Mar 31, 2023
The Directors have pleasure in presenting the Thirty-Second (32nd) Directors report and Audited Financial Statements of"The Investment Trust of India Limited" (the Company") for the year ended 31st March, 2023.
FiNANCiAL /BUSiNESS PERFORMANCE AND iNFORMATiON ON STATE OF COMPANY''S AFFAiRS Financial summary and highlights:
(Rs. in Lakhs) |
||||
Particulars |
2022-2023 |
2021-2022 |
2022-2023 |
2021-2022 |
Standalone |
Consolidated |
|||
Income from continuing operations |
9,739.19 |
11,500.95 |
30,106.58 |
32,406.73 |
Other Income |
1,333.26 |
929.98 |
2,316.53 |
1,527.33 |
Total income |
11,072.45 |
12,430.93 |
32,423.11 |
33,934.06 |
Total Expenses (excluding depreciation and amortization) |
9,986.97 |
11,930.63 |
29,479.47 |
31,998.54 |
Profit / (Loss) before depreciation, exceptional item and tax |
1,085.48 |
500.30 |
2,943.64 |
1,935.52 |
Depreciation and amortization |
390.35 |
474.13 |
1,179.02 |
1,121.28 |
Profit / (Loss) before exceptional item, share of profit from associate and tax |
695.13 |
26.17 |
1,764.62 |
814.24 |
Add : Share of profit from associate |
--- |
--- |
417.64 |
382.77 |
Profit / (Loss) before tax |
695.13 |
26.17 |
2,182.26 |
1,197.01 |
Provision for tax |
||||
- Current tax |
--- |
--- |
1,365.06 |
1,236.62 |
- Deferred tax charged / (credit) |
2.63 |
(63.01) |
(347.24) |
(172.56) |
- Excess/(short) tax provision in respect of earlier years |
--- |
(6.22) |
7.07 |
(12.14) |
- MAT credit Entitlement |
--- |
--- |
--- |
--- |
Profit /(Loss) after tax but before minority interest |
692.50 |
95.40 |
1157.37 |
145.09 |
Add : Other Comprehensive Income |
1.86 |
3.19 |
(13.21) |
45.46 |
Total Comprehensive Income / (loss) for the year |
694.36 |
98.59 |
1,144.16 |
190.55 |
Less : Total Comprehensive Income/(loss) attributable to non controlling interest |
--- |
--- |
7.14 |
(12.88) |
Total Comprehensive income / (loss) for the year attributable to controlling interest |
694.36 |
98.59 |
1,137.02 |
203.43 |
Nominal value per share (in rupees) |
10 |
10 |
10 |
10 |
Basic and diluted earnings per equity share |
||||
- Basic (in rupees) |
1.33 |
0.19 |
2.21 |
0.31 |
- Diluted (in rupees) |
1.33 |
0.18 |
2.21 |
0.30 |
The standalone revenues in FY 2022-23 were ?11,072.45 Lakhs vs ?12,430.93 Lakhs in FY 2021-22. Total expenses for the year came in at ? 10,377.32 Lakhs which decreased by 16.34 % over previous year. The profit for the year increased at ? 692.50 Lakhs as compare to previous year of ? 95.40Lakhs.
CONSOLiDATED FINANcIAL Statements:
The consolidated revenues for the year were ? 32,423.11 Lakhs vs ? 33,934.06 Lakhs in FY 2021-22. Total consolidated expenses for the year came in at ? 30,658.49 Lakhs which decreased by 7.43% over previous year. The consolidated profit for the year Increased at ? 1157.37 Lakhs as compare to profit in previous year of ? 145.09 Lakhs.
As per Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations") and applicable provisions of the Companies Act, 2013 ("the Act") read with the Rules made thereunder (as amended from time to time), the Consolidated Financial Statement of the Company for the FY 2022-23 have been prepared in compliance with applicable Indian Accounting Standards and on the basis of Audited Financial Statement of the Company and its subsidiaries, as approved by the respective Board of Directors ("Board"). The Consolidated Financial Statement together with the Auditors'' Report is forming part of this Annual Report.
The details of the policies approved and adopted by the Board as required under the Companies Act, 2013 ("Act") and Securities and Exchange Board of India (SEBI) regulations ("Listing Regulations") are provided in Annexure I to the Board''s report
TRANSFERS TO GENERAL RESERVES:
The Board of your Company decided not to transfer any amount to the General Reserve and retain the entire amount of profit under Retained Earnings.
