Mar 31, 2018
Dear Member,
Baid Leasing and Finance Co. Ltd.
The directors are pleased to present the 27th Annual Report of your Company together with the audited annual financial statements for the financial year 2017-18.
1. COMPANYâS PERFORMANCE
The Companyâs financial highlights forthe financial year ended on 31st March ,2018 are summarized below.
(Amount in Rs.)
Particulars |
F.Y. 2017-18 |
F Y 2016-17 |
Total Revenue |
41,04,79,472.53/- |
28,52,16,463/- |
Less: Total Expenditure |
32,77,65,958.22/- |
22,80,01,272/- |
Profit / (Loss) before Taxation |
8,27,13,514.31/- |
5.72.15.192/- |
Tax expenses |
2,59,74,413.25/- |
1,75,27,827/- |
Profit / (Loss) after Tax |
5,67,39,101.07/- |
3,96,87,364/- |
2. PERFORMANCE RE VIE WAND STATE OF COMPANYâS AFFAIRS
The company is mainly engaged in the business of vehicle finance and asset finance.
The net receipts from operations during the year under review were Rs. 41,04.79 ,472.53/ -as against Rs.28,52,16,463/-in the previous year. The profit/(Loss) after tax is Rs. 5 J67.39,101.07/-as against Rs.3,96,87,364/- in the previous year.
The Company has recorded a growth in revenue of 43.92% and growth in Profit of 42.97% during the year under review.
The asset size of Company grew from Rs. 139,35,00,000/- as on March 31, 2017 to Rs. 220,13,00,000/- as on March31,2018 .thereby recording a growth of 57.97%.
The improvement in the revenues is a result of the aggressive marketing and robust collections. The Company endeavors to continue the tremendous growth rate.
3. DIVIDEND
The Board, in its meeting held on February 07,2018 declared an interim dividend of Rs.0.50/-per Equity Share(@ 5% per equity share of Rs. 10/- each). The Dividend Pay out aggregated to Rs. 50 50,000/-(Exculding dividend distribution tax of Rs. 10 28,063/-). Further the Board in its meeting held on May 29,2018 recommended a final dividend of Rs. 0.50/- per Equity Share (@ 5% per equity share of Rs. 10/- each) for the financial year ended on March 31 , 2018. The proposal is subject to the approval of Shareholders at the ensuing Annual General Meeting (AGM) to be held on Monday,August 27 201 8.
The Register of Members and Share Transfer Books will remain closed from Tuesday, August 21 ,2018 to Monday,August 27,2018 for the purpose
4. EXTRACTOFANNUAL RETURN
Pursuant to section 134 (3) (a) and section 92 (3) ofthe Companies Act 2013 (hereinafter referred as âActâ), read with Rule 12 ofthe Companies (Management and Administration) Rules, 2014 as amended, an extract of Annual Return as on March 31,2018 in form MGT-9 has been prepared and enclosed as Annexure-l which forms part of this report.
5. NUMBEROF MEETINGS OF BOARD OF DIRECTORS
Regular meetings of the Board are held to discuss and decide on various business policies, strategies and other matters.
The Meetings ofthe Board are held at the Registered Office of the Company at âBaid Houseâ, llnd Floor 1 ,Tara Nagar, Ajmer Road, Jaipur-302006 (Rajasthan). Du ring the year under review, 5 (Five) Board Meetings were held on May 10,2017; May1B,2017; August 11,2017; November 13,2017; and February 07,2018.The frequency of the meetings of the Board is in compliance with the extant rule sand re gulationsas applicable on the Company.
The details of board and committee meetings held during the financial ended on 31 st March, 2018 and their attendance thereto are set out in the Corporate Governance Report enclosed as Annexure VII which forms a part oft his report.
6. DECLARATION OF INDEPENDENCE BY DIRECTORS
The Independent Directors ofthe Company have affirmed that they continue to meet all the requirements specified under section 149 of the Act and SEBI (Listing obligations and Disclosure Requirements) Regulations, 2015 in respect of their position as an âIndependent Directorâof Baid Leasing and Finance Co. Ltd.
7. DIRECTORâS APPOINTMENT CRITERIA AND REMUNERATION POLICY ETC.
The Nomination & Remuneration Committee has formulated criteria for determining qualifications, positive attributes and independence of directors as well as Nomination and Remuneration Policy forthe Company as mandated under Section 178 (3)/(4) of the Act and Regulation 19 read with Part D of Schedule II of the SEBI (Listing Obligations and Disclosure requirements) Regulations,2015.
The above referred Policy is available on the website of the Company and can be accessed at http:/Avww.b alfc.com/wp-co ntent/uploadsC018/02/Norn ination-and-Remuneration-Policy.pdf
8. AUDITORS & AUDITORâS REPORT
- Statutory Auditors & Audit Report
M/s. Khilnani & Associates, Chartered Accountants (Firm Registration No. 005776C), Jaipur, were appointed as Statutory Auditors of the company to hold office till the conclusion of the 29th Annual General Meeting of Company.
As per the provisions of Section 40 ofthe Companies (Amendment) Act ,2017 notified with effect from 7th May, 2018 .there is no requirement for ratification of appointment of statutory auditors at every Annual General Meeting of the Company and therefore, the board has not proposed the ratification of appointment ofthe said auditor at the ensuing AGM.
Further, The Financial Statements and the Auditorâs Report for the financial year ended on 31 st March, 2018 are free from any qualification, reservation and adverse remark. Further the notes on accounts are self-explanatory.
- Secretarial Auditor & Secretarial Audit Report
As per Section 204 of the Act read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, every Listed Company is required to appoint a Secretarial Auditor to carry out Secretarial Audit ofthe Company.
In consonance with the requirements of aforementioned er, M/s V. M. ^Associates, Company Secretaries in Practice, Jaipur, (Firm Registration No. P1984RJ039200) were appointed as secretarial auditor to con duct the secretarial audit ofthe Comp any for the financial year 2017-18.
Secretarial Audit Report as issued by M/s V M. & Associates, Company Secretaries in Practice, in respect ofthe secretarial audit of the Company in Form MR-3 for the financial year ended on 31 st March ,2018, is given in Annexure II to this Report.
The SecretarialAudit report for the financial year ended on 31 st March, 2018 is self explanatory and does not call for any further explanation.
Further,The Board in its meeting held on May 29,2018 has re-appointed M/s V M. ^Associates, Company Secretaries in Practice, Jaipur (Firm Registration No. P1984RJ039200) as SecretarialAuditor ofthe Company to carry out secretarial audit of the Company for the financial year 2 018 -19.
- InternalAuditor
Pursuant to Section 138 of Companies Act, 2013 read with Companies (Audit and Auditors) Rules, 2014, every Listed Company is required to appoint an Internal Auditor or a firm of Internal Auditorsto carry out InternalAudit ofthe Company.
In consonance with the aforementioned, M/s Shiv Shankar Khandelwal & Co., Chartered Accountants, Jaipur (Firm Registration No. 006852C) was appointed to conduct the Internal Audit ofthe Company for the financial year 2017-18.
The Internal Audit Report is received yearly by the Company and the same is reviewed and taken on record by the Audit Committee and Board of Directors. The yearly Internal Audit Report as received for the financial Year 2017-18 is free from any qualification.
The Board has re-appointed M/s Shiv Shankar Khandelwal & Co., Chartered Accountants, Jaipur (Firm Reg. No. 006852 C) as the Internal Auditor ofthe Company for the financial year 2018-19.
9. LOANS, GUARANTEE SAN DIN VESTMENTS IN SECURITIES BYTHE COMPANY
Pursuant to Section 186(11) ofthe Companies Act, 2013 loans made, guarantees given or securities provided or acquisition of securities by a Non Banking Financial Company(NBFC) registered with Reserve Bank of India (RBI), in the ordinary course of its business are exempted from the applicability of Provisions of Section 186 ofthe Act. As such the particulars of loans and guarantee have not been disclosed in this Report. However the same are mentioned in the audited financial statements forthe financial year ended on March 31 ,2018.
10. RELATED PARTYTRANSACTIONS
All the related party transactions that were entered during the financial year are done on armâs length basis. Relevant Form for disclosure of particulars of contracts /arrangements/ Transactions entered into by the company with related parties referred to in sub-section (1) of section 188 ofthe Companies Act, 2013 is given in Annexure III to this Report. The Companyâs Policy on Materiality of Related Party Transactions is put up on the companyâs website and can be accessed at http:/yWww.balfc.com/corporate-governance/#tab-id-5.
11. TRANSFER TO RESERVES
Reserves and Surplus Account as at March 31,2018 of your Company increased by 17.20% to Rs. 3037,25]629.20/-as against Rs. 2,59,142,654.14 in the previous financial year. Your Company has transferred 1,13,50,000/-to Special Reserve in compliance with the provisioning norms ofthe RBI.
Also a provision of Rs.17 36,565.42 /- @ .25% on the standard assets of the Company was made during the year.
12. SPECIAL BUSINESS, POSTAL BALLOT, MAJOR CORPORATE ACTIONS
- During the year, pursuantto order of Honâble National Company LawTribunal, Principal Bench, New Delhi (NCLT) dated July 4, 2017, further rectified vide order dated August 1,2017 meeting of Secured Creditors, Unsecured Creditors and Equity Shareholders was called on Monday, October 23, 2017 from 10:00 A.M. onwards for the purpose of considering and approving the Scheme ofAmalgamation and Arrangement of Jaisukh Developers Private Limited and Skyview Tie Up Private Limited with Baid Leasing and Finance Co. Ltd. and their respective Shareholders and Creditors.
The Company obtained the approval of the secured and unsecured creditors with requisite majority in number and value by passing resolution in respect of said matter on October 23, 2017. With respect to equity shareholders meeting the same was deferred due to technical issues.
There after the company filed application on November 15,2017 for convening meeting of equity shareholders , in respect of which NCLT vide its order dated November 21 , 2017 directed meeting of Equity Shareholders on Thursday, January 1 8, 2018 at 2:30 P.M. at the registered office ofthe comp any which was again deferred on technical grounds.
Thereafter the company filed another application on May 23, 2018 interalia for convening meeting of equity shareholders, the directions of which are awaited.
13. MATERIAL CHANGES AND COMMITMENT AFFECTING FINANCIAL POSITION OF THE COMPANY/CHANGE IN THE NATURE OFTHE BUSINESS
There have been no material changes and commitments, affecting the financial position ofthe company which occurred between the end ofthe financial year to which the financial statements relate and the date oft his report.
14. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGSAND OUTGO
1. Particulars with respect of conservation of energy, technology absorption, foreign exchange earnings and outgo:
The information required under Section 134(3) (m) of the Act, read with the Companies (Accounts) Rules, 2014 relating to the conservation of energy and technology absorption, foreign exchange earnings and outgo are given below:
(c) Foreign exchange earnings and Outgo:
Foreign exchange earnings and outgo is reported to be NIL during the financial year under review.
15. RISK MANAGEMENT
The Company has developed and implemented a risk management policy which encompasses practices relating to identification, assessment monitoring and mitigation of various risks to key business objectives. The Risk management framework of the Company seeks to minimize adverse impact of risks on our key business objectives and enables the Company to leverage market opportunities effectively.
The various key risks to key business objectives are as follows:
Liquidity Risk: It is the risk that the Company will be unable to meet its financial commitment to a Bank/ Financial Institution in any location, any currency at any point in time. Liquidity risk can manifest in three different dimensions for the Company.
Funding Risk: To replace net outflows due to unanticipated outflows.
Time Risk: Tq com pen sate for non receipt of expected inflows of fund s.
Call Risk: Due to crystallization of contingent liabilities or inability to undertake profitable business opportunities when desirable.
Interest Rate Risk: It is the risk where changes in market interest rates might adversely affect the Companyâs financial condition. The shortterm/immediate impact of changes in interest rates are on the Companyâs Net Interest Income (Nil). On a longerterm, changes in interest rates impact the cash flows on the assets, liabilities and off-balance sheet items, giving rise to a risk to the net worth of the Company arising out of all repricing mismatches and other interest rate sensitive positions.
16. CORPORATE SOCIAL RESPONSIBILITY
The company was obligated to spend approximately an amount of R s. 7,70,000/- .being 2% of the average net profit before tax of the three immediately preceding financial years i.e. Rs.3,84,98 362.88/-towards CSR activities during the financial year 2017-2018.Accordingly the Company has contributed a sum of Rs. 1,00pO,000/- with regard to CSR activities during the financial year2017-2018 by making do nation to M/s JaiTulsi Foundation.
