Mar 31, 2018
BOARDâS REPORT
TO THE MEMBERS OF ELIXIR CAPITAL LIMITED
The Directors take pleasure in presenting the Twenty Fourth Annual Report together with the Audited Financial Statements for the year ended 31st March, 2018. The Management Discussion and Analysis has also been incorporated into this report.
1. FINANCIAL RESULTS
Key highlights of Standalone Financial Results for Elixir Capital Ltd. for the financial year 2017 - 18 are tabulated below:
(Amount in Rs.inâ000)
For the Year ended March 31, 2018 |
For the Year ended March 31, 2017 |
|
Revenue from operation Other Income |
7,747.53 477.62 |
841.19 464.90 |
Total Revenue |
8,225.15 |
1,306.09 |
Less: Expenses |
||
Depreciation and amortization expenses |
39.94 |
40.83 |
Other Expenses |
1,009.75 |
943.79 |
Total Expenses |
1,049.69 |
984.62 |
Profit / (Loss) before exceptional and extraordinary items |
7,175.46 |
321.47 |
Exceptional Items - Adjustment in taxation in earlier years |
95.80 |
- |
Profit / (Loss) before extraordinary items |
7,079.66 |
321.47 |
Extraordinary Items |
- |
- |
Profit / (Loss) before Tax |
7,079.66 |
321.47 |
Less : Tax |
||
Current Tax |
- |
62.00 |
Deferred Tax |
(68.77) |
(3.14) |
Total Taxes |
(68.87) |
58.86 |
Profit / (Loss) for the period |
7,148.43 |
262.61 |
2. HIGHLIGHTS OF PERFORMANCE
The company is a holding company. Its subsidiary companies are engaged in stock broking, portfolio management, depository services, trading and investment in securities. The consolidated revenues declined to Rs. 1024.69 lakhs from Rs 1246.75 lakhs. The Net Profits declined from Rs. 689.94 lakhs to 421.27 lakhs due to lower trading profits and capital gains in previous year.
3. WTD AND CFO CERTIFICATION
Certificate from Mr. Dipan Mehta, Whole - time Director and Mrs. Radhika Mehta, Director & CFO, pursuant to provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, for the year under review was placed before the Board of Directors of your Company at its meeting held on 30th May, 2018.
4. BUSINESS OPERATIONS
Your Company is the Holding Company of Elixir Equities Pvt. Ltd. (EEPL). EEPL is a SEBI Registered Stock Broker, Portfolio Manager and Depository Participant of the CDSL. The only activity done in your Company was providing Research Services including publishing of Monthly Newsletters for the clients of EEPL till 31st July, 2017. Thereafter EEPL has terminated the Contract for providing these services. There was no change in nature of business of your Company, during the year under review.
5. APPLICABILITY OF INDIAN ACCOUNTING STANDARDS
Your Company had adopted Ind-AS with effect from 01st April, 2017 pursuant to a notification dated 16th February, 2015, issued by the Ministry of Corporate Affairs, notifying the Companies (Indian Accounting Standard) Rules, 2015. Your Company has published Ind-AS Financials (Standalone and Consolidated) for the financial year ended 31st March, 2018 along with comparable as on 31st March, 2017 and Opening Statement of Assets and Liabilities as on 1st April, 2017.
Your Company has shared all four quarters re-stated Ind-AS Profit and Loss Statement with investors along with quarterly results for comparison.
6. GOODS AND SERVICES TAX (GST)
The Goods and Services Tax (GST) is a landmark reform which will have a lasting impact on the economy and on businesses. Implementation of a well-designed GST model that applies to the widest possible base at a low rate can provide stimulus to the business and contribute to the Hon''ble Prime Minister''s mission of âMake in India''.
Your Company has successfully implemented and migrated to GST with effect from 01st July, 2017 and changes across IT systems, Supply Chain and operations have been made keeping in mind the sweeping changes that GST has brought in.
7. DIVIDEND
Your Directors are pleased to recommend a final dividend of Rs. 1.25 per equity share of Rs. 10 each. The total outgo for the current year amounts to Rs. 72.54 Lakhs including Dividend Distribution Tax. (In the previous year, it was Rs. 72.54 Lakhs including Dividend Distribution Tax).
8. TRANSFER TO INVESTOR EDUCATION & PROTECTION FUND
During the year 2017 - 18, no unclaimed dividend was transferred to the Investor Education and Protection Fund established by the Central Government, in compliance with Section 125 of the Companies Act, 2013 read with the Investor Education and Protection Fund (Accounting, Audit, Transfer and Refund) Rules, 2016, since your Company has not declared any dividend in the year 2009 - 10.
9. TRANSFER TO RESERVES
The Board of Directors has not recommended transfer of any amount to reserves.
10. CONSOLIDATED FINANCIAL STATEMENTS
The Consolidated Financial Statements of your Company and its subsidiaries are prepared in accordance with applicable provisions of the Companies Act, 2013, Indian Accounting Standard (Ind - AS 110) issued by the Institute of Chartered Accountants of India as well as the SEBI (LODR) Regulations, 2015 together with Auditors'' Report thereon form part of this Annual Report.
11. CAPITAL EXPENDITURE
Capital Expenditure during the year, towards Tangible & Intangible Assets, amounted to Rs. Nil.
12. SHARE CAPITAL
The paid up Equity Share Capital as on 31st March, 2018 was Rs. 580.32 Lakhs. During the year under review, your Company has not issued shares with differential voting rights nor granted stock options nor sweat equity. There was no change in your Company''s Share Capital during the year under review. The Promoter and Promoter Group are holding 41,37,300 shares equivalent to 71.29% of the total Issued and Paid-up Share Capital.
13. DEPOSITS
Your Company has not accepted deposit from the public and shareholders falling within the ambit of Section 73 of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014. Hence, the requirement for furnishing details of deposits which are not in compliance with the Chapter V of the Act is not applicable.
14. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes to the Financial Statements.
15. SUBSIDIARY COMPANIES
As on 31st March, 2018, your Company has following three subsidiaries / sub-subsidiary companies:
1. Elixir Equities Private Limited (Name changed from âAxis Equities Private Limitedâ) (Subsidiary Company)
2. Dipan Mehta Commodities Private Limited (Sub-Subsidiary Company)
3. Elixir Wealth Management Private Limited (Name changed from âAxis Wealth Management Private Limitedâ) (Sub Subsidiary Company)
Audited Financial Statement of your Companyâs Subsidiaries
The Statement containing the salient features of financial statement of Subsidiaries in Form AOC-1 pursuant to Section 129(3) read with Rule 5 of the Companies (Accounts) Rules, 2014 are given below.
(Rs. in Lakhs)
Sr. No. |
Particulars |
Elixir Equities Private Limited (Formerly Axis Equities Private Limited) |
Elixir Wealth Management Private Limited (Formerly Axis Wealth Management Private Limited) |
Dipan Mehta Commodities Private Limited |
i) |
Reporting Period |
1st April 2017 to 31st March 2018 |
1st April 2017 to 31st March 2018 |
1st April 2017 to 31st March 2018 |
ii) |
Reporting Currency |
INRin â000 |
INRin â000 |
INRin â000 |
iii) |
Country |
India |
India |
India |
iv) |
Exchange Rate |
N.A. |
N.A. |
N.A. |
v) |
Share Capital |
17,550.00 |
100.20 |
3,000.00 |
vi) |
Reserves and Surplus |
3,20,399.84 |
6,265.32 |
1,708.73 |
vii) |
Total Assets |
3,78,048.87 |
18,127.36 |
4,711.39 |
viii) |
Total Liabilities |
40,099.03 |
11,761.84 |
2.66 |
ix) |
Investment other than Investment in subsidiary |
0.00 |
0.00 |
0.00 |
x) |
Turnover |
93,200.16 |
8,737.27 |
54.53 |
xi) |
Profit before taxation |
55,522.84 |
3,675.98 |
(52.70) |
xii) |
Provision for Taxation |
15,700.00 |
1,000.00 |
0.00 |
xiii) |
Profit after taxation |
39,822.84 |
2,675.98 |
(52.70) |
xiv) |
Proposed Dividend |
5.75 |
0.00 |
0.00 |
xv) |
Percentage of Shareholding |
74.00% |
74.00% |
74.00% |
16. DIRECTORS
16.1 Retirement by Rotation
Pursuant to Section 152 (6) of the Companies Act, 2013 and in terms of the Articles of Association of your Company, Mrs. Radhika Mehta, Director, retires by rotation at the forthcoming Annual General Meeting. Being eligible, she offers herself for re-appointment.
