Mar 31, 2019
Dear Members,
The Board of Directors of Aditya Birla Money Limited are pleased to present the 23rd Annual Report together with the Audited Financial Statements of the Company for the year ended March 31, 2019:
FINANCIAL HIGHLIGHTS
(Rs. in Crore)
Particulars |
Financial Year 2018-19 |
Financial Year 2017-18 |
Revenue from Operations |
168.05 |
162.15 |
Other Income |
3.61 |
2.65 |
Total Income |
171.66 |
164.80 |
Profit Before Tax |
14.00 |
10.10 |
Tax Expenses |
4.01 |
2.80 |
Profit for the year |
9.99 |
7.30 |
Other Comprehensive Income |
0.25 |
(0.34) |
Total Comprehensive Income for the year |
10.24 |
6.96 |
Earnings per Equity Share (Face Value of Re.1/- each) |
||
Basic |
1.78 |
1.31 |
Diluted |
1.77 |
1.30 |
The financial statements have been prepared in accordance with the Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 and the Companies (Indian Accounting Standards) Rules, 2015.
RESERVES
The Company does not propose to carry any amount to the reserves.
DIVIDEND
In order to conserve cash for Company''s operations, your Directors do not recommend any dividend for the year under review.
STATE OF THE COMPANY''S AFFAIRS
Information on the operational and financial performance, among others, is provided in the Management Discussion and Analysis Report which forms part of the Annual Report.
HOLDING AND SUBSIDIARY COMPANY
Aditya Birla Capital Limited is the Holding Company of the Company. During the year under review, Aditya Birla Commodities Broking Limited, a wholly owned subsidiary of the Company, got amalgamated with the Company with effect from December 14, 2018 pursuant to the National Company Law Tribunal Order dated November 14, 2018 approving the Scheme of Amalgamation and accordingly ceases to be a subsidiary of the Company.
CREDIT RATING
CRISIL Limited and India Ratings & Research Pvt. Ltd. have assigned ratings of ''CRISIL A1 '' and ''IND A1 '' for the Commercial Paper Programme of the Company for an amount of Rs.500 Crore.
CONTRACTS AND ARRANGEMENTS WITH RELATED PARTIES
During the year under review, all contracts and arrangements with related parties have been entered into by the Company in its ordinary course of business and at armâs length. The particulars of such contracts and arrangements with related parties are given in notes to the Financial Statements, forming part of this Annual Report.
The details of the material related party transactions entered into during the year under review are provided in Form AOC-2, which is attached as âAnnexure A" to this Report.
In accordance with the provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has in place the Policy on dealing with Related Party Transactions which is available on its website at the link: https://stocksandsecurities.adityabirlacapital.com/about-us/investor.
SHARE CAPITAL
During the year under review, the Company had issued and allotted 1,79,219 Equity Shares on exercise of the Options granted under the Employees Stock Option Scheme 2014 of the Company. Consequently, as at March 31, 2019, the paid-up Equity Share Capital of the Company stood at Rs.5.63 Crore, consisting of 5,63,01,357 Equity Shares of Re.1/-each. The Company has 10,00,000 8% Redeemable Non-Convertible Non-Cumulative Preference Shares of Rs.100/-each outstanding as on March 31, 2019. The Company had, during the year, with the consent of the preference shareholder, extended the period of redemption and increased the redemption price of the Preference Shares.
EMPLOYEE STOCK OPTIONS
Disclosure pursuant to Section 62(1)(b) of the Companies Act, 2013 read with Rule 12 of Companies (Share Capital and Debentures) Rules, 2014 & SEBI (Share Based Employee Benefits) Regulations, 2014:
The Company had formulated the ABML Employee Stock Option Scheme - 2014 (ABML ESOP Scheme - 2014) with the approval of the shareholders at the Annual General Meeting dated September 09, 2014.
Nature of Disclosure |
Particulars |
|
Options granted on December 02, 2014 |
25,09,341 |
|
Options outstanding as on April 01, 2018 |
6,99,531 |
|
Options vested during the year |
1,77,198 |
|
Options exercised during financial year 2018-19 |
1,79,219 |
|
Total number of shares arising as a result of exercise of options |
1,79,219 |
|
Options lapsed |
Nil |
|
Exercise Price |
Rs.34.25 per option |
|
Variation of terms of options |
None |
|
Money realised by exercise of options |
Rs.61,38,252/- |
|
Total number of Options in force as on March 31, 2019 |
5,20,312 |
|
Employee-wise details of options granted to: (i) Key Managerial Personnel |
No. of options granted |
No. of options outstanding |
Mr. Murali Krishnan L.R. - Manager |
27,473 |
10,756 |
Mr. Vikashh K Agarwal - Company Secretary (Resigned with effect from July 31, 2017) |
32,967 |
Nil |
(ii) Any other employee who received a grant of options in the year under review amounting to 5% or more of total options granted during the year |
Nil |
|
(iii) Identified employees who were granted options, during the year, equal to or exceeding 1% of the issued capital, excluding outstanding warrants and conversions, of the Company at the time of grant. |
Nil |
There has been no material change to the ESOP Scheme - 2014 during the year and the Scheme is in compliance with the SEBI (Share Based Employee Benefits) Regulations, 2014. The Disclosures as required under Regulation 14 of SEBI (Share Based Employee Benefits) Regulations, 2014 has been hosted on the Company''s website at the link: https:// stocks and securities.adityabirlacapital.com/about-us/investor
A certificate received from the Auditors on the implementation of the Company''s Employees Stock Option Scheme 2014 will be placed at the ensuing Annual General Meeting for inspection by the Members.
Aditya Birla Capital Limited Employee Stock Option Scheme 2017
The shareholders of the Company vide a Special Resolution dated September 25, 2017 had approved the extension of benefits of the Aditya Birla Capital Limited Employee Stock Option Scheme 2017 to the employees of the Company and accordingly, stock options were granted to the employees of the Company. Total cost incurred by Aditya Birla Capital Limited till date is being recovered from the Company over the period of vesting. Accordingly, a sum of Rs.19,285,906/-has been recovered from the Company during the year which has been charged to the Statement of Profit and Loss.
DIRECTORS
Mr. G. Vijayaraghavan and Mr. P. Sudhir Rao hold office as Independent Directors till the conclusion of the ensuing AGM. Mr. G. Vijayaraghavan and Mr. P. Sudhir Rao have offered themselves for re-appointment for a second term of five years from the conclusion of the ensuing AGM till the conclusion of the 28th AGM to be held in the year 2024.
In accordance with the provisions of Section 149 of the Companies Act, 2013, the Independent Directors have given a declaration that they meet the criteria of independence as provided in the said Section and in terms of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Mr. Tushar Shah retires by rotation at the ensuing AGM and being eligible, offers himself for re-appointment.
KEY MANAGERIAL PERSONNEL
During the year under review, Mr. Rajesh Gandhi resigned as the Company Secretary of the Company with effect from October 17, 2018 and Ms. Sangeeta Shetty has been appointed as the Company Secretary of the Company with effect from October 18, 2018.
The Board of Directors at their Meeting held on April 25, 2019 had subject to the approval of the Members, re-appointed Mr. Murali Krishnan L. R. as Manager for a period of five years with effect from May 06, 2019. The necessary resolution in this regard is being placed for approval of the Members at the ensuing AGM.
BOARD MEETINGS
The Board of Directors of the Company met 4 (four) times during the Financial Year 2018-19 on April 26, 2018, July 19, 2018, October 17, 2018 and January 17, 2019.
PERFORMANCE EVALUATION
The Company has in place a mechanism for evaluation of the performance of the Board, Committees, Individual Directors and the Chairman of the Board. The evaluation process inter-alia reviews participation of Directors at meetings, domain knowledge, business awareness and adherence to governance.
A formal annual evaluation had been made by the Independent Directors and the Board of the performance of the Committees, Individual Directors, Chairman and the Board for the year under review. The evaluation has been satisfactory and adequate and meets the corporate governance requirement of the Company.
AUDIT COMMITTEE
The Audit Committee comprises of:
Mr. P. Sudhir Rao Chairman, Independent Director
Mr. G. Vijayaraghavan Independent Director
Mr. Shriram Jagetiya Non-Executive Director
During the year under review, all recommendations of the Audit Committee were accepted by the Board.
INTERNAL FINANCIAL CONTROLS
The Company has in place adequate internal financial controls with reference to the financial statements. The controls comprise of policies and procedures for ensuring orderly and efficient conduct of the Company''s business, including adherence to its policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information.
VIGIL MECHANISM (WHISTLE BLOWER POLICY)
In accordance with Section 177(9) of the Companies Act, 2013 read with Rule 7 of the Companies (Meetings of Board and its Powers) Rules, 2014 and Regulation 22 of the SEBI Listing Regulations, the Company has established a Vigil Mechanism (Whistle Blower Policy) for Directors and Employees to report concerns. The Whistle Blower Policy has been hosted on the Company''s website at the link: https://stocksandsecurities.adityabirlacapital.com/about-us/investor.
RISK MANAGEMENT
The Company has in place a Risk Management Policy for identification, assessment, measurement and reporting of business risks faced by the Company. The Risk Governance Committee monitors the risk management process.
CORPORATE SOCIAL RESPONSIBILITY COMMITTEE
In accordance with Section 135 of the Companies Act, 2013 the Company has a Corporate Social Responsibility (CSR) Committee consisting of the following Members:
Mr. G. Vijayaraghavan Chairman, Independent Director
Mr. Gopi Krishna Tulsian Non-Executive Director
Ms. Pinky A Mehta Non-Executive Director
The CSR Policy of the Company is available on its website at the link: https://stocksandsecurities.adityabirlacapital.com/ about-us/investor and details thereof are provided as âAnnexure B" to this Report.
AUDITORS
The Report of the Auditors, M/s. S. R. Batliboi & Co. LLP, Chartered Accountants (ICAI Firm Registration Number: 301003E / E300005), does not contain any qualification, reservation, adverse remark or disclaimer. The Auditors have not reported any fraud to the Audit Committee or the Board of Directors under Section 143(12) of the Companies Act, 2013 during the year under review.
SECRETARIAL AUDITORS
M/s. BNP & Associates, Practicing Company Secretaries, were appointed as the Secretarial Auditors, to conduct the Secretarial Audit for the financial year ended March 31, 2019. The Secretarial Audit Report in Form MR-3 and the Secretarial Compliance Report for the financial year 2018-19 forms part of this Report as âAnnexure C". The Reports do not contain any qualification, observation, reservation, adverse remark or disclaimer.
SECRETARIAL STANDARDS
The Company has complied with the Secretarial Standards on Meetings of the Board of Directors (SS-1) and General Meetings (SS-2).
ANNUAL RETURN
A copy of the Annual Return has been placed on the website of the Company and can be accessed at the link: https://stocksandsecurities.adityabirlacapital.com/about-us/investor.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The Management Discussion and Analysis Report for the year under review is presented as a separate section forming part of this Annual Report.
CORPORATE GOVERNANCE
The Compliance Certificate from Ms. B. Chandra, Practicing Company Secretary, regarding compliance of conditions of Corporate Governance is annexed to this Report as âAnnexure D".
REMUNERATION POLICY
The Remuneration Policy of the Company is available on its website at the link: https://stocksandsecurities. adityabirlacapital.com/about-us/investor and the salient features of the Policy in accordance with the provisions of Section 178(3) of the Companies Act, 2013 is placed as âAnnexure E" to this Report.
PARTICULARS OF EMPLOYEES
Disclosures pertaining to remuneration and other details, as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, are given in âAnnexure F" to the Board''s Report. Details as required under Rule 5(2) and 5(3) of the said Rules are available for inspection at the Registered Office of the Company during working hours for a period of twenty one days before the date of the AGM in accordance with Section 136(1) of the Companies Act, 2013. Any member interested in obtaining a copy thereof may write to the Company Secretary at the Registered Office of the Company.
PREVENTION OF SEXUAL HARASSMENT OF WOMEN AT WORKPLACE
The Company has a Policy on Prevention of Sexual Harassment of Women at Workplace and has complied with the provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. No case was reported during the year under review.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
a) Conservation of energy - The Company''s operations are not energy intensive. Adequate measures have been taken to conserve energy wherever possible.
b) Technology absorption - The minimum technology required for the business has been absorbed.
c) Foreign exchange earnings and outgo - The Company did not enter into any foreign currency transactions in the current year and previous year.
OTHER DISCLOSURES
During the year under review, there has been no change in the nature of business of the Company.
There are no material changes and commitments affecting the financial position of the Company which has occurred between the end of the financial year of the Company i.e. March 31, 2019 and the date of this Board''s Report.
The Company does not have and during the financial year ended March 31, 2019, has not accepted any deposit covered under Chapter V of the Companies Act, 2013.
As on March 31, 2019, the Company has not given loans, made investments or provided guarantees or securities as covered under Section 186 of the Companies Act, 2013.
No significant or material orders were passed by the regulators or courts or tribunals impacting the going concern status and Company''s operations in future.
The Company is not required to maintain cost records under Section 148 of the Companies Act, 2013.
DIRECTORS'' RESPONSIBILITY STATEMENT
In accordance with Section 134(5) of the Companies Act, 2013, your Directors state that:
a) in the preparation of the annual accounts for the year ended March 31, 2019, the applicable accounting standards have been followed and there are no material departures from the same;
b) they have selected such accounting policies and applied them consistently and made judgments 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 March 31, 2019 and of the profit of the Company for year ended on that date;
c) they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
d) they have prepared the annual accounts on a going concern basis;
e) they have laid down Internal Financial Controls to be followed by the Company and that such Internal Financial Controls are adequate and are operating effectively; and
f) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.
ACKNOWLEDGMENT
Your Directors take this opportunity to express their appreciation for the support and co-operation extended by the Members and other business associates. Your Directors gratefully acknowledge the ongoing co-operation and support provided by the Government, Regulatory and Statutory bodies.
Your Directors place on record their deep appreciation for the exemplary contribution made by the employees of the Company at all levels. Their dedicated efforts and enthusiasm have been pivotal to the Company''s growth.
For and on behalf of the Board of Directors
Aditya Birla Money Limited
Gopi Krishna Tulsian
Place : Mumbai Chairman
Date : April 25, 2019 DIN : 00017786
Mar 31, 2018
Dear Shareholders,
The Board of Directors of Aditya Birla Money Limited (âyour Companyâ or âthe Companyâ or âABMLâ) are pleased to present the Twenty Second Annual Report and the audited financial statements (standalone and consolidated) of your Company for the financial year ended March 31, 2018.
1. COMPANY OVERVIEW AND STATE OF AFFAIRS OF THE COMPANY
Your Company is a listed company. Its shares are listed on the BSE and NSE since 2008. The Company is currently engaged in the business of securities broking and is registered as a stock broker with SEBI. It is a member of BSE and NSE and offers equity and derivatives trading through NSE and BSE. It holds license from SEBI and offers portfolio management services. The Company is also registered as a depository participant with National Securities Depository Limited (âNSDLâ) and the Central Depository Services (India) Limited (âCDSLâ). It also holds SEBI license as a research analyst, an Investment Adviser and ARN code issued by AMFI. The Company also offers commodity broking through its wholly owned subsidiary Aditya Birla Commodities Broking Limited which is a member of MCX and NCDEX.
Information on the operational and financial performance, among others, is provided in the Management Discussion and Analysis Report and other Sections of Boardâs Report which forms part of the Annual Report.
2. FINANCIAL RESULTS
Companyâs financial performance (Standalone and Consolidated) for the year ended March 31, 2018 is summarized below:
(Rs. in Crore)
Particulars |
Standalone |
Consolidated |
||
FY 2017-18 |
FY 2016-17 |
FY 2017-18 |
FY 2016-17 |
|
Income from Operations |
156.94 |
123.36 |
162.15 |
131.17 |
Other Income |
2.33 |
1.53 |
2.49 |
1.95 |
Total Income |
159.27 |
124.90 |
164.64 |
133.12 |
Profit / (Loss) before tax |
12.26 |
6.96 |
12.77 |
8.08 |
Current Tax |
2.70 |
0.81 |
2.70 |
0.81 |
MAT Credit Written Back |
- |
- |
- |
- |
Profit / (Loss) after tax |
9.57 |
6.15 |
10.07 |
7.28 |
Transfer to General Reserve |
- |
- |
- |
- |
Profit / (Loss) brought forward from previous year |
(19.52) |
(25.67) |
(20.63) |
(27.91) |
Balance carried to Balance Sheet |
(9.95) |
(19.52) |
(10.57) |
(20.63) |
Earnings per share (in Rs.) |
1.70 |
1.11 |
1.79 |
1.31 |
The Consolidated Financial Statements of the Company and its Subsidiary, prepared in accordance with the Companies Act, 2013 read with Companies (Accounts) Rules, 2014, the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (âthe SEBI Listing Regulationsâ) and Indian Accounting Standards 110 - Consolidated Financial Statements along with all relevant documents and the Auditorsâ Report form part of this Annual Report. The Consolidated Financial Statements presented by the Company include the financial results of its Subsidiary Company.
The Financial Statements as stated above are also available on the website of the Company and can be accessed on the Companyâs Website at: https://stocksandsecurities.adityabirlacapital.com/about-us/investor.
2.1 Presentation of Financial Statements
The financial statements of the Company for the year ended March 31, 2018 have been prepared/attached as per Schedule III to the Companies Act, 2013.
2.2 Key Highlights of the Company:
The Company on a Standalone basis has achieved total income of Rs.159.27 Crore as compared to Rs.124.90 Crore during the previous year. The Income from Operations during the year was at Rs.156.94 Crore as compared to Rs.123.21 Crore during the previous year. The Company on a standalone basis has posted a Net Profit of Rs.9.57 Crore during the year ended March 31, 2018.
On a Consolidated basis, the Companyâs Income from Operations stood at Rs.162.15 Crore as compared to Rs.131.17 Crore in the previous year. The Company has posted a Consolidated Net Profit of Rs.10.07 Crore during the year ended March 31, 2018 as compared to Rs.7.27 Crore in the previous financial year.
3. RESERVES
The Company does not propose to transfer any amount to the general reserve out of the amount available for appropriation.
4. DIVIDEND
In order to conserve cash for Companyâs operations, your Directors do not recommend any dividend for the year under review.
5. SHARE CAPITAL
During the year under review, the Company had issued and allotted 722,138 equity shares on exercise of the Options granted under the Employees Stock Option Scheme 2014 of the Company. Consequently, as at March 31, 2018, the paid-up share capital of the Company stood at Rs.156,122,138/- (consisting of 56,122,138 equity shares of Re.1/- each and 1,000,000 8% Redeemable Non-Convertible Non-Cumulative Preference shares of Rs.100/ - each).
6. CREDIT RATING
During the year, CRISIL has re-affirmed A1 rating for the short term debt programme of the Company.
7. DEPOSITS
Your Company has not accepted or renewed any deposits during the financial year ended March 31, 2018 from the public in accordance with the provisions of Section 73 of the Companies Act, 2013 and the Companies (Acceptance of Deposit) Rules, 2014.
8. PARTICULARS OF LOANS GIVEN, INVESTMENT MADE, GUARANTEES GIVEN OR SECURITY PROVIDED UNDER SECTION 186 OF THE COMPANIES ACT, 2013
The particulars of the loans, guarantees and investments covered under provisions of the Section 186 of the Companies Act, 2013 read with the Companies (Meeting of Board and its Powers) Rules, 2014 are given in the notes to the financial statements, which forms part of this Annual Report.
9. CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION
The particulars as required under the provisions of Section 134(3) (m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014 in respect of conservation of energy and technology absorption have not been furnished considering the nature of activities undertaken by the Company during the year under review.
10. FOREIGN EXCHANGE EARNINGS AND EXPENDITURE
There were no foreign exchange earnings and outgo during the year as well as during the previous year.
11. PARTICULARS OF EMPLOYEES
In accordance with the provisions of Section 197(12) of the Act, read with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the names and other particulars of employees drawing remuneration in excess of the limits, set out in the aforesaid Rules, are to be provided in the Boardâs Report, as an annexure thereto. In line with the provisions of Section 136(1) of the Act, the Report and Accounts, as set out therein, are being sent to all the Members of your Company, excluding the aforesaid information about the employees. Any Member, who is interested in obtaining these particulars about employees, may write to the Company Secretary at the Registered Office of your Company. The aforesaid addendum is also available for inspection by the Members at the Registered Office of the Company 21 days before the AGM and upto the date of the ensuing AGM, during business hours on working days.