The Annual Report on CSR activities is annexed herewith as AnnexurelVto this report.
The Company has CSR Policy is in place and the same can be accessed at http://www.balfc.com/wp-content/uploads/2018/02/Corporate-Social-Responsibility-Policy-1 .pdf
17. FO RMAL ANNUAL EVALUATION
The evaluation/assessment of the Directors, KMPs and the senior officials of the Company is conducted on an annual basis to satisfy the requirements ofthe Companies Act, 2013 and SEBI (Listing obligations and Disclosure requirements) Regulations,2015.
The following criteria assist in determining how effective the performances of the Directors/KMPs/Senior officials have been:
- Leadership ^stewardship abilities;
- Contributing to clearly define corporate objectives & plans;
- Communication of expectations & concerns clearly with subordinates;
- obtain adequate .relevant & timely information from external sources;
- review & approval achievement of strategic and operational plans, objectives, budgets;
- regular monitoring of corporate results against projections ;
- identify, monitor & mitigate significant corporate risks ;
- assess policies, structures & procedures ;
- direct, monitor & evaluate KMPs, senior officials ;
- review managementâs succession plan ;
- effective meetings ;
- assuring appropriate board size, composition, independence, structure ;
- clearly defining roles & monitoring activities of committees;
- review of corporationâs ethical conduct.
Evaluation on the aforesaid parameters was conducted by the Independent Directors for each of the Executive/Non-independent Directors, in a separate meeting ofthe Independent Directors.
The Eioard evaluated/assessed each of the Directors along with its own performance and that of the committees on the aforesaid parameters and in the manner as la id down below.
a) Of the Board as a whole: The performance of the Board was evaluated from the reviews/feedback of the directors themselves. The broad parameters for reviewing the performance ofthe Board, interalia, contained the following:
I. Development of suitable strategies and business plans at appropriate time and its effectiveness;
II. Implementation of robust policies and procedures;
III. Size .structure and expertise ofthe Board;
IV Oversight ofthe Financial Reporting Process, including Internal Controls;
V. Willingness to spend time and effort to learn about the Company and its business; and
VI. Awareness about the latest developments in the areas such as corporate governance framework,financial reporting, industry and market conditions.
b) Of Individual Directors):
I. Evaluation of Managing Director / Whole time Director/Executive Director: The performance evaluation of Managing Director, Executive Director of the Company was done by all the directors including Independent Directors.
c) Evaluation of Independent Directors:
I. The Schedule IV of the Companies Act, 2013, i.e. âCode for Independent Directorsâ provide s for the evaluation of Independent Directors.
II. Under the view of this provision, the performance evaluation of IDâs was done by the entire Board of Directors, excluding the director being evaluated on the basis ofthe following criteria and including the parameters of evaluation of individual directors:
III. Exercise of objective independent judgment in the best interest of Company;
IV Ability to contribute to and monitor corporate governance practice; and
V. Adherence to the Code of Con duct for I ndependent Directors.
d) Evaluation ofthe Committees:
The performance ofthe Committees ofthe Board was evaluated by the Directors, on the basis of the terms of reference of the Committee being evaluated. The broad parameters/criteria for reviewing the performance of all the Committees, inter alia, were:
I. Discharge of the functions and duties as per the terms of reference;
II. Pro cess and procedures followed for discharging the functions;
III. Effectiveness of suggestions and recommendations received;
IV Size, structure and expertise of the Committee; and
V. Conduct ofthe meetings and proceduresfollowed in this regard.
Other Statutory Disclosure as required under Rule 8(5) of the Companies (Accounts) Rules, 2014
1. Financial Summary/highlights are already mentioned in the beginning ofthe report.
2. CHANGE IN NATURE OF BUSINESS
There is no change in the nature of Business ofthe Company.
3. DIRECTORS/KEY MANAGERIAL PERSONNEL APPOINTMENT/ REAPPOINTMENT/ CESSATION
- In accordance with the provisions of Section 152 of the Act, read with the rules made there under and the Article of Association of the Company, Mrs. Alpana Baid Executive Director, retiring by rotation at the ensuing Annual General Meeting and being eligible has offered herselffor reappointment.
- During the year, Mr. Manoj Kumar Jain resigned from the post of Chief Financial Officer with effect from close of business hours of December 31 ,2017.
- The Board of Directors at its meeting held on February 07,2018 appointed Mr. Aditya Baid, as Chief Financial Officer ofthe Company.
- During the year, the consent ofthe shareholders was obtained by passing Special/ordinary Resolution in the 26lhAnnual General Meeting dated September 15, 2017 for the following matters:-
(a) Appointment of Mr. Anurag Patni as an Independent Director to hold office for a term of five years with effect from October 22,2016 to October 21 ,2021.
(b) Re-appointment of Mr. Aman Baid as executive director for a period 3 years with effect from June 01 ,2 0171 o May31,2020.
(c) Re-appointment of Mr. Panna Lai Baid as Chairman and Managing Director for a period 3 years with effect from April 1 ,2018 to March 31,2021.
4. ASSOCIATE COMPANIES, JOINTVENTURE AND SUBSIDIARY COMPANIES
During the year under review, there was no associate, Joint Venture and subsidiary Company.
5. DETAILS RELATING TO DEPOSITS
The Company has not accepted any deposit within the meaning of the Companies (Acceptance of Deposits) Rules ,2014 or Chapter V of the CompaniesAct,2013 and guidelines and directions of Non-Banking Financial Companies (Acceptance of Public Deposits)(Reserve Bank) Directions, 2016 as prescribed by RBI in this regard and as such no details are required to be furnished.
6. SIGNIFICANT AND MATERIAL ORDERS PASSED BY TH E REGULATORS
There were no significant and material orders passed by the Regulators or Courts or Tribunals during the year impacting the going concern status and the operations ofthe Company in future.
7. INTERNAL FINANCIAL CONTROL SYSTEMS
The Company has put in place an adequate system of internal control commensurate with its size and nature of business. These systems provide a reasonable assurance in respect of providing financial and operational information, complying with applicable statutes, safeguarding of assets of the Company and ensuring compliance with corporate policies. The Audit Committee reviews adherence to internal control systems and internal audit reports.
Other Disclosures required under the provisions of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as may be applicable 1. COMMITTEE OF DIRECTORS
The Board has constituted six Committees, viz. Audit Committee, Nomination and Remuneration Committee, Stakeholderâs Relationship Committee, Corporate Social Responsibility Committee, Risk Management Committee andAsset Liability Committee . Other details are laid down in the Corporate Governance segment of this Annua I Report.
2. PARTICULARS OF REMUNERATION OF DIRECTORS, KMPâs AND EMPLOYEES
(A) None of the employee of the company was in receipt of the remuneration exceeding the limits prescribed u/s 197 (12) read with rule 5, sub-rule 2 of The Companies (Appointment and Remuneration of Managerial Personnel), Rules, 2014 of the Companies Act, 2013 during the year under review. Following is the list of the top ten employees of the Company in terms of remuneration drawn:
(B) The ratio of the remuneration of each director to the median employeeâs remuneration and other details in terms of sub-section 12 of Section 197 ofthe Companies Act, 2013 read with Rule 5(1) of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, are forming part ofth is rep ortas An n ex u re V.
3. DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT,2013
Your Company has always believed in providing a safe and harassment free workplace for every individual working in its premises through various interventions and practices. The Company always endeavors to create and provide an environment that is free from discrimination and harassment including sexual harassment.
The Company has in place an Anti-Sexual Harassment Policy in line with the requirements of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act,2013.
The following is a summary of sexual harassment complaints received and disposed off during the year 2017-18
Number of complaints received: NIL
Number of complaints disposed off: NIL
4. MANAGE ME NT DISCUSSION &ANALYSIS REPORT
Management Discussion & Analysis report pursuant to Regulation 34 of SEBI (Listing obligations and Disclosure Requirements) Regulations 2015, is annexed herewith as Annexure Vito this report.
5. CORPORATE GOVERNANCE REPORT
A report on Corporate Governance for the financial year ended on March 31,2018 along with Statutory Auditorâs Certificate on compliance with the provisions of Corporate Governance under SEBI (Listing Obligations and Disclosure requirements) Regulations, 2015 is annexed herewith as Annexure VII to this report.
6. EXTERNAL RATINGS
CARE Ratings carried out the rating of the loan pools which reaffirmed a rating of BBB-indicating adequate safety.
Further, the company has been regular in making principal and interest repayments to the Banks and financial institutions.
7. CHAIRMAN AND CFO CERTIFICATE
The Chairman and Managing Director and the Chief Financial Officer of the Company give annual certification on financial reporting and internal controls to the Board in terms of Regulation 17(8) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Chairman and Managing Director and the Chief Financial Officer also give quarterly certification on financial results while placing the financial results before the Board in terms of Regulation 33(2) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The annual certificate given by the Chairman and Managing Director and the Chief Financial Officer is published in this Report.
8. DISCLOSURE OF ACCOUNTING TREATMENT
The Financial Statement of the Company for FY 2017-2018 have been prepared with the applicable accounting principles in India and the mandatory Accounting Standard (âAS1) as prescribed under Section 133 of the Companies Act, 2013 read with the rules made there under.
9. DIRECTORSâRESPONSIBILITY STATEMENT
Pursuant to sub section 3 (c) of Section 134 of the Act, , the Board of Directors of the Company hereby state and confirm that:
i. in the preparation of the annual accounts for the year ended on March 31 , 2018, the applicable accounting standards have been followed and there are no material departures fromthe same;
ii. the directors 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 ofthe state of affairs ofthe company at the end ofthe Financial Year ended on March 31 , 2018 and ofthe profit and loss ofthe comp any for that period;
iii. the directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets ofthe company and for preventing and detecting fraud and other irregularities;
iv. the directors have prepared the annual accounts on a going concern basis;
v. the directors have laid down internal financial controls to be followed by the company and that such interna I financial controls are adequate and were operating effectively; and;
vi. the directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems we re adequate and operating effectively.
10. DISCLOSURE ON SECRETARIAL STANDARDS BY DIRECTORS:
The company complies with all applicable standards. The Directors have devised proper systems to ensure compliance with the provisions of all applicable Secretarial Standards and that such systems are adequate and operating effectively.
11. ACKNOWLEDGEMENTS
Your Board acknowledges with appreciation, the invaluable support provided by the Companyâs stakeholders, auditors .advisors and business partners, all its customers fort heir patronage. Your Board records with sincere appreciation the valuable contribution made by employees at all levels and looks forward to their continued commitment to achieve further growth and take up more challenges that the Company has set for the future.
Date: May 29,2018 For and on Behalf of The Board
Place: Jaipur Baid Leasing and Finance Co. Ltd.
Sd/-
Panna Lai Baid
Chairman and Managing Director
DIN:00009897
Mar 31, 2016
The directors are pleased to present the 25th Annual Report of your Company together with the audited annual financial statements for the financial year 2015-16.
COMPANY''S PERFORMANCE
(Amount In Rs.)
Particulars |
F.Y. 2015-16 |
F.Y. 2014-15 |
Total Revenue |
18,25,46,244/- |
8,60,24,171/- |
Less: Total Expenditure |
14,23,73,087/- |
6,79,17,431/- |
Profit / (Loss) before Taxation |
4,01,73,157/- |
1,81,06,740/- |
Tax Expenses |
1,26,88,454/- |
61,08,298/- |
Profit / (Loss) after Tax |
2,74,84,703/- |
1,19,98,442/- |
PERFORMANCE REVIEW
The company is mainly engaged in the business of hire-purchase finance and finance against mortgage of property. The net receipts from operations during the year under review were Rs. 18,25,46,244/-as against Rs. 8,60,24,171/- in the previous year. The profit/ (Loss) after tax is Rs. 2,74,84,703/-as against Rs. 1,19,98,442/- in the previous year.
DIVIDEND
Following the conservative approach to retain profits, your Directors did not recommend payment of any dividend for the Financial Year 2015-16.
TRANSFER TO RESERVES:
As per requirement of RBI regulations, the Company has transferred the amounts to various reserves during Financial Year ended March 31,2016 as given in the notes of balance sheet.