16.2 Declaration by Independent Directors
Your Company has received declarations from the Independent Directors of your Company confirming that they meet with the criteria of independence as prescribed both, under Sub-Section 6 of Section 149 of the Companies Act, 2013 and under Regulation 17 of the SEBI (LODR) Regulations, 2015.
16.3 Familiarization Programme for Independent Directors
The Program intends to provide insights into your Company so that the Independent Directors can understand your Company''s business in depth and the roles, rights, responsibility that they are expected to perform / enjoy in your Company to keep them updated on the operations and business of your Company thereby facilitating their active participation in managing the affairs of your Company. In addition to the above, Directors are periodically advised about the changes effected in the Corporate Law, SEBI (LODR) Regulations, 2015 with regards to their roles, rights and responsibilities as Directors of your Company.
16.4 Annual Board Evaluation
According to Regulation of 25(3) of the SEBI (LODR) Regulations, 2015 and Circular No. SEBI/HO/CFD/CMD/CIR/P/2017/004 dated 05th January, 2017 issued by SEBI on Guidance Note on Board Evaluation, a meeting of the Independent Directors was held on 12th February, 2018 to inter alia, evaluate the performance of the Board as a Whole, Non-Independent Directors, including the Chairman. Before the Meeting of Independent Directors, the Board in its meeting held on the same day evaluated the performance of the Independent Directors and Committees of the Board.
16.5 Key Managerial Personnel
The following persons have been designated as Key Managerial Personnel of your Company pursuant to Section 2(51) and Section 203 of the Act, read with Rule 8(5)(iii) of the Companies (Accounts) Rules, 2014 framed there under.
1. Mr. Dipan Mehta, Chairman & Whole Time Director
2. Mrs. Radhika Mehta, Director - CFO
None of the Key Managerial Personnel have resigned during the year under review.
16.6 Remuneration Policy
The Board has in accordance with the provisions of Sub-Section (3) of Section 178 of the Companies Act, 2013, formulated the policy setting out the criteria for determining qualifications, positive attributes, independence of a Director and policy relating to remuneration for Directors, Key Managerial Personnel and Senior Management Employees. The detail of the same has been disclosed in the Corporate Governance Report.
16.7 Board Meetings
A calendar of Board Meetings is prepared and circulated in advance to the Directors.
During the year your Company has held 4 (four) Board Meetings which were held on 24th May, 2017; 11th August, 2017; 09th November, 2017 and 12th February, 2018. The maximum interval between any two meetings did not exceed 120 days.
17. DIRECTORSâ RESPONSIBILITY STATEMENT
To the best of their knowledge and belief and according to the information and explanations obtained by them, your Directors make the following statements in terms of Section 134(3)(c) of the Companies Act, 2013:
a) that in the preparation of the Annual Financial Statements for the year ended 31st March, 2018, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;
b) that such accounting policies as mentioned in Note 1 of the Notes to the Financial Statements have been selected and applied consistently and judgment and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of your Company as at 31st March, 2018 and of the profit of your Company for the year ended on that date;
c) that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of your Company and for preventing and detecting fraud and other irregularities;
d) that the Annual Financial Statements have been prepared on a going concern basis;
e) that proper internal financial controls were in place and that the financial controls were adequate and were operating effectively.
f) that systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively.
18. PLEDGE OF SHARES
None of the equity shares of the Directors of your Company are pledged with any banks or financial institutions.
19. RELATED PARTY TRANSACTIONS
All Related Party Transactions (RPTs) that were entered into during the financial year were on an Arm''s Length Basis and were in the Ordinary Course of Business. All RPTs are placed before the Audit Committee for approval. Prior omnibus approval of the Audit Committee is obtained on a yearly basis for the transactions which are of a foreseen and repetitive nature. A statement giving details of all RPTs is placed before the Audit Committee and the Board of Directors for their noting on a quarterly basis. However, during the year your Company has entered into material related party transaction with Elixir Equities Pvt. Limited, Subsidiary of your Company for which necessary approval from Shareholders has been obtained in 23rd Annual General Meeting.
During the year, the related party, Elixir Equities Pvt. Limited, Subsidiary of your Company has terminated the Contract for providing services relating to Research Services including publishing of Monthly Newsletters due to cost cutting at their end. Accordingly, the said contract is terminated w.e.f. 01st August, 2017. The same were noted by the Audit Committee and Board of Directors at their Meeting held on 09th November, 2017 respectively.
20. COMPLIANCE OF SECRETARIAL STANDARDS
During the year under review, your Company has complied with the applicable Secretarial Standards issued by the Institute of Company Secretaries of India.
21. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
There are no significant material orders passed by the Regulators / Courts which would impact the going concern status of your Company and its future operations.
22. DISCLOSURES UNDER SECTION 134 (3) (l) OF THE COMPANIES ACT, 2013
No material changes and commitments which could affect your Company''s financial position have occurred between the end of the financial year of your Company and date of this report.
23. DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
Your Company firmly believes in providing a safe, supportive and friendly workplace environment - a workplace where our values come to life through the supporting behaviors. Positive workplace environment and a great employee experience are integral part of our culture. Your Company believes in providing and ensuring a workplace free from discrimination and harassment based on gender.
Your Company educates its employees as to what may constitute sexual harassment and in the event of any occurrence of an incident constituting sexual harassment; your Company provides the mechanism to seek recourse and redressal to the concerned individual subjected to sexual harassment.
Your Company has a Sexual Harassment Prevention and Grievance Handling Policy in place to provide clarity around the process to raise such a grievance and how the grievance will be investigated and resolved. An Internal Complaints Committee has been constituted in line with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
No complaint has been raised during the year ended 3181 March, 2018.
24. COMPANIES WHICH HAVE BECOME OR CEASED TO BE ITS SUBSIDIARIES, JOINT VENTURES OR ASSOCIATE COMPANIES
There are no companies which have become or ceased to be its Subsidiaries, Joint Venture or Associate Companies during the financial year 2017 - 18.
25. CORPORATE SOCIAL RESPONSIBILITY INITIATIVES
The criteria prescribed for the applicability of Corporate Social Responsibility under Section 135 of the Companies Act, 2013 is not applicable to your Company.
26. DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT POLICY
The subsidiaries of your Company are engaged in various financial services businesses such as stock and commodity broking, portfolio management and demat services. In addition to this, the subsidiaries also carry out arbitrage and proprietary trading. A sharp diminution in the value of the subsidiary companies is the key business risk for your Company. Your Company has not formed Risk Management Committee since it is not applicable under Regulation 21 of the SEBI (LODR) Regulations, 2015.
27. INTERNAL FINANCIAL CONTROL AND THEIR ADEQUACY
Your Company maintains an adequate and effective Internal Control System commensurate with its size and complexity. We believe that these internal control systems provide, among other things, a reasonable assurance that transactions are executed with Management authorization and that they are recorded in all material respects to permit preparation of financial statements in conformity with established accounting principles and that the assets of your Company are adequately safeguarded against significant misuse or loss.
An independent Internal Audit function is an important element of your Company''s internal control system. The internal control system is supplemented through an extensive internal audit programme and periodic review by Management and Audit Committee.
Your Company has in place, adequate Internal Financial Controls with reference to Financial Statements. During the year, such controls were tested and no reportable material weaknesses in the design or operation were observed.
The Audit Committee reviewed the audit program and findings of the Internal Audit department and your Company when needed takes corrective actions.
28. INFORMATION SYSTEM
In a business where information is critical, Information Technology plays a vital role, facilitating informed decision making to grow the business. Over the years, your Company has invested extensively in infrastructure, people and processes with the objective to capture, protect and transmit information with speed and accuracy.
29. VIGIL MECHANISM / WHISTLE BLOWER POLICY
Your Company has a vigil mechanism to deal with instance of fraud and mismanagement, if any. The details of the Whistle Blower Policy are explained in the Corporate Governance Report.
30. AUDITORS
30.1 Statutory Auditors
Your Company''s Auditors, M/s. JMT & Associates, Chartered Accountants, who retire at the forthcoming Annual General Meeting of your Company, are eligible for re-appointment. They have confirmed their eligibility under Section 141 of the Companies Act, 2013 and the Rules framed there under for re-appointment as Auditors of your Company. As required under Regulation 33 of SEBI (LODR) Regulations, 2015, the Auditors have also confirmed that they hold a valid certificate issued by the Peer Review Board of the Institute of Chartered Accountants of India.
30.2 Statutory Auditorsâ Observations
The Report given by the Auditors on the financial statements of your Company is part of the Annual Report. There has been no qualification, reservation, adverse remark or disclaimer given by the Auditors in their Report.
30.3 Secretarial Audit
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, your Company has appointed M/s P. P. Shah & Co., Practicing Company Secretary to undertake the Secretarial Audit of your Company. The Report of the Secretarial Audit Report is annexed herewith as âAnnexure Aâ.
