Home  »  Company  »  BNK Capital Mark  »  Quotes  »  Directors Report
Enter the first few characters of Company and click 'Go'

Directors Report of BNK Capital Markets Ltd.

Mar 31, 2015

THE MEMBERS

The Directors present before you the 29th Annual Report together with Audited Accounts for the year ending 31st March 2015. Operation and Future Prospects

In spite of global economic crisis, particularly in the Euro zone, high import of crude & gold, high current account deficit, high interest rate, fall in exports, India has maintained a moderate growth of GDP. Our GDP grew @ 7.3 % p.a. in F.Y.2014-15. The crises, specially of Greece, has made the financial markets very apprehensive andvolalile.LokSabha elections in2014hasgivena decisive mandate in favor of BJP lead NDA. The Government under Prime Ministership of Mr. Narendra Modi is moving forward with Growth and Governance as its main agenda. Decline in international crude prices has been a blessing in disguise. The interest rates and inflation is also coming down. The large projects which was held up for a long period of time is getting cleared and is expected to resume. Expectation of Growth led good governance, policy actions, have resulted in good sentiments and the foreign investors have started investments in Indian stocks in a big way .This has resulted'm the rise of "Nifty & Sensex* to high levels. We expect the markets to move posifively after some consolidation in times to come. "Make in India" programme of the Govt., if succeeds, shall change the face of the economy.

Financial Results

The financial performance of the Company, for the year ended 31 st March 2015 is summarized below:

Year Ended Year Ended 31st March 31st March 2015 2014 (Rs. In Lacs) (T In Lacs)

Gross Income 695.57 404.01

Profit Before Interests Depreciation 461.64 111.17

Finance Charge 43.01 69.67

Gross Profit 418.63 41.50

Provision for Depreciation 7.97 6.50

Net Profit Before Tax 410.66 35.00

Provision for Tax 51.16 29.72

Net Profit After Tax 359.50 5.28

Balance of Profit Brought Forward 762.40 759.77

Balance available for appropriation 1121.90 765.05

Proposed Dividend on Equity Shares 50.00 0

Taxon Proposed Dividend 10.18 0

Transfer to General Reserve 371.90 2.65

Surplus carriedto Balance Sheet 689.82 762.40

DIVDEND

The Board of Directors have recommended payment of dividend of Re. 0.50 paise per equity share of Rs. 10/- each for the financial year ended on 31 st March 2015.

NUMBER OF BOARD MEETINGS HELD

The Board of Directors met 6 (Six) times i.e., 05.05.2014,30.05.2014,30.07.2014,28.10.2014, 30.01.2015 and 25.03.2015 during this financial year.

Subsidiary Company & Investments

BNK Commodities Private Limited, a subsidiary of your company is a member of MCX, NCDEX and NSEL. Your Company along with its subsidiaries and its Associate Companies is offering complete financial solutions including trading in securities, commodities and their derivatives, currency derivatives, Depository services & Category I Merchant Bankers.

Fixed Deposits

The Company has not raised any Fixed Deposits during the year.

Directors

In accordance with toe provisions of toe Companies Act, 2013 and the Articles of Association of toe Company Shri Ajit Khandelwal, (DIN: 00416445) Chairman & Managing Director of the Company retire by rotation at toe conclusion of toe forthcoming Annual General Meeting, and being eligible offer himself for reappointment.

Ms. Heena Gorsia (DIN: 07060485) is an Additional Director (Independent) offers herself to be appointed as an Independent Director on toe Board of toe Company as per section 149 and 152 for a period of 5 years from the conclusion of toe Annual General Meeting. Notice has been received from a member under section 160 of toe Companies Act, 2013 proposing her candidature for toe officeasan Independent Director.

Shri Ankit Khandelwal (DIN: 03057891) is an Additional Director offers himself to be appointed as a Director, liable to retire by rotation on the Board of toe Company. Notice has been received from a member under section 160 of toe Companies Act, 2013 proposing his candidature for the office asa Director.

Their appointmenthas to be made at AGM. The Board recommends passing of toe resolutions regarding their appointment/re-appointment.