NUMBER OF MEETINGS OF BOARD OF DIRECTORS
The Meetings of the Board are held at the Registered Office of the Company at, "Baid House", llnd Floor 1, Tara Nagar, Ajmer Road, Jaipur 302 006. During the year under review, 5 (Five) Board Meetings were held onl6,05.2015, 07.08.2015, 03.11.2015, 21.01.2016 and 05.03.2016, the frequency of the meetings of the Board is in compliance with the extant rules and regulations as applicable on the Company. All the Board members and the senior management personnel have affirmed compliance with the Code of Conduct during the year ended on 31st March, 2016.
DECLARATION OF INDEPENDENCE BY DIRECTORS
The Independent Non-Executive Directors of the Company, have affirmed that they continue to meet all the requirements specified under sub-section (6) of section 149 of Companies Act, 2013 in respect of their position as an "Independent Director" of Baid Leasing and Finance Co. Ltd.
MAN AGEMENT AND BOARD OF DIRECTORS
Mrs. Alpana Baid, Director of the Company whose period is liable to retire by rotation pursuant to the provisions of the Companies Act, 2013 retires by rotation in the ensuing AGM and being eligible, offers herself for reappointment. During the year, there was no change in the Directors and KMP of the Company.
AUDITORS - Statutory Auditors
M/s. Khilnani & Associates, Chartered Accountants {Firm Registration No. 005776C), Jaipur were appointed as Statutory Auditors to hold office till the conclusion of the 29thAnnual General Meeting of Company subject to ratification from the members of the Company every year. Ratification of their appointment for the financial year 2016-17 is sought in the ensuing AGM.
The company has received consent from M/s. Khilnani & Associates, Chartered Accountants to the effect that their appointment, if made, would be within the prescribed limits under Section 139 of the Companies Act, 2013 and that they are not disqualified for appointment within the meaning of Section 141 of the said Act. Accordingly, the Board of Directors has recommended the ratification of appointment as Statutory Auditors.
The Financial Statements and the Auditor''s Report for the financial year ended 31st March, 2016 are self-explanatory and do not call for any further comments.
* Secretarial Auditor
As per Section 204 of Companies Act, 2013 read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, every Listed Company is required to appoint Secretarial Auditor to carry out Secretarial Audit of the Company.
In consonance with the requirements of Section 204 of the Companies Act, 2013 and rules made there under, M/s V. M. & Associates, Company Secretaries in Practice, Jaipur, was appointed to conduct the secretarial audit of the Company for the financial year 2015-16.
Secretarial Audit Report issued by M/s V. M. & Associates, Company Secretaries in Practice, in respect of the secretarial audit of the Company for the financial year ended 31st March, 2016, is given in Annexure I to this Report.
The Secretarial Audit report for the financial year ended 31st March, 2016is self explanatory and does not call for any further comments.
The Board has re-appointed M/s V. M. & Associates, Company Secretaries in Practice, Jaipur as Secretarial Auditor of the Company to carry out secretarial audit of the Company for the financial year 2016-17.
- Internal Auditor
Pursuant to Section 138 of Companies Act, 2013 read with Companies (Audit and Auditors) Rules, 2014, every Listed Company is required to appoint an Internal Auditor or a firm of Internal Auditors to carry out Internal Audit of the Company.
In consonance with the aforementioned, M/s Shiv Shankar Khandelwal & Co., Chartered Accountants, Jaipur was appointed to conduct the Internal Audit of the Company for the financial year 2015-16.
The Board has re-appointed M/s Shiv Shankar Khandelwal & Co., Chartered Accountants, Jaipur as the Internal Auditor of the Company for the financial year 2016 -17.
LOANS. GUARANTEES AND INVESTMENTS IN SECURITIES BYTHE COMPANY
Pursuant to Section 186(11) of the Companies Act, 2013 loans made, guarantees given or securities provided or acquisition of securities by a Non Banking Financial Company in the ordinary course of its business are exempted from disclosure in the Annual Report.
RELATED PARTY TRANSACTIONS
All the related party transactions that were entered during the financial year are done on arm''s length basis. Relevant Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 is given in Annexure II to this Report.
SPECIAL BUSINESS AND POSTAL BALLOT SPECIAL BUSINESS
1. With the applicability of Companies Act, 2013, most of the provisions in the articles of the company are not in consonance with the extant rules and regulation, therefore the Board deems it fit and proper to adopt new set of Articles of Association of the Company, details pertaining to the same are chalked out in the notice of 25th AGM.
POSTAL BALLOT
1. During the year, the Company obtained the consent of the shareholders by passing Special/Ordinary Resolution through Postal Ballot for the following matters:
Vide postal ballot notice dated May 16,2015-
- to borrow money u/s 180 (1) (c) of the Companies Act, 2013 up to a sum of Rs. 250,00,00,000/-{Rupees Two Hundred and Fifty Crore Only)
- to create mortgage or charge, sell, lease or otherwise dispose off the whole or substantially the whole of the undertaking of the company, both present and future u/s 180 (1) (a) of companies act, 2013
Vide postal ballot notice dated March , 2016
- Issue of 39,55,000 equity shares on preferential basis,
- Alteration on of Article 4 of Articles of Association;
- Increase the Authorized Share Capital and alteration of Capital Clause of Memorandum of Association
RISK MANAGEMENT
The Company has developed and implemented a risk management policy which encompasses practices relating to identification, assessment monitoring and mitigation of various risks to key business objectives. The Risk management framework of the Company seeks to minimize adverse impact of risks on our key business objectives and enables the Company to leverage market opportunities effectively.
The various key risks to key business objectives are as follows:
Liquidity Risk: It is the risk that the Company will be unable to meet its financial commitment to a Bank/ Financial Institution in any location, any currency at any point in time. Liquidity risk can manifest in three different dimensions for the Company.
Funding Risk: To replace net out flows due to unanticipated outflows.
Time Risk: To compensate for non receipt of expected inflows of funds.
Call Risk: Due to crystallization of contingent liabilities or inability to undertake profitable business opportunities when desirable.
Interest Rate Risk: It is the risk where changes in market interest rates might adversely affect the Company''s financial condition. The short term/immediate impact of changes in interest rates are on the Companyâs Net Interest Income (Nil). On a longer term, changes in interest rates impact the cash flows on the assets, liabilities and off-balance sheet items, giving rise to a risk to the net worth of the Company arising out of all repricing mismatches and other interest rate sensitive positions.
NOMINATION AND REMUNERATION POLICY
This Nomination and Remuneration Policy (the "Policy") applies to the Board of Directors (the "Board"), Key Managerial Personnel (the "KMP") and the Senior Management Personnel of Baid Leasing and Finance Co. Ltd. (the "Company").
"Key Managerial Personnel" (KMP) means
(i) the Chief Executive Officer or the Managing Director or the Manager
(ii) the Company Secretary;
(iii) the Whole-time Director:
(iv) the Chief Financial Officer; and
(v) such other officer as may be prescribed;
The term "Senior Management Personnel" means to include all members other than the Directors and KMPs of the Company, who are members of management one level below the Executive Directors.
This Policy is in compliance with Section 178 of the Companies Act, 2013 read along with the applicable rules thereto and applicable clauses of SEBI LODR and includes formal evaluation framework of the Board.
1. Purpose
The primary objective of the Policy is to provide a framework and set standards for the nomination, remuneration and evaluation of the Directors, Key Managerial Personnel and officials comprising the senior management. The Company aims to achieve a balance of merit, experience and skills amongst its Directors, Key Managerial Personnel and Senior Management.
2. Accountabilities
2.1 The Board is ultimately responsible for the appointment of Directors and Key Managerial Personnel.
2.2 The Board has delegated responsibility for assessing and selecting the candidates for the role of Directors, Key Managerial Personnel and the Senior Management of the Company to the Nomination and Remuneration Committee which makes recommendations & nominations to the Board.
3. Nomination and Remuneration Committee
The Nomination and Remuneration Committee is responsible for:
3.1 reviewing the structure, size and composition (including the skills, knowledge and experience) of the Board at least annually and making recommendations on any proposed changes to the Board to complement the Company''s corporate strategy, with the objective to diversify the Board;
3.2 identifying individuals suitably qualified to be appointed as the KMPs or in the senior management of the Company;
3.3 recommending to the Board on the selection of individuals nominated for Directorship;
3.4 making recommendations to the Board on the remuneration payable to the Directors / KMPs / Senior Officials so appointed / reappointed;
3.5 assessing the independence of independent directors;
3.6 such other key issues/matters as may be referred by the Board or as may be necessary in view of the SEBI LODR and provision of the Companies Act 2013 and Rules there under,
3.7 to make recommendations to the Board concerning any matters relating to the continuation in office of any Director at any time including the suspension or termination of service of an Executive Director as an employee of the Company subject to the provision of the law and their service contract;
3.8 ensure that level and composition of remuneration is reasonable and sufficient, relationship of remuneration to performance is dear and meets appropriate performance benchmarks;
3.9 to devise a policy on Board diversity;
3.10 to develop a succession plan for the Board and to regularly review the plan;
The Nomination and Remuneration Committee comprises of the following:
a) The Committee shall consist of a minimum 3 non-executive directors, at least one-half of them being independent.
b) Minimum two (2) members shall constitute a quorum for the Committee meeting.
c) Membership of the Committee shall be disclosed in the Annual Report.
d) Term of the Committee shall be continued unless terminated by the Board of Directors.
CHAIRMAN
a) Chairman of the Committee shall be an independent Director.
b) Chairperson of the Company may be appointed as a member of the Committee but shall not be a Chairman of the Committee.
c) in the absence of the Chairman, the members of the Committee present at the meeting shall choose one amongst them to act as Chairman.
d) Chairman of the Nomination and Remuneration Committee meeting could be present at the Annual General Meeting or may nominate some other member to answer the shareholders'' queries.
COMMITTEE MEMBERS'' INTERESTS
a) A member of the Committee is not entitled to be present when his or her own remuneration is discussed at a meeting or when his or her performance is being evaluated.
b) The Committee may invite such executives, as it considers appropriate, to be present at the meetings of the Committee.
VOTING
a) Matters arising for determination at Committee meetings shall be decided by a majority of votes of Members present and voting and any such decision shall for all purposes be deemed a decision of the Committee.
b) I n the case of equality of votes, the Chairman of the meeting will have a casting vote.
4. Appointment of Directors/KMPs/Senior Officials
4.1 Enhancing the competencies of the Board and attracting as well as retaining talented employees for role of KMP/ a level below KMP are the basis for the Nomination and Remuneration Committee to select a candidate for appointment to the Board. When recommending a candidate for appointment, the Nomination and Remuneration Committee has regard to:
- assessing the appointee against a range of criteria which includes but not be limited to qualifications, skills, regional and industry experience, background and other qualities required to operate successfully in the position, with due regard for the benefits from diversifying the Board;
- the extent to which the appointee is likely to contribute to the overall effectiveness of the Board, work constructively with the existing directors and enhance the efficiencies of the Company;
- the skills and experience that the appointee brings to the role of KMP/Senior Official and how an appointee will enhance the skill sets and experience of the Board as a whole;
- the nature of existing positions held by the appointee including directorships or other relationships and the impact they may have on the appointee''s ability to exercise independent judgment;
4.2 Personal specifications:
- Degree holder in relevant disciplines;
- Experience of management in a diverse organization;
- Excellent interpersonal, communication and representational skills;
- Demonstrable leadership skills;
- Commitment to high standards of ethics, personal integrity and probity;
- Commitment to the promotion of equal opportunities, community cohesion and health and safety in the workplace;
- Having continuous professional development to refresh knowledge and skills.
5. Letters of Appointment
Each Director/KMP/Senior Officials is required to sign the letter of appointment with the Company containing the terms of appointment and the role assigned in the Company.
6- Remuneration of Directors. Kev Managerial Personnel and Senior Management
The guiding principle is that the level and composition of remuneration shall be reasonable and sufficient to attract, retain and motivate Directors, Key Management Personnel and other senior officials.
The Directors, Key Management Personnel and other senior officialâs salary shall be based & determined on the individual person''s responsibilities and performance and in accordance with the limits as prescribed statutorily, if any.