Disclosures pertaining to remuneration and other details, as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, are given in Annexure A of the Boardâs Report.
As on March 31, 2018, your Companyâs Employee strength stood at 670 Employees.
12. MATERIAL CHANGES AND COMMITMENT AFFECTING FINANCIAL POSITION OF THE COMPANY
There are no material changes and commitments, affecting the financial position of the Company which has occurred between the end of the financial year of the Company i.e. March 31, 2018 and the date of this Boardâs report.
Assurance on the effectiveness of internal financial controls is obtained through management reviews, self-assessment, continuous monitoring by functional experts as well as testing of the internal financial control systems by the internal auditors during the course of their audits. During the year under review, no material or serious observation has been received from the Auditors of the Company, citing inefficiency or inadequacy of such controls.
13. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS
No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Companyâs operations in future.
14. CHANGE IN NATURE OF BUSINESS
During the year under review, there has been no change in the nature of business of the Company.
15. EMPLOYEE STOCK OPTION
DISCLOSURE PURSUANT TO SECTION 62(1)(B) OF THE COMPANIES ACT, 2013 READ WITH RULE 12 OF COMPANIES (SHARE CAPITAL AND DEBENTURES) RULES, 2014 & SECURITIES EXCHANGE BOARD OF INDIA (SHARE BASED EMPLOYEE BENEFITS) REGULATIONS, 2014
The Company had formulated the ABML Employee Stock Option Scheme - 2014 (ABML ESOP Scheme - 2014) with the approval of the shareholders at the Annual General Meeting dated September 09, 2014.
Nature of Disclosure |
Particulars |
|
Options granted on December 02, 2014 |
2,509,341 |
|
Options outstanding as on April 01, 2017 |
1,445,845 |
|
Options vested during the year |
25% of the options granted |
|
Options exercised as on March 31, 2018 |
722,138 |
|
Total number of shares arising as a result of exercise of options |
722,138 |
|
Options lapsed |
24,176 (due to resignation of employees) |
|
Exercise Price |
Rs.34.25 per option |
|
Variation of terms of options |
Nil |
|
Money realised by exercise of options |
Rs.24,733,226.50 |
|
Options outstanding as on March 31, 2018 |
699,531 |
|
Employee-wise details of options granted (i) Key Managerial Personnel |
No. of options granted |
No. of options outstanding |
Mr. Murali Krishnan L.R. - Manager |
27,473 |
20,756 |
Mr. Vikashh K Agarwal - Company Secretary (Resigned from Company with effect from 31.07.2017) |
32,967 |
16,484 |
(ii) Any other employee who received a grant of option amounting to 5% or more of options during that year |
Nil |
|
(iii) Identified employees who were granted option, during any one year, equal to or exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of the Company at the time of grant. |
Nil |
The Company has complied with and shall comply with the applicable provisions under the Companies Act, 2013, the SEBI (Share Based Employee Benefits) Regulations, 2014 and the Accounting Standards. The Disclosures prescribed in Regulation 14 of SEBI (Share Based Employee Benefits) Regulations, 2014 has been posted on the Companyâs website at the link: https://stocksandsecurities.adityabirlacapital com/about-us/investor.
A certificate received from the Statutory Auditors on the implementation of the Companyâs Employees Stock Option Scheme 2014 will be placed at the ensuing Annual General Meeting for inspection by the Members.
Aditya Birla Capital Limited Employee Stock Option Scheme 2017 (âScheme 2017â)
The shareholders of your Company vide a Special Resolution dated September 25, 2017 passed through postal ballot / e-voting facility had approved the extension of benefits of the Aditya Birla Capital Limited Employee Stock
Option Scheme 2017 (âScheme 2017â) to the permanent employees in the management cadre of your Company. Pursuant to the provisions of Section 67 of the Companies Act, 2013 applicable ESOP charge has been debited by Aditya Birla Capital Limited to the Company. Accordingly, during the year under review Rs.14,862,522/- has been debited to the Employee cost towards Aditya Birla Capital Limited Employee Stock Options granted to Employees of your Company.
16. MANAGEMENT DISCUSSION AND ANALYSIS
Pursuant to Regulation 34 of the SEBI Listing Regulations, the Managementâs Discussion and Analysis Report for the year under review is presented as a separate section forming part of this Annual Report.
17. CORPORATE GOVERNANCE
The Company is committed to maintain the highest standards of Corporate Governance and adhere to the Corporate Governance requirements set out by the Securities and Exchange Board of India. Corporate Governance principles form an integral part of the core values of the Company. The report on Corporate Governance as stipulated under Regulation 34(3) read with Schedule V of the SEBI Listing Regulations forms an integral part of this Report. The requisite certificate from Practicing Company Secretary confirming compliance with the conditions of Corporate Governance is given in âAnnexure Bâ and the same forms part of the Directorsâ Report.
18. HOLDING AND SUBSIDIARIES/IOINT VENTURES/ASSOCIATE COMPANIES Holding Company:
The Company is the subsidiary company of Aditya Birla Capital Limited (formerly known as Aditya Birla Financial Services Limited) which was a subsidiary company of Aditya Birla Nuvo Limited (âABNLâ). ABNL was amalgamated with Grasim Industries Limited pursuant to a Composite Scheme of Arrangement between ABNL, Grasim Industries Limited and Aditya Birla Capital Limited. As a result, the Companyâs ultimate holding company has been changed from ABNL to Grasim Industries Limited w.e.f. July 01, 2017.
Subsidiary Company:
The Company has a wholly owned subsidiary viz. Aditya Birla Commodities Broking Limited (âABCBLâ), which is engaged in the business of commodity broking.
Your Company does not have any Joint Ventures or Associate Companies as on March 31, 2018.
During the year, ABCBL has posted total Income of Rs.5.39 Crore as compared to Rs.8.22 Crore during previous year. The subsidiary has posted a Net Profit of Rs.0.51 Crore as compared to a Net Profit of Rs.1.13 Crore in the previous year.
The Policy for determining material subsidiaries may be accessed on the Companyâs website at https://stocksandsecurities.adityabirlacapital.com/about-us/investor.
A report on the performance and financial position of each of its subsidiaries, associates as per the Section 129(3) of the Companies Act, 2013 and the Rules made thereunder is provided in the prescribed form AOC-1 as per âAnnexure Câ.
The audited financial statement of the Companyâs subsidiary and related information has been placed on the website of the Company at https://stocksandsecurities.adityabirlacapital.com/about-us/investor
19. MERGER OF ABCBL WITH THE COMPANY:
The Board of Directors of your Company had at its Meeting held on January 24, 2018, approved the merger of ABCBL, wholly owned subsidiary company with your Company. The said merger shall be subject to receipt of necessary approvals of Stock / Commodity Exchanges (of which the Company and ABCBL are members), National Company Law Tribunal (âNCLTâ), shareholders and creditors (if so directed by NCLT) and other governmental authorities as may be required.
Upon the coming into effect of the Scheme of Amalgamation (âthe Schemeâ), and with effect from the Appointed Date (i.e. April 01, 2018), and subject to the provisions of the Scheme, in relation to the mode of transfer and vesting, whole of the assets, properties, liabilities, clients, employees and undertakings of ABCBL shall, without any further act, instrument, deed, matter or thing, be and stand transferred to and vested in and/or be deemed to be transferred to and vested in the Company as a going concern so as to become on and from the Appointed Date, the estate, assets, rights, title, interests and authorities of the Company.
Upon the Scheme becoming effective, all the equity shares issued by ABCBL and held by the Company and/or its nominees shall stand cancelled and extinguished and in lieu thereof, no allotment of any shares in ABCBL shall be made to any person whatsoever.
The Scheme details are available on the website of BSE Limited, National Stock Exchange of India Limited and of the Company on https://stocksandsecurities.adityabirlacapital.com.
20. RISK MANAGEMENT:
Your Company has constituted a Risk Governance Committee which is mandated to review the risk management plan / process of your Company and has adequate risk management procedures, which are based upon business environment, operational controls and compliance procedures. The major risks are assessed through a systemic procedure of risk identification and classification. Risks are prioritised according to significance and likelihood. The risk assessment is not limited to threat analysis, but also identifies potential opportunities. The Risk Governance Committee oversees the risk management process.
21. CONTRACTS AND ARRANGEMENTS WITH RELATED PARTY TRANSACTIONS
During the financial year under review, all contracts / arrangements / transactions entered by the Company with related parties were in ordinary course of business and on armsâ length basis. The details of contracts and arrangements with Related Parties of your Company for the financial year ended March 31, 2018, are given in notes to the Financial Statements, forming part of this Annual Report.
All related party transactions have been approved by the Audit Committee of the Board of Directors of your Company and are reviewed by them on periodic basis. Omnibus approvals are taken for transactions which are repetitive in nature.
The details of the material related party transactions during the year under review are provided in Form AOC-2, which is attached as âAnnexure Dâ to this report.
In accordance with the provisions of the SEBI Listing Regulations, the Company has formulated a Related Party Transactions Policy (the Policy). The Policy, as approved by the Board, is available on your Companyâs website: https://stocksandsecurities.adityabirlacapital.com
22. INTERNAL FINANCIAL CONTROLS
Your Company has in place adequate internal control systems commensurate with the size of its operations. Internal control systems comprising of policies and procedures are designed to ensure sound management of your Companyâs operations, safekeeping of its assets, optimal utilisation of resources, reliability of its financial information and compliance. Clearly defined roles and responsibilities have been institutionalised. Systems and procedures are periodically reviewed to keep pace with the growing size and complexity of your Companyâs operations.
During the year under review, no material or serious observation has been received from the Statutory Auditors and the Internal Auditors of the Company on the inefficiency or inadequacy of such controls.
23. INTERNAL AUDIT
The Company has in place an adequate internal audit framework to monitor the efficacy of internal controls with the objective of providing to the Audit Committee and the Board of Directors, an independent, objective and reasonable assurance on the adequacy and effectiveness of the organizationâs risk management, control and governance processes.
The framework is commensurate with the nature of the business and the size of its operations. Internal auditing at the Company involves the utilization of a systematic methodology for analyzing business processes or organizational problems and recommending solutions to add value and improve the organizationâs operations.
The internal audit approach verifies compliance with the regulatory, operational and system related procedures and controls.
24. DIRECTORSâ RESPONSIBILITY STATEMENT
Pursuant to sub-Section (5) of Section 134 of the Companies Act, 2013 and to the best of their knowledge and belief and according to the information and explanations obtained from the operating management, your Directors make the following statement and confirm that:-
i) in the preparation of the annual accounts for the year ended March 31, 2018, the applicable accounting standards have been followed and there are no material departures from the same;
ii) the Directors had selected such accounting policies and applied them consistently and made judgments 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 March 31, 2018 and of the profit of the Company for year ended on that date;
iii) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
iv) the Directors had prepared the Annual Accounts on a âgoing concern basisâ;
v) the Directors had laid down Internal Financial Controls and that such Internal Financial Controls are adequate and are operating effectively; and
vi) the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.
25. DIRECTORS AND KEY MANAGERIAL PERSONNEL
25.1 Directors
As on March 31, 2018, your Board comprised of 6 (Six) Directors which included 4 (Four) Non-Executive Directors (including one woman director) and 2 (Two) Independent Directors. Your Directors on the Board possess experience, competency and are renowned in their respective fields. All Directors are liable to retire by rotation except Independent Directors whose term of 5 consecutive years was approved by the Shareholders of the Company in the Annual General Meeting of the Company.
In accordance with the provisions of the Act and the Articles of Association of the Company, Mr. Gopi Krishna Tulsian, retires from office by rotation and being eligible, has offered himself for re-appointment. The Directors recommend the said re-appointment. Item seeking your approval on the above re-appointment is included in the Notice convening the Annual General Meeting.
25.2 Declaration by Independent Directors
Pursuant to Section 149(7) of the Companies Act, 2013 read with the Companies (Appointment and Qualifications of Directors) Rules, 2014, the Company has received declarations from all the Independent Directors of the Company confirming that they meet the âcriteria of Independenceâ as prescribed under Section 149(6) of the Companies Act, 2013 and have submitted their respective declarations as required under Section 149(7) of the Companies Act, 2013 and the SEBI Listing Regulations.
25.3 Key Managerial Personnel
During the year under review, Mr. Vikashh K Agarwal resigned as the Company Secretary of the Company with effect from July 31, 2017 and the Board has appointed Mr. Rajesh Gandhi as the Company Secretary of the Company with effect from August 01, 2017.
25.4 Annual Performance Evaluation
The Board of Directors of the Company has put in place a mechanism for evaluation of its own performance, its Committees, individual Directors and the Chairman of the Board. The evaluation process inter-alia it considers attendance of Directors at Board and Committee meetings, participation at meetings, domain knowledge, awareness and observance of governance, etc. The Board carried out annual performance evaluation of the Board, Board Committees and individual Directors and Chairman of the Board. The result of the evaluation is satisfactory and adequate and meets the requirement of the Company.
25.5 Familiarisation Programme
The Company has put in place an induction and familiarisation programme for all its Directors including the Independent Directors. The familiarisation programme for Independent Directors in terms of provisions of Regulation 46(2)(i) of SEBI Listing Regulations, is uploaded on the website of the Company.
26. MEETINGS OF THE BOARD
The Board meets at regular intervals to discuss and decide on the Companyâs performance and strategies. During the year under review, the Board of Directors met 5 (Five) times.
The Meetings of the Board were held on April 28, 2017, July 26, 2017, August 08, 2017, October 17, 2017 and January 24, 2018.
Further details on the Board Meetings are provided in the Corporate Governance Report, forming part of this Annual Report.
27. COMMITTEES OF THE BOARD
27.1 Audit Committee
The Audit Committee comprises of the following Members:
Name |
Position |
Status |
Mr. P. Sudhir Rao |
Chairman |
Independent Director |
Mr. G. Vijayaraghavan |
Member |
Independent Director |
Mr. Shriram Jagetiya |
Member |
Non-Executive Director |
The role, terms of reference and powers of the Audit Committee are in conformity with the requirements of the Companies Act, 2013 and the SEBI Listing Regulations. During the year under review, the Audit Committee reviewed the internal controls put in place to ensure that the accounts of your Company are properly maintained and that the accounting transactions are in accordance with prevailing laws and regulations. In conducting such reviews, the Committee found no material discrepancy or weakness in the internal control system of your Company. The Committee has also reviewed the procedures laid down by your Company for assessing and managing the risks.
Further details on the Audit Committee are provided in the Corporate Governance Report, forming part of this Annual Report.
During the year under review, all recommendations made by the Audit Committee were accepted by the Board.
27.2 Nomination and Remuneration Committee
The Nomination and Remuneration Committee comprises of the following Members:â
Name |
Position |
Status |
Mr. P. Sudhir Rao |
Chairman |
Independent Director |
Mr. G. Vijayaraghavan |
Member |
Independent Director |
Mr. Shriram Jagetiya |
Member |
Non-Executive Director |
The role, terms of reference and powers of the Nomination and Remuneration Committee are in conformity with the requirements of the Companies Act, 2013 and the SEBI Listing Regulations. The Nomination and Remuneration Committee have formulated a policy on remuneration under the provisions of sub-Section (3) of Section 178 of the Companies Act, 2013 and the same is placed as âAnnexure Eâ to the Boardâs Report.
Further details on the Nomination and Remuneration Committee are provided in the Corporate Governance Report, forming part of this Annual Report.
27.3 Corporate Social Responsibility Committee
In accordance with Section 135 of the Companies Act, 2013 your Company has a Corporate Social Responsibility (CSR) Committee consisting of the following Members:
Name |
Position |
Status |
Mr. G. Vijayaraghavan |
Chairman |
Independent Director |
Mr. Gopi Krishna Tulsian |
Member |
Non-Executive Director |
Mrs. Pinky A Mehta |
Member |
Non-Executive Director |
The Company also has in place a CSR Policy and the same is available on the website of the Company at https://stocksandsecurities.adityabirlacapital.com. A detailed Report is attached as âAnnexure Fâ forming part of this report.
Further details on the Corporate Social Responsibility Committee are provided in the Corporate Governance Report, forming part of this Annual Report.
27.4 Other Committees
The Board of your Company has constituted the following Committees, the details of which are provided in the Corporate Governance Report which forms part of this Annual Report:
0 Stakeholders Relationship Committee
0 Finance Committee
0 Risk Governance Committee
0 Preference Share Allotment Committee
0 Business Integration Committee
28. ANNUAL RETURN
Pursuant to the provisions of Section 134(3) (a) of the Companies Act, 2013, the extract of Annual Return for the Financial Year ended March 31, 2018 in Form MGT-9 made under the provisions of 92(3) of the Act form part of the Boardâs Report as âAnnexure Gâ.
29. AUDITORS
29.1 Statutory Auditors, their Report and Notes to Financial Statements
Pursuant to the provisions of Section 139 of the Companies Act, 2013 and the Companies (Audit and Auditors) Rules, 2014, M/s. S.R. Batliboi & Co. LLP, (Registration No.301003E / E300005) Chartered Accountants, Mumbai were appointed in the 19th Annual General Meeting as the Statutory Auditors of the Company for a period of five years to hold office up to the conclusion of the 24th Annual General Meeting. As required by the provisions of the Companies Act, 2013, their appointment should be ratified by the Members at every AGM. The Board has recommended the ratification of appointment of M/s. S.R. Batliboi & Co. LLP as Statutory Auditors of the Company. Accordingly, requisite agenda item forms part of the notice convening AGM for ratification of appointment of Auditor. The Statutory Auditors have confirmed that they are not disqualified to act as Auditors and are eligible to hold office as Auditors of your Company.
The Notes on financial statement referred to in the Auditorsâ Report are self-explanatory and do not call for any further comments.
The Auditorâs Report does not contain any qualifications, reservations, adverse remarks or disclaimer. The Statutory Auditors have not reported any incident of fraud to the Audit Committee or the Board of Directors under Section 143(12) of the Companies Act, 2013 during the financial year ended March 31, 2018.
29.2 Secretarial Auditors
Pursuant to the requirements of Section 204(1) of the Companies Act, 2013 read with Rule 9 of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed
M/s. BNP & Associates, Practising Company Secretaries to conduct the Secretarial Audit for the financial year ended March 31, 2018. The Secretarial Audit Report in Form MR-3 for the FY 2017-18 as received from M/s. BNP & Associates, Practising Company Secretaries forms part of the Boardâs Report as âAnnexure Hâ.
The Secretarial Audit Report does not contain any qualifications, reservations or adverse remarks.
29.3 Cost Auditors
The provisions of Cost Audit as prescribed under Section 148 of the Companies Act, 2013 are not applicable to the Company.
30. WHISTLE BLOWER POLICY (VIGIL MECHANISM)
In compliance with the provisions of Section 177(9) of the Companies Act, 2013 read with Rule 7 of the Companies (Meetings of Board and its Powers) Rules, 2014 and Regulation 22 of the SEBI Listing Regulations, the Company has formulated a vigil mechanism for Directors and Employees to report concerns, details of which are covered in the Corporate Governance Report which forms part of the Annual Report. Whistleblower Policy has been hosted on Companyâs website https://stocksandsecurities.adityabirlacapital.com
31. POLICY ON PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE
Your Company has in place an appropriate Policy which is in line with the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints Committee has been set up to redress complaints, if any, received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy. We further state that during the year under review, there were no cases filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
32. HUMAN RESOURCES
Your Company believes that human resources will play a critical role in its future growth. With an unswerving focus on nurturing and retaining talent, your Company provides avenues for learning and development through functional, behavioral and leadership training programs, knowledge exchange conferences and providing communication channels for information sharing, to name a few of the initiatives.
33. SECRETARIAL STANDARDS OF ICSI
Pursuant to the approval by the Central Government to the Secretarial Standards specified by the Institute of Company Secretaries of India on April 10, 2015, the Secretarial Standards on Meetings of the Board of Directors (SS-1) and General Meetings (SS-2) came into effect from July 01, 2015. Thereafter, Secretarial Standards were revised with effect from October 01, 2017. The Company is in compliance with the Secretarial Standards.