30.4 Qualifications in Secretarial Audit Report
A. Appointment of Company Secretary:
As per Section 203 (1) (ii), the Company is required to appoint Company Secretary. The Company has not appointed Company Secretary, consequently the Annual Audited Financial Statements are not signed by Company Secretary. In this regard the management of the Company has provided the following reply:
i. The Company has appointed Mr. Dipan Mehta, Whole-Time Director, as Compliance Officer of the Company to ensure compliance of the Companies Act, 2013 and SEBI Act and rules made there under.
ii. The Company has availed of the services of Practicing Company Secretary for advice on the compliance of the Companies Act, 2013 and the SEBI Act and rules made there under.
iii. The volume and scope of work for the Company Secretary is minimal and therefore a full time Company Secretary is as such not required. Nonetheless, the Company is trying to appoint a full time Company Secretary and has interviewed many candidates, but none is prepared to work at the terms and conditions which are affordable to the Company.
B. Composition of Nomination and Remuneration Committee:
In respect of the composition of the Nomination and Remuneration Committee, Auditor observes as follows:
As per Section 178 of the Companies Act, 2013, the composition of Nomination and Remuneration Committee shall be as follows:
178 (1): âThe Board of the Directors of every listed company and such other class or classes of companies, as may be prescribed shall constitute the Nomination and Remuneration Committee consisting of three or more non-executive directors out of which not less than one half shall be independent directors:
Provided that the chairperson of the company (whether executive or non-executive) may be appointed as a member of the Nomination and Remuneration Committee but shall not chair such Committee.â
The Nomination and Remuneration Committee of the Company comprises of two independent directors and one executive director. In this regard, the Management has given the following reply:
âThe Company has 4 directors, out of them 2 are executive and 2 are independent directors. Accordingly the composition of the Board is such that the Nomination and Remuneration Committee cannot comprise of 3 non-executive directors. Mr. Dipan Mehta, Executive Director is 1 of the members of the Committee. However he does not draw any remuneration from the Company and with the present composition of Nomination and Remuneration Committee, it has been ensured that majority remains with Independent Directors and accordingly the spirit of Corporate Governance is achieved.â
31. CORPORATE GOVERNANCE
Your Company attaches considerable significance to good Corporate Governance as an important step towards building investor confidence, improving investors'' protection and maximizing long-term shareholders value. The certificate from M/s. JMT & Associates, Chartered Accountants, confirming compliance of conditions of Corporate Governance as stipulated under Schedule V (E) of the Securities and Exchange Board of India (LODR) Regulations, 2015 of the Stock Exchanges is annexed.
32. MANAGEMENT DISCUSSION AND ANALYSIS
As required under the Schedule V (B) of SEBI (LODR) Regulations, 2015, report on âManagement Discussion and Analysisâ is attached and form part of this Annual Report.
33. ENERGY CONSERVATION, TECHNOLOGYABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014, is as under:
A. Conservation of Energy, Technology absorption, adaptation and innovation
Your Company is not engaged in any manufacturing activity. Your Company is in service industry.
Hence, your Company has not taken any energy conservation measures. There are no additional investments and proposals, for reduction of consumption of energy. Your Company has not deployed any Research and Development facility or absorbed any technology. Hence, no disclosures are required to be given.
B. Foreign Exchange Earning & Outgo
Foreign Exchange Earnings/Outgo (Rs. In Millions)
Foreign Exchange Earned Nil
Foreign Exchange Outgo Nil
34. LISTING WITH STOCK EXCHANGES
Your Company is listed with one Stock Exchange i.e. BSE Limited and your Company has duly paid the listing fees to the Exchange.
35. EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in form MGT-9 is annexed herewith as âAnnexure Bâ.
36. PARTICULARS OF EMPLOYEES
During the year, there was no employee in receipt of remuneration in excess of limit prescribed in the Rule 5 (2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. The prescribed particulars of Employees as required under Section 197 (12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is attached as âAnnexure Câ and form part of this Report.
37. HUMAN RESOURCES
There are no employees in your company and the affairs are managed by the Directors.
38. ENVIRONMENT AND SAFETY
Your Company is conscious of the importance of environmentally clean and safe operations. Your Company''s policy requires conduct of operations in such a manner, so as to ensure safety of all concerned, compliances of environmental regulations and preservation of natural resources.
39. ENHANCING SHAREHOLDERS VALUE
Your Company believes that its Members are among its most important stakeholders. Accordingly, your Company''s operations are committed to the pursuit of achieving high levels of operating performance and cost competitiveness, consolidating and building for growth, enhancing the productive asset and resource base and nurturing overall corporate reputation. Your
Company is also committed to creating value for its other stakeholders by ensuring that its corporate actions positively impact the socio-economic and environmental dimensions and contribute to sustainable growth and development.
40. GREEN INITIATIVES
Electronic copies of the Annual Report 2017-18 and Notice of the 24th Annual General Meeting are sent to all members whose email addresses are registered with your Company / Depository Participant(s). For members who have not registered their email addresses, physical copies of the Annual Report 2017-18 and the Notice of the 24th Annual General Meeting under Section 101 of the Companies Act, 2013 are sent in the permitted mode. Members requiring physical copies can send a request to your Company.
Your Company provides e-voting facility to all its members to enable them to cast their votes electronically on all resolutions set forth in the Notice. This is pursuant to the Section 108 of the Companies Act, 2013 and Rule 20 of the Companies (Management and Administration) Amendment Rules, 2015.
41. ACKNOWLEDGEMENTS
Your Directors thank the various Central and State Government Departments, Organizations and Agencies for the continued help and co-operation extended by them. The Directors also gratefully acknowledge all stakeholders of your Company viz. customers, members, dealers, vendors, banks and other business partners for the excellent support received from them during the year. The Directors place on record their sincere appreciation to all employees of your Company for their unstinted commitment and continued contribution to your Company.
42. CAUTIONARY STATEMENT
Statements in the Board''s Report and the Management Discussion & Analysis describing your Company''s objectives, expectations or forecasts may be forward-looking within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed in the statement. Important factors that could influence your Company''s operations include global and domestic demand and supply conditions affecting selling prices of finished goods, input availability and prices, changes in government regulations, tax laws, economic developments within the country and other factors such as litigation and industrial relations.
For and on behalf of the Board of Directors of Elixir Capital Limited
(Dipan Mehta) ( Radhika Mehta)
Whole-Time Director Director-CFO
Place: Mumbai
Date: 30th May, 2018
Mar 31, 2015
DEAR MEMBERS
The Directors take pleasure in presenting the Twenty First Annual
Report together with the audited financial statements for the year
ended 31st March, 2015. The Management Discussion and Analysis has also
been incorporated into this report.
1. FINANCIAL RESULTS
For the Year For the Year
ended ended
March 31,2015 March 31,2014
Rs. Rs.
Revenue from Operations - -
Other Income 86,53,307 43,60,768
Total Revenue 86,53,307 43,60,768
Less:Expenses
Depreciation and amortization expenses 1,17,075 1,17,075
Other expenses 11,07,387 9,37,392
Total Expenses 12,24,462 10,54,467
Profit/(Loss) before Exceptional
Items & Taxes 74,28,845 33,06,301
Exceptional Items - -
Profit / (Loss) before Extraordinary
items Taxes 74,28,845 33,06,301
Extraordinary items - -
Profit before tax 74,28,845 33,06,301
Less : Tax
Current tax - -
Deferred tax 911 (392)
Adjustment in Taxation of earlier years (46,256) 4,95,843
Total Taxes (45,345) 4,95,451
Profit / (Loss) for the period 73,83,500 38,01,752
2. HIGHLIGHTS OF PERFORMANCE
The total income for the year increased by 98.46 % to Rs. 86.53 lakhs
from Rs. 43.61 lakhs in the previous year. Net Profits for the year
increased by 94.23 % to Rs. 73.84 lakhs as compared to Rs. 38.01 lakhs
in the previous year.
3. BUSINESS OPERATIONS
The company is the holding company of Axis Equities Pvt. Ltd. (AEPL).
During the year under review a dividend of Rs. 74.68 lakhs was
received from AEPL.
AEPL, reported a significant improvement in its operations. Revenue
from share trading, broking and portfolio management increased by more
than 3 times to Rs. 1083.43 lakhs. This spurt in income was driven by
higher arbitrage and share trading profits. AEPL made a Net Profit
after Tax of Rs. 665.01 lakhs for the financial year and has proposed
to pay a dividend of Rs. 5.75 per share.