All Independent Directors have given declarations that they meet the criteria of independence as laid down under Section 149(6) of the Companies Act, 2013 and Clause 49 of the Listing Agreement. Auditors:

i) Statutory Auditors

The Statutory Auditors, M/s. R. Bhattacharya & Associates, Chartered Accountants, (Registration No. 307124E), have given their consent and it is proposed lobe ratified at the forthcoming Annual General Meeting. -

Secretarial Auditor

According to the provisions of Section 204 of the Companies Act 2013 read with Section 179(3)(k) read with Rule 8(4) of toe Companies (Meeting of Board and its Powers) Rules, 2014, toe Secretarial Audit Report submitted by toe Company Secretary in Practice is enclosed asa part of this report in AnnexureA.

Corporate Governance & Management Discussion And Analysis Report

Your Directors re-affirm their commitment to toe Corporate Governance standards prescribed by Securities and Exchange Board of India (SEBI) codified as clause 49 of toe Listing Agreementwith Stock Exchanges. Corporate Governance and Management Discussion and Analysis Report as well as Corporate Governance compliance certificate by Auditor are set out in separate Annexure to this report.

Directors' Responsibility Statement:

Pursuant to Section 134(5) of the Companies Act, 2013 your Directors confirm:

i) That in the preparation of the Annual Accounts, the applicable accounting standards had been followed:

ii) That they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of toe state of affairs of toe Company at the end of toe financial year and of toe profit of the Company for that period;

iii) That they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, for safeguarding the assetsof the Company and for preventing and detecting fraud and other irregularities;

iv) That they have prepared the Annual Accounts on a 'Going Concern' basis.

v) That they have laid down internal financial controls in the Company that are adequate and were operating effectively.

vi) That they have devised proper systems to ensure compliance with the provisions of all applicable laws and these are adequate and are operating effectively.

Conservation of Energy and Technology Absorption, Foreign Exchange Earnings And Outgo

The Company being in toe service sector, conservation of energy and technology absorption as specified under section 134(3)(m) of the Companies Act, 2013 read with rule 8 of toe Companies (Accounts) Rules, 2014 has no significance for the Company.

There is no earning in foreign exchange during the period. Expenses in foreign exchange during the period was USD 2000. None of the employees are covered by the provisions contained in Rule 5(2) oftoe Companies (Appointmentand Remuneration of Managerial Personnel) Rules, 2014. Policies

The Company has formulated various policies as required under the Companies Act 2013 and are uploaded on our Company's website atwww.bnkcapital.com under Policies Link.

NAME OF COMMITTEE COMPANIES ACT 2013/ LISTING AGREEMENT

Whistle Blower/ Section 177(9)8, 10 of the Vigil Mechanism Policy Companies Act 2013, and as per Clause 49 of the Listing Agreement

Nomination & Section 178 of the Companies Remuneration Policy Act, 2013

Risk Management Poficy Clause 49 of the Listing Agreement

Related Party Section 188(1) of the Transactions Policy Companies Act 2013

Name of Committee Link

Whistle Blower/ Vigil www.bnkcapital.com under Mechanism Policy Policies/Whistle Blower Policy link.

Nomination & Remuneration www.bnkcapital.com under Policies/ Policy Nomination & Remuneration Policy link.

Related Party Transcations www.bnkcapital.com under Policies/ Policy Risk Management Policy link.

www.bnkcapital.com under Policies/Related Party Transaction Policy link.

(elated Party Transactions -

The Board of Directors oftoe Company hasadopted a policy to regulate transactions between toe Company and its related parties in compliance with toe applicable provisions of Companies Act, 2013 and toe Listing Agreement. The disclosure of related party transactions is made as per AS- 18 in toe Notes to Financial Statements. However in terms of Section 188(1) oftoe Companies Act, 2013 read with rule 15 of toe Companies (Meeting of Board and its Powers) Rules, 2014, toe Board feels that toe transactions made are not material in nature as such no AOC-2 is annexed to this report

EXTRACT OF ANNUAL RETURN:

The details forming part of toe extract of the Annual Return in Form MGT-9, as required under Section 92 of toe Companies Act, 2013 is enclosed as a part of the Report in Annexure

B. Acknowledgement

Your Directors take this opportunity to express their grateful appreciation for the co-operation and guidance received from toe Regulators, Central & State Govts., Bankers as well as the Shareholders during toe year. Your Directors also wish to place on record their appreciation for the devoted and dedicated service rendered by all toe employees oftoe Company.