34. OTHER DISCLOSURES
Your Directors state that during the financial year 2017-18:
1. The Company did not issue any equity shares with differential rights as to dividend, voting or otherwise.
2. The Company did not issue any Sweat Equity shares.
The Company does not have any scheme of provision of money for the purchase of its own shares by employees or by trustees for the benefit of employees.
35. CAUTIONARY STATEMENT
Statements in the Boardâs Report and the Management Discussion and Analysis describing the Companyâs objectives, projections, estimates, expectations or predictions may be âforward looking statementsâ within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to your Companyâs operations include global and Indian demand supply conditions, finished goods prices, feed stock availability and prices, cyclical demand and pricing in your Companyâs principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries within which your Company conducts business and other factors such as litigation and labour negotiations. Your Company is not obliged to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent development, information or events or otherwise.
36. ACKNOWLEDGEMENT
Your Directors take this opportunity to express their sincere appreciation for the excellent support and co-operation extended by the shareholders and other business associates. Your Directors gratefully acknowledge the ongoing co-operation and support provided by the Central and State Governments and all Regulatory bodies.
Your Directors place on record their deep appreciation for the exemplary contribution made by the employees of the Company at all levels. Their dedicated efforts and enthusiasm have been pivotal to your Companyâs growth.
For and on behalf of the Board of Directors
Aditya Birla Money Limited
Gopi Krishna Tulsian Tushar Shah
Place : Mumbai Director Director
Date : April 26, 2018 DIN : 00017786 DIN : 07504267
Mar 31, 2017
DIRECTOR''S REPORT TO THE MEMBERS
Dear Shareholders,
We are pleased to present the 21st Annual Report, together with the Audited Standalone and Consolidated Accounts of your Company for the financial year ended March 31, 2017.
1. FINANCIAL PERFORMANCE SUMMARY
The highlights of the financial results of the Company on a standalone and consolidated basis are as follows:
(Rs. in Crores)
Particulars |
Standalone |
Consolidated |
||
Year ended March 31, 2017 |
Year ended March 31, 2016 |
Year ended March 31, 2017 |
Year ended March 31, 2016 |
|
Income from Operations |
117.69 |
111.56 |
124.59 |
119.65 |
Other Income |
7.21 |
6.83 |
8.52 |
8.00 |
Total Income |
124.90 |
118.38 |
133.11 |
127.65 |
Profit before Interest, Depreciation and Taxation |
15.46 |
12.02 |
16.68 |
14.32 |
Less : Interest |
5.44 |
6.35 |
5.44 |
6.35 |
Profit before Depreciation and Taxation |
10.02 |
5.66 |
11.24 |
7.97 |
Less : Depreciation |
3.06 |
3.78 |
3.16 |
3.96 |
Profit / (Loss) Before Taxation |
6.96 |
1.88 |
8.08 |
4.01 |
Current Tax |
0.81 |
0.68 |
0.81 |
1.05 |
MAT Credit Written back |
- |
- |
- |
(0.36) |
Profit / (Loss) After Tax |
6.15 |
1.20 |
7.27 |
3.33 |
Profit / (Loss) brought forward from previous year |
(25.67) |
(26.86) |
(27.91) |
(31.24) |
Balance carried to Balance Sheet |
(19.52) |
(25.67) |
(20.63) |
(27.91) |
2. BUSINESS PERFORMANCE
The Company on a Standalone basis has achieved total income of Rs.125 crores as compared to Rs.118.38 crores during the previous year. The Income from Operations during the year was at Rs.117.69 crores as compared to Rs.111.56 crores during the previous year. The Company on a standalone basis has posted a Net Profit of Rs.6.15 crores during the year ended March 31, 2017.
On a Consolidated basis, the Company''s Income from Operations was stable at Rs.133.11 crores as compared to Rs.127.65 crores in the previous year. The Company has posted a Consolidated Net Profit of Rs.7.27 crores during the year ended March 31, 2017 as compared to Rs.3.23 crores in the previous financial year.
3. RESERVES
The Reserves & Surplus of the Company as on March 31, 2017 stood at Rs.27.77 crores. No amount is proposed to be transferred to Reserves during the year.
4. DIVIDEND
In order to conserve cash for Company''s operations, your Directors do not recommend any dividend for the year under review.
5. SHARE CAPITAL
The Authorized Share Capital of the Company is Rs.25 crores. The Issued, Subscribed and Paid- up Capital of the Company was Rs.15.54 crores as on March 31, 2016 consisting of 55,400,000 Equity shares of Re.1/- each and 1,000,000 8% Redeemable Non-Convertible Non-Cumulative Preference shares of Rs.100/- each.
6. CREDIT RATING
During the year, CRISIL has re-affirmed A1 rating for the short term debt programme of the company.
7. PUBLIC DEPOSITS
During the year, the Company has not accepted or renewed any deposit from the public as covered under Section 73 of the Companies Act, 2013 read with the Companies (Acceptance of Deposits) Rules, 2014.
8. CORPORATE GOVERNANCE
Your Company is committed to maintaining the highest standards of Corporate Governance and adhering to the Corporate Governance requirements set out by Securities and Exchange Board of India (SEBI). During the year under review, the Company was in compliance with the provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 pertaining to the Corporate Governance compliances.
The Report on Corporate Governance as stipulated under Chapter IV of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 forms part of the Annual Report. The Practicing Company Secretary''s Certificate confirming compliance with Chapter IV of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is given in Annexure I and the same forms part of the Directors'' Report.
9. MANAGEMENT DISCUSSION AND ANALYSIS
In terms of Chapter IV of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Management Discussion and Analysis Report on the operations of the company is provided as a separate section and forms part of the Annual Report.
10. SUBSIDIARY
The Company has a wholly owned subsidiary viz. Aditya Birla Commodities Broking Limited ("ABCBL"), which is engaged in the business of commodity broking.
During the year, ABCBL has posted total Income of Rs.8.22 crores as compared to Rs.9.44 crores during previous year. The subsidiary has posted a Net Profit of Rs.1.13 crores as compared to a Net Profit of Rs.2.13 crores in the previous year.
The Policy for determining material subsidiaries may be accessed on the Company''s website at http://www. adityabirlamoney.com/about-us/investor.
The audited financial statements of the Company''s subsidiaries and related information have been placed on the website of the Company viz. www.adityabirlamoney.com. Any Member, who is interested in obtaining a copy of audited financial statements of the Company''s subsidiaries may write to the Company Secretary at the Registered Office of the Company.
The Consolidated Financial Statements prepared pursuant to Section 129(3) of the Companies Act, 2013, read with the Companies (Accounts) Rules, 2014, Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and in accordance with the Accounting Standards prescribed by the Institute of Chartered Accountants of India forms part of the Annual Report. The statement containing the salient features of the financial statements of the Company''s subsidiary is set out in Annexure II to this report.
11. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
During the year, no significant and material orders were passed by the regulators or courts or tribunals impacting the going concern status of the Company.
12. INTERNAL FINANCIAL CONTROL AND THEIR ADEQUACY
The Company has put in place adequate internal control systems commensurate with the size of its operations. The internal control systems, comprising of policies and procedures, are designed to ensure orderly and efficient conduct of its business, including adherence to Company''s policies, safeguarding its assets, prevention and detection of frauds and errors, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information.
The Company has the required internal financial controls in place as prescribed under the Companies Act, 2013.
13. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 read with Companies (Meetings of Board and its Powers) Rules, 2014 are given in the notes to the financial statements.
14. RISK MANAGEMENT POLICY
The Company has a robust Risk Management Policy in place which includes identifying the elements of risk in the opinion of the Board that may threaten the existence of the Company. The Company has a Risk Governance Committee to evaluate the significant risk exposure of the Company & assessing Management''s action to mitigate the exposure in timely manner and approving the implementation of the Enterprise Risk Management Framework for the Company. During the year, the Risk Governance Committee met on March 09, 2017 and had discussions on various risk areas and mitigations initiated by the Company.
15. CORPORATE SOCIAL RESPONSIBILITY
In terms of the provisions Section 135 of the Act read with Companies (Corporate Social Responsibility Policy) Rules, 2014, the Board of Directors of the Company has constituted a Corporate Social Responsibility ("CSR") Committee which is chaired by Mr. G. Vijayaraghavan, Directors of the Company. The other members of the Committee are Mr. Gopi Krishna Tulsian and Ms. Pinky A Mehta, Directors of the Company.
The Company also has in place a CSR Policy and the same is available on the website of the Company at www.adityabirlamoney.com. A detailed Report is attached as Annexure VI forming part of this report.
16. RELATED PARTY TRANSACTIONS
During the financial year, the Company has entered into related party transactions which were on an arm''s length basis and in the ordinary course of business. All related party transactions have been approved by the Audit Committee of the Board of Directors of the Company and the same are being reviewed by it on a periodic basis.
The Board has formulated a Related Party Transactions Policy for the purpose of identification and monitoring of such transactions and the same is posted on the Company''s website viz.www.adityabirlamoney.com.
Details of Related Party Transaction for the year 2016-17 are mentioned in Note No.30 of notes to financial statement for FY 2016-17 and the material transaction is stated in Form AOC - 2 enclosed as Annexure V.
17. COST AUDIT
The provisions of Cost audit as prescribed under Section 148 of the Companies Act, 2013 are not applicable to the Company.
18. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The information relating to the Conservation of Energy and Technology Absorption required under Rule 8(3)(A) and 8(3)(B) of Companies (Accounts) Rules, 2014 are not applicable to the Company due to the very nature of the industry in which it operates. During the year under review, there were no foreign exchange earnings (Previous Year - Nil) and outgo (Previous Year - Nil), respectively.
19. DIRECTORS
Changes in Board Constitution -
Since Last AGM, there is no such changes made in Constitution of Board of Directors. Further Ms. Pinky A. Mehta retires from office by rotation and being eligible, has offered herself for re-appointment. The Directors recommend the said re-appointment. Items seeking your approval on the above re-appointment are included in the Notice convening the Annual General Meeting. Brief resume of the Director seeking appointments / re-appointments form part of the Notice of the ensuing Annual General Meeting.
Board Meetings -
The Board of Directors of the Company met 4 (four) times during the year i.e. on May 06, 2016, July 29, 2016, October 24, 2016 and January 25, 2017.
Composition of the Audit Committee -
The Board has constituted the Audit Committee which comprises of Mr. P. Sudhir Rao (Chairman), Mr. G. Vijayaraghavan and Mr. Shriram Jagetiya as the members. Other details of the Audit Committee are listed in the Corporate Governance Report. The Audit Committee met 4 times during the year under review.
Independent Director''s confirmation -
The Independent Directors on the Company''s Board have given their respective declarations that they meet the criteria of Independence as provided in Section 149(6) of the Act and Chapter IV of SEBI (Listing Obligations and Disclosure Requirements), 2015.
Annual Evaluation -
The evaluation framework for assessing the performance of Directors of your Company comprises of contributions at the meetings, strategic perspective or inputs regarding the growth and performance of your Company, among others. Pursuant to the provisions of the Act and the Listing Regulations, the Directors have carried out the annual performance evaluation of the Board, Independent Directors, Non-executive Directors, Executive Directors, Committees and the Chairman of the Board. The manner of evaluation is provided in the Corporate Governance Report. The details of programme for familiarization of Independent Directors of your Company are available on your Company''s website viz. www.adityabirlamoney.com.
Key Managerial Personnel -
During the period under review, Ms. Sumathy Ravichandran resigned from the office of Chief Financial Officer of the Company with effect from July 31, 2016 and the Board has appointed Mr. Pradeep Sharma as the Chief Financial Officer effective August 01, 2016.
Policy on Remuneration to Directors, Key Managerial Personnel -
The Nomination and Remuneration Committee has formulated the policy on remuneration for the Directors, Key Managerial Personnel which is appended herewith as Annexure VII and also posted on the website www.adityabirlamoney.com.
20. DISCLOSURE PURSUANT TO SECTION 62(1)(B) OF THE COMPANIES ACT, 2013 READ WITH RULE 12 OF COMPANIES (SHARE CAPITAL AND DEBENTURES) RULES, 2014 & SECURITIES EXCHANGE BOARD OF INDIA (SHARE BASED EMPLOYEE BENEFITS) REGULATIONS, 2014
The Company had formulated the ABML Employee Stock Option Scheme - 2014 (ABML ESOP Scheme - 2014) with the approval of the shareholders at the Annual General Meeting dated September 09, 2014.
Nature of Disclosure |
Particulars |
|
Options granted on December 02, 2014 |
2,509,341 |
|
Options outstanding as on April 01, 2016 |
1,979,120 |
|
Options vested during the year |
25% of the options granted |
|
Options exercised as on March 31, 2017 |
Nil |
|
Total number of shares arising as a result of exercise of options |
Nil |
|
Options lapsed |
533,275 (due to resignation of employees) |
|
Exercise Price |
Rs.34.25/- per option |
|
Variation of terms of options |
Nil |
|
Money realised by exercise of options |
Nil |
|
Options outstanding as on March 31, 2017 |
1,445,845 |
|
Employee-wise details of options granted (i) Key Managerial Personnel |
No. of options granted |
No. of options outstanding |
Mr. Murali Krishnan L.R. - Manager |
27,473 |
25,756 |
Mr. Pradeep Sharma - Chief Financial Officer |
Nil |
Nil |
Mr. Vikashh K Agarwal - Company Secretary |
32,967 |
30,907 |
(ii) Any other employee who received a grant in any one year of option amounting to 5% or more of options granted during that year |
Mr. Saurabh Shukla - Head - Broking and Retail Business. Options Granted - 225,275 Options Outstanding - 211,195 |
|
(iii) Identified employees who were granted option, during any one year, equal to or exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of the Company at the time of grant. |
Nil |
The Company has complied with and shall comply with the applicable provisions under the Companies Act, 2013, the SEBI (Share Based Employee Benefits) Regulations, 2014 and the Accounting Standards. The Disclosures prescribed in Regulation 14 of SEBI (Share Based Employee Benefits) Regulations, 2014 has been posted on the Company''s website at the link at the link http://www.adityabirlamoney.com/about-us/investor.
A certificate received from the Statutory Auditors on the implementation of the Company''s Employees Stock Option Scheme 2014 will be placed at the ensuing Annual General Meeting for inspection by the Members.
21. INTERNAL AUDIT FRAMEWORK
The Company has in place a robust internal audit framework to monitor the efficacy of internal controls with the purpose of providing to the Audit Committee and the Board of Directors, an independent, objective and reasonable assurance on the adequacy and effectiveness of the organizationâs risk management, control and governance processes.
The framework is commensurate with the nature of the business and the size of its operations. Internal auditing, of the Company, involves the utilization of a systematic methodology for analyzing business processes or organizational problems and recommending solutions to add value and improve the processes. The audit approach verifies compliance with the regulatory, operational and system related procedures and controls.
As per the provisions of Section 138 of the Companies Act, 2013, M/s. PKF Sridhar & Santhanam, Chartered Accountants have been appointed as the Internal Auditors by the Board of Directors of the Company. The audit scope and plans are approved by the Board every year.
Internal Audit Process followed by the Company is as follows:
- Establish and communicate the scope and objectives of audit to the management
- Develop an understanding of the business area under review.
- Identify control procedures used to ensure each key transaction type is properly controlled and monitored.
- Develop and execute a risk-based sampling and testing approach to determine whether the key controls are operating as intended.
- Report the key audit findings and recommendations made by the auditors to the Board of Directors of the Company
- Monitor the implementation of audit recommendations and ensure periodic reporting to the Board of Directors of the Company
- Audit findings are used as a key input in the risk management process and all the key risks of the Company are mapped to the audit processes to ensure a risk- based audit approach.
- The internal audit activity is monitored on an ongoing basis
22. PARTICULARS OF EMPLOYEES
In accordance with the provisions of Section 197(12) of the Act read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the names and other particulars of employees are to be set out in the Directors'' Report, as an addendum thereto. However, having regard to the provisions of Section 136(1) of the Act, the Annual Report excluding the aforesaid information about the employees, is being sent to the Members of the Company. The said information is available for inspection at the Registered Office of the Company during the working hours. Any Member interested in obtaining such particulars may write to the Company Secretary at the Registered Office of the Company and the same will be furnished on request.
Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are appended as Annexure to the Boards'' Report as Annexure III.
23. VIGIL MECHANISM / WHISTLE BLOWER POLICY
In compliance with the provisions of Section 177(10) of the Companies Act, 2013 and Chapter IV of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has in place a vigil mechanism wherein the directors and employees to report their concerns about unethical behavior, and actual or suspected fraud or violation of the Company''s Code of Conduct to the Value Standards Committee. The Company Secretary of the Company acts as the Secretary to the Values Standard Committee. On a quarterly basis, an update on the issues reported under this policy is placed before the Audit Committee of the Board of Directors, for its review and perusal. The vigil mechanism Policy is posted on the Company''s website at www.adityabirlamoney.com.
24. DISCLOSURE UNDER THE SEXUAL HARASSMENT AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013.
The Company has implemented a policy for prevention of Sexual Harassment in line with the requirements of the Sexual Harassment at Workplace (Prevention, Prohibition and Redressal) Act, 2013. An Internal Complaints Committee (ICC) presided by a senior level woman employee has been set up to redress complaints received on sexual harassment. All employees (including permanent, contractual, temporary, trainees) are covered under this policy.
During the year under review, the Company has not received any complaint under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
No. of complaints received : None
No. of complaints disposed off : Not Applicable
25. EXTRACT OF ANNUAL RETURN
In terms of the provisions of Section 92 (3) of the Companies Act, 2013 read with the Companies (Management and Administration) Rules, 2014, an extract of the Annual Return for the financial year March 31, 2017 in Form MGT-9 is given in Annexure IV to this report.
26. IMPLEMENTATION OF INDIAN ACCOUNTING STANDARDS (IND AS) CONVERGED WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)
The Ministry of Corporate Affairs (MCA), Government of India has notified the Companies (Indian Accounting Standards) Rules, 2015 on February 16, 2015. Further, a Press Release was issued by the MCA on January 18, 2016 outlining the roadmap for implementation of Indian Accounting Standards (Ind AS) converged with International Financial Reporting Standards (IFRS). The accounts of the Company are consolidated by Aditya Birla Nuvo Limited (ABNL) the ultimate holding Company. As Indian Accounting Standards (IND AS) is applicable to ABNL, the Company has prepared its account under IND AS and Indian Generally Accepted Accounting Principles (IGAAP).
27. DIRECTORS'' RESPONSIBILITY STATEMENT
The audited accounts for the year under review are in conformity with the requirements of the Act and the Accounting Standards. The financial statements reflect fairly the form and substance of transactions carried out during the year under review and reasonably presents the Company''s financial condition and results of operations.
Pursuant to Section 134(5) of the Companies Act, 2013, your Directors confirm that, to the best of their knowledge and belief:
(i) i n the preparation of the annual accounts, the applicable standards have been followed along with proper explanation relating to material departures, if any;
(ii) appropriate accounting policies have been selected and applied consistently and such judgments 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 March 31, 2017 and of the profit of the Company for the year ended on that date;
(iii) proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
(iv) the attached Statement of Accounts for the period ended March 31, 2017 have been prepared on a "going concern basis";
(v) proper internal financial controls were in place and that the financial controls were adequate and were operating efficiently.
(vi) proper systems are in place to ensure compliance of all laws applicable to the Company and that such systems were adequate and operating efficiently;
28. STATUTORY AUDITORS AND THEIR REPORT
M/s. S.R. Batliboi & Co. LLP, (Registration No.301003E/E300005) Chartered Accountants, Mumbai were appointed in the 19th Annual General Meeting as the Statutory Auditors of the Company for a period of five years to hold office upto the conclusion of the Twenty Fourth Annual General Meeting. As required by the provisions of the Companies Act, 2013, their appointment should be ratified by the Members at every AGM. Accordingly, requisite resolution forms part of the notice convening AGM for ratification appointment of Auditor.
The observations, if any, made by the Auditors of the Company in their report read with relevant notes to the Accounts are self-explanatory and therefore do not call for any further comments. The observations reported under Emphasis of Matter by the Auditors of the Company in their report with relevant notes to the Accounts are self-explanatory and do not call for any further explanation / comments.