4. DIVIDEND
The Board of Directors recommend a dividend @ 12.5% i.e. Re. 1.25 per
equity share for the financial year ended 31st March, 2015. The
dividend payout is subject to approval of members at the ensuing Annual
General Meeting. Total outgo on dividend payout including corporate
dividend tax would aggregate to Rs. 72.54 lacs.
5. SHARE CAPITAL
The paid up Equity Share Capital as on 31st March, 2015 was Rs. 580.32
Lakhs. During the year under review, the Company has not issued shares
with differential voting rights nor granted stock options nor sweat
equity. As on 31st March, 2015, the Directors of the Company hold the
equity shares of the Company as follows:
Name of the Director Number of Shares % of Total Capital
Mr. G. B. Desai* Nil 0.00
Mr. Dipan Mehta 21,24,100 36.60
Mrs. Radhika D Mehta 10,100 0.17
Mr. Anil Mehta 7,28,700 12.56
Mrs. Vina A Mehta 8,49,300 14.64
Mr. Dilip Kapadia Nil 0.00
* retired on 30th May, 2015
6. FINANCE
Cash and cash equivalent as at 31st March, 2015 was Rs. 3.04 lakhs.
6.1 DEPOSITS
The Company has not accepted deposits from the public and shareholders
falling within the ambit of Section 73 of the Companies Act, 2013 and
The Companies (Acceptance of Deposits) Rules, 2014.
6.2 PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
Details of Loans, Guarantees and Investments covered under the
provisions of Section 186 of the Companies Act, 2013 are given in the
notes to the Financial Statements.
7. CORPORATE SOCIAL RESPONSIBILITY INITIATIVES
The criteria prescribed for the applicability of Corporate Social
Responsibility under Section 135 of the Companies Act, 2013 is not
applicable to the Company.
8. BUSINESS RISK MANAGEMENT
The subsidiaries of the Company are engaged in various financial
services businesses such as stock and commodity broking, portfolio
management and demat services. In addition to this, the subsidiaries
also carry out arbitrage and proprietary trading. A sharp diminution in
the value of the subsidiary companies is the key business risk for the
company.
The Company has not formed Risk Management Committee and considered it
as optional item as prescribed under Clause 49 of Listing Agreement.
The size and nature of business is such that a Risk Management
Committee is not necessary.
9. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has an Internal Control System, commensurate with the size,
scale and complexity of its operations.
10. VIGIL MECHANISM / WHISTLE BLOWER POLICY
The Company has a vigil mechanism to deal with instance of fraud and
mismanagement, if any. The details of the Whistle Blower Policy are
explained in the Corporate Governance Report.
11. SUBSIDIARY COMPANIES
As on 31st March, 2015, the Company has following three subsidiaries:
1. Axis Equities Private Limited.
2. Dipan Mehta Commodities Private Limited
3. Axis Wealth Management Private Limited
Audited Financial Statement of the Company's Subsidiaries
The Statement of salient features of financial statement of
Subsidiaries in Form AOC-I pursuant to Section 129(3) read with rule 5
of Companies (Accounts) Rules, 2014 are given below:
(Rs. in Lacs)
Sr. Particulars Axis Equities Dipan Mehta
No. Pvt. Ltd. Commodities
Pvt. Ltd.
i) Reporting Period 1st April 2014 to 1st April 2014 to
31st March 2015 31st March 2015
ii) Reporting Currency INR INR
iii) Country India India
iv) Exchange Rate 1.00 1.00
v) Share Capital 175.50 7.00
vi) Reserves and Surplus 2,285.24 41.10
vii) Total Assets 2,686.26 48.12
viii) Total Liabilities 225.52 0.02
ix) Investment other than
Investment in subsidiary 70.75 -
x) Turnover 1,169.95 -
xi) Profit before taxation 941.53 (1.46)
xii) Provision for Taxation (276.52) -
xiii) Profit after taxation 665.01 (1.46)
xiv) Proposed Dividend (100.91) -
xv) Percentage of
Shareholding 74.00% 100.00%
(Rs. in Lacs)
Sr. Particulars Axis Wealth
No. Management
Pvt. Ltd.
i) Reporting Period 1st April 2014 to
31st March 2015
ii) Reporting Currency INR
iii) Country India
iv) Exchange Rate 1.00
v) Share Capital 1.00
vi) Reserves and Surplus 6.59
vii) Total Assets 25.13
viii) Total Liabilities 17.53
ix) Investment other than
Investment in subsidiary -
x) Turnover .10
xi) Profit before taxation (1.29)
xii) Provision for Taxation -
xiii) Profit after taxation (1.29)
xiv) Proposed Dividend -
xv) Percentage of
Shareholding 100.00%
12. DIRECTORS:
In terms of the Articles of Association of the Company, Mr. Anil Mehta,
Director, retires by rotation at the ensuing Annual General Meeting and
being eligible, offers himself for re-appointment.
Mr. G.B. Desai, Independent Director and Chairman of the Company
retired on 30th May, 2015. The Board of Directors places on record its
sincere thanks and gratitude to the contribution made by him to the
progress and growth of the Company.
The present constitution of the Board is not as per the Companies Act,
2013 and revised clause 49 of Listing Agreement. The company is in the
process of appointing another independent director within the
stipulated time period of three months
The Company has received declarations from the Independent Director of
the Company confirming that he meets with the criteria of independence
as prescribed both, under subsection 6 of section 149 of the Companies
Act, 2013 and under clause 49 of the listing agreement with the stock
exchanges.
12.1 Board Evaluation
Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of
the Listing Agreement, the Board has carried out an annual performance
evaluation of its own performance, and that of the directors
individually as well as the evaluation of the working of its Audit,
Nomination & Remuneration and Stakeholders' Relationship Committees.
The manner in which the evaluation has been carried out has been
explained in the Corporate Governance Report.
12.2 Remuneration Policy
The Board has, on the recommendation of the Nomination & Remuneration
Committee framed a policy for selection and appointment of Directors,
Senior Management and their remuneration. The Remuneration Policy is
stated in the Corporate Governance Report.
12.3 Meetings
A calendar of Meetings is prepared and circulated in advance to the
Directors.
During the year four Board Meetings and four Audit Committee Meetings
were convened and held. The details of which are given in the Corporate
Governance Report. The intervening gap between the Meetings was within
the period prescribed under the Companies Act, 2013.
13. DIRECTORS' RESPONSIBILITY STATEMENT
To the best of their knowledge and belief and according to the
information and explanations obtained by them, your Directors make the
following statements in terms of Section 134(3) (c) of the Companies
Act, 2013:
a) that in the preparation of the annual financial statements for the
year ended 31st March, 2015, the applicable accounting standards have
been followed along with proper explanation relating to material
departures, if any;
b) that such accounting policies as mentioned in Note 1 of the Notes to
the Financial Statements have been selected and applied consistently
and judgment and estimates have been made that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company as at 31st March, 2015 and of the profit of the Company for
the year ended on that date;
c) that proper and sufficient care has been taken for the maintenance
of adequate accounting records in accordance with the provisions of the
Companies Act, 2013 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
d) that the annual financial statements have been prepared on a going
concern basis;
e) that proper internal financial controls were in place and that the
financial controls were adequate and were operating effectively.
f) that systems to ensure compliance with the provisions of all
applicable laws were in place and were adequate and operating
effectively.
14. RELATED PARTY TRANSACTIONS
All transactions entered with related parties for the year under review
were on arms length basis and in the ordinary course of business and
that the provisions of Section 188 of the Companies Act. 2013 are not
attracted. Thus Disclosure in AOC-2 is not required. However, during
the year the Company has entered into material related party
transaction with Axis Equities Pvt. Limited, subsidiary of the Company.
Other than this there are no material related party transactions during
the year under review with the promoters, directors or key managerial
personnel. The necessary items for approval of members have been
included in Item no. 6 of the Notice.
15. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
There are no significant material orders passed by the Regulators /
Courts which would impact the going concern status of the Company and
its future operations.
16. AUDITORS
16.1 Statutory Auditors
The Company's Auditors, M/s P C. Surana & Co., Chartered Accountants,
Mumbai who retire at the ensuing Annual General Meeting of the Company,
are eligible for reappointment. They have confirmed their eligibility
under Section 141 of the Companies Act, 2013 and the Rules framed there
under for reappointment as Auditors of the Company. As required under
Clause 49 of the Listing Agreement, the auditors have also confirmed
that they hold a valid certificate issued by the Peer Review Board of
the Institute of Chartered Accountants of India.
16.2 Secretarial Audit
Pursuant to the provisions of Section 204 of the Companies Act, 2013
and The Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, the Company has appointed M/s P P Shah & Co.,
Company Secretary in Practice to undertake the Secretarial Audit of the
Company. The Report of the Secretarial Audit Report is annexed herewith
as "Annexure A".
