The Directors have pleasure in presenting before you the Annual Report of the Companytogether with the Audited Statements of Accounts for the year ended 31st March 2017.
FINANCIAL SUMMARY/HIGHLIGHTS OPERATIONS & STATE OF AFFAIRS:
(Rs. In Lakhs)
|Particulars ||2016-17 ||2015-16 |
|Gross Income ||263.91 ||197.34 |
|Less: Finance Cost ||100.46 ||54.01 |
|Overheads ||97.58 ||92.71 |
|Depreciation ||11.86 ||12.70 |
|Profit before Tax & Exceptional Items ||54.01 ||37.92 |
|Add : Exceptional Items ||0.00 ||0.00 |
|Profit before Tax ||54.01 ||37.92 |
|Less : Provision for taxation (Including Deferred tax) ||16.13 ||11.73 |
|Profit after tax ||37.88 ||26.19 |
|Add : Balance b/d from the previous year ||54.60 ||36.57 |
|Excess provision for Income Tax ||0.00 ||0.19 |
|Surplus available for appropriations ||92.48 ||62.95 |
|Appropriations || || |
|Transferred to Special Reserve ||7.58 ||5.25 |
|Provision for Standard Assets ||0.53 ||0.63 |
|Provision for NPA ||1.25 ||2.47 |
|Excess Provision for Income Tax ||0.06 ||0.00 |
|Balance carried over to Balance Sheet ||83.06 ||54.60 |
LENDING OPERATIONS &
DISBURSEMENT OF LOANS:
Your Company registered a remarkable growth in its operations. The highlights ofCompany's Performance are as follows:
The Operating Profit before charging depreciation and tax amounted to Rs. 65.87Lakhs in the year 2016-17 as against Rs. 50.62 Lakhs in the preceding year; representing arise of 30.12%.
Profit after Tax (PAT) before extraordinary items went up by 44.64% to Rs. 37.88Lakhs in the year 2016-17 from Rs. 26.19 Lakhs in the previous year.
As at 31st March 2017 the loan portfolio stood at Rs. 1353.25 Lakhs as againstRs. 1143.18 Lakhs in the previous year representing an increase of 18.38%.
Disbursements during the year amounted to Rs. 3.78 Crores in 2016-17.
As a part of its liability management your Company endeavors to diversify itsresource base in order to achieve an appropriate maturity structure and minimize theweighted average cost of borrowed funds.
Your Directors felt it prudent to retain the earnings for the year under review to beploughed back in business which shall result in further augmentation of the Company'sgrowth and shareholders' wealth.
CHANGES IN SHARE CAPITAL:
During the year under review there were no changes in the share capital of theCompany.
Loan from Banks and FIs: During the year SRGSFL availed credit facilities from StateBank of India aggregating to Rs. 9 Crores. The loan outstanding as at 31st March 2017 wasRs. 8.49 Crore.
Under the provisions of section 125 of Companies Act 2013 dividends that remainunclaimed for a period of seven years from the date of declaration are required to betransferred to the Investor Education and Protection Fund (IEPF) administered by theCentral Government. As at March 31st 2017 there are no unpaid/ Unclaimed Dividend to betransferred to Investor Education and Protection Fund.
MANAGEMENT DISCUSSION AND ANALYSIS:
As required under Regulation 34 of Securities and Exchange Board of India (ListingObligations and Disclosure Requirements) Regulations 2015 ("ListingRegulations") and Circular/ Notifications/Directions issued by RBI from time to timethe Management Discussion and Analysis of the financial condition is presented in ANNEXUREIV forming part of the Annual Report.
The Company does not have any subsidiary.
DIRECTOR'S RESPONSIBILITY STATEMENT:
In pursuance of section 134 (3) (c) of the Companies Act 2013 and based on theinformation provided by the management your Directors hereby confirm that:
(a) In the preparation of the annual accounts the applicable accounting standards hadbeen followed;
(b) Accounting policies selected were applied consistently. Reasonable and prudentjudgments and estimates were made so as to give a true and fair view of the state ofaffairs of the
Company as at March 31st 2017 and of the profit of the Company for the year ended onthat date;
(c) Proper and sufficient care has been taken for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act 2013 forsafeguarding the assets of the Company and for preventing and detecting frauds and otherirregularities;
(d) The annual accounts of the Company have been prepared on a going concern basis.
(e) Internal controls have been laid down to be followed by the Company and suchinternal controls were adequate and were operating effectively.
(f) Systems to ensure compliance with the provisions of all applicable laws were inplace and were adequate and operating effectively.
CORPORATE GOVERNANCE AND SHAREHOLDERS INFORMATION:
Your Company has taken adequate steps to adhere to all the stipulations laid down inSEBI (LODR) Regulations 2015. A report on Corporate Governance is included as a part ofthis Annual Report in ANNEXURE V.
Certificate from the Statutory Auditors of the company confirming the compliance withthe conditions of Corporate Governance as stipulated under SEBI (LODR) Regulations 2015is attached to this report.
In terms of Section 136 of the Act the reports and accounts are being sent to themembers and others entitled thereto.