29. SECRETARIAL AUDITORS
In terms of the provision of the Section 204 of the Act read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board has appointed M/s. BNP & Associates, Company Secretaries, Mumbai as the Secretarial Auditor for conducting a Secretarial Audit of the Company for the financial year ended March 31, 2017. The report of the Secretarial Auditors is attached as Annexure VIII. The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.
30. APPRECIATION
Your Directors take this opportunity to express their sincere appreciation for the excellent support and co-operation extended by the shareholders, customers, bankers and other business associates. Your Directors gratefully acknowledge the ongoing cooperation and support provided by Central and State Governments and all Regulatory bodies. Your Directors place on record their deep appreciation for the exemplary contribution made by the employees of the Company at all levels. Their dedicated efforts and enthusiasm have been pivotal to your Company''s growth.
For and on behalf of the Board of Directors,
Gopi Krishna Tulsian Tushar Shah
Director Director
DIN : 00017786 DIN : 07504267
Place : Mumbai
Date : April 28, 2017
Mar 31, 2016
DIRECTOR''S REPORT TO THE MEMBERS
Dear Shareholders,
We are pleased to present the 20th Annual Report, together with the Audited Standalone and Consolidated Accounts of your Company for the financial year ended March 31, 2016.
1. Financial Performance Summary
The highlights of the financial results of the Company on a standalone and consolidated basis are as follows:
(Rs. in Crores)
|
Standalone |
Consolidated |
||
Particulars |
Year ended March 31, 2016 |
Year ended March 31, 2015 |
Year ended March 31, 2016 |
Year ended March 31, 2015 |
Income from Operations |
111.56 |
112.01 |
119.65 |
119.08 |
Other Income |
6.83 |
6.71 |
8.00 |
7.38 |
Total Income |
118.38 |
118.72 |
127.65 |
126.46 |
Profit before Interest, Depreciation and Taxation |
12.02 |
14.50 |
14.32 |
13.51 |
Less : Interest |
6.35 |
1.98 |
6.35 |
1.98 |
Profit before Depreciation and Taxation |
5.66 |
12.51 |
7.97 |
11.53 |
Less : Depreciation |
3.78 |
5.72 |
3.96 |
5.93 |
Profit / (Loss) Before Taxation |
1.88 |
6.79 |
4.01 |
5.61 |
Current Tax |
0.68 |
- |
1.05 |
- |
MAT Credit |
- |
- |
(0.36) |
- |
Less : Excess Provision for Tax Written back |
- |
(0.29) |
- |
(0.29) |
Profit / (Loss) After Tax |
1.20 |
7.08 |
3.33 |
5.90 |
Profit / (Loss) brought forward from previous year |
(26.86) |
(25.53) |
(31.24) |
(28.70) |
Less: Depreciation written off as per Schedule II |
- |
8.41 |
- |
8.43 |
Balance carried to Balance Sheet |
(25.67) |
(26.86) |
(27.91) |
(31.24) |
2. Business Performance
The Company on a Standalone basis has achieved total income of Rs.118.38 crores as compared to Rs.118.72 crores during the previous year. The Income from Operations during the year was also stable at Rs. 111.56 crores as compared to Rs. 112.01 crores during the previous year. The Company has posted a Net Profit of Rs. 1.20 crores during the year ended March 31, 2016.
On a Consolidated basis, the Company''s Income from Operations was stable at Rs.127.65 crores as compared to Rs.126.45 crores in the previous year. The Company has posted a Consolidated Net Profit of Rs. 3.33 crores during the year ended March 31, 2016.
3. Reserves
The Reserves & Surplus of the Company as on March 31, 2016 stood at Rs. 21.63 crores. No amount is proposed to be transferred to Reserves during the year.
4. Dividend
In order to conserve cash for Company''s operations, your Directors do not recommend any dividend for the year under review.
5. Share Capital
The Authorized Share Capital of the Company is Rs.25 crore. The Issued, Subscribed and Paid-up Capital of the Company was Rs.15.54 crores as on March 31, 2016 consisting of 55,400,000 Equity shares of Re.1/- each and 1,000,000 8% Redeemable Non-Convertible Non-Cumulative Preference shares of Rs.100/- each.
6. Credit Rating
During the year, CRISIL has re-affirmed A1 rating for the short term debt programme.
7. Public Deposits
During the year, the Company has not accepted or renewed any deposit from the public as covered under Section 73 of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014.
8. Corporate Governance
Your Company is committed to maintaining the highest standards of Corporate Governance and adhering to the Corporate Governance requirements set out by Securities and Exchange Board of India (SEBI). During the year under review, the Company was in compliance with the provisions of Clause 49 of the Listing Agreement with the Stock Exchanges as amended by SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 pertaining to the Corporate Governance compliances.
The Report on Corporate Governance as stipulated under Chapter IV of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 forms part of the Annual Report. The Practicing Company Secretary''s Certificate confirming compliance with Chapter IV of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is given in Annexure I and the same forms part of the Directors'' Report.
9. Management Discussion and Analysis
In terms of Chapter IV of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Management Discussion and Analysis Report on the operations of the Company is provided as a separate section and forms part of the Annual Report.
10. Subsidiary
The Company has a wholly owned subsidiary viz. Aditya Birla Commodities Broking Limited ("ABCBL"), which is engaged in the business of commodity broking.
During the year, ABCBL has posted total Income of Rs. 9.27 crores as compared to Rs.7.75 crores during previous year, growth of 19.6%. The subsidiary has posted a Net profit of Rs. 2.13 crores as compared to a net loss of Rs.1.18 crores in the previous year.
The Policy for determining material subsidiaries may be accessed on the Company''s website at http://www.adityabirlamoney.com/about-us/investor.
The audited financial statements of the Company''s subsidiaries and related information have been placed on the website of the Company viz. www.adityabirlamoney.com. Any Member, who i s interested in obtaining a copy of audited financial statements of the Company''s subsidiaries may write to the Company Secretary at the Registered Office of the Company.
The Consolidated Financial Statements prepared pursuant to Section 129(3) of the Companies Act, 2013, read with the Companies (Accounts) Rules, 2014, Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and in accordance with the Accounting Standards prescribed by the Institute of Chartered Accountants of India forms part of the Annual Report. The statement containing the salient features of the financial statements of the Company''s subsidiary is set out in Annexure II to this report.
11. Significant and Material Orders Passed by the Regulators or Courts
During the year, no significant and material orders were passed by the regulators or courts or tribunals impacting the going concern status of the Company.
12. Internal Financial Control and their Adequacy
The Company has put in place adequate internal control systems commensurate with the size of its operations. The internal control systems, comprising of policies and procedures, are designed to ensure orderly and efficient conduct of its business, including adherence to Company''s policies, safeguarding its assets, prevention and detection of frauds and errors, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information.
The Company has the required internal financial controls in place as prescribed under the Companies Act, 2013.
13. Particulars of Loans, Guarantees or Investments
Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 read with Companies (Meetings of Board and its Powers) Rules, 2014 are given in the notes to the financial statements.
14. Risk Management Policy
The Company has a robust Risk Management Policy in place which includes identifying the elements of risk in the opinion of the Board that may threaten the existence of the Company. The Company has a Risk Governance Committee to evaluate the significant risk exposure of the Company & assessing Management''s action to mitigate the exposure in timely manner and approving the implementation of the Enterprise Risk Management Framework for the Company. During the year, the Risk Governance Committee met on March 16, 2016 and had discussions on various risk areas and mitigations initiated by the Company.
15. Corporate Social Responsibility
In terms of the provisions Section 135 of the Act read with Companies (Corporate Social Responsibility Policy) Rules, 2014, the Board of Directors of the Company has constituted a Corporate Social Responsibility ("CSR") Committee which is chaired by Mr.G.Vijayaraghavan. The other members of the Committee are Mr. Gopi Krishna Tulsian and Ms. Pinky A Mehta, Directors of the Company.
The Company also has in place a CSR Policy and the same is available on the website of the Company at www.adityabirlamoney.com. A detailed report is attached as Annexure VI forming part of this report.
16. Related Party Transactions
During the financial year, the Company has entered into related party transactions which were on an arm''s length basis and in the ordinary course of business. All related party transactions have been approved by the Audit Committee of the Board of Directors of the Company and the same are being reviewed by it on a periodic basis.
The Board has formulated a Related Party Transactions Policy for the purpose of identification and monitoring of such transactions and the same is posted on the Company''s website viz.www.adityabirlamoney.com.
Details of Related Party Transaction for the year 2015-16 are mentioned in Note No.30 of Notes to Financial Statement for the FY 2015-16 and the material transaction is stated in Form AOC-2 enclosed as Annexure V.
17. Cost Audit
The provisions of Cost audit as prescribed under Section 148 of the Companies Act, 2013 are not applicable to the Company.
18. Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo
The information relating to the Conservation of Energy and Technology Absorption required under Rule 8(3)(A) and 8(3)(B) of Companies (Accounts) Rules, 2014 are not applicable to the Company due to the very nature of the industry in which it operates. During the year under review, there were no foreign exchange earnings (Previous Year - Nil) and outgo (Previous Year - Nil), respectively.
19. Directors
Changes in Board Constitution -
Mr. Sudhakar Ramasubramanian, the Managing Director of the Company, resigned from the Board as a Director and Managing Director of the Company with effect from April 30, 2016 due to his movement to another role within the Aditya Birla Group. The Board places on record its deep appreciation for the services rendered by him during his tenure as the Managing Director.
Subject to the approval of the shareholders, the Board has on recommendation of the Nomination and Remuneration Committee appointed Mr. Tushar Shah (DIN: 07504267) as an Additional Director of the Company with effect from May 06, 2016. In accordance with Section 161 of the Companies Act, 2013, Mr. Tushar Shah holds office up to the date of the ensuing Annual General Meeting of the Company and is eligible to be appointed as the Director of the Company.
The Company has received a notice from M/s. Aditya Birla Financial Services Limited, shareholder along with the requisite deposit signifying his candidature for appointment as the Director at the ensuing Annual General Meeting. The resolution seeking Mr. Tushar Shah''s appointment has been included in the Notice of the Annual General Meeting together with his brief details.
Mr. Shriram Jagetiya retires from office by rotation and being eligible, has offered himself for reappointment. The Directors recommend the said re-appointment. Items seeking your approval on the above re-appointment are included in the Notice convening the Annual General Meeting. Brief resumes of the Directors seeking appointments / reappointments form part of the Notice of the ensuing Annual General Meeting.
Board Meetings
The Board of Directors of the Company met 4 (four) times during the year i.e. on May 04, 2015, July 23, 2015, October 28, 2015 and January 27, 2016.
Composition of the Audit Committee -
The Board has constituted the Audit Committee which comprises of Mr. Sudhir Rao (Chairman), Mr. G.Vijayaraghavan and Mr. Shriram Jagetiya as the members. Other details of the Audit Committee are listed in the Corporate Governance Report. The Audit Committee met 4 times during the year under review.
Independent Director''s confirmation -
The Independent Directors on the Company''s Board have given their respective declarations that they meet the criteria of Independence as provided in Section 149(6) of the Act and Chapter IV of SEBI (Listing Obligations and Disclosure Requirements), 2015.
Annual Evaluation -
The evaluation framework for assessing the performance of Directors of your Company comprises of contributions at the meetings, strategic perspective or inputs regarding the growth and performance of your Company, among others. Pursuant to the provisions of the Act and the Listing Regulations, the Directors have carried out the annual performance evaluation of the Board, Independent Directors, Non-executive Directors, Executive Directors, Committees and the Chairman of the Board. The manner of evaluation is provided in the Corporate Governance Report. The details of programme for familiarisation of Independent Directors of your Company are available on your Company''s website viz. www.adityabirlamoney.com.
Key Managerial Personnel
During the year under review, Mr. Srinivas Subudhi resigned from the office of Chief Financial Officer of the Company with effect from March 31, 2016. The Board has appointed Ms. Sumathy Ravichandran as the Chief Financial Officer effective May 06, 2016.
Consequent to the resignation of Mr. Sudhakar Ramasubramanian as the Managing Director of the Company , the Board has on recommendation of the Nomination and Remuneration Committee, appointed Mr. Murali Krishnan L R as the
Manager of the Company with effect from May 06, 2016 subject to approval by the Shareholder of the Company and further the board requested the Shareholders of the company to approve the same in the ensuing AGM.
Policy on Remuneration to Directors, Key Managerial Personnel
The Nomination and Remuneration Committee has formulated the policy on remuneration for the Directors, Key Managerial Personnel which is appended herewith as Annexure VII and also posted on the website www.adityabirlamoney.com.
20. Disclosure Pursuant to Section 62(1)(B) of the Companies Act, 2013 Read with Rule 12 of Companies (Share Capital and Debentures) Rules, 2014 & Securities Exchange Board of India (Share Based Employee Benefits) Regulations, 2014
The Company had formulated the ABML Employee Stock Option Scheme - 2014 (ABML ESOP Scheme - 2014) with the approval of the shareholders at the Annual General Meeting dated September 09, 2014.
Nature of Disclosure |
Particulars |
|
Options granted on December 02, 2014 |
2,509,341 |
|
Options outstanding as on April 01, 2015 |
24,48,901 |
|
Options vested during the year |
25% of the options granted |
|
Options exercised as on March 31, 2016 |
Nil |
|
Total number of shares arising as a result of exercise of options |
Nil |
|
Options lapsed |
4,69,781 (due to resignation of employees) |
|
Exercise Price |
Rs.34.25/- per option |
|
Variation of terms of options |
Nil |
|
Money realised by exercise of options |
Nil |
|
Options outstanding as on March 31, 2016 |
19,79,120 |
|
Employee-wise details of options granted (i) Key Managerial Personnel |
No. of options granted |
No. of options outstanding |
Mr.Sudhakar Ramasubramanian, Managing Director |
329,670 |
329,670 |
Mr.Srinivas Subudhi, Chief Financial Officer |
Nil |
Nil |
Mr.Vikashh K Agarwal, Company Secretary |
32,967 |
32,967 |
(ii) Any other employee who received a grant in any one year of option amounting to 5% or more of options granted during that year |
(i) Mr. Saurabh Shukla - Head - Broking and Retail Business - 225,275 (ii) Mr. Mohit Saxena - Senior Vice President -Products, BD and Worksite Marketing - 157,692 |
|
(iii) Identified employees who were granted option, during any one year, equal to or exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of the Company at the time of grant |
Nil |
The Company has complied with and shall comply with the applicable provisions under the Companies Act, 2013, the SEBI (Share Based Employee Benefits) Regulations, 2014 and the Accounting Standards. The Disclosures prescribed in Regulation 14 of SEBI (Share Based Employee Benefits) Regulations, 2014 has been posted on the Company''s website at the link http://www.adityabirlamoney.com/about-us/investor.
A certificate received from the Statutory Auditors on the implementation of the Company''s Employees Stock Option Scheme 2014 will be placed at the ensuing Annual General Meeting for inspection by the Members.
21. Internal Audit Framework
The Company has in place a robust internal audit framework to monitor the efficacy of internal controls with the purpose of providing to the Audit Committee and the Board of Directors, an independent, objective and reasonable assurance on the adequacy and effectiveness of the organizationâs risk management, control and governance processes.
The framework is commensurate with the nature of the business and the size of its operations. Internal auditing, of the Company, involves the utilization of a systematic methodology for analyzing business processes or organizational problems and recommending solutions to add value and improve the processes. The audit approach verifies compliance with the regulatory, operational and system related procedures and controls.
As per the provisions of Section 138 of the Companies Act, 2013, M/s PKF Sridhar & Santhanam, Chartered Accountants have been appointed as the Internal Auditors by the Board of Directors of the Company. The audit scope and plans are approved by the Board every year.
Internal Audit Process followed by the Company is as follows:
- Establish and communicate the scope and objectives of audit to the management
- Develop an understanding of the business area under review.
- Identify control procedures used to ensure each key transaction type is properly controlled and monitored.
- Develop and execute a risk-based sampling and testing approach to determine whether the key controls are operating as intended.
- Report the key audit findings and recommendations made by the auditors to the Board of Directors of the Company
- Monitor the implementation of audit recommendations and ensure periodic reporting to the Board of Directors of the Company
- Audit findings are used as a key input in the risk management process and all the key risks of the Company are mapped to the audit processes to ensure a risk- based audit approach.
- The internal audit activity is monitored on an ongoing basis
22. Particulars of Employees
In accordance with the provisions of Section 197(12) of the Act read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the names and other particulars of employees are to be set out in the Directors'' Report, as an addendum thereto. However, having regard to the provisions of Section 136(1) of the Act, the Annual Report excluding the aforesaid information about the employees, is being sent to the Members of the Company. The said information is available for inspection at the Registered Office of the Company during the working hours. Any Member interested in obtaining such particulars may write to the Company Secretary at the Registered Office of the Company and the same will be furnished on request.
Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are appended as Annexure to the Boards'' Report as Annexure III.
23. Vigil Mechanism / Whistle Blower Policy
In compliance with the provisions of Section 177(10) of the Companies Act, 2013 and Chapter IV of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has in place a vigil mechanism wherein the directors and employees to report their concerns about unethical behaviour, and actual or suspected fraud or violation of the Company''s Code of Conduct to the Value Standards Committee. The Company Secretary of the Company acts as the Secretary to the Values Standard Committee. On a quarterly basis, an update on the issues reported under this policy is placed before the Audit Committee of the Board of Directors, for its review and perusal. The vigil mechanism Policy is posted on the Company''s website at www.adityabirlamoney.com.
24. Disclosure Under the Sexual Harassment at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
The Company has implemented a policy for prevention of Sexual Harassment in line with the requirements of the Sexual Harassment at Workplace (Prevention, Prohibition and Redressal) Act, 2013. An Internal Complaints Committee (ICC) presided by a senior level woman employee has been set up to redress complaints received on sexual harassment. All employees (including permanent, contractual, temporary, trainees) are covered under this policy.
During the year under review, the Company has not received any complaint under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
No. of complaints received : None
No. of complaints disposed off : Not Applicable
25. Extract of Annual Return
In terms of the provisions of Section 92 (3) of the Companies Act, 2013 read with the Companies (Management and Administration) Rules, 2014, an extract of the Annual Return for the financial year March 31, 2016 in Form MGT-9 is given in Annexure IV to this report.
26. Directors'' Responsibility Statement
The audited accounts for the year under review are in conformity with the requirements of the Act and the Accounting Standards. The financial statements reflect fairly the form and substance of transactions carried out during the year under review and reasonably presents the Company''s financial condition and results of operations.
Pursuant to Section 134(5) of the Companies Act, 2013, your Directors confirm that, to the best of their knowledge and belief:
(i) in the preparation of the annual accounts, the applicable standards have been followed along with proper explanation relating to material departures, if any;
(ii) appropriate accounting policies have been selected and applied consistently and such judgments 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 March 31, 2016 and of the profit of the Company for the year ended on that date;
(iii) proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
(iv) the attached Statement of Accounts for the period ended March 31, 2016 have been prepared on a "going concern basis";
(v) proper internal financial controls were in place and that the financial controls were adequate and were operating efficiently.
(vi) proper systems are in place to ensure compliance of all laws applicable to the Company and that such systems were adequate and operating efficiently;
27. Statutory Auditors and Their Report
M/s. S.R. Batliboi & Co. LLP, (Registration No.301003E/E300005) Chartered Accountants, Mumbai were appointed in the 19th Annual General Meeting as the Statutory Auditors of the Company for a period of five years to hold office up to the conclusion of the Twenty Fourth Annual General Meeting. As required by the provisions of the Companies Act, 2013, their appointment should be ratified by the Members at every AGM. Accordingly, requisite resolution forms part of the notice convening AGM for ratification appointment of Auditor.
The observations, if any, made by the Auditors of the Company in their report read with relevant notes to the Accounts are self-explanatory and therefore do not call for any further comments. The observations reported under Emphasis of Matter by the Auditors of the Company in their report with relevant notes to the Accounts are self-explanatory and do not call for any further explanation / comments.
28. Secretarial Auditors
In terms of the provision of the Section 204 of the Act read with Companies (Appointment and Remuneration of Managerial Personnel) Rules,2014, the Board has appointed M/s. BNP & Associates, Company Secretaries, Mumbai as the Secretarial Auditor for conducting a Secretarial Audit of the Company for the financial year ended March 31, 2016. The report of the Secretarial Auditors is attached as Annexure VIII. The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.