For and on behalf of the Board

Place : Kolkata Ajit Khandelwal Dated : 4th August, 2015 Chairman & Managing Director






Mar 31, 2014

Dear Members,

The Directors present before you the 28th Annual Report together with Audited Accounts for the year ending 31 st March 2014.

Operation and Future Prospects

Prolonged economic crisis, particularly in the Euro zone, crude price hike, high import of crude & Gold, weakening of Rupee, high current account deficit lead to very slow growth of GDPGDP grew @4.70% PA in F.Y.2013-14.This has kept the market quite dull in most part of the last financial year. Only at the end of last quarter some positive movement has taken place because of the expectation of change in the Government with the general elections. However Loksabha election in April -May 2014 has given a decisive mandate in favor of BJP lead NDA. The New Government under Priministership of Mr. Narendra Modi has assumed office and are moving forward with Growth and Governance as its main agenda. It is presumed that the projects which was held up for a long period of time shall be resumed. Expectation of Growth led good governance, policy actions, have resulted in good sentiments and the foreign investors have stated investments in Indian stocks in a big way. This has lead to a sense in "Nifty & Sensex" to all time high levels. We expect the markets to move positively after some consolidation in times to come.

Financial Results

The financial performance of the Company, for the year ended 31st March 2014 is summarized below:

Year Ended Year Ended 31st March 2014 31st March 2013 (Rs. In Lacs) (Rs. In Lacs)

Profit before Depreciation and Amortisation

Expenses, Finance Costs and Tax Expenses 111.17 368.36

Less: Finance Costs 69.67 57.49

Depreciation and Amortisation Expences 6.50 8.25

Profit before Tax 35.00 302.62

Less: Current Tax 29.94 35.84

Deferred Tax (0.22) (0.48)

Profit for the year 5.28 267.26

Add: Balance in Profit & Loss Account 759.77 654.05

765.05 921.31

Less: Appropriation

Transferred to Statutory Reserve 2.65 53.45

Transferred to General Reserve 0.00 50.00

Proposed Dividend on Equity Shares 0.00 50.00

Tax on Dividend 0.00 8.11

Closing Balance 762.40 759.77

The Board of Directors do not recommend any dividend for the financial year ended on 31st March 2014 because of insufficient profits

Subsidiary Company & Investments

BNK Commodities Pvt Ltd., a subsidiary of your company is a member of MCX, NCDEX and NSEL. Your Company along with its subsidiaries and its Associate Companies is offering complete financial solutions including trading in securities, commodities and their derivatives, currency derivatives, Depository services & Category I Merchant Bankers.

Fixed Deposits

The Company has not raised any Fixed Deposits during the year.

Directors

With profound grief we inform you about the sad and sudden demise of Dr N K Sengupta on 3rd November 2013. Dr Sengupta was the Chairman of the Board of Directors since 1995. The Co Promoter and Chairman, Shri Radhey Shyam Khandelwal also, after a short illness, left for his heavenly abode on 29th April 2014. The Board of Directors pays its homage to the departed soul and record deep appreciation for their services rendered to the Company.

In accordance with the provisions of the Companies Act, 2013 and the Articles of Association of the Company Mr. Sanjeev Kumar Khandelwal, Director of the Company retire by rotation at the conclusion of the forthcoming Annual General Meeting, and being eligible offer himself for re-appointment. Mr. Purnabarata Brahmachari and Mr. P Chakravarti an independent directors on the Board of the Company and as per the requirements of the Companies Act 2013 shall be reappointed for a period of 5 years from the conclusion of the Annual General Meeting. Their appointment has to be made at Annual General Meeting. The Board recommends passing of resolutions regard their appointment/re-appointment.

Auditors

M/s. R. Bhattacharya & Associates, Chartered Accountants, Auditors of the Company, retire at the conclusion of the forthcoming Annual General Meeting, and being eligible, offer themselves for re-appointment.

Corporate Governance

Your Directors re-affirm their commitment to the Corporate Governance standards prescribed by Securities and Exchange Board of India (SEBI) codified as clause 49 of the Listing Agreement with Stock Exchanges. Corporate Governance and Management Discussion and Analysis Report as well as Corporate Governance compliance certificate by Auditor are set out in separate Annexure to this report.