16.3 Qualifications in Secretarial Audit Report
A. Appointment of Company Secretary & Chief Financial Officer:
As per section 203(1)(ii) & (iii), the Company is require to appoint
Company Secretary & Chief Financial Officer. The Company has not
appointed Company Secretary & Chief Financial Officer. In this regard
the management of the Company has provided the following reply:
(i) The Company has appointed Mr. Dipan Mehta, a Chartered Accountant
as well as Director, as Compliance Officer of the Company to ensure
compliance of the Companies Act, 2013 and SEBI Act and rules made there
under.
(ii) The Company has availed of the services of Practicing Company
Secretary for advise on the compliance of the Companies Act, 2013 and
the SEBI Act and rules made there under.
(iii) The volume and scope of work for the Company Secretary and Chief
Financial Officer is minimal and therefore a full time Company
Secretary and Chief Financial Officer is not required.
B. Appointment of Internal Auditor:
As per section 138 of the Companies Act, 2013, the Company is required
to appoint Internal Auditor. The Company has not appointed Internal
Auditor. In this regard the management of the Company has provided the
following reply:
As the size of operation of the Company is very small, it is not viable
to appoint Internal Auditor. However, the Company has established
adequate internal control systems.
C. Composition of Board of Directors, Audit Committee & Nomination and
Remuneration Committee:
The composition of the Board of Directors is not as per the provisions
of Companies Act, 2013 and clause 49 of Listing Agreement. In this
regard the management of the Company has provided the following reply:
The company is in the process of complying with these requirements of
the Companies Act, 2013.
17. ENHANCING SHAREHOLDERS VALUE
Your Company believes that its members are its most important
stakeholders. Accordingly, your Company and its Subsidiaries operations
are committed to the pursuit of achieving high levels of operating
performance, cost competitiveness and consolidating for future growth.
Our aim is to enhance the productive assets, resource base and
nurturing and improving its corporate reputation. Your Company is also
committed to creating value for its other stakeholders by ensuring that
its corporate actions positively impact the society, environment.
18. CORPORATE GOVERNANCE
As per Clause 49 of the Listing Agreement with the Stock Exchanges, a
separate section on corporate governance practices followed by the
Company, together with a certificate from the Company's Auditors
confirming compliance forms an integral part of this Report.
19. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information on conservation of energy, technology absorption and
foreign exchange earnings and outgo stipulated under Section 134(3)(m)
of the Companies Act, 2013 read with Rule, 8 of The Companies
(Accounts) Rules, 2014 is not applicable to the Company:
Foreign Exchange Earnings/Outgo : Rs.
Foreign Exchange Earned : Nil
Foreign Exchange Outgo : Nil
20. EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in form
MGT-9 is annexed herewith as "Annexure B".
21. PARTICULARS OF EMPLOYEES
There is no employee in the Company drawing monthly remuneration of
Rs.5,00,000 per month or Rs. 60,00,000 per annum. Hence the Company is
not required to disclose any information as per Rule, 5(2) of The
Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014.
22. REMUNERATION OF THE DIRECTORS/ KEY MANAGERIAL PERSONNEL (KMP)/
EMPLOYEES
The information required pursuant to Section 197 read with Rule 5 (1)
(i) of The Companies (Appointment and Remuneration) Rules, 2014 in
respect of ratio of remuneration of each director to the median
remuneration of the employees of the Company for the Financial Year are
as follows:
Sr. Name of the Designation Remuneration Median
No. Director Per Annum Remuneration
(INR) Per Annum
(INR)
1. Mr. Dipan Mehta Whole Time
Director Nil Nil
Sr. Name of the Ratio
No. Director (Remuneration
of Director to
Median
Remuneration)
1. Mr. Dipan Mehta N.A.
23. ACKNOWLEDGEMENTS
Your Directors thank the various Central and State Government
Departments, Organizations and Agencies for the continued help and
co-operation extended by them. The Directors also gratefully
acknowledge all stakeholders of the Company viz. customers, members,
dealers, vendors, banks and other business partners for the excellent
support received from them during the year.
24. CAUTIONARY STATEMENT
Statements in the Board's Report and the Management Discussion &
Analysis describing the Company's objectives, expectations or forecasts
may be forward-looking within the meaning of applicable securities laws
and regulations. Actual results may differ materially from those
expressed in the statement.
For and on behalf of the Board of Directors
Mumbai
Date : 30th May, 2015
Dipan Mehta Radhika Mehta
Director Director
Mar 31, 2014
The Members,
The Directors have pleasure in presenting the Twentieth Annual Report
of your Company together with the Audited Accounts for the year ended
31st March, 2014.
1. FINANCIAL RESULTS
For the Year ended For the Year ended
March 31,2014 March 31,2013
Revenue from Operations - -
Other Income 4,360,768 1,541,156
Total Revenue 4,360,768 1,541,156
Less:Expenses
Depreciation and amortization 117,075 119,676
expenses
Other expenses 1,054,467 778,488
Profit/(Loss) before Exceptional 3,306,301 762,668
Items & Taxes
Exceptional Items - -
Profit / (Loss) before Extraordinary 3,306,301 762,668
items Taxes
Extraordinary items - -
Profit before tax 3,306,301 762,668
Less : Tax
Current tax - (159,774)
Deferred tax (392) (1,038)
Adjustment in Taxion in earlier years 495,843 -
Total Taxes 495,451 (160,812)
Profit / (Loss) for the period 3,801,752 601,856
2. DIVIDEND
The Board of Directors has recommended a final dividend @ 12.5% i.e.
Re. 1.25 per equity share for the financial year ended 31st March,
2014. The dividend payout is subject to approval of members at the
ensuing Annual General Meeting.
3. OPERATIONS
The company is the holding company of Axis Equities Pvt. Ltd. (AEPL).
During the year under review a dividend of Rs. 43.52 lakhs was
received from the subsidiary company.
Axis Equities Pvt. Ltd, reported a significant improvement in its
operations. Revenue from the core business of share trading, broking
and portfolio management increased by 66.68 % to Rs. 359.96 lakhs. This
spurt in income was driven by higher arbitrage and share trading
profits. AEPL made a Net Profit after Tax of Rs. 119.95 lakhs for the
financial year and has proposed to pay a dividend of Rs. 5.75 per
share.
4. DIRECTORS
Ms. Vina Mehta, Director retires by rotation at the forthcoming Annual
General Meeting and being eligible, offer herself for re-appointment.
In terms of the articles of association of the Company, section 149
(10) of the Companies Act, 2013 and revised clause 49 of Listing
Agreement dealing with Corporate Governance norms, Mr. Dilipkumar
Kapadia has completed 5 years term as Independent Directors as on 1st
April, 2014. The Company proposes to re-appoint them, as Independent
Directors for a further period of 5 years till 2019. The Company has
received requisite notices in writing from members proposing Mr.
Dilipkumar Kapadia for appointment as Independent Directors.
The Company has received declarations from all the Independent
Directors of the Company confirming that they meet with the criteria of
independence as prescribed both, under subsection 6 of section 149 of
the Companies Act, 2013 and under clause 49 of the listing agreement
with the stock exchanges.
5. SUBSIDIARY COMPANIES
As on 31st March, 2014, the Company has following three subsidiaries:
i. Axis Equities Private Limited.
ii. Dipan Mehta Commodities Private Limited
iii. Axis Wealth Management Private Limited
In terms of Section 212(a) of the Companies Act, 1956, the Central
Government, Ministry of Corporate Affairs vide its General Circular
2/2011 dated 8th February, 2011 has granted a general exemption to the
Company from the requirement of attaching to its Annual Report, the
Balance Sheet, Profit and Loss Account and the report of the Directors
and Auditors thereon of its subsidiaries. Accordingly, the same is not
attached to the Balance Sheet of the Company. Shareholders who wish to
have a copy of Annual Accounts of subsidiary company may write to Mr.
Dipan Mehta, Compliance Officer of the Company, at the registered
office of the Company.
Statement pursuant to general exemption received under section 212(8)
of the Companies Act, 1956 relating to subsidiary companies
Particulars Axis Equities Axis Wealth Dipan Mehta
Pvt. Ltd. Management Commodities
Pvt. Ltd. Pvt. Ltd.
1 Capital 17,550,000 100,200 700,000
2 Reserves 173,751,107 788,284 4,255,877
3 Total Assets 223,785,350 890,732 4,958,125
4 Total Liabilitie 32,484,243 2,248 2,248
5 Details of Investments 12,069,749 - -
(except investment in
subsidiaries)
6 Gross Income 38,759,960 - -
7 Profit/(Loss) Before Taxation 17,229,342 (139,516) (139,870)
8 Provision for Taxation (5,233,539) - -
9 Profit /(Loss) After Taxation 11,995,803 (139,516) (139,870)
10 Proposed Dividend (10,091,250) - -
6. CONSOLIDATION OF FINANCIAL STATEMENTS
In accordance with the said above referred circular and with the
Accounting Standards AS - 21 notified by Companies (Accounting
Standards) Rules, 2006, the Consolidated Financial Statements covered
in this report by the Company include financial information of its
above referred three subsidiary companies and forms part of this Annual
Report.