29. Appreciation
Your Directors take this opportunity to express their sincere appreciation for the excellent support and co-operation extended by the shareholders, customers, bankers and other business associates. Your Directors gratefully acknowledge the ongoing cooperation and support provided by Central and State Governments and all Regulatory bodies. Your Directors place on record their deep appreciation for the exemplary contribution made by the employees of the Company at all levels. Their dedicated efforts and enthusiasm have been pivotal to your Company''s growth.
For and on behalf of the Board of Directors,
Date : May 06, 2016 Gopi Krishna Tulsian Shriram Jagetiya
Place : Chennai Director Director
DIN : 00017786 DIN : 01638250
Mar 31, 2015
Dear Members,
We are pleased to present the 19th Annual Report, together with the
Audited Standalone and Consolidated Accounts of your
Company for the financial year ended March 31,2015.
1. Financial Performance Summary
The highlights of the financial results of the Company on a standalone
and consolidated basis are as follows:
Standalone
Year ended Year ended
Particulars March 31, March 31,
2015 2014
Income from Operations 112.01 65.09
Other Income 6.71 4.82
Total Income 118.72 69.91
Profit before Interest,
Depreciation and Taxation 14.50 0.30
Less : Interest 1.98 2.39
Profit before Depreciation
and Taxation 12.51 (2.09)
Less : Depreciation 5.72 6.12
Profit / (Loss) Before
Taxation 6.79 (8.20)
Less : Excess Provision for
Tax Written back (0.29) Â
Profit / (Loss) After Tax 7.08 (8.20)
Profit / (Loss) brought
forward from previous year (25.53) (17.33)
Less: Depreciation written
off as per Schedule II 8.41 Â
Balance carried to Balance
Sheet (26.86) (25.53)
(Rs. in Crore)
Consolidated
Year ended Year ended
Particulars March 31, March 31,
2015 2014
Income from Operations 119.08 75.18
Other Income 7.38 6.13
Total Income 126.46 81.31
Profit before Interest,
Depreciation and Taxation 13.51 (2.86)
Less : Interest 1.98 2.42
Profit before Depreciation
and Taxation 11.53 (5.28)
Less : Depreciation 5.93 6.46
Profit / (Loss) Before
Taxation 5.61 (11.74)
Less : Excess Provision for
Tax Written back (0.29) Â
Profit / (Loss) After Tax 5.90 (11.74)
Profit / (Loss) brought
forward from previous year (28.70) (16.97)
Less: Depreciation written
off as per Schedule II 8.43 Â
Balance carried to Balance
Sheet (31.24) (28.70)
2. Business Performance
The Company on a Standalone basis has achieved total income of
Rs.118.72 Crore as compared to Rs.69.91 Crore during the previous year,
a growth of 69.8%. The Income from Operations during the year was
Rs.112.01 Crore as compared to Rs.65.09 Crore during the previous year.
The Company's overall top down and bottom up approach has resulted in a
Profit before Depreciation and Taxation of Rs.12.51 Crore as compared
to a loss of Rs.2.09 Crore in the previous year. Interest Cost was down
at Rs.1.98 Crore as compared to Rs.2.39 Crore in the previous year. The
Company has posted a Net Profit of Rs.7.08 Crore as compared to Net
Loss of Rs.8.20 Crore in the previous year.
On a Consolidated basis, the Company's Income from Operations was
Rs.119.08 Crore, as compared to Rs.75.18 Crore in the previous year, a
growth of 58.4%. The Company has posted a Consolidated Net Profit of
Rs.5.90 Crores as compared to a Net Loss of Rs.11.74 Crores in the
previous year.
3. Reserves
The Reserves & Surplus of the Company as on March 31, 2015 stood at
Rs.20.43 Cr. No amount is proposed to be transferred to Reserves during
the year.
4. Dividend
In order to conserve cash for Company's operations, your Directors do
not recommend any dividend for the year under review.
5. Share Capital
The Authorised Share Capital of the Company is Rs.25 Crore. The Paid up
Capital, Issued and Subscribed Capital of the Company was Rs.15.54
Crores as on March 31, 2015 consisting of 55,400,000 Equity shares of
Re.1/- each and 1,000,000 8% Redeemable Non-Convertible Non-Cumulative
Preference Shares of Rs.100/- each.
6. Management Discussion and Analysis
The Management Discussion and Analysis Report on the operations of the
Company is provided as a separate section and forms part of the Annual
Report.
7. Corporate Governance
Your Directors reaffirm their commitment to the corporate governance
standards to the extent they are applicable to the Company. A detailed
report on Corporate Governance form part of the Annual Report.
8. Board Meetings
The Board of Directors of the Company met 5 (five) times during the
year i.e. on April 29, 2014, July 28, 2014, November 5, 2014, January
28, 2015 and March 30, 2015.
9. Subsidiary
The Company has a wholly owned subsidiary viz. Aditya Birla Commodities
Broking Limited ("ABCBL"), which is engaged in the business of
commodity broking.
ABCBL has posted total Income of Rs.7.75 Crores as compared to Rs.11.68
Crores during previous year. The Net Loss is at Rs.1.18 Crores as
compared to a Net Loss of Rs.3.53 Crores in the previous year.
The Consolidated financial statements pursuant to Clause 41 of the
Listing Agreement and in accordance with the Accounting Standards
prescribed by the Institute of Chartered Accountants of India form part
of the Annual Report. The statement containing the salient features of
the financial statements of the Company's subsidiary is set out in the
Annexure to this report.
10. Public Deposits
During the year, the Company has not accepted or renewed any deposit
from the public as covered under Section 73 of the Companies Act, 2013
read with the Companies (Acceptance of Deposits) Rules, 2014.
11. Credit Rating
During the year, CRISIL has re-affirmed A1 rating for the short term
debt programme.
12. Significant and Material Orders passed by the Regulators or Courts
During the year, no significant and material orders were passed by the
regulators or courts or tribunals impacting the going concern status of
the Company.
13. Details about adequacy of Internal Financial Controls
The Company has adopted the requisite policies and procedures to ensure
orderly and efficient conduct of its business, including adherence to
company's policies, safeguarding of its assets, prevention and
detection of frauds and errors, the accuracy and completeness of the
accounting records and the timely preparation of reliable financial
information.
The company has the required internal financial controls in place as
prescribed under Companies Act, 2013.
14. Particulars of Loans, Guarantees or Investments
Details of Loans, Guarantees and Investments covered under the
provisions of Section 186 of the Companies Act, 2013 form part of the
notes to the financial statements.
15. Risk Management Policy
The Company has a robust Risk Management Policy in place which includes
identifying the elements of risk in the opinion of the Board that may
threaten the existence of the company. The Company has a Risk
Governance Committee to evaluate the significant risk exposure of the
Company & assessing Management's action to mitigate the exposure in
timely manner and approving the implementation of the Enterprise Risk
Management Framework for the Company. During the year, the Risk
Governance Committee met on March 18, 2015 and discussed on the various
risk areas and mitigations initiated by the Company.
16. Corporate Social Responsibility
The provisions of Corporate Social Responsibility are not applicable to
the Company for the financial year 2014-15 as the criteria mentioned
under Section 135 of the Companies Act, 2013 is not fulfilled.
However, the provisions of the Section 135 of the Act would be
applicable for the next financial year on account of Company posting
net profits above Rs.5 Crores in the financial year 2014-15. The Board,
at its meeting dated May 04, 2015 has constituted a CSR Committee. The
constitution and the terms of reference of the Committee are more fully
mentioned in the Corporate Governance Report.
17. Related Party Transactions
All Related Party Transactions ('RPT') entered into during the
financial year by the Company were on an arm's length basis and in the
ordinary course of business.
The Board has formulated a Related Party Transactions Policy for the
purpose of identification and monitoring of such transactions. As per
the policy, the Audit Committee may grant omnibus approval for RPTs
which are repetitive in nature. The Audit Committee may further grant
omnibus approval for such transactions which are unforeseen provided
that the value of each such transaction shall not exceed Rs. 1 Crore.
The transactions entered into pursuant to the omnibus approval so
granted are audited and a statement giving details of all Related Party
Transactions are placed before the Audit Committee for its approval on
a quarterly basis.
Particulars of contracts or arrangements made with related parties
referred to in Section 188(1) of the Companies Act, 2013, in the
prescribed form AOC-2 is set out in the Annexure to this report.
18. Cost Audit
The provisions of Cost audit as prescribed under Section 148 of the
Companies Act, 2013 are not applicable to the Company.
19. Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo
The information relating to the Conservation of Energy and Technology
Absorption required under Rule 8(3)(A) and 8(3)(B) of Companies
(Accounts) Rules, 2014 are not applicable to the Company due to the
very nature of the industry in which it operates. During the year under
review, there were no foreign exchange earnings (Previous Year - Nil)
and outgo (Previous Year - Nil), respectively.
20. Directors and Key Managerial Personnel
As on March 31, 2015, your Board of Directors comprised of 6 Directors
including 2 Independent Directors. During the year under review, Ms.
Pinky A Mehta was appointed as an Additional Director of the Company
with effect from March 30, 2015 and holds office as a Director upto the
ensuing Annual General Meeting of the Company. The Board recommends to
the shareholders, the appointment of Ms. Pinky A Mehta as a Director,
liable to retire by rotation.
The Company has received requisite disclosures and undertakings from
all the Directors in compliance with the provisions of the Companies
Act, 2013 and other applicable statutes.
The Board of Directors appointed Mr. Srinivas Subudhi as the Chief
Financial Officer of the Company with effect from May 15, 2014.
Further, Mr. Balaji S resigned from the office of Company Secretary
with effect from September 26, 2014 and Mr. Vikashh K Agarwal was
appointed as the Company Secretary of the Company pursuant to Section
203 of the Companies Act, 2013, with effect from January 28, 2015.
The Company has received necessary declarations from each Independent
Director of the Company under Section 149(7) of the Companies Act, 2013
that the Independent Directors meet the criteria of Independence as
laid down in Section 149(6) of the Companies Act, 2013.
Formal Annual Evaluation of the Board
a. Meeting of the Independent Directors
During the year, the Independent Directors of the Company met on March
28, 2015 to review the performance of Non-Independent Directors, the
Board as a whole, Chairman of the Board and the Committees of the
Board.
The Company has conducted a familiarisation programme for the
Independent Directors of the Company and the details of such
familiarisation programmes are disseminated on the website of the
Company at the link http://www.adityabirlamoney.com/about-us/investor.
b. Meeting of the Board of Directors other than Independent Director
During the year, the Board of Directors of the Company other than the
Independent Directors met on March 30, 2015 to evaluate the performance
of the Independent Directors, Chairman of the Board, the Board as a
whole and the Committees of the Board.
On the basis of the performance evaluation undertaken, the Board is of
the view that the contribution of the Independent Directors to the
Board is remarkable and therefore the term of appointment of the
Independent Directors shall be continued.
21. Composition of Audit Committee
In compliance of the provisions of Section 177 of the Companies Act,
2013 and in accordance with the provisions of Clause 49 of the Listing
Agreement, the Company has a qualified and independent Audit Committee
of the Board. All the members of the Audit Committee are financially
literate having accounting and related financial management expertise.
The Audit Committee consists of the following three Directors,
two-thirds of whom are Independent.
1. Mr. P Sudhir Rao (Independent Director) Â Chairman
2. Mr. G. Vijayaraghavan (Independent Director) Â Member
3. Mr. Shriram Jagetiya  Member
The Chairman of the Audit Committee is an Independent Director.
During the year under review, the Board of Directors of the Company
have accepted all the recommendations as put forth by the Audit
Committee.
22. Policy on Remuneration to Directors, Key Managerial Personnel and
Other Employees
The Nomination and Remuneration Committee has recommended to the Board
a policy on remuneration for the Directors, Key Managerial Personnel
and other employees. The key highlights of the policy are reproduced
herein below:
Objectives of the Executive Remuneration Program:
Our executive compensation program is designed to attract, retain, and
reward talented executives who will contribute to our long-term success
and thereby build value for our shareholders.
Our executive compensation program is intended to:
1. Provide for monetary and non-monetary remuneration elements to our
executives on a holistic basis.
2. Emphasise "Pay for Performance" by aligning incentives with
business strategies to reward executives who achieve or exceed Group,
business and individual goals.
Business and Talent Competitors
We benchmark our executive pay practices and levels against peer
companies in similar industries, geographies and of similar size.
Executive Pay-mix
Our executive pay-mix aims to strike the appropriate balance between
key components:
(i) Fixed Cash compensation (Basic Salary Allowances)
(ii) Annual Incentive Plan
(iii) Long-Term Incentives
(iv) Perks and Benefits
Performance Goal Setting
We aim to ensure that for both annual incentive plans and long term
incentive plans, the target performance goals shall be achievable and
realistic.
Performance Measurement & Executive Benefits
Our executives are eligible to participate in our broad-based
retirement, health and welfare, and other employee benefit plans. In
addition to these broad-based plans, they are eligible for other
benefits plans commensurate with their roles. These benefits are
designed to encourage long-term careers with the Group.
23. Disclosure pursuant to Section 62(1)(b) of the Companies Act, 2013
read with Rule 12 of Companies (Share Capital and Debentures) Rules,
2014 & SEBI (Employee Stock Option Scheme and Employee Stock Purchase
Scheme) Guidelines, 1999 as amended by Securities Exchange Board of
India (Share Based Employee Benefits) Regulations, 2014
During the year, the Company had formulated the ABML Employee Stock
Option Scheme - 2014 (ABML ESOP Scheme - 2014) with the approval of the
shareholders at the Annual General Meeting dated September 09, 2014.
The applicable disclosures as on March 31,2015 as stipulated under the
above mentioned regulations are given below:
Nature of Disclosure Particulars
Options granted 2,509,341
Each option represents Each Option is exercisable into
one share of Rs. 1 each of the
Company
Date of grant of options by the
Nomination and December 2, 2014
Remuneration Committee
Exercise Price Rs. 34.25/- per option
The pricing formula The exercise price was based on
the latest available closing
price, prior to December 2, 2014
(the date of grant by the
Nomination & Remuneration
Committee) on the recognised
stock exchanges on which the
shares of the Company are listed
with the highest trading volume.
Options vested Nil
Options exercised Nil
The total number of shares
arising as a result of Nil. Since none of the options
exercise of options have been vested as yet, no shares
have been issued by the Company.
Options lapsed 60,440 (due to resignation of
employees)
Variation of terms of options Nil
Money realised by exercise of
options Nil
Total number of options outstanding
as on March 31,2015 2,448,901
Vesting Period
vesting Dates % of options that shall vest
12 months from the date of grant 25% of the grant
24 months from the date of grant 25% of the grant
36 months from the date of grant 25% of the grant
48 months from the date of grant 25% of the grant
Requirements of vesting Vesting of options shall be
subject to the condition that the
grantee is in continuous
employment with the Company and is
not serving any notice of
resignation on the date of such
vesting (except in the case of
a) Death
b) Permanent Disability suffered
by the Grantee
c) Retirement or
d) transfer or deputed to an
entity within the Group)
And shall not be subject to any
pending disciplinary proceeding
and thus the options would vest on
a passage of time.
Exercise period and process
of exercise In addition to this, the Nomination
and Remuneration Committee may also
specify certain performance
parameters subject to which the
options would vest.
The options granted to a grantee
shall be capable of being exercised
within a period of five years from
the date of vesting of the
respective options.
The grantee may, at any time
during the exercise period, and
subject to fulfilment of
conditions of the grant and
vesting, as applicable, exercise
the options by submitting an
exercise application to the
Company, for issuance and
allotment of shares pursuant to
the vested options, accompanied
with:
(i) payment of an amount equivalent
to the option exercise price, in
respect of such Shares; and/or
(ii) Such other documentation as
the Nomination and Remuneration
Committee may specify to confirm
extinguishment of the rights
comprising in the options then
exercised, subject to applicable
Law.
Lock-in period Nil
Maximum number of options to
be granted: Per employee: Up to 1% of the
paid-up equity share capital of the
Company at the time of grant
In aggregate: 2,770,000 equity
shares of the Company
Method used for valuation
of options Market Value Method (Intrinsic
Value)
Employee-wise details of
options granted
(i) Senior Managerial Personnel
(Directors and KMP)
Name & Designation No. of options No. of options
granted outstanding
Sudhakar Ramasubramanian, 329,670 329,670
Managing Director
Srinivas Subudhi, Chief
Financial Officer Nil Nil
Vikashh K Agarwal, Company
Secretary 32,967 32,967
(ii) Any other employee who
received a grant in Mr. V. Girish - Executive
any one year of option Vice President - Wealth Management
amounting to 5% and Channel Business - 225,275
or more of options granted
during that Mr. Saurabh Shukla - Head - Broking
and Retail Business - 225,275
year Mr. Mohit Saxena - Senior Vice
President - Products, BD and
Worksite Marketing - 157,692
(iii) Identified employees who Nil
were granted option, during
any one year, equal to or
exceeding 1 % of the issued
capital (excluding outstanding
warrants and conversions) of the
Company at the time of grant
Diluted Earnings Per Share (EPS)
pursuant to issue of shares on
exercise of options calculated in Nil. Since none of the options
accordance with Accounting Standard have been exercised, no shares
(AS) 20 - have been issued by the Company.
'Earning Per Share'
Difference between the employee
compensation Had the company used the fair
cost, computed using the intrinsic value model to determine the
value of the compensation, its profits after
tax and earnings per share as
reported would have changed to
the amounts indicated below:
stock options and the employee
compensation cost that shall
have been recognised if the fair
value of the options were used.
The impact of this difference
on profits and on Eps
of the company
For the year ended
March 31, 2015
Net Profit (as reported) 70772,057
Less: impact of Incremental
cost under Fair Value approach 8,152,100
Net Profit (Proforma) 62,619,956
Basic Earnings per share
(as reported) (in Rs.) 1.28
Basic Earnings per share
(Proforma) (in Rs.) 1.13
Diluted Earnings per share
(as reported) (in Rs.) 1.28
Diluted Earnings per share
(Proforma) (in Rs.) 1.13
A description of the method and
significant assumptions
used during the year to estimate
the fair values of options, Method followed: Black-Scholes Formula
including the following weighted-
average information:
(i) Risk-free interest rate (%) 8.13%
(ii) Expected life (No. of years) 5.00
(iii) Expected volatility (%) 54.26%
(iv) Dividend yield (%) 0.00%
(v) The price of the underlying
share in market at Rs. 34.25/-
the time of option grant
Class of employees entitled to
participate in the Scheme * Permanent employees of the
Company who have been working in
India or out of India
* Director of the Company, whether
a whole time Director or not
* Employees of a subsidiary, in
India or out of India, or of a
Holding Company of the Company,
or of an Associate Company
Appraisal process for determining
the eligibility of The appraisal process for
employees to the ESOP scheme determining the eligibility of the
employees will be specified by the
Nomination and Remuneration
Committee, and will be based on
criteria such as role/level of the
employee, past performance record,
future potential of the employee,
balance number of years of service
until normalretirement age and/or
such other criteria that may be
determined by the Nomination
and Remuneration Committee at its
sole discretion.
Conditions under which options
vested in employees may lapse The options granted but not vested
and the vested options which are
not exercised in case of a grantee
who has been suspended from the
services of the Company or
to whom a show cause notice has
been issued or against whom an
enquiry is being or has been
initiated for any reason whatsoever
including but not limited to fraud,
misconduct, violation of the
Company Policies/Terms of
Employment or Codes of the Company
or for having committed or abetted
any illegal or unlawful activity
may, on the recommendation of the
management, be suspended or kept
in abeyance or cancelled at the
sole discretion of the Nomination
and Remuneration Committee.
In the case of options that have
been suspended or kept in abeyance,
the same may be permitted to vest
in the concerned grantee on such
additional terms and conditions,
as may be imposed by the Nomination
and Remuneration Committee in its
absolute discretion. Cancelled
options, if any, shall be treated
as lapsed Options and shall be
available for grant, as provided
under the ABML ESOP Scheme - 2014.