Directors'' Responsibility Statement:

Pursuant to Section 217 (2AA) of the Companies Act, 1956 your Directors confirm:

i) That in the preparation of the Annual Accounts, the applicable accounting standards had been followed along with proper explanation relating to material departure;

ii) That they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year;

iii) That they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

iv) That they have prepared the Annual Accounts on a ''Going Concern'' basis.

Statutory Information

The provision relating to conservation of energy and technology absorption does not apply to the Company. The Company has no foreign exchange earning during the year . There is no employee of the Company as covered under Section 217 (2A) of the Companies Act, 1956, for which a separate disclosure is required.

Acknowledgement

Your Directors take this opportunity to express their grateful appreciation for the co-operation and guidance received from the Regulators, Central & State Govts., Bankers as well as the Shareholders during the year. Your Directors also wish to place on record their appreciation for the devoted and dedicated service rendered by all the employees of the Company.

For and on behalf of the Board

Place : Kolkata P. Brahamachari Dated : 30th May 2014 Director


Mar 31, 2013

TO THE MEMBERS

The Directors present before you the 27th Annual Report together with Audited Accounts for the year ending 31 st March, 2013.

Operation and Future Prospects

Prolonged economic crisis, particularly in the Euro zone, crude price hike, high import of crude & Gold, weakening of Rupee, high current account deficit had lead to a further fall in the GDP growth rate of the countries from 6.2% to 5% in 2013. This along with high inflation, high interest rate has resulted in the slowdown of the economy. This has resulted in the averseness to Industrial growth. Further the inability of the Govt, to pursue reforms and implement its policies because of its political compulsions, scams and issues of corruptions, inactiveness of Govt, machineries have brought the business confidence levels to its lowest. We have biggest ever current account deficit. With the indications of good monsoon and the cooling down of the crude and commodity prices, lowering of inflation & interest rates, if coupled with a strong Govt action on policy implementation may take few of quarters to again start moving on the growth trajectory. Both the capital markets and the interest rate markets are expected to remain volatile in near future.

Financial Results

The financial performance of the Company, for the year ended 31st March 2013 is summarized below:

Year Ended Year Ended 31st March 2013 31st March 2012 (Rs. In Lacs) (Rs. In Lacs)

Profit before Depreciation and Amortisation Expenses, Finance Costs and Tax Expenses 368.37 354.81

Less: Finance Costs 57.49 28.18

Depreciation and Amortisation Expences 8.25 9.14

Profit before Tax 302.63 317.49

Less: Current Tax 35.84 34.05

Deferred Tax (0.48) (0.48)

Profit for the year 267.27 283.92

Add: Balance in Profit SLossAccount 654.05 569.89 921.33 853.81

Less: Appropriation

Transferred to Statutory Reserve 53.45 56.78

Transferred to General Reserve 50.00 50.00

Proposed Dividend on Equity Shares 50.00 80.00

Tax on Dividend 8.11 12.98

Closing Balance 759.77 654.05

Your Directors recommend payment of a modest Dividend of Rs. 0.50 per equity share of Rs. 10/- each for the year ended 31 st March 2013.

Subsidiary Company & Investments

BNK Commodities Pvt Ltd., a subsidiary of your company is a member of MCX, NCDEX and NSEL Commodity Exchanges. Your Company along with its subsidiaries and its Associate Companies is offering complete financial solutions including trading in securities, commodities and their derivatives, currency derivatives, Depository services & Category I Merchant Bankers.

Fixed Deposits

The Company has not raised any Fixed Deposits during the year.

Directors

In accordance with the provisions of the Companies Act, 1956 and the Articles of Association of the Company Mr. Prabir Chakroborty and Mr. Ajit Khandelwal, Directors of the Company retire by rotation at the conclusion of the forthcoming Annual General Meeting, and being eligible offer themselves for reappointment.

The term of appointment of Mr. Ajit Khandelwal as Managing Director of the Company expired on 31.03.2013. The Board of Directors re-appointing Mr. Ajit Khandelwal as Managing Director of the company for a period of 3years with effect from 1.04.2013. Necessary resolution for his re-appointment is being proposed in the forth coming Annual General Meeting for your approval.