With a view to conserve resources, your Directors have thought it prudent not to recommend any dividend for the financial year ended 31st March, 2023.
The Company''s distribution of dividend Policy is available on our website, at https://iti-files.s3.ap-south-1.amazonaws.com/category-documents/1659518194 ITI%20Dividend%20Distribution%20Policy.pdf
There has been no change in the nature of business of your Company during FY 2022-23.
MATERiAL CHANGES AND COMMiTMENTS, AFFECTiNG FiNANCiAL STATEMENTS OF THE COMPANY, HAViNG OCCURRED SiNCE THE END OF THE Year And Till THE Date OF THE REPORT:
Pursuant to the scheme of arrangement in the nature of demerger of ''Non-lending Business Undertaking'' of The Investment Trust of India Limited ("TITIL"or"Demerged Company") into Distress Asset Specialist Limited, a wholly owned subsidiary company of TITIL ("DASL" or "Resulting Company") with effect from the Appointed Date viz. beginning of day on April 1,2022 ("Scheme") under Sections 230 to 232 read with Section 66 and other applicable provisions of the Companies Act, 2013 ("Act"). Your Company and its subsidiaries have made applications and are seeking requisite approvals from the Securities and Exchange Board of India (SEBI) and The Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
Except as stated above, there have been no other material changes and commitments, affecting the financial position of the Company, which have occurred between the end of the financial year of the Company and the date of this Report.
The Internal Financial Controls with reference to financial statements as designed and implemented by the Company are adequate. The Internal Financial Control procedure adopted by the Company are adequate for safeguarding its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information. During the year under review, the Internal Financial Controls were operating effectively and no material or serious observation has been received from the Auditors of the Company for inefficiency or inadequacy of such controls.
annual return:
Pursuant to Section 92(3) read with Section 134(3)(a) of the Act, the Annual Return as on March 31,2023 is available on the Company''s website at https://www.itiorg.com/investor-inner.php?id=17
DETAILS OF LISTING / DELISTING AND SHARE CAPITAL:
During the year FY 2022-23 the Company has listed 7,21,950 equity shares of R 10/- each allotted on Conversion of Optionally Convertible Preference Shares bearing distinctive no. 53130168 to 53852117 issued pursuant to the Scheme of Arrangement between ITI Gold Loans Limited (Formerly known as United Petro Finance Limited) and ITI Credit Limited (Formerly known as Fortune Credit Capital Limited) and The Investment Trust of India Limited. The listing approval for said equity shares were received from the NSE and BSE on 24th August, 2022 and 29th August, 2022 respectively.
During the FY 2022-23 the Company has not delisted any of its equity shares on any exchange.
During the FY 2022-23 the following changes in the share capital of the company.
Company on May 20, 2022 has allotted 7,21,950 equity shares of R 10 each pursuant to exercise of option of conversion by the holders of Optional Convertible Preference shares.
The Company has redeemed 2,25,000 1% Redeemable Preference Share of R 10 each on December 31,2022 iNTERNAL AuDiT:
The Board has appointed external agency i.e SCM Associates, Chartered Accountants as an internal auditors of the Company from 1st April, 2022 to 31st October, 2022 and MAKK & Co., Charted Accountants as an internal auditors of the Company from 1st November to 31st March, 2023. The scope of the internal audit is commensurate with the size of the Company. The internal auditors provide internal audit reports on quarterly basis and the same are being discussed in the quarterly Audit Committee and Board meetings.
induction OF STRATEGIC AND FiNANCiAL PARTNERS DuRING THE Year:
During the year under review, the Company has not inducted any strategic and financial partners.
subsidiary, JOINT VENTuRES OR ASSOCIATES:
The Company has 11 wholly owned subsidiaries, 2 subsidiaries, 3 step down subsidiaries and 1 Associate company as on March 31,2023. There is no joint venture company within the meaning of Section 2(6) of the Act. There has been no material change in the nature of the business of the subsidiaries and associate company.
Pursuant to the provisions of Section 129(3) of the Act, a statement containing the salient features of financial statements of the Company''s subsidiaries and associate company in Form No. AOC-1 is appended as Annexure ii to the Board''s report.