RELATED PARTY TRANSACTIONS:
All contracts / arrangements / transactions entered by the Company during the financialyear with related parties are in the ordinary course of business and on an arm's lengthbasis. During the year the Company had not entered into any contract / arrangement /transaction with related parties which could be considered material in accordance with thepolicy of the Company on materiality of related party transactions.
The Policy on materiality of related party transactions and dealing with related partytransactions as approved by the Board may be accessed on the Company's website at the link(http://srgfin.com/BestPracticesSub/26/Policy%20on%20Relat ed%20Party).
Your Directors draw attention of the members to Note 20 to the financial statementwhich sets out related party disclosures
RISK MANAGEMENT POLICY:
Pursuant to section 134 (3) (n) of the Companies Act 2013 & SEBI (LODR)Regulations 2015 the company has in place a risk management framework approved by theboard of Directors. SRGSFL's Risk Management framework provides the mechanism for riskassessment and mitigation. Company has in place Risk Management Committee. The details ofthe committee and its terms of reference are set out in the corporate governance reportforming part of the Boards report.
At present the company has not identified any element of risk which may threaten theexistence of the company.
CORPORATE SOCIAL RESPONSIBILTY POLICY:
Pursuant to the provisions of section 135 and schedule VII of the Companies Act 2013at present the CSR provisions are not applicable to the Company.
DETAILS OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS:
The Company has an Internal Control System commensurate with the size scale andcomplexity of its operations. The scope and authority of the Internal Audit function isdefined by board. To maintain its objectivity and independence the Internal Auditorreports to the Chairman of the Audit Committee of the Board and/or to the ManagingDirector.
The Internal Auditor monitors and evaluates the efficacy and adequacy of internalcontrol system in the Company its compliance with operating systems accountingprocedures and policies of the Company.
Based on the report of internal auditor respective heads undertake corrective actionin their respective areas and thereby strengthen the controls. Significant auditobservations and recommendations along with corrective actions thereon are presented tothe Audit Committee of the Board and/or to the Managing Director.
In accordance with the provisions of the Act and the Articles of Association of theCompany Mr. Rajesh Jain Director is liable to retire by rotation at the ensuing AnnualGeneral Meeting and being eligible offers him self for re- appointment.
Necessary Resolutions for the re-appointment of the aforesaid director have beenincluded in the notice convening the ensuing AGM and details of the proposal forre-appointment are mentioned in the explanatory statement of the notice. Your Directorsrecommend their appointment/ re-appointment.
All the directors of the Company have confirmed that they are not disqualified frombeing appointed as directors in terms of Section 164 of the Companies Act 2013.
Board of Directors of the Company in their meeting held on 1st May 2017 acceptedresignation of Mrs. Aarti Jain from the Post of CFO of the Company and further Board ofDirectors in their meeting held on 13th May 2017 accepted the resignation of Mr. BhupeshKumar Jain from the post of Independent Director of the Company.
DECLARATION FROM INDEPENDENT DIRECTORS ON ANNUAL BASIS:
The Company has received necessary declaration from each Independent Director of theCompany under Section 149(7) of the Companies Act 2013 that the Independent Directors ofthe Company meet with the criteria of their Independence as laid down in Section 149(6).
STATUTORY AU DITORS
In accordance with the requirement of Companies Act 2013 the current Statutory AuditorM/s Valawat & Associates Chartered Accountants (Firm Registration No.003623C) holdoffice up to the conclusion of the ensuing AGM. As per the provision of Section 139 of theCompanies Act 2013 M/s Valawat & Associates Chartered Accountants are not eligiblefor re-appointment for a fresh term.
The Board of Director places on record its appreciation for the services rendered byM/s Valawat & Associates as the Statutory Auditors of the company.
The Board of directors of the Company on the recommendation of the Audit Committee hasconsidered and recommended the appointment of M/s. PKJ & Co. Chartered Accountants(FRN: 124115W) as Statutory Auditors for a term of five years beginning from theconclusion of the 22nd AGM till the conclusion of 27th AGM subject to approval of membersat the ensuring AGM.
The statutory Auditors have not made any adverse comment or given any qualificationsreservation or adverse remarks or disclaimer in their Audit report.
M/s Deepak Vijaywargey & Associates Practicing Company Secretary Udaipur wasappointed as the Secretarial Auditor of the
Company for the financial year 2016-17 by the Board of Directors pursuant to provisionsof Companies Act 2013 and rules there under. Secretarial audit report as provided by M/sDeepak Vijaywargey & Associates Practicing Company Secretary is annexed to thisReport as ANNEXURE II.
QUALIFICATIONS IN AUDIT REPORTS:
There are no qualifications reservations or adverse remarks or disclaimer made-
(a) By the statutory auditor in his report; and
(b) By the company secretary in practice in his secretarial audit report;
The Board of Directors met 9 (nine) times during this financial year 2016-17.
COMPOSITION OF AUDIT COMMITTEE:
The Audit Committee consists of adequate composition of Executive and Non- ExecutiveIndependent Directors. The details of which are mentioned in the Corporate GovernanceReport.