Auditors

M/s. R. Bhattacharya & Associates, Chartered Accountants, Auditors of the Company, retire at the conclusion of the forthcoming Annual General Meeting, and being eligible, offer themselves for Appointment.

Corporate Governance

Your Directors re-affirm their commitment to the Corporate Governance standards prescribed by Securities and Exchange Board of India (SEBI) codified as clause 49 of the Listing Agreement with Stock Exchanges. Corporate Governance and Management Discussion and Analysis Report as well as Corporate Governance compliance certificate by Auditor are set out in separate Annexure to this report.

Directors'' Responsibility Statement:

Pursuant to Section 217 (2AA) of the Companies Act, 1956 your Directors confirm:

i) That in the preparation of the Annual Accounts, the applicable accounting standards had been followed along with proper explanation relating to material departure;

ii) That they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year;

iii) That they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

iv) That they have prepared the Annual Accounts on a ''going concern'' basis

Statutory Information

The provision relating to conservation of energy and technology absorption does not apply to the Company. The Company has no foreign exchange earning during the year under report. The Company has incurred expenses in foreign exchange to a tune of US$ 2000 during the year. There is no employee of the Company as covered under Section 217(2A) of the Companies Act, 1956, for which a separate disclosure is required.

Acknowledgement

Your Directors take this opportunity to express their grateful appreciation for the co- operation and guidance received from the Regulators, Central &State Govts., Bankers as well as the Shareholders during the year. Your Directors also wish to place on record their appreciation for the devoted and dedicated service rendered by all the employees of the Company.

For and on behalf of the Board

Place : Kolkata Dr. N.K.Sengupta

Dated :28th May 2013 Chairman


Mar 31, 2012

The Directors present before you the 26th Annual Report together with Audited Accounts for the year ending 31 st March 2012.

Operation and Future Prospects

The Global melt down, Euro zone crises and recession backed by the continuing crude price hike gave a significant hit to the Indian economy last year. The GDP growth rate has fallen down to 6.5% in 2012. The Country had started facing, food and non food inflation. The RBI had to intervene and is still trying to fight it. It had to increase interest rate 13 times in rapid succession to check inflation. The effect of this had resulted in a slowdown in the economy. This has started affecting all interest rate sensitive and infra projects. Quite a number of projects have been put on hold or delayed. The rising oil prices and the fall in the value of Rupee, mounting pressure on the subsidy bill, negative balance of payment are posing a continuous threat to the economy. Indian economy is facing a typical problem of having to manage between high inflation and fast economic growth. Further the inability of the Govt. to pursue reforms and implement its policies because of its political compulsions, scams and issues of corruptions, in activeness of Govt. machineries has brought the business confidence levels to its lowest. This has resulted in a substantial decrease in the capital inflow. We are hoping on good monsoon and the cooling down of the crude price. This if coupled with a strong Govt action on policy implementation may take couple of quarters to again start moving on the growth trajectory. The Govt. expects to maintain the growth rate of the economy at about 7% for the current year. Both the capital markets and the interest rate markets are expected to remain volatile in near future.

Financial Results

The financial performance of the Company, for the year ended 31st March 2012 is summarized below :

Year Ended Year Ended 31st March 2012 31st March 2011 (Rs In Lacs) (Rs In Lacs)

Profit before Depreciation and Amortisation 354.79 399.39

Expenses, Finance Costs and Tax Expenses

Less : Finance Costs 28.18 38.55

Depreciation and Amortisation Expences 9.14 8.82

Profit before Tax 317.47 352.02

Less : Current Tax 34.05 39.58

Deferred Tax (0.48) (0.64)

Profit for the year 283.90 313.08

Add : Balance in Profit & Loss Account 569.89 465.10

853.79 778.18

Less : Appropriation

Transferred to Statutory Reserve 56.78 65.00

Transferred to General Reserve 50.00 50.00

Proposed Dividend on Equity Shares 80.00 80.00

Tax on Dividend 12.98 13.29

Closing Balance 654.03 569.89

Your Directors recommend payment of Dividend of Rs 0.80 per equity share of Rs 10 each for the year ended 31 st March 2012.

