country's savings are utilized most productively; and
d) Manage the risks stemming from disturbances in global markets to
insulate the financial sector and the Indian economy.
RISKS AND CONCERNS
Following are the Risks and Concerns faced by the Company during the
financial year under review
* Increase in number of financial market intermediaries.
* General economic and business conditions;
* Our Company's inability to successfully implement our growth strategy;
* Changes in political and social conditions in India;
* Uncertainties prevailing in Capital and Securities market etc;