7. CONSERVATION OF ENERGY, TECHNOLOGICAL ABSORPTION AND FOREIGN
EXCHANGE EARNINGS AND OUTGO
In terms of Section 217 (1) (e) of the Companies Act, 1956 read with
the Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988, your Directors wish to state that the same is
not applicable to the Company.
Foreign Exchange Earnings/Outgo : Rs.
Foreign Exchange Earned : Nil
Foreign Exchange Outgo : Nil
8. FIXED DEPOSITS
The Company has not accepted any deposits from the public.
9. PARTICULARS OF EMPLOYEES
There is no employee in the Company drawing monthly remuneration of Rs.
5,00,000 per month Or Rs. 60,00,000 per annum. Hence the Company is not
required to disclose any information as per Companies (Particulars of
Employees) Rules, 1975.
10. DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement Under Section 217 (2AA) of the Companies
Act, 1956 with respect to the Directors Responsibilities Statement, it
is hereby confirmed;
i) That in the preparation of the Annual Accounts for the financial
year 31st March, 2014 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 judgment and estimates that were
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 the year under review.
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 preventing and detecting fraud and other
irregularities.
iv) That the Directors have prepared the Accounts for the financial
year ended 31st March, 2014 on a going concern basis.
11. LISTING OF SHARES
The Company''s shares are listed on Bombay Stock Exchange Limited. The
company has paid the listing fees for the same.
12. CORPORATE GOVERNANCE
A separate section on Corporate Governance is annexed to this report.
The Certificate from the Auditors confirming the compliance of
conditions on Corporate Governance as stipulated in Clause 49 of the
Listing Agreement with the Stock Exchanges is annexed hereto.
13. AUDITORS
M/s. P C. Surana & Co., Chartered Accountants retire at the forthcoming
Annual General Meeting and being eligible offer themselves for
re-appointment. The Company has received a certificate from them to the
effect that their re-appointment, if made would be within the
prescribed limits specified under Section 141 of the Companies Act,
2013 and that they are not disqualified for re-appointment.
14. MANAGEMENT DISCUSSION AND ANALYSIS Forward Looking Statements:
This section contains forward-looking statements, which may be
identified by their use of words, like "plans", "expects",
"wills", "anticipates", "believes", "intends",
"projects", "estimates", or other words of similar meaning. All
statements that address expectations or projections about the future,
including but not limited to statements about the company''s strategy
for growth, product development, market position, expenditures and
financial results are forward-looking statements. Forward-Looking
statements are based on certain assumptions and expectations of future
events. The Company cannot guarantee that these assumptions are
accurate or will be realized. The Company''s actual results,
performance or achievements could thus differ materially from those
projected in any such forward looking statements. The company assumes
no responsibility to publicly amend, modify or revise any forward
looking statements, on the basis of any subsequent developments,
information or events.
The company is engaged in the business of investment, arbitrage and
trading in shares. For the year under review, only investment activity
was carried out. The company''s subsidiary Axis Equities Pvt. Ltd.,
which is also engaged in stock broking, portfolio management and demat
services, carried out arbitrage and trading in shares.
a. Industry Structure and Development
The company and its subsidiaries is engaged in the business of broking,
portfolio management, demat services, investments, arbitrage and
trading in shares. This is a highly fragmented and intensely
competitive industry.
b. Business Prospects and Future Plans
The prospects of the company and its subsidiary are directly linked to
the performance of the stock market. The endeavor shall be to scale up
the operations of this company so as to add value to all the
stakeholders and derisk the business model.
c. Opportunities and Threats
A prolonged bear phase in the stock markets is the main threat for the
company. A bull market provides opportunities to earn profits from
investment and trading activity.
d. Segment-Wise or Product-Wise Performance
Not Applicable
e. Outlook
The prospects of the company will depend upon how it is able to scale
up the operations of its subsidiary Axis Equities Private Limited
(formerly know as Dipan Mehta Share & Stock Brokers Pvt. Ltd.). The
trends in the stock market will also determine its performance.
f. Risk and Concerns
A prolonged bear market and poor choice of investment and trading
positions are the major risk factors.
g. Internal Control Systems and their Adequacy
The company has adequate internal control systems and is well
capitalized for its scale of operations.
h. Discussions on Financial Performance with respect to Operational
Performance
The company is the holding company of Axis Equities Pvt. Ltd. (AEPL).
During the year under review a dividend of Rs. 43.52 lakhs was
received from the subsidiary company.
Axis Equities Pvt. Ltd, reported a significant improvement in its
operations. Revenue from the core business of share trading, broking
and portfolio management increased by 66.71 % to Rs. 359.96 lakhs. This
spurt in income was driven by higher arbitrage and share trading
profits. AEPL made a Net Profit after Tax of Rs. 119.95 lakhs for the
financial year and has proposed to pay a dividend of Rs. 5.75 per
share.
i. Material Development in Human Resources / Industrial Relations
Front, including Number of People Employed
During the year there were no material developments in Human Resources
and Industrial Relations.
j. Material Financial and Commercial Transactions
During the year there were no material financial or commercial
transactions.
15. ACKNOWLEDGMENT
The Board wishes to place on records its appreciation to all its
bankers, associates and stakeholders.
By order of the Board,
For AXIS CAPITAL MARKETS (INDIA) LIMITED
Dated : May 30, 2014
Registered Office:
58, Mittal Chambers,
228, Nariman Point, Dipan Mehta Radhika Mehta
Mumbai 400 021. Director Director
Mar 31, 2013
To The Members,
The Directors have pleasure in presenting the Nineteenth Annual Report
of your Company together with the Audited Accounts for the year ended
31st March, 2013.
1. FINANCIAL RESULTS
For the
Year ended For the
Year ended
March 31, 2013 March 31, 2012
Revenue from Operations 3,160,927
Other Income 1,541,156 6,410,940
Total Revenue 1,541,156 9,571,867
Less : Expenses
Finance Costs
Depreciation and amortization expenses 119,676 143,895
Other expenses 658,812 556,574
Total Expenses 778,488 700,469
Profit/(Loss) before
Exceptional Items & Taxes 762,668 8,871,398
Exceptional Items
Profit / (Loss) before
Extraordinary items Taxes 762,668 8,871,398
Extraordinary items
Profit before tax 762,668 8,871,398
Less : Tax
Current tax (159,774) (1,769,348)
Deferred tax (1,038) 35,063
Adjustment in Taxion in earlier years
Total Taxes (160,812) (1,734,285)
Profit / (Loss) for the period 601,856 7,137,113
2. DIVIDEND
In November, 2012 your directors declared an interim dividend @ 15% i.e
Rs.1.50 per equity share for the financial year
2012-2013.
The Board of Directors have recommended a final dividend @ 7.5% i.e.
Rs. 0.75 per equity share for the financial year ended 31st March,
2013.
3. OPERATIONS
During the year under review the company made a profit of Rs. 15.11
lakhs from sale of investment.
Its subsidiary company, Axis Equities Pvt. Ltd (AEPL), reported a
significant improvement in its operations. Revenue from the core
business of share trading, broking and portfolio management tripled to
Rs. 215.95 lakhs. This spurt in income was driven by higher arbitrage
and share trading profits. The company made a net loss of Rs. 25.63
lakhs which mainly on account of loss on sale of investments of Rs.
99.80 lakhs.
4. DIRECTORS
Mr. Govindbhai Desai, Director retires by rotation at the forthcoming
Annual General Meeting and being eligible, offers himself for
re-appointment.
5. SUBSIDIARY COMPANIES
As on 31st March, 2013, the Company has following three subsidiaries:
i. Axis Equities Private Limited.
ii. Dipan Mehta Commodities Private Limited
iii. Axis Wealth Management Private Limited
In terms of Section 212(a) of the Companies Act, 1956, the Central
Government, Ministry of Corporate Affairs vide its General Circular
2/2011 dated 8th February, 2011 has granted a general exemption to the
Company from the requirement of attaching to its annual report, the
Balance Sheet, Profit and Loss Account and the report of the Directors
and Auditors thereon of its subsidiaries. Accordingly the same is not
attached to the Balance Sheet of the Company. Shareholders who wish to
have a copy of Annual Accounts of subsidiary company may write to Mr.