Subsidiary Company & Investments

The Company has upto now invested a sum of Rs 161 lacs to wards the Equity capital of its subsidiary Company, BNK Commodities Pvt Ltd out of which Rs 56 lacs is pending allotment. BNK Commodities Pvt Ltd. is a member of MCX, NCDEX ,and NSEL. Commodity Exchanges are gradually picking up and is expected to generate very high volumes of trading thus providing a good business opportunity. Your Company along with its subsidiaries and its Associate Companies is fully geared up to offer complete financial solutions including trading in securities, commodities and their derivatives, currency derivatives, Depository services & Category I Merchant Bankers As a plan to diversify into other business area Your Company has registered itself as a UID enrolling agency. It has plans to bid and participate in the UID projects of the Govt of India. For this purpose, to start with, your company has tied up with an existing service provider in this area.

Fixed Deposits

The Company has not raised any Fixed Deposits during the year.

Directors

In accordance with the provisions of the Companies Act, 1956 and the Articles of Association of the Company Dr. N.K.Sengupta and Mr. Sanjeev Khandelwal, Directors of the Company retire by rotation at the conclusion of the forthcoming Annual General Meeting, and being eligible offer themselves for reappointment.

Auditors

M/s. R. Bhattacharya & Associates, Chartered Accountants, Auditors of the Company, retire at the Conclusion of the forthcoming Annual General Meeting, and being eligible, offer themselves for Appointment.

Corporate Governance

Your Directors re-affirm their commitment to the Corporate Governance standards prescribed by Securities and Exchange Board of India (SEBI) codified as clause 49 of the Listing Agreement with Stock Exchanges. Corporate Governance and Management Discussion and Analysis Report as well as Corporate Governance compliance certificate by Auditor are set out in separate Annexure to this report.

Directors' Responsibility Statement:

Pursuant to Section 217 (2AA) of the Companies Act, 1956 your Directors confirm:

i) That in the preparation of the Annual Accounts, the applicable accounting standards had been followed along with proper explanation relating to material departure;

ii) That they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year;

iii) That they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

iv) That they have prepared the Annual Accounts on a 'going concern' basis. Statutory Information

The provision relating to conservation of energy and technology absorption does not apply to the Company. The Company has no foreign exchange earning during the year under report. The Company has incurred expenses in foreign exchange to a tune of US$ 218 during the year. There is no employee of the Company as covered under Section 217 (2A) of the Companies Act, 1956, for which a separate disclosure is required.

Acknowledgement

Your Directors take this opportunity to express their grateful appreciation for the co- operation and guidance received from the Regulators, Central &State Govts., Bankers as well as the Shareholders during the year. Your Directors also wish to place on record their appreciation for the devoted and dedicated service rendered by all the employees of the Company.

For and on behalf of the Board

Place : Kolkata Dr. N.K.Sengupta

Dated : 28th May 2012 Chairman


Mar 31, 2010

The Directors present before you the 24th Annual Report together with Audited Accounts For the year ending 31st March 2010. Operation and Future Prospects

This years overview has to be studied with caution. The Global melt down and rescission has given a significant hit to the Indian economy last year. The GDP growth rate has fallen down to 7.40% in 2010.The Indian economy is no longer insulated from the major economies of the world. Because of economic meltdown, The Government had to announce multiple stimulus packages for different industries which has given positive results. RBI had also played a very proactive roll in inflation and liquidity management. This has resulted in increase in fiscal deficit but it has helped trouble some industries like automobile, cement, steel etc. to wither out global impact. The economy is looking up towards growth and is expected to recover by the end of this financial year. Improvement in advance tax numbers is an indicative factor for the recovery. The monsoon is expected to be normal and in time which will also help in maintaining growth in agriculture sector. In spite of adverse situation in most European economies and other leading world economy, India is the fastest growing economy after China and will outperform the rest of the world. It is expected that the GDP shall grow® 8% to 8.5% this year.