Specified time period within which
the employee Resignation:
shall exercise the vested options in the event of In the event of
a proposed termination of resignation, all unvested options,
employment or on the date of submission of
resignation of employee resignation to the company, shall
expire and stand terminated with
effect from that date. However,
all vested options as on such date
shall be exercisable by the
grantee on or before his last
working day with the Company,
subject to the last date of
exercise not exceeding five years
from the date of each vesting of
options.
Termination of Employment:
In the event of termination of the
employment of a Grantee due to
breach of Company Policies/Terms
of Employment, all Options Granted
to such Grantee, including the
Vested Options which were not
Exercised prior to such breach,
shall stand terminated with
immediate effect. The date of such
breach shall be determined by the
Nomination and Remuneration
Committee, and its decision on
this issue shall be final and
binding on all concerned.
The Company has complied with and shall comply with the applicable
provisions under the Companies Act, 2013, the SEBI (Share Based
Employee Benefits) Regulations, 2014 / SEBI (Employee Stock Option
Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 and the
Accounting Standards.
24. Internal Audit Framework
The Company has in place a robust internal audit framework to monitor
the efficacy of internal controls with the purpose of providing to the
Audit Committee and the Board of Directors, an independent, objective
and reasonable assurance on the adequacy and effectiveness of the
organisation's risk management, control and governance processes.
The framework is commensurate with the nature of the business and the
size of its operations. Internal auditing, of the Company, involves the
utilisation of a systematic methodology for analysing business
processes or organisational problems and recommending solutions to add
value and improve the processes. The audit approach verifies compliance
with the regulatory, operational and system related procedures and
controls.
As per the provisions of Section 138 of the Companies Act, 2013, M/s
PKF Sridhar & Santhanam. Chartered Accountants have been appointed as
the Internal Auditors by the Board of Directors of the Company. The
audit scope and plans are approved by the Board every year.
Internal Audit Process followed by the Company is as follows:
* Establish and communicate the scope and objectives of audit to the
management.
* Develop an understanding of the business area under review.
* Identify control procedures used to ensure each key transaction type
is properly controlled and monitored.
* Develop and execute a risk-based sampling and testing approach to
determine whether the key controls are operating as intended.
* Report the key audit findings and recommendations made by the
auditors to the Board of Directors of the Company.
* Monitor the implementation of audit recommendations and ensure
periodic reporting to the Board of Directors of the Company.
* Audit findings are used as a key input in the risk management process
and all the key risks of the Company are mapped to the audit processes
to ensure a risk- based audit approach.
* The internal audit activity is monitored on an ongoing basis.
25. Particulars as per Rule 5(1) of Companies (Appointment and
Remuneration) Rules, 2014
Ratio of Remuneration to each Director
The details of ratio of remuneration of each Director to the median
employee's remuneration are not applicable since no remuneration is
paid to the Managing Director / Non-Executive Directors of the Company
Increase in Median Remuneration of the employees in the financial year
There was an increase of 11.10% in the Median Remuneration of Employees
of the Company in the financial year 2014- 15 as compared to 2013-14.
Number of permanent employees of the Company
There were 650 permanent employees on the rolls of the Company as on
March 31,2015.
Relationship between average increase in remuneration and company
performance
The Company has posted an increase of 182% in its Profit after Tax in
comparison to an increase of median remuneration of 11% which was as
per the industry benchmarks.
Percentage increase in remuneration of Key Managerial Personnel during
the financial year 2014-15 and comparison of remuneration of each Key
Managerial Personnel against the performance of the Company
Name of KMP and Remuneration of KMP % Increase in
Designation for the year Remuneration in
2014-15
as compared to
2013-14
2014-15 2013-14
Balaji S 476,995 801,870 5%
Company Secretary
(resigned with effect from
September 26, 2014)
Vikashh K Agarwal 916,670 Nil NA
Company Secretary
Srinivas Subudhi 1,964,712 Nil NA
Chief Financial Officer
Name of KMP and Performance
Designation of the
Company
Balaji S The Profit after Tax of the
Company Secretary
(resigned with effect from Company increased by 182%
September 26, 2014) from a loss of Rs.8.20
Vikashh K Agarwal Crores in 2013-14 to profit of
Company Secretary Rs.7.08 Crores in 2014-15
Srinivas Subudhi on a standalone basis
Chief Financial Officer
Variations in Market Capitalisation of the Company
The market capitalisation of the Company increased by 80.83% to
Rs.133.24 Crores as of March 31, 2015 from Rs.73.68 crores as of March
31,2014.
Variations in Price Earnings Ratio as on March 31, 2015 and March 31,
2014:
The Price Earnings Ratio was 18.79 as of March 31,2015 as compared to
8.99 as of March 31,2014.
Variations in market quotations of the shares of the Company in
comparison to the rate at which the Company came out with the last
public offer:
The Company has not made any offer to the public in the past, hence the
comparison of the market quotations of the shares of the Company in
comparison to the last public offer rate are not applicable.
In the year 2001, Om Sindhoori Capital Investments Limited, OSCIL
("Transferor Company") merged with Apollo Sindhoori Capital Investments
Limited (ASCIL - erstwhile name of the Company), vide Court order dated
March 12, 2001. The Transferor Company was a listed company with Madras
and Mumbai Stock Exchanges. Accordingly, on completion of merger, ASCIL
became listed as per the SEBI (Disclosure and Investor Protection)
Guidelines, 2000. OSCIL had made a public issue of equity shares in
the year 1995.
Average % increase in Employee salaries other than Managerial Personnel
in the last financial year and its comparison with % increase in
Managerial Remuneration
There was an increase by 10.79% in the Median Remuneration of Employees
of the Company in the financial year 2014- 15 excluding the
remuneration of the Directors and the Key Managerial Personnel as
compared to 2013-14.
Key Parameters for any variable component of remuneration availed by
the Directors and ratio of remuneration of the highest paid director to
that of the employees who are not directors but receive the
remuneration in excess of highest paid director during the year
The Directors do not receive any remuneration from the Company.
However, the Independent Directors receive sitting fees for attending
the meetings of the Company.
Compliance with the Remuneration Policy of the Company
The Remuneration paid to the Directors (only in the form of sitting
fees paid to Independent Directors) is as per the remuneration policy
of the Company as well as the provisions of Section 196 and 197 of the
Companies Act, 2013.
26. Particulars of Employees
The statement containing particulars of employees as required under
Section 197(12) of the Companies Act, 2013 read with Rule 5(2) of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014 is set out in the Annexure to this report. In terms of Section 136
of the Act, the Report and Accounts are being sent to the Members and
others entitled thereto, including the information on employees'
particulars which is available for inspection by the Members at the
Registered Office of the Company during business hours on working days
of the Company up to the date of the ensuing Annual General Meeting. If
any Member is interested in obtaining a copy thereof, such Member may
write to the Company Secretary in this regard.
27. Vigil Mechanism / Whistle Blower Policy
The Company has implemented a whistle blower policy / vigil mechanism
for Directors / Employees and every Employee / Director has the right
to report to the Value Standards Committee (VSC) genuine concerns or
grievances about unprofessional conduct, malpractices, wrongful
conduct, fraud, violation of the Company's policies & values, violation
of law without any fear of reprisal. The Company Secretary of the
Company acts as the Secretary to the Values Standard Committee. On a
quarterly basis, an update on the issues reported under this policy is
placed before the Audit Committee of the Board of Directors, for its
review and perusal.
28. Policy for Prevention of Sexual Harassment at Workplace
The Company has implemented an Anti-Sexual Harassment Policy in line
with the requirements of the Sexual Harassment of Woman at the
Workplace (Prevention, Prohibition & Redressal) Act, 2013. An Internal
Complaints Committee (ICC) presided by a senior level woman employee
has been set up to redress complaints received on sexual harassment.
All employees (including permanent, contractual, temporary, trainees)
are covered under this policy.
During the year, no complaints on sexual harassment were received by
the Company.
No. of complaints received : None
No. of complaints disposed off : Not Applicable
29. Directors' Responsibility Statement
Pursuant to Section 134(5) of the Companies Act, 2013, your Directors
confirm that, to the best of their knowledge and belief:
* in the preparation of the annual accounts, the applicable standards
have been followed along with proper explanation relating to material
departures, if any;
* appropriate accounting policies have been selected and applied
consistently and such judgments 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 March 31,2015 and of the profit of the Company for
the year ended on that date;
* proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Act for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities;
* the attached Statement of Accounts for the period ended March 31,2015
have been prepared on a "going concern basis";
* proper internal financial controls were in place and that the
financial controls were adequate and were operating efficiently.
* proper systems are in place to ensure compliance of all laws
applicable to the Company and that such systems were adequate and
operating efficiently;
30. Extract of Annual Return
The details forming part of the extract of the Annual Return in Form
MGT 9 is set out in the Annexure to this report.
31. Auditors and Auditors' Report
M/s. S.R. Batliboi & Co. LLP, (Registration No. 301003E) Chartered
Accountants, Mumbai, hold office as the Statutory Auditors of the
Company upto the conclusion of the ensuing Annual General Meeting and
have offered themselves for reappointment. A certificate from them has
been received to the effect that their re-appointment as Statutory
Auditors of the Company, if made, would be within the limits prescribed
under Section 139 of the Companies Act, 2013. The Auditors have
subjected themselves for the peer review process of the Institute of
Chartered Accountants of India (ICAI) and they hold a valid certificate
issued by the "Peer Review Board" of ICAI. The Board proposes the
re-appointment of M/s. S.R. Batliboi & Co. LLP, Chartered Accountants,
Mumbai as the Statutory Auditors of the Company, on the recommendation
of the Audit Committee.
The observations, if any, made by the Auditors of the Company in their
report read with relevant notes to the Accounts are self-explanatory
and therefore do not call for any further comments. The observations
reported under Emphasis of Matter by the Auditors of the Company in
their report with relevant notes to the Accounts are self-explanatory
and do not call for any further explanation / comments.
32. Secretarial Audit Report
The Secretarial Audit Report as submitted by M/s. BNP & Associates,
Practising Company Secretaries who were appointed as the Secretarial
Auditors of the Company by the Board is set out in the Annexure to this
report.
There are no qualifications, reservations or adverse remarks or any
disclaimer that have been made by the Secretarial Auditor.
33. Appreciation
Your Directors wish to place their sincere appreciation for the
valuable advice, guidance and support provided by the regulators and
statutory authorities from time to time. Your Directors express their
gratitude to the clients, bankers and all business associates for their
continuous support and patronage to the Company. Your Directors take
this opportunity to recognise and place on record their deep sense of
appreciation for the exemplary commitment and contribution made by
employees at all levels. Your involvement as Shareholders of the
Company is greatly valued. Your Directors look forward to your
continuing support.
For and on behalf of the Board
Date : May 04, 2015 Gopi Krishna Tulsian Sudhakar Ramasubramanian
Place : Chennai Director Managing Director
Mar 31, 2014
Dear Shareholders,
The Board of Directors presents the 18th Annual Report, along with the
audited annual standalone and consolidated accounts of Aditya Birla
Money Limited ("the Company") for the year ended March 31, 2014.
1. Financial Performance Summary
The highlights of the financial results of the Company on a standalone
and on a consolidated basis are as follows:
(Rs. in Crore)
Particulars Standalone
Year ended Year ended
March 31, March 31,
2014 2013
Income from Operations 65.09 65.89
Other Income 4.82 5.68
Less : Expenditure 69.60 72.12
Profit before Interest, 0.31 (0.55)
Depreciation and Taxation
Less : Interest 2.39 4.57
Profit before (2.08) (5.12)
Depreciation and Taxation
Less : Depreciation 6.12 7.55
Profit / (Loss) Before Taxation (8.20) (12.67)
Less : Provision for -- --
Tax including Deferred Tax
Profit / (Loss) After Tax (8.20) (12.67)
Profit / (Loss) brought
forward from previous year (17.33) (4.66)
Balance carried to Balance Sheet (25.53) (17.33)
2. Business Performance
On a Standalone basis, the Company''s total Income stood at Rs.69.91
Crore compared to Rs.71.57 Crore during the previous year. The Income
from Operations was Rs.65.09 Crore compared to Rs.65.89 Crore during
the previous year. The Company focussed on cost rationalisation, as a
result the Loss before Depreciation and Taxation was reduced to Rs.2.08
Crore compared to Rs.5.12 Crore in the previous year. Interest Cost was
down at Rs.2.39 Crore as compared to Rs.4.57 Crore in the previous
year. The Company''s Net Loss was also down to Rs.8.20 Crore as compared
to Net Loss of Rs.12.67 Crore in the previous year. On a Consolidated
basis, the Company''s Income from Operations was Rs.75.18 Crore,
compared to Rs.84.08 Crore in the previous year. The Consolidated Net
Loss was down to Rs.11.74 Crore compared to Rs.15.31 Crore in the
previous year.
3. Reserves
Reserves & Surplus of the Company as on March 31, 2014 stood at
Rs.21.76 Crore. During the year, no amount is proposed to be
transferred to Reserves.
4. Dividend
In view of losses for the year, your Directors do not recommend any
dividend for the year under review.
5. Credit Rating
During the year, CRISIL Limited re-affirmed A1 rating for the short
term debt programme.
6. Share Capital
The Authorised Share Capital of the Company is Rs.25 Crore. The Paid up
Capital, Issued and Subscribed Capital of the Company was Rs.15.54
Crore as on March 31, 2014 consisting of 55,400,000 Equity shares of
Re.1/- each and 1,000,000 8% Redeemable Non Convertible Non Cumulative
Preference Shares of Rs.100/- each. During the year, the Company issued
200,000 8% Redeemable Non Convertible Non Cumulative Preference Shares
of Rs.100/- each to Aditya Birla Financial Services Pvt. Ltd., the
Holding Company.
7. Management Discussion and Analysis
The Management Discussion and Analysis Report on the operations of the
Company is provided in a separate section and forms part of the Annual
Report.
8. Corporate Governance
Your Directors reaffirm their commitment to the corporate governance
standards to the extent they are applicable to the Company. A detailed
Corporate Governance Report forms part of this Annual Report.
9. Subsidiary
The Company has a wholly owned subsidiary viz. Aditya Birla Commodities
Broking Limited ("ABCBL"), which is engaged in the business of
commodity broking.
ABCBL posted total Income of Rs.11.68 Crore compared to Rs.22.34 Crore
during previous year. The Net Loss was at Rs.3.53 Crore compared to
Rs.2.65 Crore in the previous year. The increase in Net Loss was
largely due to fall in yields and lower participation of clients.
The Consolidated financial statements pursuant to Clause 41 of the
Listing Agreement and prepared in accordance with the Accounting
Standards prescribed by the Institute of Chartered Accountants of India
forms part of the Annual Report. In terms of general exemption granted
by the Ministry of Corporate Affairs vide its Circular No.2/2011 dated
February 8, 2011 and in compliance with the conditions enlisted
therein, the reports and annual accounts of the subsidiary company for
the financial year ended March 31, 2014 have not been attached to the
Balance Sheet of the Company. As required under the circular, statutory
information pertaining to the subsidiary company forms part of the
Annual Report. Further, the annual accounts and other related
information of the subsidiary company are available to you and the
shareholders of subsidiary company at any point of time. Any
shareholder / investor of the Holding Company or Subsidiary Company
desirous of obtaining a copy of the said documents may send request in
writing to the Company at the Registered Office. The annual accounts of
subsidiary company shall also be kept for inspection at the Registered
Office of the Company and of the Subsidiary Company.
10. Public Deposits
The Company has not accepted or renewed any deposit as covered under
Section 58A of the Act read with the Companies (Acceptance of Deposit)
Rules, 1975, as amended, from the public, during the year under review.
11. Particulars as per Section 217 of the Companies Act, 1956
The information relating to the Conservation of Energy and Technology
Absorption required under Section 217(1)(e) of the Companies Act, 1956
("the Act"), are not applicable to the Company due to the very nature
of the industry in which it operates. During the year under review,
there were no foreign exchange earnings (previous year Nil) and outgo
(previous year Nil), respectively. In accordance with the provisions of
Section 217(2A) read with the Companies (Particulars of Employees)
Rules 1975, the names and other particulars of employees are to be set
out in the Directors'' Report as an addendum thereto. However, in terms
of the provisions of Section 219(1)(b)(iv) of the Companies Act, 1956,
the Report and accounts, as therein set out, are being sent to all the
members of the company excluding the information about the employees.
Any member, who is interested in obtaining such particulars about
employees, may write to the Company at the Registered Office of the
Company.
12. Directors
As on March 31, 2014, your Board of Directors comprises of 5 Directors
including 2 Independent Directors. During the year under review, Mr.
Pankaj Razdan & Mr. Manoj Kedia have resigned from the office of
Director effective March 25, 2014.
Mr. Gopi Krishna Tulsian & Mr. Shriram Jagetiya were appointed as
Additional Directors of the Company effective March 25, 2014 and hold
office upto the date of ensuing Annual General Meeting. The Board
recommends the appointment of Mr. Gopi Krishna Tulsian & Mr. Shriram
Jagetiya as Directors of the Company, liable to retire by rotation. Mr.
Sudhakar Ramasubramanian was re-appointed as the Managing Director of
the Company with effect from February 1, 2014 subject to confirmation
of members in general meeting. The Board proposes to appoint Mr. G.
Vijayaraghavan and Mr. P. Sudhir Rao, as Independent Directors, in
terms of provisions of Section 149 of the Companies Act, 2013 for a
term of 5 consecutive years from the date of this Annual General
Meeting.
The Board recommends their re-appointment.
The Company has received requisite disclosures and undertakings from
all the Directors in compliance with the provisions of the Companies
Act, 2013 and other applicable statutes.
13. Directors'' Responsibility Statement
Pursuant to Section 217(2AA) of the Companies Act, 1956 ("the Act"),
your Directors confirm that, to the best of their knowledge and belief:
* in the preparation of the annual accounts, the applicable standards
have been followed along with proper explanation relating to material
departures, if any;
* appropriate accounting policies have been selected and applied
consistently and such judgments 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 March 31, 2014 and of the loss of the Company for the
year ended on that date;
* proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Act for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities;
* the attached Statement of Accounts for the period ended March 31,
2014 have been prepared on a "going concern basis";
* proper systems are in place to ensure compliance of all laws
applicable to the Company; and
* all related party transactions are disclosed in notes to accounts at
Note.30 in terms of Accounting Standard 18.
14. Auditors and Auditors'' Report
M/s. S.R. Batliboi & Co. LLP, Chartered Accountants, Mumbai,
(Registration No. 301003E), hold office as the Statutory Auditors of
the Company upto the ensuing AGM and have offered themselves for
reappointment. A certificate from them has been received to the effect
that their re-appointment as Statutory Auditors of the Company, if
made, would be within the limits prescribed under Section 139 of the
Companies Act, 2013. The Auditors have subjected themselves for the
peer review process of the Institute of Chartered Accountants of India
(ICAI) and they hold a valid certificate issued by the "Peer Review
Board" of ICAI. The Board proposes the re-appointment of M/s. S.R.
Batliboi & Co. LLP, Chartered Accountants, Mumbai as the Statutory
Auditors of the Company, on the recommendation of the Audit Committee.
The observations, if any, made by the Auditors of the Company in their
report read with relevant notes to the Accounts are self-explanatory
and, therefore do not call for any further comments. The observations
reported under Emphasis of Matter by the Auditors of the Company in
their report with relevant notes to the Accounts are self explanatory
and do not call for any further explanation / comments. In respect of
observation/remark made at point (ix)(a) in the annexure to the
Auditors'' Report, there was a process gap in the calculation and
remittance of Professional Tax which has been addressed now. In one
instance there was a short deduction of TDS due to computation error
which was subsequently remitted. Management of your Company has taken
suitable corrective measures and improved the corresponding controls to
avoid any such instances in future.
15. Appreciation
Your Directors wish to place their sincere appreciation for the
valuable advice, guidance and support provided by the regulators and
statutory authorities from time to time. Your Directors express their
gratitude to the clients, bankers and all business associates for their
continuous support and patronage to the Company. Your Directors take
this opportunity to recognize and place on record their deep sense of
appreciation for the exemplary commitment and contribution made by
employees at all levels. Your involvement as Shareholders is greatly
valued. Your Directors look forward to your continuing support.