The Nominations & Remuneration Committee determines individual remuneration packages for Directors, KMPs and Senior Officials of the Company taking into account factors it deems relevant, including but not limited to market, business performance and practices in comparable companies, having due regard to financial and commercial health of the Company as well as prevailing laws and government/other guidelines. The Committee consults with the Chairman of the Board as it deems appropriate. Remuneration of the Chairman is recommended by the Committee to the Board of the Company.
(i) Remuneration:
a) Base Compensation (fixed salaries)
Must be competitive and reflective of the individual''s role, responsibility and experience in relation to performance of day-to-day activities, usually reviewed on an annual basis; (includes salary, allowances and other statutory/non-statutory benefits which are normal part of remuneration package in line with market practices).
b) Variable salary:
The Committee may in its discretion structure any portion of remuneration to link rewards to corporate and individual performance, fulfillment of specified improvement targets or the attainment of certain financial or other objectives set by the Board. The amount payable is determined by the Committee, based on performance against pre-determined financial and non-financial metrics.
(ii) Statutory Requirements:
Section 197(5) provides for remuneration by way of a fee to a director for attending meetings of the Board of Directors and Committee meetings or for any other purpose as may be decided by the Board.
Section 197(1) of the Companies Act, 2013 provides for the total managerial remuneration payable by the Company to its directors, including managing director and whole time director, and its manager in respect of any financial year shall not exceed eleven percent of the net profits of the Company computed in the manner laid down in Section 198 in the manner as prescribed under the Act.
The Company with the approval of the Shareholders and Central Government may authorize the payment of remuneration exceeding eleven percent of the net profits of the company, subject to the provisions of Schedule V.
The Company may with the approval of the shareholders authorize the payment of remuneration up to five percent of the net profits of the Company to its anyone Managing Director/Whole Time Director/Manager and ten percent in case of more than one such official.
The Company may pay remuneration to its directors, other than Managing Director and Whole Time Director up to one percent of the net profits of the Company, if there is a managing director or whole time director or manager and three percent of the net profits in any other case.
The net profits for the purpose of the above remuneration shall be computed in the manner referred to in Section 198 of the Companies Act, 2013.
6.1 The Independent Directors shall not be entitled to any stock option and may receive remuneration by way of fee for attending meetings of the Board or Committee thereof or for any other purpose as may be decided by the Board. The sitting fee to the Independent Directors shall not be less than the sitting fee payable to other directors. .
6.2 The remuneration payable to the Directors shall be as per the Company''s policy and shall be valued as per the Income Tax Rules.
6.3 The remuneration payable to the Key Managerial Personnel and the Senior Management shall be as may be decided by the Board having regard to their experience, leadership abilities, initiative taking abilities and knowledge base.
FORMAL ANNUAL EVALUATION
The evaluation/assessment of the Directors, KMPs and the senior officials of the Company is to be conducted on an annual basis and to satisfy the requirements of the Companies Act, 2013.
The following criteria assist in determining how effective the performances of the Directors/KMPs/
Senior officials have been:
- Leadership & stewardship abilities;
- Contributing to clearly define corporate objectives & plans;
- Communication of expectations & concerns clearly with subordinates;
- obtain adequate, relevant & timely information from external sources;
- review & approval achievement of strategic and operational plans, objectives, budgets;
- regular monitoring of corporate results against projections;
- identify, monitor & mitigate significant corporate risks;
- assess policies, structures & procedures;
- direct, monitor & evaluate KMPs, senior officials;
- review managementâs succession plan;
- effective meetings;
- assuring appropriate board size, composition, independence, structure;
- clearly defining roles & monitoring activities of committees;
- review of corporation''s ethical conduct.
Evaluation on the aforesaid parameters was conducted by the Independent Directors for each of the Executive/Non-independent Directors in a separate meeting of the Independent Directors.
The Board evaluated/assessed each of the Directors along with its own performance and that of the committees on the aforesaid parameters.
ASSOCIATE COMPANIES AND SUBSIDIARY COMPANIES
During the year under review, there was no associate and subsidiary Company.
FIXED DEPOSITS
The Company has not invited or accepted any fixed deposit from the public during the year under review.
The Company has put in place an adequate system of internal control commensurate with its size and nature of business. These systems provide a reasonable assurance in respect of providing financial and operational information, complying with applicable statutes, safeguarding of assets of the Company and ensuring compliance with corporate policies. The Audit Committee reviews adherence to internal control systems and internal audit reports.
COMPOSITION OF AUDIT COMMITTEE
The Audit Committee comprises of 3 (three) Non-executive &independent Directors and as on March 31,2016 was chaired by Mr, Mudit Singhi.
The details of the composition of the Committee are set out in the following table:
Name of Member |
Category |
Category |
Mr. Mudit Singhi DIN: 03171115 |
Non-Executive & Independent Director |
Chairman |
Mr. Binod Kumar Choraria DIN:00104267 |
Non-Executive & Independent Director |
Member |
Mr. Monu Jain DIN: 02609467 |
Non-Executive & Independent Director |
Member |
TERMS OF REFERENCE OF AUDIT COMMITTEE:
The terms of reference of the Audit Committee interalia include the following:
- the recommendation for appointment, remuneration and terms of appointment of auditors of the Company;
- review and monitor the auditor''s independence and performance, and effectiveness of audit process;
- examination of the financial statement and the auditor''s report
- approval or any subsequent modification of transactions of the Company with related parties;
- scrutiny of inter-corporate loans and investments;
- valuation of undertakings or assets of the Company, wherever it is necessary;
- evaluation of internal financial controls and risk management systems;
- monitoring the end use of funds raised through public offers and related matters.
VIGIL MECHANISM
The Board adopted and implemented the vigil mechanism/whistleblower policy that adopts global best practices. We have established a vigil mechanism for Directors and employees to report concerns and unethical behavior, actual or suspected fraud or violation of our code of conduct and ethics. It also provides for adequate safeguards against the victimization of persons who use such mechanism and make provision for direct access to the chairperson of the Audit Committee in exceptional cases.
The functioning of the vigil mechanism is reviewed by the Audit Committee from time to time. Further no personnel has been denied access to the audit committee as per Securities and Exchange Board of India {Listing Obligation and Disclosure Requirements) Regulations, 2015 ("SEBI LODR"). Also there were no whistle blower event reported during the period under review.
CONSERVATION OF ENERGY. TECHNOLOGY ABSORPTION. FOREIGN EXCHANGE EARNINGS ANDOUTGO
The operations of your company are not energy intensive. Furthermore, the Company, being a non-banking finance company (NBFC), does not have any manufacturing activity, The directors, therefore, have nothing to report on ''conservation of energy and technology absorption''. However, the Company is taking initiatives for conservation of energy.
The particulars relating to foreign exchange earnings and outgo are NIL.
DIRECTORS''RESPONSIBILITY STATEMENT
Pursuant to sub section 3 (c) of Section 134 of the Companies Act, 2013, the Board of Directors of the Company hereby state and confirm that:
i. in the preparation of the annual accounts for the year ended March 31, 2016, the applicable accounting standards have been followed and there are no material departures from the same;
ii. the directors 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 at the end of the financial year and of the profit and loss of the company for that period;
iii. the directors have 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 have prepared the annual accounts on a going concern basis;
v. the directors have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively; and;
vi. the directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION. PROHIBITION AND REDRESSALl ACT. 2013
Your Company has always believed in providing a safe and harassment free workplace for every individual working in its premises through various interventions and practices. The Company always endeavors to create and provide an environment that is free from discrimination and harassment including sexual harassment.
The Company has in place an Anti-Sexual Harassment Policy in line with the requirements of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints Committee (ICC) has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy. .
The following is a summary of sexual harassment complaints received and disposed off during the year 2015-16
- Number of complaints received: NIL
- Number of complaints disposed off: NIL
EXTRACT OF THE ANNUAL RETURN
Relevant extract of annual return in form no. MGT-9 as on the financial year ended on March 31,2016 is given in Annexure III to this Report.
EMPLOYEE REMUNERATION
(A) None of the employees of the company was in receipt of the remuneration exceeding the limits prescribed u/s 197 (12) read with rule 5, sub-rule 2 of The Companies (Appointment and Remuneration of Managerial Personnel) of the Companies Act, 2013 during the year under review.
(B) The ratio of the remuneration of each director to the median employee''s remuneration and other details in terms of sub-section 12 of Section 197 of the Companies Act, 2013 read with Rule 5(1) of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, are forming part of this report as Annexure IV. .
MANAGEMENT DISCUSSION & ANALYSIS REPORT
Management Discussion & Analysis report pursuant to SEBI LODR forms part of the Annual Report for the Financial Year 2015-16, which is presented elsewhere.
CORPORATE GOVERNANCE REPORT
As per the SEBI LODR, compliance with the provisions of regulation 17 through 27 and clauses (b) to (i) of sub-regulation (2) of regulation 46 and para C, D and E of Schedule V is not mandatory for the time being, in respect of the following class of companies:
a. Companies having paid up equity share capital not exceeding Rs.10 crore and Net Worth not exceeding Rs.25 crore, as on the last day of the previous financial year;
b. the listed entity which has listed its specified securities on the SME Exchange;
As such our Company falls in the ambit of aforesaid exemption (a);consequently Corporate Governance Report does not forms part of the Annual Report for the Financial Year 2015-16. However, the company is following industry best corporate governance standards.
LISTING OF SECURITIES
At present the Equity shares of the company are listed with the Bombay Stock Exchange Limited and the listing fee for the year 2015-16 has been duly paid.Scrip code of the Company is 511724.
ACKNOWLEDGEMENTS
Your Board acknowledges with appreciation, the invaluable support provided by the Company''s stakeholders, auditors, advisors and business partners, all its customers for their patronage. Your Board records with sincere appreciation the valuable contribution made by employees at all levels and looks forward to their continued commitment to achieve further growth and take up more challenges that the Company has s ±t for the future.
DATE: 07.05.2016 FOR ANDONBEHALFOF THE BOARD
PLACE; JAIPUR Sd/-
PANNA LAI BAID
[Chairman and Managing Director)
DIN:00009897
Mar 31, 2015
Dear Member,
The directors are pleased to present the 24th Annual Report of your
Company together with the Annual Financial Statements for the Financial
Year 2014-15.
COMPANY''S PERFORMANCE
(Amount In Rs.)
Particulars F.Y. 2014-15 F.Y. 2013-14
Total Revenue 8,60,24,170/- 7,35,12,226/-
Less: Total Expenditure 6,79,17,429/- 5,81,06,112/-
Profit / (Loss) before Taxation 1,81,06,741/- 1,54,06,114/-
Tax Expenses 61,08,298/- 52,52,279/-
Profit / (Loss) after Tax 1,19,98,443/- 1,01,53,835/-
PERFORMANCE REVIEW
The company is mainly engaged in the business of hire-purchase finance
and dealing in stock market. The Company has now entered into housing
finance business considering the growth and scope of the said segment.
Further, diversification in the business of the Company will be in the
greater interest of the shareholders of the Company. The total receipts
from Operations during the year under review were Rs. 8,60,24,170/- as
against Rs. 7,35,12,226/- in the previous year. The profit/ (Loss)
after tax is Rs. 1,19,98,443/- as against Rs. 1,01,53,835/- in the
previous year.
DIVIDEND
Following the conservative approach to retain profits, your Directors
did not recommend payment of any dividend for the Financial Year
2014-15.
TRANSFER TO RESERVES:
As per requirement of RBI regulations, the Company has transferred the
following amounts to various reserves during Financial Year ended March
31, 2015-
Amount transferred to Amount (in Rs.)
Special Reserve
* 20% of net profit 24,00,000%
* 0.25% of Standard Assets 2,11,000/-
NUMBER OF MEETINGS OF BOARD OF DIRECTORS
The Meetings of the Board are generally held at the Registered Office
of the Company at "Baid House", IInd Floor, 1, Tara Nagar, Ajmer Road,
Jaipur 302 006. During the year under review, 12 (Twelve) Board
Meetings were held on 16.04.2014, 02.05.2014, 24.05.2014, 04.07.2014,
31.07.2014, 09.08.2014, 12.09.2014, 12.10.2014, 08.11.2014, 31.12.2014,
02.02.2015 and 09.03.2015. All the Board members and the senior
management personnel have affirmed compliance with the Code of Conduct
during the year ended on 31st March, 2015.