Dipan Mehta, Compliance Officer of the Company at the registered office
of the Company.
6. CONSOLIDATION OF FINANCIAL STATEMENTS
In accordance with the said above referred circular and with the
Accounting Standards AS Â 21 notified by Companies (Accounting
Standards) Rules, 2006, the Consolidated Financial Statements covered
in this report by the Company include financial information of its
above referred three subsidiary companies and forms part of this Annual
Report.
7. CONSERVATION OF ENERGY, TECHNOLOGICAL ABSORPTION AND FOREIGN
EXCHANGE EARNINGS AND OUTGO
In terms of Section 217 (1) (e) of the Companies Act, 1956 read with
the Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988, your Directors wish to state that the same is
not applicable to the Company.
Foreign Exchange Earnings/Outgo : Rs.
Foreign Exchange Earned : Nil
Foreign Exchange Outgo : Nil
8. FIXED DEPOSITS
The Company has not accepted any deposits from the public.
9. PARTICULARS OF EMPLOYEES
Particulars of Employees as required under Section 217 (2A) of the
Companies Act, 1956 read with Companies (Particulars of Employees)
Rules, 1975, as amended is not given as there was no employee drawing
the salary as per the limits mentioned in that Section.
10. DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement Under Section 217 (2AA) of the Companies
Act, 1956 with respect to the Directors Responsibilities Statement, it
is hereby confirmed;
i) That in the preparation of the Annual Accounts for the financial
year 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 judgment and estimates that were
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 the year under review.
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 preventing and detecting fraud and other
irregularities.
iv) That the Directors have prepared the Accounts for the financial
year ended 31st March, 2013 on a going concern basis.
11. LISTING OF SHARES
The Company''s shares are listed on Bombay Stock Exchange Limited. The
company has paid the listing fees for the same.
12. CORPORATE GOVERNANCE
A separate section on Corporate Governance is annexed to this report.
The Certificate from the Auditors confirming the compliance of
conditions on Corporate Governance as stipulated in Clause 49 of the
Listing Agreement with the Stock Exchanges is annexed hereto.
13. AUDITORS
M/s. P. C. Surana & Co., Chartered Accountants retire at the
forthcoming Annual General Meeting and being eligible offer themselves
for re-appointment. The Company has received a certificate from them to
the effect that their re-appointment, if made would be within the
prescribed limits specified under Section 224(1B) of the Companies Act,
1956.
14. ACKNOWLEDGMENT
The Board wishes to place on records its appreciation to all its
bankers, associates and stakeholders.
By order of the Board,
For AXIS CAPITAL MARKETS
(INDIA) LIMITED
Dated : 30th May, 2013
Registered Office:
58, Mittal Chambers,
228, Nariman Point,
Dipan Mehta Radhika Mehta
Mumbai 400 021. Director Director
Mar 31, 2012
The Directors have pleasure in presenting the Eighteenth Annual Report
of your Company together with the Audited Accounts for the year ended
31 st March, 2012.
1. FINANCIAL RESULTS For the Year ended For the Year ended
March 31,2012 March 31,2011
Revenue from Operations 3,160,927 4,911,884
Other Income 6,410,940 5,409,936
Total Revenue 9,571,867 10,321,820
Less: Expenses
Finance Costs - 110
Depreciation and
amortization expenses 143,895 115,217
Other expenses 556,574 596,013
Total Expenses 700,469 711,341
Profit/(Loss) before
Exceptional Items & Taxes 8,871,398 9,610,480
Exceptional Items - -
Profit/(Loss) before
Extraordinary items Taxes 8,871,398 9,610,480
Extraordinary items - -
Profit before tax 8,871,398 9,610,480
Less: Tax
Current Tax (1,769,348) (2,274,102)
Deferred Tax 35,063 3,591
Adjustment in Taxation
in earlier years - (160,946)
Total Taxes (1,734,285) (2,431,457)
Profit/(Loss) for the period 7,137,113 7,179,023
2. DIVIDEND
With a view to deploy the profits into the existing operations of the
company, Board of Directors has not recommended any dividend for the
year.
3. OPERATIONS
During the year the company became the holding company of Axis Equities
Pvt. Ltd. (AEPL), a company engaged in stock broking, arbitrage,
depository services and portfolio management.
AEPL has membership of the Bombay Stock Exchange, National Stock
Exchange, Central Depository Services Ltd and a SEBI registered
Portfolio Manager. Its subsidiary, Dipan Mehta Commodities Pvt. Ltd. is
a member of the Multi Commodity Exchange of India.
This was the first year of consolidated operations.
4. ISSUE OF SHARES
On 12th August the Company allotted 28,00,000 equity shares of Rs. 10
each at a premium of Rs. 23.30 per share through conversion of
28,00,000 equity warrants. The said shares have been listed at the
Bombay Stock Exchange Limited (BSE). The Company has completed all
formalities in respect of issue of shares and listing the same on BSE.
5. DIRECTORS
Mr. Anil Mehta, Director retires by rotation at the forthcoming Annual
General Meeting and being eligible, offers himself for re-appointment.
The Board of Directors have put their Board Meeting held on 30th May,
2012, appointed Mr. Dipan Mehta as Whole Time Director of the Company
w.e.f. 1st June, 2012 for a period of 5 years. He shall not draw any
remuneration from the Company.
6. SUBSIDIARY COMPANIES
As on 31st March, 2012, the Company has following three subsidiaries:
i. Axis Equities Private Limited
ii. Dipan Mehta Commodities Private Limited
iii. Axis Wealth Management Private Limited
In terms of Section 212(a) of the Companies Act, 1956, the Central
Government, Ministry of Corporate Affairs vide its General Circular
2/2011 dated 8th February, 2011 has granted a general exemption to the
Company from the requirement of attaching to its annual report, the
Balance Sheet, Profit and Loss Account and the report of the Directors
and Auditors thereon of its subsidiaries. Accordingly the same is not
attached to the Balance Sheet of the Company. Shareholders who wish to
have a copy of Annual Accounts of subsidiary company may write to Mr.
Dipan Mehta, Compliance Officer of the Company at the registered office
of the Company.
7. CONSOLIDATION OF FINANCIAL STATEMENTS
In accordance with the said above referred circular and with the
Accounting Standards AS - 21 notified by Companies (Accounting
Standards) Rules, 2006, the Consolidated Financial Statements covered
in this report by the Company include financial information of its
above referred three subsidiary companies and forms part of this Annual
Report.
8. CONSERVATION OF ENERGY, TECHNOLOGICAL ABSORPTION AND FOREIGN
EXCHANGE EARNINGS AND OUTGO
In terms of Section 217 (1) (e) of the Companies Act, 1956 read with
the Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988, your Directors wish to state that the same is
not applicable to the Company.
Foreign Exchange Earnings/Outgo : Rs.
Foreign Exchange Earned : Nil
Foreign Exchange Outgo : Nil
9. FIXED DEPOSITS
The Company has not accepted any deposits from the public.
10. PARTICULARS OF EMPLOYEES
Particulars of Employees as required under Section 217 (2A) of the
Companies Act, 1956 read with Companies (Particulars of Employees)
Rules, 1975, as amended is not given as there was no employee drawing
the salary as per the limits mentioned in that Section.
11. DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement Under Section 217 (2AA) of the Companies
Act, 1956 with respect to the Directors Responsibilities Statement, it
is hereby confirmed;
i) That in the preparation of the Annual Accounts for the financial
year 31st March, 2012 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 judgment and estimates that were
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 the year under review.
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 preventing and detecting fraud and other
irregularities.
iv) That the Directors have prepared the Accounts for the financial
year ended 31st March, 2012 on a going concern basis.
12. LISTING OF SHARES
The Company's shares are listed on Bombay Stock Exchange Limited. The
company has paid the listing fees for the same.
13. CORPORATE GOVERNANCE
A separate section on Corporate Governance is annexed to this report.
The Certificate from the Auditors confirming the compliance of
conditions on Corporate Governance as stipulated in Clause 49 of the
Listing Agreement with the Stock Exchanges is annexed hereto.
14. AUDITORS
M/s. R C. Surana&Co., Chartered Accountants retire at the forthcoming
Annual General Meeting and being eligible offer themselves for
re-appointment. The Company has received a certificate from them to the
effect that their re-appointment, if made would be within the
prescribed limits specified under Section 224(1 B) of the Companies
Act, 1956.
During the previous year, the Company had made a preferential allotment
of 28,00,000 warrants at a price of Rs. 33.30 per warrant on 27th May,
2010, as per terms of special resolution passed at the Extra Ordinary
General Meeting held on 13th May, 2010. A sum of Rs. 2,33,24,000 being
25% of total price of such warrants was also received in that year.