For and on behalf of the Board
Date : April 29, 2014 Shriram Jagetiya Sudhakar Ramasubramanian
Place : Mumbai Director Managing Director
Mar 31, 2013
Dear Shareholders,
The Board of Directors present the 17th Annual Report, along with the
audited annual standalone and consolidated accounts of Aditya Birla
Money Limited (''the Company") for the year ended March 31,2013.
1. Financial Performance Summary
The highlights of the financial results of the Company on a standalone
and on a consolidated basis are as follows:
(Rs. in Crore)
Standalone Consolidated
Particulars Year ended Year ended Year ended Year ended
March 31, March 31, March 31, March 31,
2013 2012 2013 2012
Income from
Operations 65.89 67.41 84.08 88.28
Other Income 5.68 4.98 9.76 8.95
Less: Expenditure 72.12 77.46 96.33 102.61
Profit before
Interest, Depreciation
and Taxation (0.55) (5.07) (2.49) (5.38)
Less: Interest 4.57 5.62 4.71 5.60
Profit before
Depreciation and
Taxation (5.12) (10.69) (7.20) (10.98)
Less: Depreciation 7.55 7.80 8.11 8.28
Profit / (Loss)
Before Taxation (12.67) (18.49) (15.31) (19.26)
Less: Provision
for Tax including
Deferred Tax (1.20) (1.43)
Profit / (Loss)
After Tax (12.67) (17.29) (15.31) (17.83)
Profit brought
forward from
previous year (4.66) 12.63 (1.65) 16.18
Balance carried
Balance Sheet (17.33) (4.66) (16.96) (1.65)
2. Business Performance
On a Standalone basis, the Company''s total Income stood at Rs.71.57
Crore compared to Rs.72.39 Crore during the previous year. The Income
from Operations was Rs.65.89 Crore compared to Rs. 67.41 Crore during
the previous year. The Company focussed on cost rationalisation, as a
result the Loss before Depreciation and Taxation was reduced to Rs.5.12
Crore compared to Rs. 10.69 Crore in the previous year. Interest Cost
was Rs.4.57 Crore as compared to Rs.5.62 Crore in the previous year.
The Company''s Net Loss was also down to Rs. 12.67 Crore as compared to
Net Loss of Rs. 17.29 Crore in the previous year.
On a Consolidated basis, the Company''s consolidated Income from
Operations was Rs.84.08 Crore, compared to Rs.88.28 Crore in the
previous year. The Consolidated Net Loss was Rs.15.31 Crore compared to
Rs.17.83 Crore in the previous year.
3. Reserves
Reserves & Surplus of the Company as on March 31, 2013 stood at
Rs.21.97 Crore. During the year, no amount is proposed to be
transferred to Reserves.
4. Dividend
In view of losses for the year, your Directors do not recommend any
dividend for the year under review.
5. Credit Rating
During the year, CRISIL Limited re-affirmed A1 rating for the short
term debt programme.
6. Share Capital
The Authorised Share Capital of the Company is Rs.25 Crore. The Paid up
Capital, Issued and Subscribed Capital of the Company was Rs. 13.54
Crore as on March 31, 2013 consisting of 55,400,000 Equity shares of
Re.1/- each and 800,000 8% Redeemable Non Convertible Non Cumulative
Preference Shares of Rs.100/- each. There was no capital infusion
during the year under review.
7. Management Discussion and Analysis
The Management Discussion and Analysis Report on the operations of the
Company is provided in a separate section and forms part of the Annual
Report.
8. Corporate Governance
Your Directors reaffirm their commitment to the corporate governance
standards to the extent they are applicable to the Company. A detailed
Corporate Governance Report forms part of this Annual Report.
9. Subsidiary
The Company has a wholly owned subsidiary viz. Aditya Birla Commodities
Broking Limited ("ABCBL"), which is engaged in the business of
commodity broking. ABCBL continues to be a material non-listed
subsidiary company on the basis of consolidated turnover for the
accounting year ended March 31, 2013 pursuant to Clause 49 of the
listing agreement. Relevant disclosure(s) in this regard also forms
part of the Corporate Governance Report.
ABCBL posted total Income of Rs.22.34 Crore compared to Rs.24.97 Crore
during previous year. The Net Loss was at Rs.2.65 Crore compared to
Rs.0.54 Crore in the previous year. The increase in Net Loss was
largely due to fall in yields and lower participation of clients.
The Consolidated financial statements pursuant to Clause 41 of the
Listing Agreement and prepared in accordance with the Accounting
Standards prescribed by the Institute of Chartered Accounts of India
forms part of the Annual Report. In terms of general exemption granted
by the Ministry of Corporate Affairs vide its Circular No.2/2011 dated
February 8, 2011 and in compliance with the conditions enlisted
therein, the reports and annual accounts of the subsidiary company for
the financial year ended March 31, 2013 have not been attached to the
Balance Sheet of the Company. As required under the circular, statutory
information pertaining to the subsidiary company forms part of the
Annual Report. Further, the annual accounts and other related
information of the subsidiary company are available to you and the
shareholders of subsidiary company at any point of time. Any
shareholder / investor of the Holding Company or Subsidiary Company
desirous of obtaining a copy of the said documents may send request in
writing to the Company at the Registered Office. The annual accounts of
subsidiary company shall also be kept for inspection at the Registered
Office of the Company and of the Subsidiary Company.
10. Public Deposits
The Company has not accepted or renewed any deposit as covered under
Section 58A of the Act read with the Companies (Acceptance of Deposit)
Rules, 1975, as amended, from the public, during the year under review.
11. Particulars as per Section 217 of the Companies Act, 1956
The information relating to the conservation of Energy and Technology
Absorption required under Section 217(1)(e) of the Companies Act, 1956
("the Act"), are not applicable to the Company due to the very nature
of the industry in which it operates. During the year under review,
there were no foreign exchange earnings (previous year Nil) and outgo
(previous year Nil), respectively. In accordance with the provisions of
Section 217(2A) read with the Companies (Particulars of Employees)
Rules 1975, the names and other particulars of employees are to be set
out in the Directors'' Report as an addendum thereto. However, in terms
of the provisions of Section 219(1)(b)(iv) of the Companies Act, 1956,
the Report and accounts, as therein set out, are being sent to all the
members of the company excluding the information about the employees.
Any member, who is interested in obtaining such particulars about
employees, may write to the Company at the Registered Office of the
Company.
12. Directors
As on March 31, 2013, your Board of Directors comprises of 5 Directors
including 2 Independent Directors. In accordance with the provisions of
Section 255 and 256 of the Companies Act, 1956, Mr.G.Vijayaraghavan,
retires by rotation at the ensuing Annual General Meeting (AGM) and
being eligible, has offered himself for re-appointment. The Board
recommends his re-appointment. The Company has received requisite
disclosures and undertakings from all the Directors in compliance with
the provisions of the Companies Act, 1956 and other applicable
statutes.
13. Directors'' Responsibility Statement
Pursuant to Section 217(2AA) of the Companies Act, 1956 ("the Act"),
your Directors confirm that, to the best of their knowledge and belief:
- in the preparation of the annual accounts, the applicable standards
have been followed alongwith proper explanation relating to material
departures, if any;
- appropriate accounting policies have been selected and applied
consistently and such judgments 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 March 31, 2013 and of the profit of the Company for
the year ended on that date;
- proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Act for safeguarding (he assets of the Company and for preventing and
detecting fraud and other irregularities;
- the attached Statement of Accounts for the period ended March 31,
2013 have been prepared on a "going concern basis";
- proper systems are in place to ensure compliance of all laws
applicable to the Company; and
- all related party transactions are disclosed in notes to accounts at
Note 30 in terms of Accounting Standard 18.
14. Auditors and Auditors'' Report
M/s. S.R. Batliboi & Co. LLP (previously M/s. S.R. Batliboi & Co.),
Chartered Accountants, Mumbai, (Registration No. 301003E), hold office
as the Statutory Auditors of the Company upto the ensuing AGM and have
offered themselves for re-appointment. A certificate from them has been
received to the effect that their re-appointment as Statutory Auditors
of the Company, if made, would be within the limits prescribed under
Section 224(1 B) of the Act. The Auditors have further certified that
they have subjected themselves for the peer review process of the
Institute of Chartered Accountants of India (ICAI) and they hold a
valid certificate issued by the "Peer Review Board" of ICAI. The Board
proposes the re-appointment of M/s. S.R. Batliboi & Co. LLP, Chartered
Accountants, Mumbai as the Statutory Auditors of the Company, on the
recommendation of the Audit Committee. The observations, if any, made
by the Auditors of the Company in their report read with relevant notes
to the Accounts are self-explanatory and, therefore do not call for any
further comments. The observations reported under Emphasis of Matter by
the Auditors of the Company in their report with relevant notes to the
Accounts are self- explanatory and do not call for any further
explanation / comments. In respect of observation/remark made at point
(ix)(a) in the annexure to the Auditors'' report, although the Company
had deposited the professional tax payment cheques with the respective
states, the delay was due to the calculation & dispatch of the cheques
to respective branch offices from Head office. Now, management of your
Company has taken suitable corrective measures and improved the
corresponding controls to avoid any such instances in future.
15. Appreciation
Your Directors wish to place their sincere appreciation for the
valuable advice, guidance and support provided by the regulators and
statutory authorities from time to time. Your Directors express their
gratitude to the clients, bankers and all business associates for their
continuous support and patronage to the Company. Your Directors take
this opportunity to recognize and place on record their deep sense of
appreciation for the exemplary commitment and contribution made by
employees at all levels. Your involvement as Shareholders is greatly
valued. Your Directors look forward to your continuing support.
For and on behalf of the Board
Place : Chennai Pankaj Razdan Sudhakar Ramasubramanian
Date : April 29, 2013 Director Managing Director
Mar 31, 2012
The Board of Directors present the 16th Annual Report, along with the
audited annual standalone and consolidated accounts of Aditya Birla
Money Limited ('the Company") for the year ended March 31, 2012.
1. Financial Performance Summary
The highlights of the financial results of the Company on a standalone
and on a consolidated basis are as follows:
(Rs. in Crore)
Standalone Consolidated
Particulars Year ended Year ended Year ended Year ended
March 31, March 31, March 31, March 31,
2012 2011 2012 2011
Income from
Operations 67.41 98.90 88.28 114.28
Other Income 4.98 8.22 8.95 9.74
Expenditure 77.46 100.65 102.61 115.67
Profit before
Interest, (5.07) 6.47 (5.38) 8.35
Depreciation and
Taxation
Less : Interest 5.62 4.77 5.60 4.80
Profit before
Depreciation and
Taxation (10.69) 1.70 (10.98) 3.55
Less : Depreciation 7.80 7.16 8.28 7.50
Less: Exceptional
items à 8.15 à 8.15
Profit / (Loss)
before Taxation (18.49) (13.61) (19.26) (12.10)
Less : Provision for
tax including (1.20) (4.15) (1.43) (3.66)
deferred tax
Profit / (Loss)
after Tax (17.29) (9.46) (17.83) (8.44)
Profit brought
forward from
previous year 12.63 22.09 16.18 24.62
Balance carried to
Balance Sheet (4.66) 12.63 (1.65) 16.18
2. Business Performance
On a Standalone basis, the Company's total income stood at Rs.72.39
Crore compared to Rs.107.12 Crore during the previous year. The Income
from Operations was Rs.67.41 Crore compared to Rs. 98.90 Crore during
the previous year. The Loss before depreciation and taxation was down
to Rs.10.69 Crore compared to a profit of Rs.1.70 Crore in the previous
year. Interest cost was Rs.5.62 Crore as compared to Rs. 4.77 Crore in
the previous year. The Company also witnessed decrease in trading
volumes in line with the market trends and thus impacting the revenues.
As a result, the Company posted a Net Loss of Rs.17.29 Crore as
compared to Rs.9.46 Crore in the previous year. On a Consolidated
basis, the Company's consolidated Income from Operations was Rs.88.28
Crore, compared to Rs. 114.28 Crore in the previous year. The
Consolidated Net Loss (before Tax) was Rs.19.26 Crore compared to Rs.
12.10 Crore in the previous year.
3. Reserves
Reserves & Surplus of the Company as on March 31, 2012 stood at
Rs.34.63 Crore. During the year, no amount is proposed to be
transferred to Reserves.
4. Dividend
In view of accumulated losses, your Directors do not recommend any
dividend for the year under review.
5. Credit Rating
During the year, CRISIL Limited re-affirmed A1 rating for the short
term debt programme.
6. Share Capital
The Authorised Share Capital of the Company is Rs.25 Crore. The Paid up
Capital, Issued and Subscribed Capital of the Company was Rs.13.54
Crore as on March 31, 2012 consisting of 55,400,000 Equity shares of
Re.1/- each and 800,000 8% Redeemable Non Convertible Non Cumulative
Preference Shares of Rs.100/- each. There was no capital infusion
during the year under review.
7. Management Discussion and Analysis
The Management Discussion and Analysis Report forming part of
Directors' Report for the year under review forms part of Annual
Report. The report provides strategic direction and more detailed
analysis on performance of the individual businesses and their outlook.
8. Corporate Governance
Your Directors reaffirm their commitment to the corporate governance
standards to the extent they are applicable to the Company. A detailed
Corporate Governance Report forms part of this Annual Report.
9. Subsidiary
The Company has a wholly owned subsidiary viz. Aditya Birla Commodities
Broking Limited ("ABCBL"), which is engaged in the business of
commodity broking. ABCBL has become a material non-listed subsidiary
company on the basis of consolidated turnover for the accounting year
ended March 31, 2012 pursuant to Clause 49 of the listing agreement.
Relevant disclosure in this regard also forms part of the Corporate
Governance Report.
ABCBL continues to perform well in commodity trading. ABCBL posted
total Income of Rs.24.97 Crore compared to Rs.16.90 Crore during
previous year. The Net Loss was at Rs.0.54 Crore compared to a Net
Profit of Rs.1.02 Crore in the previous year. The increase in total
income during the year is attributed to increase in brokerage income
due to higher volumes in commodity trading during the year, as compared
to the previous year. The company had a Net Loss in the current year
due to higher operating cost during the year.
The Consolidated financial statements pursuant to clause 41 of the
Listing Agreement and prepared in accordance with the Accounting
Standards prescribed by the Institute of Chartered Accounts of India
forms part of the Annual Report. In terms of general exemption granted
by the Ministry of Corporate Affairs vide its circular no. Circular
No.2/2011 dated February 8, 2011 and in compliance with the conditions
enlisted therein, the reports and annual accounts of the subsidiary
company for the financial year ended March 31, 2012 have not been
attached to the Balance Sheet of the Company. As required under the
circular, statutory information pertaining to the subsidiary company
forms part of the Annual Report. Further, the annual accounts and other
related information of the subsidiary company are available to you and
the shareholders of subsidiary company at any point of time. Any
shareholder / investor of the holding company or subsidiary company
desirous of obtaining a copy of the said documents may send request in
writing to the Company at the Registered Office. The annual accounts of
subsidiary company shall also be kept for inspection at the Registered
Office of the Company and of the subsidiary company.
10. Public Deposits
The Company has not accepted or renewed any deposit as covered under
Section 58A of the Act read with the Companies (Acceptance of Deposit)
Rules, 1975, as amended, from the public, during the year under review.
11. Particulars as per Section 217 of the Companies Act, 1956
The information relating to the conservation of Energy and Technology
Absorption required under Section 217(1)(e) of the Companies Act, 1956
("the Act"), are not applicable to the Company due to the very nature
of the industry in which it operates. During the year under review,
there were no foreign exchange earnings (previous year Nil) and outgo
(previous year Nil), respectively. In accordance with the provisions of
Section 217(2A) read with the Companies (Particulars of Employees)
Rules 1975, the names and other particulars of employees are to be set
out in the Directors' Report as an addendum thereto. However, in terms
of the provisions of Section 219(1)(b)(iv) of the Companies Act, 1956,
the Report and accounts, as therein set out, are being sent to all the
members of the company excluding the information about the employees.
Any member, who is interested in obtaining such particulars about
employees, may write to the Company at the Registered Office of the
Company.
12. Directors
As on March 31, 2012, your Board of Directors comprises of 5 Directors
including 2 Independent Directors. In accordance with the provisions of
Section 255 and 256 of the Companies Act, 1956, Mr.P.Sudhir Rao,
retires by rotation at the ensuing Annual General Meeting (AGM) and
being eligible, has offered himself for re-appointment. The Board
recommends his re-appointment.
The Company has received requisite disclosures and undertakings from
all the Directors in compliance with the provisions of the Companies
Act, 1956 and other applicable statutes.
13. Directors' Responsibility Statement
Pursuant to Section 217(2AA) of the Companies Act, 1956 ("the Act"),
your Directors confirm that, to the best of their knowledge and belief:
- in the preparation of the annual accounts, the applicable standards
have been followed alongwith proper explanation relating to material
departures, if any;
- appropriate accounting policies have been selected and applied
consistently and such judgments 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 March 31, 2012 and of the profit of the Company for
the year ended on that date;
- proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Act for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities;
- the attached Statement of Accounts for the period ended March 31,
2012 have been prepared on a "going concern basis";
- proper systems are in place to ensure compliance of all laws
applicable to the Company; and
- all related party transactions are disclosed in notes to accounts at
Note 34 in terms of Accounting Standard 18.
14. Auditors and Auditors' Report
M/s. S.R. Batliboi & Co., Chartered Accountants, Mumbai, (Registration
No. 301003E), hold office as the Statutory Auditors of the Company upto
the ensuing AGM and have offered themselves for re-appointment. A
certificate from them has been received to the effect that their
re-appointment as Statutory Auditors of the Company, if made, would be
within the limits prescribed under Section 224(1B) of the Act. The
Auditors have further certified that they have subjected themselves for
the peer review process of the Institute of Chartered Accountants of
India (ICAI) and they hold a valid certificate issued by the "Peer
Review Board" of ICAI. The Board proposes the re-appointment of M/s.
S.R. Batliboi & Co., Chartered Accountants, Mumbai as the Statutory
Auditors of the Company, on the recommendation of the Audit Committee.
The observations, if any, made by the Auditors of the Company in their
report read with relevant notes to the Accounts are self-explanatory
and, therefore do not call for any further comments.
15. Appreciation
Your Directors wish to place their sincere appreciation for the
valuable advice, guidance and support provided by the regulators and
statutory authorities from time to time. Your Directors express their
gratitude to the clients, bankers and all business associates for their
continuous support and patronage to the Company. Your Directors take
this opportunity to recognize and place on record their deep sense of
appreciation for the exemplary commitment and contribution made by
employees at all levels. Your involvement as Shareholders is greatly
valued. Your Directors look forward to your continuing support.
For and on behalf of the Board
Pankaj Razdan Sudhakar Ramasubramanian
Director Managing Director
Place : Chennai
Date : May 3, 2012
Mar 31, 2011
TO THE MEMBERS
The Directors have pleasure in presenting the 15th Annual Report of
the Company together with the audited accounts for the financial year
2010-11.
FINANCIAL RESULTS
The highlights of the financial results of the Company on a standalone
and on a consolidated basis are as follows:
(Rs. in Lakhs)
Standalone Consolidated
Year ended Year ended Year ended Year ended
March 31, March 31, March 31, March 31,
2011 2010 2011 2010
Income from
Operations 9,890.00 9,827.88 11,272.14 11,127.02
Other Income 821.92 351.96 1,130.11 590.23
Expenditure 9,960.36 7,798.26 11,441.55 8,780.26
Profit before
Interest,
Depreciation
and Taxation 751.56 2,381.58 960.70 2,936.99
Less : Interest 580.49 261.38 604.80 283.98
Profit before
Depreciation
and Taxation 171.07 2,120.20 355.90 2,653.01
Less :
Depreciation 716.04 567.44 750.18 600.69
Less: Exceptional
items 815.48 - 815.48 -
Profit/(Loss)
before Taxation (1,360.45) 1,552.76 (1,209.76) 2,052.32
Less : Provision
for tax including
deferred tax (414.78) 605.07 (366.01) 783.99
Profit/(Loss)
after Tax (945.67) 947.69 (843.75) 1,268.33
Profit brought
forward from
previous year 2,208.99 1,261.30 2,461.81 1,193.48
Balance
carried to
Balance Sheet 1,263.32 2,208.99 1,618.06 2,461.81
FINANCIAL PERFORMANCE
On a Standalone basis, the CompanyÃs total income stood at Rs.10,711.92
Lakhs compared to Rs.10,179.84 Lakhs during the previous year. The
Income from Operations was Rs.9,890 Lakhs, compared to Rs.9,827.88
Lakhs during the previous year. The profit before depreciation and
taxation was down to Rs. 171.07 Lakhs compared to Rs.2,120.20 Lakhs in
the previous year. During the year under review the Company incurred
one time exceptional loss of Rs.815.48 lakhs on account of certain
trades of itÃs clients. This resulted in decline in the profits of the
Company.Interest cost was Rs.580.49 Lakhs as compared to Rs.261.38
lakhs in the previous year.The Company also witnessed decrease in
trading volumes during the second half of the financial year in line
with the market trends. There were increases in fixed costs of
operation. As a result of these, the Company posted a Net Loss of
Rs.945.67 Lakhs, compared to the Net Profit of Rs.947.69 Lakhs in the
previous year.