Further, pursuant to the provisions of Section 136 of the Act, the financial statements of the Company, consolidated financial statements along with relevant documents and separate audited financial statements in respect of subsidiaries, are available on the Company''s website at https:// www.itiorg.com/investor-inner.php?id=10
As required under Regulation 16(1)(c) and 46 of the Listing Regulations, the Board of Directors has approved the Policy on Determination of Material Subsidiaries ("Policy"). The said policy is available on the website of the Company and can be accessed at https://iti-files.s3.ap-south-1.amazonaws.com/category-documents/1659518026 ITI%20Policy%20for%20 Determining%20Material%20Subsidiary.pdf according to the policy, following companies are material subsidiaries for FY 22-23, 1. ITI Credit Limited (Formerly Known as Fortune Credit Capital Limited), 2. Antique Stock Broking Limited and 3. ITI Asset Management Limited.
The Company has neither invited nor accepted any deposits from the public falling within the purview of provisions of Section 73 of the Act read with the Companies (Acceptance of Deposit) Rules, 2014 during the year under review. There is no unclaimed or unpaid deposit lying with the Company. Hence, the requirement for furnishing of details relating to deposits covered under Rule 8(5)(v) of Companies (Accounts) Rules, 2014 and Rule 2(1)(c) of Companies (Acceptance of Deposits) Rules, 2014 is not applicable.
All Related Party Transactions that were entered into during FY 2022-23 were on an arm''s length basis and in the ordinary course of business in accordance with Section 188(1) of the Act.
The details of transactions/ contracts/ arrangements referred to in Section 188(1) of the Act entered into by the Company with related party(ies) as defined under the provisions of Section 2(76) of the Act, during FY 2022-23 are furnished in Form AOC-2 and are attached as an Annexure iii of this Report.
None of the Directors or KMPs had any pecuniary relationships or transactions with the Company during FY 2022-23.
All related party transactions were placed before the Audit Committee and Board meetings on quarterly basis for their review.
The policy on related party transactions and dealing with related parties is available on the Company''s website https://iti-files.s3.ap-south-1. amazonaws.com/category-documents/1659519378 ITI%20RPT%20Policy.pdf
CONSERVATiON OF ENERGY, TECHNOLOGY ABSORPTiON AND FOREiGN EXCHANGE EARNiNGS AND OUTGO:
Conservation of energy: -
(I) |
the steps taken or impact on conservation of energy |
Nil |
(ii) |
the steps taken by the Company for utilizing alternate sources of energy |
Nil |
(iii) |
the capital investment on energy conservation equipment''s |
Nil |
Technology absorption:- |
||
(I) |
the effort made towards technology absorption |
Nil |
(ii) |
the benefits derived like product improvement cost reduction product development or import substitution |
Nil |
(iii) |
in case of imported technology (important during the last three years reckoned from the beginning of the financial year) |
Nil |
(a) the details of technology imported; |
- |
|
(b) the year of import; |
- |
|
(c) whether the technology been fully absorbed; |
- |
|
(d) if not fully absorbed, areas where absorption has not taken place, and the reasons thereof. |
- |
|
(iv) |
the expenditure incurred on Research and Development |
Nil |
foreign Exchange Earnings or outgo in foreign exchange during the FY 2022-23:-
There was neither any foreign exchange earning nor foreign exchange outgo during the FY 2022-23.
particulars of loans, guarantees, iNVESTMENTS AND SECuRiTiES:
Particulars of loans given, investments made or guarantees or securities provided and the purpose for which the loan or guarantee or security is proposed to be utilised by the recipient of loan or guarantee or security pursuant to Section 186 of the Act are given under Notes to Accounts annexed to Standalone Financial Statements for the year ended March 31,2023 and the same forms part of this Annual Report.
MATTERS RELATED TO DIRECTORS AND Key MANAGERIAL PERSONNEL (''KMP''):
Composition of Board:-
The composition of the Board of Directors of the Company is in accordance with the provisions of Section 149 of the Act and Regulation 17 of the Listing Regulations, with an optimum combination of Executive, Non-Executive and Independent Directors.
The Board of the Company has 06 (Six) Directors comprising of 01 (One) Non-Executive Chairman, 02 (Two) Non-Executive Directors and 03 (Three) Independent Directors. The complete list of Directors of the Company has been provided in the Report on Corporate Governance forming part of this Annual Report.