On 12th August, 2011, company issued shares against conversion of the
said the warrants. The balance 75 % of the amount aggregating to Rs.
6,99,72,000 was received which resulted in the paid up capital of the
company increasing from Rs. 3,00,32,000 to Rs. 5,80,32,000. The share
premium account increased from Rs. Nil to Rs. 6,52,40,000.
15. ACKNOWLEDGMENT
The Board wishes to place on records its appreciation to all its
bankers, associates and stakeholders.
By order of the Board,
For AXIS CAPITAL MARKETS (INDIA) LIMITED
Dated: 30,th May,2012
Registered Office:
508, Apeejay House,
130, Bombay Samachar Marg, Dipan Mehta Radhika Mehta
Mumbai 400 023. Director Director
Mar 31, 2010
The Directors have pleasure in presenting the Sixteenth Annual Report
of your Company together with the Audited Accounts for the year ended
31 st March, 2010.
1. FINANCIAL RESULTS
Year ended on Year ended on
March 31,2010 March 31,2009
Income 289.57 10.89
Profit (Loss) on sale of investments (15.98) (96.59)
Net Income (Loss) 273.59 (85.70)
Expenditure 7.26 144.45
Profit/(Loss) before Tax 266.33 (230.15)
Add / (Less): Securities
Transaction Tax (0.17) (0.21)
Provision for Current Tax (48.30) --
DeferedTax (48.07) 48.09
Profit After Tax 169.79 (182.27)
Adjustment in earlier
yearstaxation (13.34) 0.04
156.45 (182.23)
Balance brought forward from
last year 180.38 362.61
Profit available for appropriation 336.83 180.38
Less: Appropriations
Proposed Dividend Tax on Dividend
Transfer to General Reserve - -
Balance carried to Balance Sheet 336.83 180.38
2. DIVIDEND
With a view to deploy the profits into the existing operations of the
company and its proposed acquisition of Dipan Mehta Share & Stock
Brokers (DMSSB) Pvt. Ltd., Board of Directors have not recommended any
dividend for the year.
3. OPERATIONS
The fiscal year 2009-10 was a year of recovery. After the crash of
October 2008, markets across the world including our stock markets,
staged a come back. For the year, the Sensex appreciated by 80.53 %.
Your companys portfolio also registered smart gains with the Net Asset
Value increasing by a phenomenal 98.46 % from Rs. 14.94 on 31 st March,
2009 to Rs. 29.65 on 31 st March, 2010.
4. ISSUE OF PREFERENTIAL CONVERTIBLE WARRANTS:
The Company has issued and allotted 28,00,000 Convertible Warrants at a
price of Rs. 33.30 per warrant in terms of special resolution at the
Extra Ordinary General Meeting held on 13th May, 2010. The Company has
obtained in-principal approval under Clause 24(a) of Listing Agreement
from The Bombay Stock Exchange Limited.
5. DIRECTORS
Mr. Dipan Mehta, Director retires by rotation at the forthcoming Annual
General Meeting and being eligible, offers himself for re-appointment.
6. CONSERVATION OF ENERGY, TECHNOLOGICAL ABSORPTION AND FOREIGN
EXCHANGE EARNINGS AND OUTGO
In terms of Section 217 (1) (e) of the Companies Act, 1956 read with
the Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988, your Directors wish to state that the same is
not applicable to the Company. Foreign Exchange Earnings/Outgo Rs.
Foreign Exchange Earned Nil
Foreign Exchange Outgo Nil
7. FIXED DEPOSITS
The Company has not accepted any deposits from the public.
8. PARTICULARS OF EMPLOYEES
Particulars of Employees as required under Section 217 (2A) of the
Companies Act, 1956 read with Companies (Particulars of Employees)
Rules, 1975, as amended is not given as there was no employee drawing
the salary as per the limits mentioned in that Section.
9. DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement Under Section 217 (2AA) of the Companies
Act, 1956 with respect to the Directors Responsibilities Statement, it
is hereby confirmed;
i) That in the preparation of the Annual Accounts for the financial
year 31 st March, 2010 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 judgment and estimates that were
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 forthe year under review.
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 preventing and detecting fraud and other
irregularities.
iv) That the Directors have prepared the Accounts for the financial
year ended 31 st March, 2010 on a going concern basis.
10. LISTING OF SHARES
The Companys shares are listed on Bombay Stock Exchange Limited. The
company has paid the listing Fees for the same.
11. CORPORATE GOVERNANCE
A separate section on Corporate Governance is annexed to this report.
The Certificate from the Auditors confirming the compliance of
conditions on Corporate Governance as stipulated in Clause 49 of the
Listing Agreement with the Stock Exchanges is annexed hereto.
12. COMPLIANCE CERTIFICATE
Compliance Certificate to be obtained under Section 383A of the
Companies Act, 1956 read with Companies (Issue of Compliance
Certificate) Rules, 2001 has been obtained from M/s. P P Shah & Co.,
Practicing Company secretaries and the same has been attached to this
Report.
13. AUDITORS
M/s. R C. Surana & Co., Chartered Accountants retire at the forthcoming
Annual General Meeting and being eligible offer themselves for
re-appointment. The Company has received a certificate from them to the
effect that their re-appointment, if made would be within the
prescribed limits specified under Section 224(1 B) of the Companies
Act, 1956.
14. MANAGEMENT DISCUSSION AND ANALYSIS Forward Looking Statements:
This section contains forward-looking statements, which may be
identified by their use of words, like plans, expects, wills,
anticipates, believes, intends, projects, estimates, or other
words of similar meaning. All statements that address expectations or
projections about the future, including but not limited to statements
about the companys strategy for growth, product development, market
position, expenditures and financial results are forward-looking
statements. Forward-Looking statements are based on certain
assumptions and expectations of future events. The Company cannot
guarantee that these assumptions are accurate or will be realized. The
Companys actual results, performance or achievements could thus differ
materially from those projected in any such forward looking statements.
The company assumes no responsibility to publicly amend, modify or
revise any forward looking statements, on the basis of any subsequent
developments, information or events.
The company is engaged in the business of investment and trading in
shares.
The performance of the company is therefore, directly dependent on the
movement in the stock prices. The years in which the returns from stock
markets are positive, the company earns profits and vice versa.
The management had been actively evaluating and pursuing several
business ventures and opportunities to reduce the dependence on
investment and trading activities. These efforts have fructified into
the acquisition of Dipan Mehta Share & Stock Brokers Pvt. Ltd., a
reputed stock broking company.
a. Industry Structure and Development
The company is engaged in the business of investment and trading in
shares. This is a highly fragmented industry with share trading
business being concentrated with stock broking companies. A reduction
in the Securities Transaction Tax could give a boost to the trading
activity.
b. Business Prospects and Future Plans
The prospects of the company are directly linked to the performance of
the stock market. With a view to diversify and expand into the
financial services industry, your company has proposed a strategic
investment in DMSSB. The endeavor shall be to scale up the operations
of this company so as to add value to all the stakeholders.
c. Opportunities and Threats
A prolonged bear phase in the stock markets is the main threat for the
company. A bull market provides opportunities to earn profits from
investment and trading activity.
d. Segment-Wise or Product-Wise Performance
Not Applicable.
e. Outlook
The recent rebound in stock prices across the globe has improved the
prospects of the company. With the proposed acquisition of a stock
broking company viz. Dipan Mehta Share & Stock Brokers Pvt. Ltd., the
prospects of your company have considerably brightened.
f. Risk and Concerns
A prolonged bear market and poor choice of investment and trading
positions are the major risk factors.
g. Internal Control Systems and their Adequacy
The company has adequate internal control systems and is well
capitalized for its scale of operations.
h. Discussions on Financial Performance with respect to Operational
Performance
The fiscal year 2009-10 was the year of recovery. After the crash of
October 2008, markets across the world including our stock markets,
staged a come back. For the year, the Sensex appreciated by 80.53 %.
Your companys portfolio also registered smart gains with the Net Asset
Value increasing by a phenomenal 98.46 % from Rs. 14.94 on 31st March,
2009 to Rs. 29.65 on 31 st March, 2010.
I. Material Development in Human Resources / Industrial Relations
Front, including Number of People Employed
During the year there were no material developments in Human Resources
and Industrial Relations.
j Material Financial and Commercial Transactions
During the year, there are no major material financial and commercial
transactions.
14. ACKNOWLEDGMENT
The Board wishes to place on records its appreciation to all its
bankers, associates and stakeholders.
By order of the Board,
For AXIS CAPITAL MARKETS (INDIA) LIMITED
Dated: 5 th June,2010
Registered Office:
508, Apeejay House,
130, Bombay Samachar Marg, Dipan Mehta
Mumbai 400 023. Director
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article