On a Consolidated basis, the CompanyÃs consolidated Income from
Operations was Rs.11,272.14 Lakhs, compared to Rs.11,127.02 Lakhs in
the previous year. The Consolidated Net Loss (before Tax) was
Rs.1,209.76 Lakhs compared to a Net Profit of Rs.2,052.32 Lakhs in the
previous year.
DIVIDEND
Considering the loss during the year the Directors do not recommended
any dividend for the period under review.
SHIFTING OF REGISTERED OFFICE
The registered office of the Company was shifted from State of
Tamilnadu (Ali Towers, No. 55, Greams Road, Chennai 600 006) to State
of Gujarat (Indian Rayon Compound, Veraval, Gujarat à 362266) in terms
of Company Law Board order dated February 11, 2011. The Registrar of
Companies, Gujarat issued certificate of registration under Section
18(3) of the Companies Act, 1956 on April 6, 2011.
ISSUE OF REDEEMABLE NON CONVERTIBLE NON CUMULATIVE PREFERENCE SHARES ON
PRIVATE PLACEMENT BASIS
During the year under review the Company made an issue and allotment of
8,00,000 8% Redeemable Non Convertible Non Cumulative Preference Shares
of Rs.100/- each at a premium of Rs.150/- per share, on private
placement basis to Aditya Birla Financial Services Private Limited
(Holding Company), for cash aggregating to Rs.2,000 Lakhs which was
fully subscribed and allotted on March 31, 2011. These shares are not
intended for listing.
CREDIT RATING
During the year, CRISIL Limited re-affirmed P1 rating for the short
term debt programme.
FINANCE
During the year under review, the Company also raised short term
capital through issuance of Commercial Papers for an aggregate amount
of Rs.5,000 Lakhs to meet its working capital requirement.
FIXED DEPOSITS
The Company has not accepted any fixed deposits from the public during
the year under review.
SUBSIDIARY COMPANY
The Company has a subsidiary viz. Aditya Birla Commodities Broking
Limited (ÃABCBLÃ), which is engaged in commodity trading.
ABCBL continues to perform well in commodity trading. ABCBL posted
total Income of Rs.1,690.33 Lakhs compared to Rs.1,537.41 Lakhs during
previous year. The Net Profit was at Rs.101.92 Lakhs, compared to
Rs.320.65 Lakhs in the previous year. The increase in total income
during the year is attributed to increase in brokerage income due to
higher volumes in commodity trading during the year, as compared to the
previous year. However, the Net Profit has declined due to higher
operating cost during the year.
The Consolidated financial statements of your Company and its
subsidiary Company are prepared in accordance with the Accounting
Standards notified by Companies Accounting Standard Rules, 2006 (as
amended) and forms part of the Annual Report. The statement pursuant to
Section 212 of the Companies Act, 1956 containing details of the
subsidiary company is attached to this Annual Report.
In terms of Circular No.2/2011 dated February 8, 2011 issued by
Ministry of Corporate Affairs granting general exemption under Section
212(8) of the Companies Act, 1956, from attaching copy of the Balance
Sheet, Profit and Loss Account, Directorsà Report and the AuditorsÃ
Report of the Subsidiary Company to the Balance Sheet of the Holding
Company, the annual accounts of the subsidiary has not been attached to
the Annual Report of the Company in terms of approval obtained by the
Board of Directors at its meeting held on April 21, 2011. As required
under the circular, statutory information pertaining to ABCBL forms
part of the Annual Report. As mandated, summary financial information
for the subsidiary has been also included and forms part of the Annual
Report. Further, the annual accounts of ABCBL and the related detailed
information shall be made available to you and Shareholders of ABCBL at
any point of time. Any shareholder / investor of the holding company or
subsidiary company desirous of obtaining the annual accounts of the
subsidiary company and related information may obtain the same by
sending a request in writing to the Company at the Registered Office.
The annual accounts of ABCBL shall also be kept for inspection at the
Registered Office of the Company and of ABCBL. The Company shall
furnish a hard copy of details of accounts of ABCBL on demand.
CORPORATE GOVERNANCE
Your Company complies with the requirements of the Listing Agreement
with the Stock Exchanges where the CompanyÃs shares are listed. The
report on Corporate Governance specified under clause 49 of the Listing
Agreement is included as part of this Report. A certificate from the
Practising Company Secretary regarding compliance with the conditions
of Corporate Governance as stipulated under clause 49 of the Listing
Agreement, is attached to this report.
The Ministry of Corporate Affairs has issued a set of Voluntary
Guidelines on ÃCorporate Governanceà and ÃCorporate Social
Responsibilityà in December 2009. These guidelines are expected to
serve as a benchmark for the corporate sector and also help in
achieving the highest standard of corporate governance. Some of the
provisions of these guidelines are already in place as reported
elsewhere in this Annual Report. The other provisions of these
guidelines are being also implemented in a phased manner aligning with
the Aditya Birla GroupÃs Corporate Governance norms and CSR
initiatives.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The Management Discussion and Analysis Report, as stipulated under
clause 49 of the Listing Agreement is annexed to the Annual Report.
DIRECTORS
During the year, Mr. Kanwar Vivek resigned as the Managing Director of
the Company with effect from October 15, 2010. Mr. Pankaj Razdan,
Director was appointed as the Manager of the Company w.e.f October 15,
2010 and held office as Manager upto February 1, 2011.
Mr. Sudhakar Ramasubramanian was appointed as the Managing Director of
the Company with effect from February 1, 2011.
Mr. Manoj Kedia, Director of the Company, retires by rotation at the
ensuing Annual General Meeting and being eligible has offered himself
for re-appointment. The Board recommends his re-appointment.
The Company has received requisite disclosures and undertakings from
all the Directors in compliance with the provisions of the Companies
Act, 1956.
AUDITORS & AUDITORÃS REPORT
M/s. S. R. Batliboi & Associates, Chartered Accountants, retire at the
conclusion of the ensuing Annual General Meeting. However, they do not
seek re-appointment. Your Directors, have therefore proposed the
appointment of M/s. S. R. Batliboi & Co. Chartered Accountants, Mumbai
(Firm Registration No.301003E) as Statutory Auditors of the Company.
The Company has received a letter from them to the effect that their
appointment, if made, would be within the prescribed limits under
Section 224(1-B) of the Companies Act, 1956, and that they are not
disqualified for such appointment within the meaning of Section 226 of
the Companies Act, 1956. The members are requested to appoint the
Auditors and authorize the Board to fix their remuneration.
The observations made by the Auditors in their report read with
relevant notes to the Accounts are self-explanatory and do not call for
any further comments under Section 217(3) of the Companies Act, 1956.
DIRECTORSÃ RESPONSIBILITY STATEMENT
As required under Section 217(2AA) of the Companies Act, 1956, the
Directors of the Company hereby state and confirm:
1. That in the preparation of Annual Accounts for the year, applicable
Accounting Standards have been followed along with proper explanations
relating to material departures, if any;
2. That they have selected such accounting policies and applied them
consistently, and made judgments 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 ended March 31, 2011
and of the profit of the Company for that period;
3. That they have taken proper and sufficient care for the maintenance
of adequate accounting records in accordance with the provisions of the
Companies Act, 1956, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
4. That they have prepared the Annual Accounts for the year ended
March 31, 2011 on a going concern basis.
COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF
DIRECTORS) RULES, 1988
In view of the nature of activities which are being carried on by the
Company, the particulars prescribed under Section 217(1)(e) of the
Companies Act, 1956 read with Companies (Disclosure of Particulars in
the Report of the Board of Directors) Rules, 1988 regarding
conservation of Energy & Technology Absorption are not applicable to
the Company. The Company does not have any foreign exchange earnings
and outgo during the year.
PARTICULARS OF EMPLOYEES
In accordance with the provisions of Section 217(2A) read with the
Companies (Particulars of Employees) Rules 1975, the names and other
particulars of employees are to be set out in the Directorsà Report as
an addendum thereto. However, in terms of the provisions of Section
219(1)(b)(iv) of the Companies Act, 1956, the Report and accounts, as
therein set out, are being sent to all the members of the company
excluding the information about the employees. Any member, who is
interested in obtaining such particulars about employees, may write to
the Company at the Registered Office of the Company.
ACKNOWELDGEMENTS
Your Directors express their sincere appreciation to the regulatory
authorities, CompanyÃs bankers, shareholders, stakeholders and clients
for their continued co-operation and support. Your Directors take this
opportunity to recognize and place on record their deep sense of
appreciation for the commitment and contribution made by all the
employees and look forward to receive the same in future.
For and on behalf of the Board of Directors
Pankaj Razdan Sudhakar Ramasubramanian
Director Managing Director
Place : Chennai
Date : April 21, 2011
Mar 31, 2010
The Directors have pleasure in presenting the Fourteenth Annual Report
of the Company together with the audited accounts for the financial
year ended March 31, 2010.
FINANCIAL RESULTS
The highlights of the financial results of the Company on a standalone
and on a consolidated basis are as follows:
(Rs. in lakhs)
Standalone Consolidated
Year ended Year ended Year ended Year ended
March 31, March 31, March 31, March 31,
2010 2009 2010 2009
Income from
Operations 9,746.79 6,778.60 11,045.93 7,309.34
Other Income 351.96 304.52 590.23 1,357.60
Expenditure 7,717.17 5,937.47 8,699.17 7,399.84
Profit before Interest
Depreciation
and Taxation 2,381.58 1,145.65 2,936.99 1,267.10
Less : Interest 261.38 542.73 283.98 558.68
Profit before
Depreciation and
Taxation 2,120.20 602.92 2,653.01 708.42
Less: Depreciation 567.44 473.14 600.69 504.45
Profit before
Taxation 1,552.76 129.78 2,052.32 203.97
Less : Provision for
tax including
deferred tax 605.06 66.28 783.99 83.35
Profit after Tax 947.70 63.50 1,268.33 120.62
Profit brought forward
from previous year 1,261.30 1,197.80 1,193.48 1,072.86
Balance carried to
Balance Sheet 2,209.00 1,261.31 2,461.81 1,193.48
FINANCIAL PERFORMANCE
The Financial Year 2009-10 was the first full year of operation of the
Company since it was acquired by the Aditya Birla Group. During the
year, the stock market witnessed a smart recovery and sentiment
remained bullish compared to the previous year. The equity market
revived with the foreign institutional investors focused on emerging
markets including India.The Sensex rallied 77% and the Nifty surged
72%.The movement was in line with the trends in other international
markets. Against that backdrop, the Company continued its consolidation
and growth oriented strategies. On a Standalone basis, the Companys
total income was up by 43% at Rs. 10,098.75 Lakhs compared to Rs.
7,083.12 Lakhs during the previous year. The Income from Operations
grew by 44% at Rs 9,746.79 Lakhs, compared to Rs. 6,778.60 Lakhs during
the previous year. The profit before taxation was also up by 1,096% at
Rs. 1,552.76 Lakhs compared to Rs. 129.78 Lakhs in the previous
year.The Companys net profit for the year was Rs. 947.70 Lakhs,
compared to Rs. 63.50 Lakhs in the previous year, a growth of 1,392%
over previous year.
On a Consolidated basis, your Companys Income from Operations was up
by 51% at Rs. 11,045.93 Lakhs, compared to Rs. 7,309.34 Lakhs in the
previous year.The Consolidated Profit before taxation was Rs. 2,052.32
Lakhs compared to Rs. 203.97 Lakhs in the previous year, witnessing a
growth of 906% over previous year.The Consolidated Net Profit was Rs.
1,268.33 Lakhs compared to Rs. 120.62 Lakhs in the previous year,
witnessing a growth of 952% over previous year.
DIVIDEND
Considering the future expansion plans and capital requirements, the
Directors have decided to conserve cash flow and hence have not
recommended any dividend for the year under review.
CHANGE IN NAME
During the year, the name of your Company was changed to "Aditya Birla
Money Limited" vide fresh certificate of incorporation, consequent upon
change of name, dated August 3,2009, issued by Registrar of Companies,
Chennai.The new name of the Company reflects the new ownership /
promoters of the Company.
INTER SE PROMOTER TRANSFER
To enhance focus on the Financial Services business and to bring all
the Financial Services activities under one single roof, Aditya Birla
Nuvo Limited, on February 23,2010 transferred its shareholding in the
Company to Aditya Birla Financial Services Private Limited (ABFSPL) by
way of "inter-se" promoter transfer in terms of regulation 3(4) of SEBI
(Substantial Acquisition of Shares and Takeovers) Regulations, 1997.
The aforesaid transfer of shares did not result in change in control or
promoter group of the Company under the SEBI (Substantial Acquisition
of Shares and Takeovers) Regulations, 1997. With the above change,
ABFSPL is now the Promoter/ Holding company of your Company .
CREDIT RATING
The Company obtained credit rating of P1+ from CRISIL Limited for its
short term debt programme. The rating indicates the highest degree of
safety with regard to timely payment of interest and principal on the
instrument.
FINANCE
During the year, the Company issued Commercial Papers for an aggregate
amount of Rs. 40 Crores to meet its working capital requirement. The
year end outstanding was Rs. 15 Crores.
FIXED DEPOSITS
The Company has not accepted any fixed deposits from the public during
the year.
SUBSIDIARY COMPANY
The Company has a subsidiary viz. Aditya Birla Commodities Broking
Limited ("ABCBL"), which is engaged in commodity trading. The name of
this Company was also changed during the year vide fresh certificate of
incorporation, consequent upon change of name, dated September 29,2009
issued by Registrar of Companies, Chennai so as to reflect the new
Ownership / Promoters of the Company.
Aditya Birla Commodities Broking Limited continues to perform well and
is a significant player in commodity trading, especially in gold
trading. ABCBL, the subsidiary company, posted total Income of
Rs.1,537.41 Lakhs compared to Rs.1,583.81 Lakhs during previous
year.The net profit was up 461% at Rs. 320.65 Lakhs, compared to Rs.
57.11 Lakhs in the previous year. This was due to significant increase
in the brokerage income during the year and change in revenue mix.
The Consolidated financial statements of your Company and its
subsidiary Company are prepared in accordance with the Accounting
Standards prescribed by the Institute of Chartered Accountants of India
form part of the Annual Report.The statement pursuant to section 212 of
the Companies Act, 1956 containing details of the subsidiary company is
attached to this annual report.
Pursuant to the application made by the Company under section 212(8) of
the Companies Act, 1956, the Ministry of Corporate Affairs, Government
of India vide its Letter No. 47/117/2010 CL-III dated 03/03/2010
granted exemption from attaching a copy of the Balance Sheet, Profit
and Loss Account, Directors Report and the Auditors Report of the
Subsidiary Company and other documents required to be attached under
Section 212 of the Companies Act to the Balance Sheet of your Company.
In compliance with the terms of the exemption, summary financial
information for the subsidiary has been also included and forms part of
the Annual Report. Any shareholder / investor of the holding company or
subsidiary company desirous of obtaining the annual accounts of the
subsidiary company and related information may obtain the same by
sending a request in writing to the Company at the registered office.
These documents are also open for inspection at the registered office
of the Company / subsidiary Company.
CORPORATE GOVERNANCE
Your Company complies with the requirements of the Listing Agreement
with the Stock Exchange where the Companys shares are listed. The
report on Corporate Governance specified under clause 49 of the Listing
Agreement is included as part of the Directors Report. A Certificate
from the Practicing Company Secretary regarding compliance with the
conditions of Corporate Governance as stipulated under clause 49 of the
Listing Agreement is attached to this report.
The Ministry of Corporate Affairs has issued a set of Voluntary
Guidelines on "Corporate Governance " and " Corporate Social
Responsibility" in December 2009. These guidelines are expected to
serve as a benchmark for the corporate sector and also help in
achieving the highest standard of corporate governance.
Some of the provisions of these guidelines are already in place as
reported elsewhere in this Annual Report. The other provisions of
these guidelines are being evaluated and your Company will strive to
adopt the same in a phased manner.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The Management Discussion and Analysis Report as stipulated under
clause 49 of the Listing Agreement is annexed to the Annual Report.
DIRECTORS
During the year, Mr. Sudhakar Ramasubramanian relinquished charge as
Executive Director of the Company with effect from January 4,2010. He
however, continues on the Board as a Non-executive Director. Mr. Kanwar
Vivek, Director was appointed as the Managing Director of the Company
with effect from January 4, 2010.
Mr. Pankaj Razdan, Director of the Company, retires by rotation at the
ensuing Annual General Meeting and being eligible has offered himself
for re-appointment. The Board recommends his re-appointment.
AUDITOR & AUDITORS REPORT
M/s. R. Subramanian & Company, Chartered Accountants, retire at the
conclusion of the ensuing Annual General Meeting. The Company has
received a letter from M/s. R. Subramanian & Company, Chartered
Accountants, expressing their unwillingness to be re-appointed as
Auditors. Your Directors have therefore proposed the appointment of
M/s. S. R. Batliboi & Associates, Chartered Accountants, Mumbai as
Statutory Auditors of the Company. The Company has received a letter
from them to the effect that their appointment, if made, would be
within the prescribed limits under section 224(1-B) of the Companies
Act, 1956, and that they are not disqualified for such appointment
within the meaning of Section 226 of the Companies Act, 1956.
The observations made by the Auditors in their report read with
relevant notes to the Accounts are self- explanatory and do not call
for any further comments under section 217(3) of the Companies Act,
1956
DIRECTORS RESPONSIBILITY STATEMENT
As required under Section 217(2AA) of the Companies Act, 1956, the
Directors of the Company hereby state and confirm:
1. That in the preparation of Annual Accounts for the year, applicable
Accounting Standards have been followed along with proper explanations
relating to material departures;
2. That 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 of
the profit of the Company for that period;
3. That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956, for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities;
4. That the Directors have prepared the Annual Accounts on a going
concern basis.
COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF
DIRECTORS) RULES, 1988
In view of the nature of activities which are being carried on by the
Company, the particulars prescribed under Section 217(1)(e) of the
Companies Act, 1956 read with Companies (Disclosure of Particulars in
the Report of the Board of Directors) Rules, 1988 regarding
conservation of Energy & Technology Absorption are not applicable to
the Company. The Company does not have any foreign exchange earnings
and outgo during the year.
PARTICULARS OF EMPLOYEES
In accordance with the provisions of Section 217(2A) read with the
Companies (Particulars of Employees) Rules 1975, the names and other
particulars of employees are to be set out in the Directors Report as
an addendum thereto. However, in terms of the provisions of Section
219(1 )(b)(iv) of the Companies Act, 1956 , the Report and accounts, as
therein set out, are being sent to all the members of the company
excluding the information about the employees. Any member, who is
interested in obtaining such particulars about employees, may write to
the Company Secretary at the Registered Office of the Company.
ACKNOWLEDGEMENTS
Your Directors express their sincere appreciation to the regulatory
authorities, to Companys bankers, shareholders, stakeholders and
clients for their continued co-operation and support. Your Directors
take this opportunity to recognize and place on record their deep sense
of appreciation for the commitment and contribution made by all the
employees and look forward to receive the same in future.
For Aditya Birla Money Limited
(Formerly known as Apollo Sindhoori
Capital Investments Limited)
Kanwar Vivek Sudhakhar Ramasubramian
Managing Director Director
P. Sudir Rao Manoj Kedia
Director Director
Place: Chennai,
Date: April 23,2010