Change in composition of the Board:-
During F.Y. 2022-23 the following changes are occurred in the composition of the Board of Directors of the Company.
sr. No |
name of the director |
nature of change |
date of appointment/ cessation |
1 |
Mr. Rajeev Uberoi |
Appointed as the Additional Independent Director |
11th August, 2023 |
2 |
Mr. Pankaj Rasiklal Bhuta |
Retired from the position of Independent Director |
31st July, 2023 |
Justification for appointment:-
The term of Mr. Pankaj Bhuta as an Independent Director was completed on 31st July, 2023 and in accordance with the Regulation 17 of Listing Regulations read with the applicable provisions of The Companies Act, 2013 and rules there under, your company is required to appoint an Independent Director to constitute a valid Board.
Mr. Rajeev Uberoi has served various eminent Companies and big firms in different leadership roles and is a pioneer of Corporate and legal governance and compliance management. He has advised Shardul Amarchand Mangaldas on regulatory matters pertaining to RBI, SEBI and IRDA involving complex issues. He has also served YES Bank Limited as Group Senior President - Governance & Control and IDFC Bank limited as General Counsel & Head - Legal & Audit, Central Legal, Audit & Controls. His extensive experience in Compliance, Investment Banking and Financial Services industry is beneficial for the Company and its Group Companies.
Director(s) liable to retire by rotation:-
Mrs. Khyati Valia (DIN 03445571) retires by rotation and being eligible, offers herself for re-appointment. A resolution seeking shareholders'' approval for her re-appointment along with other required details forms part of the Notice annexed to the Annual Report.
composition and Meetings of Board of directors & committee(s):-
The Composition of Board and Committee(s) as on March 31, 2023 and the details of the Meetings of the Board and Committee(s) of the Company held during FY 2022-23 are disclosed in the Report on Corporate Governance forming part of this Annual Report.
During the year under review, all the recommendations/submissions made by the Audit Committee and other Committees of the Board were accepted by the Board.
declaration by independent directors:-
Pursuant to Section 149(7) of the Act, Regulation 16(1)(b) and Regulation 25(8) of the Listing Regulations, the Independent Directors have provided a declaration to the Board of Directors that they meet the criteria of Independence as prescribed in the Act and the Listing Regulations, and are not aware of any situation which exists or may be reasonably anticipated that could impair or impact their ability to discharge duties as an Independent Director with an objective independent judgement and without any external influence. Further, veracity of the above declarations has been assessed by the Board, in accordance with Regulation 25(9) of the Listing Regulations.
The Board is of the opinion that the Independent Directors of the Company hold highest standards of integrity and possess requisite expertise and experience (including the proficiency) required to fulfill their duties as Independent Directors.
Further, in terms of Section 150 of the Act read with Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014, as amended by Ministry of Corporate Affairs ("MCA"), all the Independent Directors have confirmed that they have registered themselves with databank maintained by The Indian Institute of Corporate Affairs ("IICA"). These declarations/confirmations have been placed before the Board.
Relationship between directors:-
Out of 06 Directors, 02 Directors are related to each others: Mrs. Khyati Chintan Valia - Non-Executive Director is related to Mr. Chintan Valia -Non-Executive Director and Chairman. The remaining 04 Directors are not related with any of the directors.
The Company has adopted the Code of Conduct for its Board Members and Senior Management of the Company.
All the Board members and Senior Management personnel have affirmed compliance with the applicable Code of Conduct.
A declaration to this effect duly signed by the Directors forms part of this report. The Code is available on the website of the Company at https:// iti-files.s3.ap-south-1.amazonaws.com/category-documents/1659518239 ITI%20Code%20of%20Conduct%20Board%20Members%20and%20 Senior%20Management.pdf
The Company has formulated a policy on "familiarisation programme for independent directors". Accordingly, upon appointment of an Independent Director, the appointee is given a formal Letter of Appointment, which inter alia, explains the roles, functions, duties and responsibilities expected as a Director of the Company.