DECLARATION OF INDEPENDENCE BY DIRECTORS
The Independent Non-Executive Directors of the Company, viz. Mr. Mudit
Singhi, Mr. Binod Kumar Choraria and Mr. Monu Jain have affirmed that
they continue to meet all the requirements specified under sub-section
(6) of section 149 of Companies Act, 2013 in respect of their position
as an "Independent Director" of Baid Leasing & Finance Co. Ltd.
MANAGEMENT AND BOARD OF DIRECTORS
Mr. Rakesh Kumar Baid, Whole time Director, and Mr. Chandra Bhan
Singhi, Director were liable to retire by rotation in terms of
provisions of Companies Act, 2013 and Articles of Association of the
Company at the 23 rd Annual General Meeting held on 16.08.2014 and did
not seek appointment owing to preoccupation. Mr. Rakesh Kumar Baid and
Mr. Chandra Bhan Singhi served on the Board of the company since its
initial years. The Board placed on record their sincere appreciation
and recognition towards the valuable contribution and services
rendered.
Mrs. Sobhag Devi Baid, was appointed as an Additional Director on the
Board of the company w.e.f. 24.05.2014, whose tenure expired at 23 rd
Annual General Meeting held on 16.08.2014.
Mr. Aman Baid was appointed as an Additional Director on the Board of
the company w.e.f. 24.05.2014, and subject to the approval of the
members at the 23 d Annual General Meeting his appointment was
regularized as Executive Director on the terms and conditions as
mentioned in the resolution in the Notice of 23rd AGM.
Mrs. Alpana Baid, non executive non independent Director and Mr. Mudit
Singhi, Independent and Non executive Director were appointed on the
Board of the Company w.e.f 16.08.2014.
Mr. Panna Lal Baid, Chairman and Managing Director of the Company whose
term expired on 31.03.2015, was reappointed on the Board of the Company
for a further period of 3 years w.e.f. 01.04.2015 in the 23rd AGM held
on 16.08.2014.
Mr. Aman Baid, Director of the Company whose period is liable to retire
by rotation pursuant to the provisions of the Companies Act, 2013 and
the Articles of Association of the Company retires by rotation in the
ensuing AGM and being eligible, offers himself for reappointment.
During the year, the appointment of Mr. Manoj Kumar Jain, CFO of the
Company was regularized in terms of Sec. 203 of the Companies Act, 2013
read with the rules made thereunder.
AUDITORS
* STATUTORY AUDITORS
M/s. Khilnani & Associates, Chartered Accountants (Firm Registration
No. 005776C), Jaipur are proposed to be appointed as Statutory Auditors
in place of retiring Auditors M/s. Sharma Naresh & Associates,
Chartered Accountants, and shall hold office from the conclusion of
this Annual General Meeting till the conclusion of the 29th Annual
General Meeting subject to ratification of the appointment by the
members of the Company at every Annual General Meeting held after this
Annual General Meeting.
The company has received letter from M/s. Khilnani & Associates,
Chartered Accountants to the effect that their appointment, if made,
would be within the prescribed limits under Section 139 of the
Companies Act, 2013 and that they are not disqualified for appointment
within the meaning of Section 141 of the said Act. Accordingly the
Board of Directors have recommended the appointment as statutory
Auditors on a remuneration to be decided by the board.
The Notes on Financial Statements referred to in the Auditor''s Report
for the financial year ended 31st March, 2015 are self-explanatory and
does not call for any further comments.
* SECRETARIAL AUDITOR
As per Section 204 of Companies Act, 2013 read with Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014,
every Listed Company is required to appoint Secretarial Auditor to
carry out Secretarial Audit of the Company.
In consonance with the requirements of Section 204 of the Companies
Act, 2013 and rules made thereunder, M/s V. M. & Associates, Company
Secretaries in Practice, Jaipur, was appointed to conduct the
secretarial audit of the Company for the financial year 2014-15.
An audit report issued by M/s V. M. & Associates, Company Secretaries,
in respect of the secretarial audit of the Company for the financial
year ended 31st March, 2015, is given in Annexure I to this Report.
The Secretarial Audit report for the financial year ended 31st March,
2015 is self explanatory and does not call for any further comments.
The Board re-appointed M/s V. M. & Associates, Company Secretaries in
Practice, Jaipur as Secretarial Auditor of the Company to carry out
secretarial audit of the Company for the financial year 2015-16.
* INTERNAL AUDITOR
As per Section 138 of Companies Act, 2013 read with Companies (Audit
and Auditors) Rules, 2014, every Listed Company is required to appoint
an Internal Auditor or a firm of Internal Auditors to carry out
Internal Audit of the Company.
In consonance with the aforementioned, M/s Shiv Shanker Khandelwal &
Co., Chartered Accountants, Jaipur was appointed to conduct the
Internal Audit of the Company for the financial year 2014-15.
The internal Audit report for the financial year ended 31st March, 2015
is self explanatory and does not call for any further comments.
The Board re-appointed M/s Shiv Shanker Khandelwal & Co., Chartered
Accountants, Jaipur as the Internal Auditor of the Company for the
financial year 2015 -16.
LOANS, GUARANTEES AND INVESTMENTS IN SECURITIES BY THE COMPANY
Pursuant to Section 186(11) of the Companies Act, 2013 loans made,
guarantees given or securities provided or acquisition of securities by
a Non Banking Finance company in the ordinary course of its business
are exempted from disclosure in the Annual Report.
RELATED PARTY TRANSACTIONS
All the related party transactions that were entered during the
financial Year are done in the ordinary course of business and at arm''s
length basis. Relevant Form for disclosure of particulars of
contracts/arrangements entered into by the company with related parties
referred to in sub-section (1) of section 188 of the Companies Act,
2013 is given in Annexure II to this Report.
POSTAL BALLOT
A. During the year under review, Special Resolutions for authorizing
the Board for the following and as contained in the Notice to
shareholders dated 02nd May, 2014 were approved by the shareholders of
the Company through postal ballot:
1. to make inter corporate loans, investments, guarantees and
securities in other bodies corporate u/s 186 of the Companies Act, 2013
upto a sum of Rs. 50,00,00,000 (Rs. Fifty Crores Only).
2. to borrow money u/s 180 (1) (c) of the Companies Act, 2013 upto a
sum of Rs. 75,00,00,000 (Rs. Seventy Five Crores Only).
3. to sell / lease or otherwise dispose off the whole or substantially
the whole of the undertaking(s) and /or asset(s), present and future of
the Company u/s 180 (1) (a) of the Companies Act, 2013 to Secure the
borrowings of the Company.
CS Manoj Maheshwari, Practicing Company Secretary was appointed as the
Scrutinizer for the Postal Ballot process. The e-voting facility was
also made available in compliance with the applicable provisions of the
Companies Act, 2013 and the Listing agreement for postal ballot
process. However, none of the shareholders utilized the option.
Details of voting are as follows:
No.of No.of Shares Total votes No.of votes No.of votes Invalid
Share in favour against votes
holders
17 39,41,160 39,41,160 39,41,160 NIL NIL
B. In supersession of the resolution passed by shareholders of the
Company through postal ballot on 14th June, 2014, the Company is
seeking consent of the shareholders, through proposed Special
Resolution(s) as contained in the Notice to shareholders dated 16th
May, 2015 and as mentioned hereunder:
1. to borrow money u/s 180 (1) (c) of the Companies Act, 2013 upto a
sum of Rs. 250,00,00,000 (Rupees Two Hundred and Fifty Crores only);
2. to create charge or mortgage, sell/lease or otherwise dispose off
the whole or substantially the whole of the undertaking(s)and/or
asset(s), present and future of the Company u/s 180 (1) (a) of the
Companies Act, 2013, to secure borrowing, upto a sum of Rs.
250,00,00,000 (Rupees Two Hundred and Fifty Crores only).
CS Manoj Maheshwari, FCS 3355, Practicing Company Secretary is
appointed as the Scrutinizer for the Postal Ballot process. The
e-voting facility will also be made available in compliance with the
applicable provisions of the Companies Act, 2013 and the Listing
agreement for postal ballot process.
RISK MANAGEMENT
The Company has developed and implemented a risk management policy
which encompasses practices relating to identification, assessment
monitoring and mitigation of various risks to key business objectives.
The Risk management framework of the Company seeks to minimize adverse
impact of risks on our key business objectives and enables the Company
to leverage market opportunities effectively.
The various key risks to key business objectives are as follows:
Liquidity Risk: It is the risk that the Company will be unable to meet
its financial commitment to a Bank/ Financial Institution in any
location, any currency at any point in time. Liquidity risk can
manifest in three different dimensions for the Company.
Funding Risk: To replace net outflows due to unanticipated outflows.
Time Risk: To compensate for non receipt of expected inflows of funds.
Call Risk: Due to crystallization of contingent liabilities or
inability to undertake profitable business opportunities when
desirable.
Interest Rate Risk: It is the risk where changes in market interest
rates might adversely affect the Company''s financial condition. The
short term/immediate impact of changes in interest rates are on the
Company''s Net Interest Income (NII). On a longer term, changes in
interest rates impact the cash flows on the assets, liabilities and
off-balance sheet items, giving rise to a risk to the net worth of the
Company arising out of all repricing mismatches and other interest rate
sensitive positions.
NOMINATION AND REMUNERATION POLICY
This Nomination and Remuneration Policy (the "Policy") applies to the
Board of Directors (the "Board"), Key Managerial Personnel (the "KMP")
and the Senior Management Personnel of Baid Leasing & Finance Co. Ltd.
(the "Company").
"Key Managerial Personnel (KMP) meansÂ
(i) the Chief Executive Officer or the Managing Director or the Manager
(ii) the Company Secretary;
(iii) the Whole-time Director:
(iv) the Chief Financial Officer; and
(v) such other officer as may be prescribed;
The term "Senior Management Personnel" means to include all members
other than the Directors and KMPs of the Company, who are members of
management one level below the Executive Directors.
This Policy is in compliance with Section 178 of the Companies Act,
2013 read along with the applicable rules thereto and Clause 49 under
the Listing Agreement and includes formal evaluation framework of the
Board.
1. Purpose
The primary objective of the Policy is to provide a framework and set
standards for the nomination, remuneration and evaluation of the
Directors, Key Managerial Personnel and officials comprising the senior
management. The Company aims to achieve a balance of merit, experience
and skills amongst its Directors, Key Managerial Personnel and Senior
Management.
2. Accountabilities
2.1 The Board is ultimately responsible for the appointment of
Directors and Key Managerial Personnel.
2.2 The Board has delegated responsibility for assessing and selecting
the candidates for the role of Directors, Key Managerial Personnel and
the Senior Management of the Company to the Nomination and Remuneration
Committee which makes recommendations & nominations to the Board.
3. Nomination and Remuneration Committee
The Nomination and Remuneration Committee is responsible for:
3.1 reviewing the structure, size and composition (including the
skills, knowledge and experience) of the Board at least annually and
making recommendations on any proposed changes to the Board to
complement the Company''s corporate strategy, with the objective to
diversify the Board;
3.2 identifying individuals suitably qualified to be appointed as the
KMPs or in the senior management of the Company;
3.3 recommending to the Board on the selection of individuals nominated
for Directorship;
3.4 making recommendations to the Board on the remuneration payable to
the Directors / KMPs / Senior Officials so appointed / reappointed;
3.5 assessing the independence of independent directors;
3.6 such other key issues/matters as may be referred by the Board or as
may be necessary in view of the Listing Agreement and provision of the
Companies Act 2013 and Rules thereunder.
3.7 to make recommendations to the Board concerning any matters
relating to the continuation in office of any Director at any time
including the suspension or termination of service of an Executive
Director as an employee of the Company subject to the provision of the
law and their service contract;
3.8 ensure that level and composition of remuneration is reasonable and
sufficient, relationship of remuneration to performance is clear and
meets appropriate performance benchmarks;
3.9 to devise a policy on Board diversity;
3.10 to develop a succession plan for the Board and to regularly review
the plan;
The Nomination and Remuneration Committee comprises of the following:
a) The Committee shall consist of a minimum 3 non-executive directors,
at least one-half of them being independent.
b) Minimum two (2) members shall constitute a quorum for the Committee
meeting.
c) Membership of the Committee shall be disclosed in the Annual Report.
d) Term of the Committee shall be continued unless terminated by the
Board of Directors.
