Your Directors have pleasure in presenting their Twenty Seventh Annual Report and theAudited Statements of Accounts for the Financial Year ended March 31 2021.
|Particulars ||Year Ended March 31 2021 ||Year Ended March 31 2020 |
| ||(Rs.) ||(Rs.) |
|Gross Income for the year ||53121101 ||33159725 |
|Total Expenditure before Depreciation and Tax ||55415405 ||60911297 |
|Profit /(Loss) before Depreciation ||(2294304) ||(27751572) |
|Less: Depreciation ||2348732 ||1766664 |
|Tax Provisions for the Year ||303571 ||(2256197) |
|Profit /(Loss) after Depreciation and Tax ||(4946607) ||(27262039) |
|Other Comprehensive Income for the year ||175813 ||166001 |
|Balance brought forward from previous year ||(80945761) ||(53849723) |
|Profit /(Loss) available for Appropriation ||(85716555) ||(80945761) |
|Balance carried to Balance Sheet ||(85716555) ||(80945761) |
In the absence of profits your Directors do not recommend payment of any dividend forthe Financial Year 2020-2021.
State of Companys Affairs:
Some highlights of your Companys performance during the year under review are:
The gross loss (before depreciation) for the year was Rs. 2294304/- as against Rs.27751572/- during the last year.
Net loss after taxation for the year was Rs. 4770794/- as against Rs. 27096038/- inthe last year.
The total asset under management was Rs. 204.33 Crore as against Rs. 155.49 Crore inthe last year.
Shriram Hybrid Equity Fund launched in November 2013 delivered return of 10.13% (atthe end of March 2021 on a CAGR basis) since inception accompanied by lower levels ofvolatility. Shriram Flexi Cap Fund launched in September 2018 delivered return of 9.31%(at the end of March 2021 on a CAGR basis) since inception. Shriram Long Term Equity Fundlaunched in January 2019 delivered return of 13.20% (at the end of March 2021 on a CAGRbasis) since inception. Shriram Balanced Advantage Fund launched in July 2019 deliveredreturn of 11.15% (at the end of March 2021 on a CAGR basis) since inception.
Mutual fund industry witnessed outflows during FY21 as Rs. 123028.45 crores weretaken out during FY21 compared to an inflow ofRs. 91602.75 crores in FY20 (source:SEBI).
The contributions through Systematic Investment Plan (SIPs) in mutual fund continued toremain robust even though there was a fall on a year-on-year basis. The contribution ofSIP stood at Rs. 96080 crores in FY21 down 4%.11.78 lakh SIP accounts were added on anaverage each month during the financial year with the total number of SIP accounts addingup to about 3.73 crores in FY21. Rising awareness about mutual funds through variousinitiatives and campaigns like Mutual Funds Sahi Hai has bolstered investorsentiment about the benefits of SIPs. Average Assets
Under Management (AAUM) of Indian Mutual Fund Industry at the end of March 2021 grew30.24% to Rs. 32.17 lakh crores.
Nature of Business:
There was no change in the nature of the business.
The total Paid up Share Capital as on March 31 2021 was Rs. 60 Crores comprising of 60Lakhs Equity Shares of Rs.10/- each and 54 Lakhs Redeemable Non-Convertible PreferenceShares of Rs. 100/- each.
Material Changes and Commitments:
No material changes or commitments affecting the financial position of the 2021 tillthe date of this report.
Particulars of Loans Guarantees or Investments:
The details of the Investments and Loans covered under the provisions of Section 186 ofthe Companies Act 2013 (" the Act") are given in the notes to thefinancial statements.
Cash Flow Statement:
The Cash Flow statement for the year 2020-2021 is attached to the Balance Sheet.
The Board at its Meeting held on February 02 2021 re-appointed Mr. Akhilesh KumarSingh as Managing Director not liable to retire by rotation for a period of one yeareffective from February 14 2021 subject to approval of the Members. Mrs. ChandraIyengar Director resigned as Director with effect from January 01 2021 due to personalreasons.
In accordance with the provisions of the Act and in terms of the Memorandum andArticles of Association of the Company Mr. Dhruv Mehta retires by rotation at theensuing AGM and being eligible offers himself for reappointment.
Necessary proposals for reappointment of the aforesaid Directors have been included inthe notice convening the AGM and the respective resolutions are recommended for yourapproval.
All the Independent Directors have given declarations that they meet the criteria ofindependence as laid down under Section 149(6) of the Act and Regulation 16 (1) (b) of theSecurities and Exchange Board of India (Listing Obligations and Disclosure Requirements)Regulations 2015 hereinafter referred to as Listing Regulations. In theopinion of the Board they fulfil the conditions of independence as specified in the Actand the Listing Regulations and are independent of the management. Further theIndependent Directors have complied with the Code for Independent Directors prescribed inSchedule IV to the Act.
Profile of the Directors as required under Regulation 36 of the Listing Regulationsare given in the Notice of the 27th Annual General Meeting.