Further, the Company also familiarize the Independent Directors with the Company, their roles, responsibilities in the Company, nature of industry in which the Company operates, business model of the Company, various businesses in the group etc. The Director is also explained in detail the compliance required from him under the Act and the Listing Regulations. Further on an ongoing basis as a part of Agenda of Board / Committee Meetings, presentations are regularly made to the Independent Directors on various matters inter-alia covering the business strategies, management structure, management development, quarterly and annual results, budgets, review of Internal Audit, risk management framework, operations of subsidiaries and associates.
The Policy on familiarisation programme for independent directors along with the details of the familiarization Programmes conducted by the Company during the FY 2022-23 are available on the website of the Company and can be accessed at
1. https://iti-files.s3.ap-south-1.amazonaws.com/categorv-documents/1659518160 ITI%20Familiarisation%20Programme%20for%20 New%20Directors.pdf
Company''s Policy on Director''s Appointment and Remuneration:-
Section 178 of the Act and Regulation 19 read with Part D of Schedule II of the Listing Regulations, as amended from time to time, requires the Nomination and Remuneration Committee ("NRC") to formulate a Policy relating to the remuneration for the Directors, Key Managerial Personnel ("KMP"), Senior Management and other employees of the Company and recommend the same for approval of the Board.
Accordingly, in compliance to the aforesaid provisions, the Nomination and Remuneration Policy of the Company is available on the website of the Company and can be accessed at https://iti-files.s3.ap-south-1.amazonaws.com/category-documents/1659518050 ITI%20Nomination%20 and%20Remuneration%20Policy.pdf
The salient features of the Policy are given below:-
Appointment criteria and qualifications:
1) The Committee shall identify and ascertain the integrity, qualification, expertise and experience of the person for appointment as Director, KMP or Senior Management and recommend to the Board his / her appointment.
2) A person should possess adequate qualification, expertise and experience for the position he / she is considered for appointment. The Committee has discretion to decide whether qualification, expertise and experience possessed by a person are sufficient/ satisfactory for the concerned position.
3) The Company shall not appoint or continue the employment of any person as Managing Director/Whole-time Director/Manager who has attained the age of seventy years.
Provided that the term of the person holding this position may be extended beyond the age of seventy years with the approval of shareholders by passing a special resolution based on the explanatory statement annexed to the notice for such motion indicating the justification for extension of appointment beyond seventy years.
The performance evaluation shall be carried out as given below:-
Performance Evaluation by |
of Whom |
Board of Directors |
- Board as a whole and Committees of Board |
- All Directors excluding the Director being evaluated |
|
Independent Directors |
- Non - Independent Directors |
- Chairman of the Company |
|
- Board as a whole |
The Committee shall carry out evaluation of performance of every Director at regular interval (yearly).
Due to reasons for any disqualification mentioned in the Act, rules made there under or under any other applicable Act, Rules and Regulations, the Committee may recommend, to the Board with reasons recorded in writing, removal of a Director, KMP or Senior Management subject to the provisions and compliance of the said Act, Rules and Regulations.
The Director, KMP and Senior Management shall retire as per the applicable provisions of the Act and the prevailing internal policy of the Company. The Board will have the discretion to retain the Director, KMP, Senior Management in the same position / remuneration or otherwise even after attaining the retirement age, for the benefit of the Company.
provisions RELATiNGTo REMUNERATiON oF MANAGERiAL PERsoN, KMP And sENIoR Management:General:-
The remuneration / compensation / commission etc. to Managerial Person, KMP and Senior Management will be determined by the Committee and recommended to the Board for their approval. The remuneration / compensation / commission etc. shall be subject to the prior/post approval of the shareholders of the Company and such other approval, as and when required.
The remuneration and commission to be paid to Managerial Person shall be as per the statutory provisions of the Act and Listing Regulations, and the Rules made there under for the time being in force.
Increments to the existing remuneration / compensation structure may be recommended by the Committee to the Board which should be within the slabs approved by the Shareholders in the case of Managerial Person.
The remuneration structure will have a right mix of guaranteed (fixed) pay, pay for performance and long term variable pay based on business growth and other factors such as growth in shareholder value to ensure that it is competitive and reasonable.
Where any insurance is taken by the Company on behalf of its Managerial Person, KMP and for Senior Management for indemnifying them against any liability, the premium paid on such insurance shall not be treated as part of the remuneration payable to any such personnel.