In spite of the fact that the Govt, has taken adequate measures to support the inclusive growth of the economy, inflation management, specially food inflation still remains a major issue for the Govt. How ever the Government is confident that it shall succeed in controlling food inflation by the end of the financial year 2010-2011. This along with other positive economic indicators the investment sentiments remains positive and we are seeing inflow of investments in the Capital Market. The market is expected to perform relatively better incoming times .Howeuer the Global economic situation will keep the capital markets turbulent and volatile. Financial Results During the year under review, your Companys performance was as under:

Year Ended Year Ended 31 st March 2010 31st March 2009 (Rs. In 000s) (Rs. In 000s)

Income from operations 4627 713

Capital Gain( Shares& Mutual Fund) 1543 19213

Advisory & Consultancy Services 2480 320

Interest 15226 4957

Other Income 14418 19435

Total Expenditure 13131 6923

a. Staff Cost 4250 2851

b. Other Expenditure 8881 4072 Interest & Finance Charges 2291 9709

Earnings after Interest but before Depreciations Tax 22872 28006

Depreciation 490 357

Profit Before Tax 22382 27649

Provision for Tax (Current Tax) 2167 2256

Provision for Tax (Deferred Tax) 17 5

Profit After Tax 20197 25388

Balance Brought Forward 41672 29537

Profit available for Appropriation 61869 54925

Dividend 8000 6200

Provision for Tax on Dividend 1360 1054

Transfer to reserves 6000 6000

Balance carried to Balance Sheet 46510 41672

Your Directors recommend payment of Dividend of Re 1/- per equity share of Rs. 10/ - each for the year ended 31 st March 2010.

Subsidiary Company & Investments

The company along with its subsidiaries and its associate companies is fully geared up to offer complete financial solutions including trading in securities, commodities and their derivatives. Depository services & Category I Merchant Bankers.

The companys a financial portal www.bnkcapital.com is offering various online services. The Company at its offices at various places in the Country is offering integrated financial services. The Company has set up a debt desk and has started concentrating on the debt market which has a big potential in time to come.

Fixed Deposits

The Company has not raised any Fixed Deposits during the year

Fresh Issue of Capital

During the year under review, 1800000 warrants which were allotted to the Promoters as per the guidelines issued by SEBI. was converted into 1800000 Equity shares of Rs10/ each at the rate of Rs 46.00 per share.

Directors

In accordance with the provisions of the Companies Act, 1956 and the Articles of Association of the Company Mr P Chakraborty and Mr. Ajit Khandelwal, Directors of the Company retire by rotation at the conclusion of the forthcoming Annual Genera! Meeting, and being eligible offer themselves for reappointment. Mr Ajit Khandelwal was reappointed as Managing Director of the Company w.e.f. 1st April 2010 for a period of three years as per the terms mentioned in the notice and explanatory statement. His appointment needs approval of the share holders. Necessary resolutions for re-appointment of Directors and Managing Director are proposed in the AGM for your approval.

Auditors

M/s. R.Bhattacharya & Associates, Chartered Accountants, Auditors of the Company retire at the Conclusion of the forthcoming Annual General Meeting, and being eligible, offer themselves for Appointment.

Corporate Governance

Your Directors re-affirm their commitment to the Corporate Governance standards prescribed by Securities and Exchange Board of India (SEBI) codified as clause 49 of the Listing Agreementwith Stock Exchanges. Corporate Governance and Management Discussion and Analysis Report as well as Corporate Governance compliance certificate by Auditor are set out in separate Annexure to this report.

Directors Responsibility Statement:

Pursuant to Section 217 l2AA) of the Companies Act, 1956 your Directors confirm:

i) That in the preparation of the Annual Accounts, the applicable accounting standards had been followed along with proper explanation relating to material departure;

ii) That they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year;

iii) That they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safeguarding the assets of the Company and for preventing and detecting fraud and ether irregularities;

iv) That they have prepared the Annual Accounts on a going concern basis. Statutory Information

The provision relating to conservation of energy and technology absorption does not apply to the Company. The Company has no foreign exchange earning during the year under report. The Company has incurred expenses in foreign exchange to a tune of .AED793 during the year. There is no employee of the Company as covered under Section 217(2A) of the Companies Act, 1956, for which a separate disclosure is required. Acknowledgement

Your Directors take this opportunity to express their grateful appreciation for the co- operation and guidance (eceived from the Regulator, Central SState Govts., Bankers as well as the Shareholders during the year. You. Directors also wish to place on record theic appreciation for the devoted and dedicated service rendered by all the employees of the Company.

For and on behalf of the Board Place : Kolkata Dr. N.K.Sengupta

Dated :28th May 2010 Chairman

 
Subscribe now to get personal finance updates in your inbox!