CHAIRMAN
a) Chairman of the Committee shall be an Independent Director.
b) Chairperson of the Company may be appointed as a member of the
Committee but shall not be a Chairman of the Committee.
c) In the absence of the Chairman, the members of the Committee present
at the meeting shall choose one amongst them to act as Chairman.
d) Chairman of the Nomination and Remuneration Committee meeting could
be present at the Annual General Meeting or may nominate some other
member to answer the shareholders'' queries.
COMMITTEE MEMBERS'' INTERESTS
a) A member of the Committee is not entitled to be present when his or
her own remuneration is discussed at a meeting or when his or her
performance is being evaluated.
b) The Committee may invite such executives, as it considers
appropriate, to be present at the meetings of the Committee.
VOTING
a) Matters arising for determination at Committee meetings shall be
decided by a majority of votes of Members present and voting and any
such decision shall for all purposes be deemed a decision of the
Committee.
b) In the case of equality of votes, the Chairman of the meeting will
have a casting vote.
4. Appointment of Directors/KMPs/Senior Officials
4.1 Enhancing the competencies of the Board and attracting as well as
retaining talented employees for role of KMP/ a level below KMP are the
basis for the Nomination and Remuneration Committee to select a
candidate for appointment to the Board. When recommending a candidate
for appointment, the Nomination and Remuneration Committee has regard
to:
* assessing the appointee against a range of criteria which includes
but not be limited to qualifications, skills, regional and industry
experience, background and other qualities required to operate
successfully in the position, with due regard for the benefits from
diversifying the Board;
* the extent to which the appointee is likely to contribute to the
overall effectiveness of the Board, work constructively with the
existing directors and enhance the efficiencies of the Company;
* the skills and experience that the appointee brings to the role of
KMP/Senior Official and how an appointee will enhance the skill sets
and experience of the Board as a whole;
* the nature of existing positions held by the appointee including
directorships or other relationships and the impact they may have on
the appointee''s ability to exercise independent judgment;
4.2 Personal specifications:
* Degree holder in relevant disciplines;
* Experience of management in a diverse organization;
* Excellent interpersonal, communication and representational skills;
* Demonstrable leadership skills;
* Commitment to high standards of ethics, personal integrity and
probity;
* Commitment to the promotion of equal opportunities, community
cohesion and health and safety in the workplace;
* Having continuous professional development to refresh knowledge and
skills.
5. Letters of Appointment
Each Director/KMP/Senior Officials is required to sign the letter of
appointment with the Company containing the terms of appointment and
the role assigned in the Company.
6. Remuneration of Directors, Key Managerial Personnel and Senior
Management
The guiding principle is that the level and composition of remuneration
shall be reasonable and sufficient to attract, retain and motivate
Directors, Key Management Personnel and other senior officials.
The Directors, Key Management Personnel and other senior official''s
salary shall be based & determined on the individual person''s
responsibilities and performance and in accordance with the limits as
prescribed statutorily, if any.
The Nominations & Remuneration Committee determines individual
remuneration packages for Directors, KM Ps and Senior Officials of the
Company taking into account factors it deems relevant, including but
not limited to market, business performance and practices in comparable
companies, having due regard to financial and commercial health of the
Company as well as prevailing laws and government/other guidelines. The
Committee consults with the Chairman of the Board as it deems
appropriate. Remuneration of the Chairman is recommended by the
Committee to the Board of the Company.
(i) Remuneration:
a) Base Compensation (fixed salaries)
Must be competitive and reflective of the individual''s role,
responsibility and experience in relation to performance of day-to-day
activities, usually reviewed on an annual basis; (includes salary,
allowances and other statutory/non-statutory benefits which are normal
part of remuneration package in line with market practices).
b) Variable salary:
The Committee may in its discretion structure any portion of
remuneration to link rewards to corporate and individual performance,
fulfillment of specified improvement targets or the attainment of
certain financial or other objectives set by the Board. The amount
payable is determined by the Committee, based on performance against
pre-determined financial and non-financial metrics.
(ii) Statutory Requirements:
Section 197(5) provides for remuneration by way of a fee to a director
for attending meetings of the Board of Directors and Committee meetings
or for any other purpose as may be decided by the Board.
Section 197(1) of the Companies Act, 2013 provides for the total
managerial remuneration payable by the Company to its directors,
including managing director and whole time director, and its manager in
respect of any financial year shall not exceed eleven percent of the
net profits of the Company computed in the manner laid down in Section
198 in the manner as prescribed under the Act.
The Company with the approval of the Shareholders and Central
Government may authorise the payment of remuneration exceeding eleven
percent of the net profits of the company, subject to the provisions of
Schedule V.
The Company may with the approval of the shareholders authorise the
payment of remuneration upto five percent of the net profits of the
Company to its any one Managing Director/Whole Time Director/Manager
and ten percent in case of more than one such official.
The Company may pay remuneration to its directors, other than Managing
Director and Whole Time Director upto one percent of the net profits of
the Company, if there is a managing director or whole time director or
manager and three percent of the net profits in any other case.
The net profits for the purpose of the above remuneration shall be
computed in the manner referred to in Section 198 of the Companies Act,
2013.
6.1 The Independent Directors shall not be entitled to any stock option
and may receive remuneration by way of fee for attending meetings of
the Board or Committee thereof or for any other purpose as may be
decided by the Board. The siffing fee to the Independent Directors
shall not be less than the siffing fee payable to other directors.
6.2 The remuneration payable to the Directors shall be as per the
Company''s policy and shall be valued as per the Income Tax Rules.
6.3 The remuneration payable to the Key Managerial Personnel and the
Senior Management shall be as may be decided by the Board having regard
to their experience, leadership abilities, initiative taking abilities
and knowledge base.
FORMAL ANNUAL EVALUATION
The evaluation/assessment of the Directors, KMPs and the senior
officials of the Company is to be conducted on an annual basis and to
satisfy the requirements of the Companies Act, 2013.
The following criteria assist in determining how effective the
performances of the Directors / KMPs / Senior officials have been:
* Leadership & stewardship abilities;
* Contributing to clearly define corporate objectives & plans;
* Communication of expectations & concerns clearly with subordinates;
* obtain adequate, relevant & timely information from external sources;
* review & approval achievement of strategic and operational plans,
objectives, budgets;
* regular monitoring of corporate results against projections ;
* identify, monitor & mitigate significant corporate risks ;
* assess policies, structures & procedures ;
* direct, monitor & evaluate KMPs, senior officials ;
* review management''s succession plan ;
* effective meetings ;
* assuring appropriate board size, composition, independence, structure
* clearly defining roles & monitoring activities of committees;
* review of corporation''s ethical conduct.
Evaluation on the aforesaid parameters was conducted by the Independent
Directors for each of the Executi''ve/Non-Independent Directors in a
separate meeting of the Independent Directors.
The Board evaluated/assessed each of the Directors along with its own
performance and that of the committees on the aforesaid parameters.
ASSOCIATE COMPANIES
During the year under review, Dream Finhold Pvt. Ltd. ceased to be
associate Company.
FIXED DEPOSITS
The Company has not invited or accepted any fixed deposit from the
public during the year under review.
INTERNAL FINANCIAL CONTROL SYSTEMS
The Company has put in place an adequate system of internal control
commensurate with its size and nature of business. These systems
provide a reasonable assurance in respect of providing financial and
operational information, complying with applicable statutes,
safeguarding of assets of the Company and ensuring compliance with
corporate policies. The Audit Committee reviews adherence to internal
control systems and internal audit reports.
COMPOSITION OF AUDIT COMMITTEE
The Audit Committee comprises of 3 (three) Non-executtve & Independent
Director and as on March 31, 2015 was chaired by Mr. Mudit Singhi.
The details of the composition of the Committee are set out in the
following table:
Name of Category Category
Member
Mr.Mudit Singhi Non-Executive & Independent Chairman
DIN:03171115 Director
Mr. Binod Kumar Non-Executive & Independent Member
Choraria Director
DIN:00104267
Mr. Monu Jain Non-Executive & Independent Member
DIN:02609467 Director
TERMS OF REFERENCE OF AUDIT COMMITTEE:
The terms of reference of the Audit Committee inter alia include the
following:
* the recommendation for appointment, remuneration and terms of
appointment of auditors of the Company;
* review and monitor the auditor''s independence and performance, and
effectiveness of audit process;
* examination of the financial statement and the auditors'' report
* approval or any subsequent modification of transactions of the
Company with related parties;
* scrutiny of inter-corporate loans and investments;
* valuation of undertakings or assets of the Company, wherever it is
necessary;
* evaluation of internal financial controls and risk management
systems;
* monitoring the end use of funds raised through public offers and
related matters.
VIGIL MECHANISM
In April, 2014, the Board adopted and implemented the vigil mechanism/
whistle blower policy that adopts global best practices. We have
established a vigil mechanism for Directors and employees to report
concerns and unethical behavior, actual or suspected fraud or violation
of our code of conduct and ethics. It also provides for adequate
safeguards against the victimization of persons who use such mechanism
and make provision for direct access to the chairperson of the Audit
Committee in exceptional cases.
The functioning of the vigil mechanism is reviewed by the audit
committee from time to time.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The operations of your company are not energy intensive. Furthermore,
the Company, being a non-banking finance company (NBFC), does not have
any manufacturing activity, The directors, therefore, have nothing to
report on ''conservation of energy and technology absorption''.
The particulars relating to foreign exchange earnings and outgo are
NIL.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to sub section 3 (c) of Section 134 of the Companies Act,
2013, the Board of Directors of the Company hereby state and confirm
that:
i. in the preparation of the annual accounts for the year ended March
31, 2015, the applicable accounting standards have been followed and
there are no material departures from the same;
ii. the directors 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 at the end of the financial year and of the profit and
loss of the company for that period;
iii. the directors have 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 have prepared the annual accounts on a going concern
basis;
v. the directors have laid down internal financial controls to be
followed by the company and that such internal financial controls are
adequate and were operating effectively; and;
vi the directors have devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively.
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
Your Company has always believed in providing a safe and harassment
free workplace for every individual working in its premises through
various interventions and practices. The Company always endeavors to
create and provide an environment that is free from discrimination and
harassment including sexual harassment.
The Company has in place an Anti-Sexual Harassment Policy in line with
the requirements of The Sexual Harassment of Women at the Workplace
(Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints
Committee (ICC) has been set up to redress complaints received
regarding sexual harassment. All employees (permanent, contractual,
temporary, trainees) are covered under this policy.
The following is a summary of sexual harassment complaints received and
disposed off during the year 2014-15
* Number of complaints received: NIL
* Number of complaints disposed off: NIL
EXTRACT OF THE ANNUAL RETURN
Relevant extract of annual return in form no MGT-9 as on the financial
year ended on March 31, 2015 is given in Annexure III to this Report.
EMPLOYEE REMUNERATION
(A) None of the employees of the company was in receipt of the
remuneration exceeding the limits prescribed u/s 197 (12) read with
rule 5, sub-rule 2 of The Companies (Appointment and Remuneration of
Managerial Personnel) of the Companies Act, 2013 during the year under
review.
(B) The ratio of the remuneration of each director to the median
employee''s remuneration and other details in terms of sub-section 12 of
Section 197 of the Companies Act, 2013 read with Rule 5(1) of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014, are forming part of this report as Annexure IV.
LISTING OF SECURITIES
The Equity shares of the company were listed with the BSE Limited and
Delhi Stock Exchange Limited. However the SEBI vide its exit order no.
WTM/PS/45/MRD/DSA/NOV/2014 dated November 19th, 2014 withdrew the
recognition granted to Delhi Stock Exchange Limited. Consequently the
Delhi Stock Exchange Limited has been de-recognized w.e.f November
19th, 2014
At present the Equity shares of the company are listed with the BSE
Limited and the listing fee for the year 2015-16 has been duly paid.
ACKNOWLEDGEMENTS
Your Board acknowledges with appreciation, the invaluable support
provided by the Company''s stakeholders, auditors, advisors and business
partners, all its customers for their patronage. Your Board records
with sincere appreciation the valuable contribution made by employees
at all levels and looks forward to their continued commitment to
achieve further growth and take up more challenges that the Company has
set for the future.
FOR AND ON BEHALF OF THE BOARD
DATE: 16.05.2015
PLACE: JAIPUR
PANNA LAL BAID
(Chairman & Managing Director)
DIN:00009897
Mar 31, 2014
Dear Members,
Baid Leasing and Finance Co. Ltd.