Remuneration to Managerial Person, KMP and Senior Management:1) Fixed pay:
Managerial Person, KMP and Senior Management shall be eligible for a monthly remuneration as may be approved by the Board on the recommendation of the Committee in accordance with the statutory provisions of the Act and the rules made there under for the time being in force. The break-up of the pay scale and quantum of perquisites including employer''s contribution to Provident Fund(s), pension scheme(s), medical expenses, club fees, etc. shall be decided and approved by the Board on the recommendation of the Committee and approved by the shareholders and such other approval, wherever required.
The Company may at its discretion structure any portion of remuneration to link rewards to corporate and individual performance, fulfillment of specified improvement targets or the attainment of certain financial or other objectives set by the Board. The amount payable shall be based on performance against pre- determined financial and non-financial metrics.
3) Provision for excess remuneration:
If, in any financial year, the Company has no profits or its profits are inadequate, the Company shall pay remuneration to its Managerial Person in accordance with the provisions of Schedule V of the Act. If any Managerial Person draws or receives, directly or indirectly by way of remuneration any such sums in excess of the limits prescribed under the Act or without such approval, wherever required, he/she shall refund such sums to the Company and until such sum is refunded, hold it in trust for the Company.
remuneration to Non-Executive/independent Director:
The remuneration/commission, if any, shall be in accordance with the statutory provisions of the Act and the Rules made there under for the time being in force.
The Non-Executive/Independent Director may receive remuneration by way of fees for attending meetings of Board or Committee thereof.
Provided that the amount of such fees shall not exceed the maximum amount as provided in the Act, per meeting of the Board or Committee or such amount as may be prescribed from time to time.
3) Limit of remuneration/commission:
The Remuneration/Commission may be paid to Non-Executive Directors within the monetary limit approved by shareholders, subject to the limit not exceeding 1% of the net profits of the Company computed as per the applicable provisions of the Act.
Key Managerial Personnel (KMP)
sr. No. |
name of the KMP |
designation |
1 |
Mr. Rajesh Kumar Acha |
Manager under the Companies Act, 2013 (Upto 31st August, 2022) |
2 |
Mr. Subbiah Manickam |
Chief Financial Officer (w.e.f 01st April, 2022) |
3 |
Mr. Satish Bhanushali |
Company Secretary (w.e.f 0151 April, 2022) |
4 |
Mr. Amit Malpani |
Chief Executive Officer (w.e.f. 01st September, 2022) |
The changes in the KMP''S are as follows:
⢠Mr. Rajesh Kumar Acha has resigned with effect from the closing hours of 31st August, 2022.
⢠The Board of Directors in their meeting held on 11th August, 2022 has appointed Mr. Amit Malpani as the Chief Executive Officer ("CEO") of the Company w. e. f. 01st September, 2022 under the Act.
As on date the Company has 07 (Seven) committees of the Board of Directors. These committees are - Audit Committee, Nomination & Remuneration Committee, Stakeholders Relationship Committee, Risk Management Committee, Management Committee, Internal Finance Committee and Internal Complaints Committee.
The terms of reference, composition and the details of the meetings of the committees held during the year under review are provided in Corporate Governance Report forming part of this Annual Report.
Pursuant to the provisions of Section 134(3)(p) and Schedule IV of the Act and in accordance to Regulation 17(10) and 25(4) of the Listing Regulations, the Board has carried out the annual performance evaluation of the Board as a whole, various Committees of the Board and of the individual Directors. The performance evaluation of the Independent Directors was carried out by the entire Board. The Directors expressed their satisfaction with the evaluation process.
The Board and the Nomination and Remuneration Committee reviewed the performance of the individual Directors on the basis of the criteria such as transparency, performance, etc.
In a separate meeting of Independent Directors, performance of Non-Independent Directors, performance of the Board as a whole and performance of the Chairman was evaluated, taking into account the views of the Non-Executive Directors. The same was discussed in the Board meeting that followed the meeting of Independent Directors, at which the performance of the Board, its Committee and individual Directors was also discussed.
The outcome of the performance evaluation of the Board for the year under review was discussed by the NRC and the Board at their respective meetings. All Directors expressed their satisfaction to the evaluation process.
The details of the committees are provided in Corporate Governance Report, which forms the part of this report.