COMPOSITION OF NOMINATION & REMUNERATION COMMITTEE:
The Nomination & Remuneration Committee consists of adequate composition of Non-Executive Independent Directors. The details of which are mentioned in the CorporateGovernance Report.
COMPOSITION OF STAKEHOLDER'S RELATIONSHIP COMMITTEE:
The Stakeholder's Relationship Committee consists of adequate composition of Non-Executive and Independent Directors. The details of which are mentioned in the CorporateGovernance Report.
PARTICULARS OF LOANS GAURANTEES OR INVESTMENTS:
Details of Loans Guarantees and Investments covered under the provisions of Section186 of the Companies Act 2013 if any apart from the loans made guarantee given orsecurity provided by the Company in the ordinary course of business are given in theNotes
to accounts forming part of the Audited Financial Statements for the year ended March31 2017.
CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE OUTGO:
(A) Conservation of energy:
The Company's operations are not power intensive. Nevertheless your Company is takingevery step to conserve and minimize the use of energy wherever possible such as usingenergy efficient computer terminals purchasing energy efficient equipments etc.
(B) Technology absorption:
The Company has imported no technology. Indigenous technology available is continuouslyupgraded to improve overall performance.
(C) Expenditure incurred on research and development:
The Company has no formal research and development department but the Company iscontinuously making efforts to strengthen research and development activities to improvequality and reduce cost.
(D) Foreign exchange earnings and Outgo:
During the year under review there was no earnings and outgo in foreign exchange.
EXTRACT OF ANNUAL RETURN:
As required pursuant to section 92(3) of the Companies Act 2013 and rule 12(1) of theCompanies (Management and Administration) Rules 2014 the details forming part of extractof annual return in MGT 9 is annexed herewith as ANNEXURE III.
PARTICULARS OF EMPLOYEES:
In accordance with the provisions of Section 197 of the Companies Act 2013 read withthe Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 asamended as at March 31st 2017 there were no employees in SRGSFL throughout the year whowere in receipt of remuneration of Rs. 1.02 Crores or more per annum or Rs. 8.50 Lakhs ormore per month if appointed for the part of the year.
EVENTS SUBSEQUENT TO THE DATE OF FINANCIAL STATEMENTS:
There are no material changes and commitments affecting financial position of thecompany between 31st March and the date of Board's Report.
CHANGE IN THE NATURE OF BUSINESS:
There are no changes in the Nature of Business.
DETAILS RELATING TO DEPOSITS:
Your Company has not accepted any deposits from the public during the year under review.The Company has been granted registration by the Reserve Bank of India as a non-deposittaking NBFC. Being so the Company has neither accepted in the past nor has any futureplans to accept any public deposits.
SIGNIFICANT & MATERIAL ORDERS PASSED BY THE REGULATORS:
The Company has been following directions guidelines circulars issued by SEBI BSEMCA RBI etc. from time to time relating to companies and that there are no significant& material orders passed by these regulators so far.
DISCLOSURES ON MANAGERIAL REMUNERATION:
Details of Managerial remuneration as required under Rule 5(1) of the Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 is given as per"Annexure VII" to this report.
LISTING WITH STOCK EXCHANGES:
The Company confirms that it has paid the Annual Listing Fees for the year 2017-18 toBSE SME where the Company's Shares are listed.
INVESTOR COMPLAINTS AND COMPLIANCE:
During the year company has not received any investor complaints and that as on date nocomplaints are pending.
EARNINGS PER SHARE (EPS):
The Earnings Per Share (EPS) is ' 0.98 as at March 31st 2017 as against ' 0.68 as atMarch 31st 2016.
|Particulars as on 31st March ||2017 ||2016 |
|Capital Adequacy Ratio ||48.69% ||53.49% |
Your Company's capital adequacy ratio was at 48.69% as on 31st March 2017 which webelieve provides an adequate cushion to
withstand business risks and is above the minimum requirement of 15% stipulated by theRBI.
NON-PERFORMING ASSETS AND PROVISIONS FOR CONTINGENCY:
Your Company adhered to the prudential guidelines for Non performing Assets (NPAs)issued by Reserve Bank of India as amended from time to time. As per the prudentialnorms the income on such NPAs is not to be recognised if unrealized.
As per the prudential norms prescribed by the Reserve Bank of India the Company hasmade provision for contingencies on standard as well as non-performing assets.
A NOTE OF APPRECIATION:
Your Directors place on record their appreciation for the advice guidance and supportgiven by various regulatory authorities including the RBI SEBI MCA the Stock Exchange(BSE) Depositories and all the bankers of the Company including State Bank of India . TheDirectors would also like to acknowledge the role of all its stakeholders - shareholdersborrowers key partners and lenders for their continuing support to the Company. YourDirectors also record their appreciation for the dedicated services of the employees andtheir contribution to the growth of the Company. The Board would also like to express itssincere appreciation to all the Company's valued Shareholders RTA Service Providers andCounselors for their continued support and patronage.
|Sd/- ||Sd/- |
|Vinod K. Jain ||Rajesh Jain |
|Managing Director ||Director |
|DIN: 00248843 ||DIN: 00212393 |
|Date: 27.05.2017 || |
|Place: Udaipur || |