The directors are pleased to present the 23rd Annual Report of your
company together with the statement of Annual Financial Statements
forthe Year 2013-14.
FINANCIAL SUMMARY
Amount
Particulars (Rs. in Lacs)
31.03.2013 31.03.2014
Profit before Depreciation & Tax 128.57 154.06
Less: Depreciation 5.26 5.30
Profit before Taxation 123.31 148.76
Less: Provision for Taxation 28.49 52.525
Profit after Tax 100.07 101.53
Add: Balance Brought Forward 346.84 139.00
Surplus available for appropriation 446.91 240.53
Less: Transfer to Special Reserve 200.00 200.00
Carried Forward to next year 426.91 500.11
PERFORMANCE REVIEW
The company is engaged in the business of hire-purchase finance and
dealing in stock market. The net receipts from Operations during the
year under review were Rs. 7,33,86,956/- as against Rs. 20,60,62,876/-
in the previous year. The profit/ (Loss) after tax is Rs. 1,01,53,835/-
as against Rs. 1,00,07,214/- in the previous year.
DIVIDEND
Following the conservative approach to retain the profits, your
Directors did not recommend payment of any dividend forthe Financial
Year 2013-14.
CAPITAL STRUCTURE
During the Financial Year 2013-14 there is no change in capital
structure of the Company AUDITORS
M/s. Sharma Naresh & Associates, Chartered Accountants, Statutory
Auditors of the Company hold office until the conclusion of ensuing
Annual General Meeting and are eligible for re-appointment. The
company has received letter from them to the effect that their
re-appointment, if made, would be within the prescribed limits under
Section 139 of the Companies Act, 2013 and that they are not
disqualified for re-appointment within the meaning of Section 141 of
the said Act.
The auditors have stated that the company has transacted with the
parties covered u/s 301. The directors hereby express that the
transaction entered into were basically current account transactions in
nature. The rate of interest and other terms & conditions are not
prejudicial to the interest of company.
The delay in payment of statutory dues with Income Tax Department, as
stated in Auditor''s Report, is not serious in nature and was deposited
with the concerned authority with interest, as applicable. Other than
this, the Notes on Financial Statements referred to in the Auditors''
Report are self- explanatory and do not call for any further comments.
CHANGE IN REGISTERED OFFICE OFTHECOMPANY
The registered office of the company was shifted from 3, Jaipur Towers,
M.I. Road, Jaipur-302001 to "Baid House", llnd Floor, 1,Tara Nagar,
Ajmer Road, Jaipur-302006 w.e.f. 16.04.2014. The present registered
office is situated in a prominent location with easy accessibility to
all concerned. Further, the proposed metro station adjacent to the
registered office makes it more convenient. CORPORATEGOVERNANCE REPORT
The Company is committed to maintain the highest standards of Corporate
Governance and adhere to the Corporate Govern an ce requirements set
out by SEBI.
The Report on Corporate Governance as stipulated under Clause 49 of the
Listing Agreement forms part of the Annual Report alongwith the
requisite Certificate from Company Secretaries in Practice, as
stipulated, is annexed to this Report.
MANAGEMENT DISCUSSION &ANALYSIS
Management''s Discussion and Analysis Report for the year under review,
as stipulated under Clause 49 of the Listing Agreement with the Stock
Exchanges in India, is presented in a separate section forming part of
theAnnual Report.
LISTING OFSECURITIES
The Equity shares of the company are listed with the Bombay Stock
Exchange Limited and Delhi Stock Exchange Limited and the listing fee
for the year 2014-15 has been duly paid. MANAGEMENTAND BOARD OF
DIRECTORS
Mr. Rakesh Kumar Baid, Whole time Director, and Mr. Chandra Bhan
Singhi, Directors retire by rotation in terms of provisions of
Companies Act, 2013 and Articles of Association of the Company at the
ensuing Annual General Meeting and do not seek appointment owing to
preoccupation. Mr. Rakesh Kumar Baid and Mr. Chandra Bhan Singhi have
been on the Board of the company since its initial years. The Board
places on record its sincere appreciation and recognition towards the
valuable contribution and services rendered by them during their tenure
on the Board of the Company and wishes them good luck with their future
endeavors.
Mrs. Sobhag Devi Baid, was appointed as an Additional Director on the
Board of the company w.e.f. 24.05.2014, whose tenure expires at this
Annual General Meeting.
Mr. Aman Baid was appointed as an Additional Director on the Board of
the company w.e.f. 24.05.2014, and subject to the approval of the
members at the ensuing Annual General Meeting his appointment is being
regularized as Executive Director on the terms and conditions as
mentioned in the resolution in the Notice.
It is proposed to appoint Mrs. Alpana Baid on the Board of the Company
as a non executive non independent Director, liable to retire by
rotation.
It is also proposed to appoint Mr. Mudit Singhi on the Board of the
Company as an Independent and Non executive Director, not liable to
retire by rotation.
Appointment of Mr. Binod Kumar Choraria and Mr. Monu Jain as an
independent Director, not liable to retire by rotation on the Board of
the Com panyfor a further period of 5 years is also proposed.
Mr. Panna Lai Baid, Chairman and Managing Director of the Company whose
term expires on 31.03.2015, is proposed to be reappointed on the Board
of the Company for a further period of 3 yearsw.e.f. 01.04.2015.
CS Namrata Sajnani was appointed as the Company Secretary and
Compliance Officer in place of Ms. Harsh ita Maheshwari w.e.f.
12.10.2013.
CONSERVATION OF ENERGY. TECHNOLOGY ABSORPTION. FOREIGN EXCHANGE
EARNINGS ANDOUTGO
Since your company does not own any manufacturing facility, the
provisions of Section 217(1)(e) of the Companies Act, 1956 relating to
conservation of energy and technology absorption are not applicable.
The particulars relating to foreign exchange earnings and outgo are
NIL.
FIXED DEPOSITS
The Company has not invited or accepted any fixed deposit from the
public during the year under review.
PARTICULARSOF EMPLOYEES
None of the employees of the company was in receipt of the remuneration
exceeding the limits prescribed u/s 217 (2A) of the Companies Act, 1956
during the year under review. The total no. of employees during the
year was
19. DIRECTOR''S RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956, with respect to Directors'' Responsibility Statement, it is
hereby confirmed:
1. that in preparation of the annual accounts for the financial year
ended 31st March, 2014, the applicable accounting standards have been
followed along with proper explanation relating to material departures;
2. that the Directors 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 at the end of the financial year and of the
profit or loss of the Com panyforthat 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 the preventing and detecting fraud and other
irregularities;
4. the Directors have prepared the annual accounts for the financial
year ended 31st March, 2014 on a ''going concern basis.''
SECRETARIAL AUDITOR
As per Section 204 of Companies Act, 2013 read with Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014,
every Listed Company is required to appoint Secretarial Auditorto carry
out Secretarial Audit of the Company.
In consonance with the requirements of Section 204 of the CompaniesAct,
2013 and the read with Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, the Board appointed M/sV. M. &
Associates, Company Secretaries in Practice, Jaipur as Secretarial
Auditor of the Company for the financial year 2014-15.
INTERNAL AUDITOR
As per Section 138 of CompaniesAct, 2013 read with Companies (Audit and
Auditors) Rules, 2014, every Listed Company is required to appoint an
Internal Auditor or a firm of Internal Auditors.
In consonance with the aforementioned, the Board appointed M/s
ShivShanker Khandelwal & Co., Chartered Accountants, Jaipur as the
Internal Auditors of the Company for the financial year 2014-15.
ACKNOWLEDGEMENT
Your Board acknowledges with appreciation, the invaluable support
provided by the company''s auditors, advisors and business partners, all
its customers for their patronage. Your Board records with sincere
appreciation the valuable contribution made by employees at all levels
and looks forward to their continued commitment to achieve further
growth and take up more challenges that the Company has set for the
future.
DATE : 24.05.2014 FOR AND ON BEHALF OF THE BOARD
PLACE: JAIPUR
PANNA LAL BAID RAKESH KUMAR BAID
(Managing Director) (Whole-time Director)
DIN: 00009897 DIN: 00009926
Mar 31, 2013
Dear Members of Baid Leasing and Finance Co. Limited
The directors are pleased to present the 22nd Annual Report of your
company together with the Annual Accounts for Financial Year 2012-13.
31.03.2013 31.03.2012
FINANCIAL RESULTS (Rs in Lakhs) (Rs in Lakhs)
Profit before Depreciation & tax 128.57 97.41
Less: Depreciation 5.26 3.13
Profit before Taxation 123.31 94.28
Less : Provision for Taxation 28.49 29.87
Profit after Tax 100.07 64.41
Add: Balance Brought Forward 346.84 295.43
Surplus available for appropriation 446.91 359.84
Less : Transfer to Special Reserve 20.00 13.00
Carried Forward to next Year 426.91 346.84
PERFORMANCE REVIEW
The company is engaged in the business of hire purchase finance and
dealing in stock market. The net recefpts from Operations during the
year under review were Rs. 20,60,62,876/- as against Rs. 9,62,64Â125/-
in the previous year. The profit/ (Loss) after tax is Rs. 1,00,07,214/-
as against Rs. 64,41,099/- in the previous year. The income from
operations increased by 46.72% during the year under review.
DIViOEND
Following the conservative approach to retain the profits, your
Directors did not recommend payment of any dividend for the Financial
Year 2012-13.
CAPITAL STRUCTURE
During the Financial Year 2012-13 there is no change in capital
structure of the Company and paid up share capital of the Company
stands at Rs. 6,14,50,000/-.
AUDITORS & AUDIT REPORT
IWs. snaTTrra~Naresh &Associates. Chartered Accountants, Statutory
Auditors of the company hold office until the conclusion of ensuing
Annual General Meeting and are eligible for re-appointment.
The company has received letter from them to the effect that their
re-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 re- appointment within the meaning of Section 226 of
the said Act.
The auditors have stated that the company has transacted with the
parties covered u/s 301. The directors hereby express that the
transaction entered into were basically current accounts in nature and
of a very small amount. The rate of interest and other terms &
conditions are not prejudicial to the interest of company.
The delay in statutory dues with Income Tax Department, as stated in
Auditor''s report, is not serious in nature and was deposited with the
concerned authority with additional interest as applicable. Other than
this, the Notes on Financial Statements referred to in the Auditors''
Report are self-explanatory and do not call for any further comments.
POSTALBALLOT
During the Financial Year, the company conducted a Postal Ballot to
amend the main object clause of the
Memorandum of Association of the Company u/s 17 of the Companies Act,
1956. The procedure prescribed u/s 192A of the Companies Act, 1956 read
with the Companies (Passing of the Resolution by Postal Ballot) Rules,
2001 has been followed for the above mentioned corporate action.
CS Manoj Maheshwari, Practicing Company Secretary was appointed as the
Scrutinizer for the Postal Ballot process. The result was announced by
Mr. Panna Lai Baid, Managing Director at the registered office of the
Company on 08th December, 2012 and advertised in the newspapers.
CORPORATE GOVERNANCE REPORT
The Company is committed to maintain the highest standards of Corporate
Governance and adhere to the Corporate Governance requirements set out
by SEBI.
The Report on Corporate Governance as stipulated under Clause 49 of the
Listing Agreement forms part of the Annual Report. The requisite
Certificate from the Secretarial Auditor of the Company confirming
compliance with the conditions of Corporate Governance as stipulated
under the aforesaid Clause 49 is attached to this Report.
MANAGEMENT DISCUSSION & ANALYSIS
Management''s Discussion and Analysis Report for the year under review,
as stipulated under Clause 49 of the Listing Agreement with the Stock
Exchanges in India, is presented in a separate section forming part of
the Annual Report.
LISTING OF SECURITIES
The Equity shares of the company are listed with the Bombay Stock
Exchange limited and Delhi Stock Exchange Limited.
BOARD OF DIRECTORS
Shri Chandra Bhan Singhi, Director, retires by rotation in terms of
provisions of Companies Act, 1956 and Articles of Association of the
Company at the ensuing Annual General Meeting and being eligible,
offers himself for re-appointment. The retiring Director does not hold
any shares in the company
A brief resume and other information required under clause 49 of the
listing agreement is included in the Notice of Annual General Meeting.
The Board recommends their re-appointment.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
Since your company does not own any manufacturing facility, The
provisions of Section 217(1)(e) of the Companies Act, 1956 relating to
conservation of energy and technology absorption do not apply to it.