During the year under report your Company has not accepted any fixed deposits.
Pursuant to the provisions of the Act and the Listing Regulations the Board hascarried out an annual performance evaluation of its own performance and the Directorsindividually as well as the evaluation of the working of its Committees. The manner inwhich the evaluation has been carried out has been explained in the Corporate GovernanceReport.
Policy on Directors Appointment and Remuneration:
The Board has framed a policy which lays down a framework in relation to remunerationof Directors Key Managerial Personnel and Senior Management of the Company.
The key features of the policy are as follows:
1. Criteria for appointment and removal of Director Key Managerial Personnel andSenior Management.
2. Criteria for performance evaluation.
3. Criteria for fixing the remuneration of Director Key Managerial Personnel andSenior Management.
The details of this policy are explained in the Corporate Governance Report and arealso available at www.shriramamc.in.
During the year 4 Board Meetings and 4 Audit Committee Meetings were convened and held.The details of the meetings are given in the Corporate Governance Report. The gap betweenthe Meetings was within the period prescribed under the Act and as per Regulation 17(2)and 18(2) of the Listing Regulations respectively.
Pursuant to the requirement of Regulation 21 of the Listing Regulations the Companyhas constituted Risk Management Committee. The Company has in place a Risk ManagementPolicy commensurate with its size of operations which lays down a process foridentification and mitigation of risks that could materially impact its performance.
Corporate Social Responsibility:
The Company has not developed and implemented any Corporate Social Responsibilityinitiatives as the said provisions are not applicable.
Directors Responsibility Statement:
Pursuant to the provisions of Section 134(3)(c) of the Act the Directors confirm thatto the best of their knowledge and belief:
a) In the preparation of Annual Accounts and Financial Statements for the year endedMarch 31 2021 the applicable Accounting Standards have been followed along with properexplanations relating to material departures if any;
b) That such accounting policies as mentioned in Notes to the Financial Statements havebeen selected and applied consistently and judgments and estimates have been made that arereasonable and prudent so as to give a true and fair view of the state of affairs of theCompany as at March 31 2021 and of the Loss of the Company for the year ended on thatdate; sufficient has been taken for the maintenance of adequate accounting records inaccordance
c) That proper and with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting fraud and other irregularities;
d) The Annual Accounts have been prepared on an ongoing concern basis;
e) That they have laid down internal financial controls commensurate with the size ofthe Company and that such financial controls were adequate and were operating effectively;
f) That systems to ensure compliance with the provisions of all applicable laws were inplace and were adequate and operating effectively.
Related Party Transactions:
All related party transactions of the Company are at arms length basis and are inthe ordinary course of business. None of the related party transactions entered into bythe Company were in conflict with the Companys interest. There are no materiallysignificant related party transactions made by the Company with Promoters Directors orKey Managerial Personnel etc. which may have potential conflict with the interest of theCompany at large. Members approval for material Related Party Transaction as definedunder the Listing Regulations shall be obtained at the ensuing Annual General Meeting.
All Related Party Transactions are placed before the Audit Committee/Board asapplicable for their approval. The particulars of contracts or arrangements with relatedparties in Form AOC -2 are annexed herewith as Annexure A.
Significant and Material Orders Passed by the Regulators or Courts or Tribunals:
During the year under report there were no significant material orders passed by theRegulators/ Courts/ Tribunals impacting the going concern status and Companysoperations in future.
Internal Financial Controls and their adequacy:
The Company has put in place adequate internal financial controls with reference to theFinancial Statements commensurate with the size of the Company.
Disclosures: Audit Committee:
The Audit Committee comprises of Mr. Prabhakar Karandikar (Independent Director) asChairman Mr. Arindom Mukherjee (Independent Director) as Member Mrs. Jayashree Mahesh(Non- Independent Director) as Member and Mr. Kshiti Ranjan Das (Independent Director) asMember. All the recommendations made by the Audit Committee were accepted by the Board.
Vigil Mechanism / Whistle Blower Policy:
As per the provisions of Section 177(9) of the Act the Company is required toestablish a Vigil Mechanism for Directors and employees to report genuine concerns.Regulation 4 (2) (d) (iv) of Listing Regulations also provides for establishment of vigilmechanism for Directors and employees for above mentioned matters. The Company has aPolicy for Prevention Detection and Investigation of Frauds and Protection ofWhistleblower. The detail of the Vigil Mechanism is posted on the website of the Companyi.e. www.shriramamc.in.
Establishment of Internal Complaints Committee:
The Company has in place an Anti Sexual Harassment Policy in line with the requirementsof the Sexual Harassment of Women at Workplace (Prevention Prohibition and Redressal)Act 2013. Internal Complaints Committee has been set up to redress complaints receivedregarding sexual harassment. All employees (permanent contractual temporary trainees)are covered under this policy. No complaints of sexual harassment were received during theyear.