The particulars relating to foreign exchange earnings and outgo are
NIL.
FIXED DEPOSITS
The Company has not invited or accepted any fixed deposit from the
public during the year under review.
PARTICULARS OF EMPLOYEES
None of the employees of the company was in receipt of the remuneration
exceeding the limits prescribed u/s 217 (2A) of the Companies Act, 1956
during the year under review.
DIRECTOR''S RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA)of the Companies Act,
1956, with respect to Directors'' Responsibility Statement, it is hereby
confirmed:
(I) that in preparation of the annual accounts for the financial year
ended 31st March, 2013, the applicable accounting standards have been
followed along with proper explanation relating to material departures;
(ii) that the Directors 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 at the end of the financial year and of the
profit or loss of the Company for that period;
(iii) 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 the preventing and detecting fraud and other
irregularities;
(iv) the Directors have prepared the accounts for the financial year
ended 31st March, 2013 on a ''going concern basis.''
CODE FOR PREVENTION OF INSIDER TRADING PRACTICES
In compliance with the SEBI Regulations on prevention of insider
trading, the Company has formulated and implemented a comprehensive
Code of Conduct for Prevention of Insider Trading by its management and
empjoyees. The code lays down guidelines advising them on procedures to
be followed and disclosures to be made while dealing with shares of
Company.
ACKNOWLEDGMENTS
Your Board wishes to thank the principal shareholder, the promoters and
all the other shareholders for the confidence and trust they have
reposed in the company. Your Board acknowledges with appreciation, the
invaluable support provided by the company''s auditors, advisors and
business partners. Your Board wishes to sincerely thank all its
customers for their patronage. Your Board records with sincere
appreciation the valuable contribution made by employees at all levels
and looks forward to their continued commitment to achieve further
growth and take up more challenges that the Company has set for the
future.
Date : 29.05.2013 FOR AND ON BEHALF OF THE BOARD
Place : Jaipur Sd/- Sd/-
PANNA LAL BAID RAKESH BAID
(Managing Director) (Whole-time Director)
Mar 31, 2012
The Directors have pleasure in presenting their 21st Annual Report of
the Company together with the Audited Statement of Accounts for the
year ended 31st March, 2012.
FINANCIAL RESULTS: 31.03.2012 31-03-2011
(Rs. in lakhs) (Rs. In lakhs)
Profit before Depreciation & Tax 97.41 94.99
Less : Depreciation 3.13 1.42
Profit before Taxation 94.28 93.56
Less: Provision for Taxation 29.87 32.23
Profit after Tax 64.41 61.33
Add: Balance brought forward 295.43 247.10
Surplus available for appropriation 359.84 308.43
Less: Transfer to Special Reserve 130.00 130.00
Carried forward to Next Year 346.84 295.43
DIVIDEND
In order to conserve resources of the company for future plans, your
directors did not recommend payment of any dividend for the year ended
31" March, 2012.
OPERATIONS
The performance of the company during the year under review has been
satisfactory The total income was of Rs. 964.04 Lacs in comparison of
Rs. 376.57 Lacs during the previous year.
FIXED DEPOSITS
The Company has not invited or accepted any fixed deposit from the
public during the year under review.
AUDITORS
M/s Sharma Naresh & Associates, Chartered Accountants retire at the
ensuing Annual General Meeting. They offer for re-appointment. Company
has received their eligibility certificate in pursuant to section 224
(1B) of the Companies Act, 1956
The explanation given in Auditor's report and notes on accounts are
self explanatory and do not call for any comments.
PARTICULARS OF EMPLOYEES
None of the Employee's of the company was in receipt of the
remuneration exceeding the limits prescribed under section 217(2A) of
the Companies Act, 1956 as amended, during the year under review.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNING AND OUT GO
The particulars regarding foreign exchange earnings and expenditure is
NIL. Since your company does not own any manufacturing facility, the
other particulars in the Companies (Disclosure of Particulars in the
Report of the Board of Directors) Rules,1988 are not applicable.
The Particulars relating to Foreign Exchange Earnings and Outgo are
NIL.
CORPORATE GOVERNANCE
The Company has implemented all the provisions of the Corporate
Governance as stipulated by Clause 49 of the listing agreements with
all the stock exchanges where the Company's securities are listed. It
has always been a constant Endeavour of the Company to adopt good
corporate governance code through independent Board, transparent
disclosures and shareholders empowerment for creating and sustaining
shareholder value. A separate section on Corporate Governance along with
a certificate from the auditors of the Company certifying compliance of
stipulations of Clause 49 of listing agreements with the stock ex-
changes with regards to the Corporate Governance code is present
elsewhere.
POSTAL BALLOT
A Special Resolution for authorizing the Board of Directors to amend
the main object clause of the Memorandum of Association of the
Company u/s 17 of the Companies Act 1956, by adding the sub clause 4
and 5 after the existing sub-clause 3 of Clause III (A) of the
Memorandum of Association of the Company as contained in a Notice to
the Shareholders dated 04th April, 2011 was passed during the year
under Postal Ballot. CS Manoj Maheshwari, Practicing Company Secretary
was appointed as the Scrutinizer for the Postal Ballot process.
Details of Voting are as follows :
No. of No. of Total No. of Votes No. of Votes Invalid
Share
holders Shares Votes in Favour Against Votes
32 3528400 3528400 3528400 NIL NIL
The procedure prescribed under section 192A of the Companies Act, 1956
read with the Companies (Passing of the Resolution by Postal Ballot)
Rules, 2001 has been followed for the Postal Ballot conducted during
the year for the resolution mentioned above. The result of the Postal
Ballot was announced by Mr. Panna Lai Baid, Managing Director of the
Company at the registered office of the Company on 07th May, 2011 and
advertised in the newspapers.
CHANGE OF REGISTERED OFFICE OF THE COMPANY
During the Financial Year, pursuant to the provisions of Section 17 and
other applicable provisions, if any, of the Companies Act, 1956, the
Company has shifted its registered office within the local limits of
city, from "BAID HOUSE", 1, Taranagar, Ajmer Road, Jaipur - 302006
to 3, Jaipur Towers, M. I. Road, Jaipur - 302001.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The report on Management Discussion and Analysis as required under the
Listing Agreements with the Stock Exchanges is annexed and forms part
of the Director's Report.
BOARD OF DIRECTORS Retire by Rotation
Shri Binod Kumar Choraria, Director of the Company whose period of
office is liable to retire by rotation pursuant to the provisions of
Companies Act, 1956 and Article 89 of the Articles of Association of
the Company retires by rotation and being eligible offer himself for
re-appointment.
During the Year Mr. Monu Jain was appointed as on Additional Director
of the Company w.e.f. 22.11.2011 & due to sad demise of Mr. Surendra
Dev Sharma, he ceased from Directorship of the Company w.e.f.
22.11.2011. Mr. Monu Jain is sought to be regularized in the ensuing
AGM.
DIRECTORS' RESPONSIBILITY STATEMENT:
Your directors' confirm:
1. That in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departure.
2. That the director's have selected such accounting policies &
applied them consistently & made judgment & estimates that are
reasonable & prudent so as to give a true & fair view of the state of
affairs of the company at the end of the financial year & of the Profit
of the company for the year.
3. That the director's have taken proper & sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the company & for
preventing & detecting fraud & other irregularities.
4. That the director's have prepared the annual accounts on a going
concern basis.
LISTING OF EQUITY SHARES
Your Company continues to be Listed with BSE & DSE.
APPRECIATION
Your Board of directors wishes to express its deep appreciation and
gratitude to all Employees, Bankers, Shareholders and Clients for their
sustained support, without which the continuing progress of the Com-
pany would no have been possible.
BY ORDER OF THE BOARD
Sd/- Sd/-
Date : 19/05/2012 (PANNA LAL BAID) (RAKESH BAID)
Place : Jaipur MANAGING DIRECTOR WHOLE TIME
DIRECTOR
Mar 31, 2010
The Directors have pleasure in presenting their 19th Annual Report of
the Company together with the Audited Statement of Accounts for the
year ended 31st March, 2010.
FINANCIAL RESULTS: 31.03.2010 31-03-2009
(Rs. in lakhs) (Rs. In lakhs)
Profit before Depreciation & Tax 92.35 21.37
Less : Depreciation 2.00 1.45
Profit before Taxation 90.35 19.91
Less: Provision for Taxation 31.14 4.46
Profit after Tax 59.22 15.45
Add: Balance brought forward 199.87 188.42
Surplus available for appropriation 259.10 203.87
Carried forward to Next Year)
DIVIDEND
in order to conserve resources of the company for future plans, your
directors did not recommend payment of any dividend for the year ended
31st March, 2010.
OPERATIONS
The performance of the company during the year under review has been
satisfactory The total income was of Rs. 430.95 Lacs in comparison of
Rs. 222.71 Lacs during the previous year.
FIXED DEPOSITS
The Company has not invited or accepted any fixed deposit from the
public during the year under review.
AUDITORS
M/s Sharma Naresh & Associates, Chartered Accountants retire at the
ensuing Annual General Meeting. They offer for re-appointment. Company
has received their eligibility certificate in pursuant to section 224
(1B) of the Companies Act, 1956
The explanation given in Auditors report and notes on accounts are
self explanatory and do not call for any comments.
PARTICULARS OF EMPLOYEES
None of the Employees of the company was in receipt of the
remuneration exceeding the limits prescribed under section 217(2A) of
the Companies Act, 1956 as amended, during the year under review.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNING AND OUT GO
The particulars regarding foreign exchange earnings and expenditure is
NIL. Since your company does not own any manufacturing facility, the
other particulars in the Companies (Disclosure of Particulars in the
Report of the Board of Directors) Rules,1988 are not applicable.
The Particulars relating to Foreign Exchange Earnings and Outgo are
NIL.
CORPORATE GOVERNANCE
The Company has implemented all the provisions of the Corporate
Governance as stipulated by Clause 49 of the listing agreements with
all the stock exchanges where the Companys securities are listed. It
has always been a constant endeavour of the Company to adopt good
corporate governance code through independent Board, transparent
disclosures and shareholders empowerment for cheating and sustaining
shareholder value. A separate section on Corporate Governance alongwith
a certificate from the auditors of the Company certifying compliance of
stipulations of Clause 49 of listing agreements with the stock ex-
changes with regards to the Corporate Governance code is present
elsewhere.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The report on Management Discussion and Analysis as required under the
Listing Agreements with the Stock Exchanges is annexed and forms part
of the Directors Report.
BOARD OF DIRECTORS
Retire by Rotation
Shri Chandra Bhan Singhi, Director of the Company whose period of
office is liable to retire by rotation pursuant to the provisions of
Companies Act, 1956 and Article 89 of the Articles of Association of
the Company retires by rotation and being eligible offer himself for
re-appointment.
Re-appointment of Managing Director
Shri Panna Lal Baid, Managing Director of the Company whose tenure
ceased on 31st March, 2010 is proposed to be re-appointed as Managing
Director, for a further period of 5 years w.e.f 1st April, 2010 to 31st
March, 2015.
Re-appointment of Whole Time Director
Shri Rakesh Baid, Whole Time Director of the Company whose tenure
ceased on 31st March, 2010 is proposed to be re-appointed as Whole-time
Director, for a further period of 5 years w.e.f 1st April, 2010 to 31st
March, 2015.
DIRECTORS RESPONSIBILITY STATEMENT:
Your directors confirm:
1. That in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departure.
2. That the directors have selected such accounting policies &
applied them consistently & made judge- ment & estimates that are
reasonable & prudent so as to give a true & fair view of the state of
affairs of the company at the end of the financial year & of the Profit
of the company for the year.
3. That the directors have taken proper & sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the company & for
preventing & detecting fraud & other irregularities.
4. That the directors have prepared the annual accounts on a going
concern basis.
LISTING OF EQUITY SHARES
Your Company continues to be Listed with BSE & DSE.
APPRECIATION
Your Board of directors wishes to express its deep appreciation and
gratitude to all Employees, Bankers, Shareholders and Clients for their
sustained support, without which the continuing progress of the Company
would no have been possible.
BY ORDER OF THE BOARD
Sd/- Sd/-
Date : 15/05/2010 (PANNALALBAID) (RAKESH BAID)
Place : Jaipur MANAGING DIRECTOR WHOLE TIME DIRECTOR