Auditors and Auditors Report:
The Companys Statutory Auditors M/s. G. D. Apte & Co. (Firm RegistrationNo. 100515W) Chartered Accountants Mumbai were appointed as Statutory Auditors of theCompany for a period of five consecutive years at the 23rd Annual GeneralMeeting held on August 10 2017 on a remuneration mutually agreed upon by the Board ofDirectors and the Statutory Auditors.
Their appointment was subject to ratification by the Members at every subsequent AGMheld after the AGM held on August 10 2017. Pursuant to the amendments made to Section 139of the Act by the Companies (Amendment) Act 2017 effective from May 07 2018 therequirement of seeking ratification of the Members for the appointment of the StatutoryAuditors has been withdrawn from the Statute.
In view of the above ratification by the Members for continuance of their appointmentat this AGM is not being sought. The Statutory Auditors have given a confirmation to theeffect that they are eligible to continue with their appointment and that they have notbeen disqualified in any manner from continuing as StatutoryAuditors.
The Notes on financial statement referred to in the Auditors Report areself-explanatory and do not call for any further comments. The Auditors Report doesnot contain any qualification reservation or adverse remark.
No fraud has been reported by the Auditors to the Audit Committee or the Board.
Pursuant to the provisions of Section 204 of the Act and the Companies (Appointment andRemuneration of Managerial Personnel) Rules 2014 the Company has appointed Mr. Suhas S.Ganpule Practising Company Secretary Proprietor of M/s. SG & Associates toundertake the Secretarial Audit of the Company. The Secretarial Audit Report is annexedherewith as "Annexure B". The Secretarial Audit Report does not containany qualification reservation or adverse remark.
Subsidiaries Joint Ventures or Associate Companies:
During the year under report there was no change in the associate company. The Companydoes not have any subsidiary or joint venture.
The Report on Corporate Governance forms part of the Directors Report and isannexed herewith.
As required by the Listing Regulations Auditors Report on Corporate Governanceand a declaration by the Managing Director with regards to Code of Conduct are attached tothe said Report.
The Management Discussion and Analysis is given as a separate statement forming part ofthe Annual Report.
As required under Listing Regulations a detailed report on Corporate Governance alongwith the Certificate from the Company Auditors confirming compliance forms anintegral part of this Report and certificate duly signed by the Managing Director andChief Financial Officer (CFO) on the Financial Statements of the Company for the March 312021 was submitted to the Board of Directors at their Meeting held on May 19 2021. Thesecertificates are attached to the Report on Corporate Governance.
Energy Conservation Technology Absorption and Foreign Exchange Earnings and Outgo:
1. Conservation of Energy
The Company has no activity involving Conservation of Energy.
2. Technology Absorption
The Company has no activity involving Technology Absorption.
3. Foreign Exchange earnings and outgo
The Company did not have any foreign exchange earnings or outgo during the year underreview.
Extract of Annual Return:
Pursuant to Section 92 (3) of the Act and Rule 12 (1) of the Companies (Management andAdministration) Rules 2014 the extract of the Annual Return in the prescribed Form MGT-9is annexed herewith as "Annexure C". The complete Annual Return isavailable on the Companys Website www.shriramamc.in
Compliance with Secretarial Standards:
The Board of Directors affirms that the Company has complied with the applicableSecretarial Standards issued by the Institute of Company Secretaries of India (SS1 andSS2) respectively relating to Meetings of the Board and its Committees which havemandatory application.
Amount if any proposed to transfer to reserves:
The Company has made no transfers to reserves during FY 2020-2021.
Particulars of Employees:
During the year under report your Company has not employed any person who was inreceipt of remuneration in excess of the limits specified under Section 197 of the Actread with the Companies (Appointment and Remuneration of Managerial Personnel) Rules2014.
The details required as per Rule 5 (1) of the Companies (Appointment and Remunerationof Managerial Personnel) Rules 2014 is annexed herewith as "Annexure D".As per the provisions of Section 136(1) of the Act the Annual Report excluding theinformation required as per Rule 5 (2) of the Companies (Appointment and Remuneration ofManagerial Personnel) Rules 2014 on employees particulars is being sent to themembers which is however available for online inspection during working hours of theCompany up to the date of the ensuing Annual General Meeting. If any Member is interestedin obtaining such information may write to the Company Secretary in this regard.
The Board of Directors take this opportunity to express their sincere appreciation forthe excellent support and cooperation received from the Securities and Exchange Board ofIndia Association of Mutual Funds of India Stock Exchange Authorities AuditorsBankers Distributors other Service providers and Board of Trustees of Shriram MutualFund.
The Directors wish to place on record the continued enthusiasm total commitmentdedication and efforts of the employees of the Company at all levels.
We are also deeply grateful to the Shareholders of the Company and also to the largebody of investors of scheme of Shriram Mutual Fund for the continued confidenceand thefaith reposed in the Fund and look forward to their continued patronage.
By Order of the Board
For Shriram Asset Management Company Limited
Date: May 19 2021