The information under Section 197 of the Act read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014:
a) The ratio of the remuneration of each director to the median remuneration of the employees of the Company and percentage increase in remuneration of each Director, Chief Executive Officer, Chief Financial Officer and Company Secretary in the financial year:
The Company has formulated an Employee Stock Option Scheme known as FFSIL Employees Stock Option Plan 2017 ("ESOP - 2017") in accordance with the provisions of Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014
Subject to the member''s approval, the Board of Directors in its meeting held on 25th May, 2017 approved the ESOP-2017 Scheme and the shareholders approval was obtained in 26th Annual General Meeting held on 8th September, 2017. Nomination and Remuneration Committee ("Committee") was authorised to formulate, administer and implement the detailed and conditions of the ESOP-2017 Scheme.
The Company has received a certificate dated 24th October, 2017 from M/s. Bathiya & Associates LLP, Chartered Accountants, Statutory Auditors of the Company confirming that the FFSIL Employees Stock Option Plan 2017 has been implemented in accordance with Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014.
The Company has received in principle approvals from BSE Limited and The National Stock Exchange of India Limited for ESOP - 2017.
On 19th April, 2018 the Nomination and Remuneration Committee has granted (Grant I) 3,00,000 options. Each option when exercised will be converted into one (01) equity share of R 10 each fully paid.
Report on Corporate Governance
A detailed Report on Corporate Governance in terms of Schedule V of the Listing Regulations for FY 2022-23, is forming part of this Annual Report.
Further, a Certificate from M/s. DM & Associates Company Secretaries LLP., the Practicing Company Secretary and Secretarial auditor of the Company confirming compliance of conditions of Corporate Governance as stipulated in Regulation 34 read with Schedule V to the Listing Regulations is annexed to the Report on Corporate Governance.
Vigil Mechanism/Whistle Blower Policy
Pursuant to the provisions of Section 177(9) of the Act read with Rule 7 of the Companies (Meetings of Board and its Powers) Rules, 2014 and Regulation 22 of the Listing Regulations (as amended from time to time), the Company has framed Vigil Mechanism/Whistle Blower Policy ("Policy") to enable directors and employees to report genuine concerns or grievances, significant deviations from key management policies and reports of any non-compliance and wrong practices, e.g., unethical behavior, fraud, violation of law, inappropriate behavior /conduct etc.
The functioning of the Vigil Mechanism is reviewed by the Audit Committee from time to time. None of the Directors or employees have been denied access to the Audit Committee of the Board.
The objective of this mechanism is to maintain a redressal system which can process all complaints concerning questionable accounting practices, internal controls, or fraudulent reporting of financial information.
The Policy framed by the Company is in compliance with the requirements of the Act and Listing Regulations. The same is available on the website of the Company and can be accessed at https://iti-files.s3.ap-south-1.amazonaws.com/category-documents/1659519397 ITI%20 Whistle%20Blower%20Policy.pdf
Prevention of Sexual Harassment of Women at Workplace
The Company has in place a Policy for prevention, prohibition and redressal of sexual harassment at workplace. Appropriate reporting mechanisms are in place for ensuring protection against sexual harassment and the right to work with dignity.
Further, the Company has complied with the provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 to redress complaints received regarding sexual harassment.
During the year under review, no complaints in relation to sexual harassment at workplace have been reported.
The Company realizes the importance of Risk Management framework and had taken early initiatives towards its implementation. The Company has also formulated group risk management policy and can be accessed at https://iti-files.s3.ap-south-1.amazonaws.com/category-documents/1659517830 ITI%20Risk%20Management%20Policy.pdf
A systematic approach has been adopted that originates with the identification of risk, categorization and assessment of identified risk, evaluating effectiveness of existing controls and building additional controls to mitigate risk and monitoring the residual risk through effective Key Risk Area''s ("KRA"). The implementation is being carried out in phased manner with the objective to encompass the entire line of businesses.
Further, pursuant to Regulation 21 of the Listing Regulations, the Board of Directors have also constituted the Risk Management Committee of the Board, the details of which are mentioned in the Corporate Governance Report forming part of this Annual Report. The composition of the Committee is in conformity with the Listing Regulations, as amended, with all members being Directors of the Company. The Risk Management Committee is, inter alia, authorized to monitor and review the risk assessment, mitigation and risk management plans for the Company from time to time and report the existence, adequacy and effectiveness of the above process to the Audit Committee/Board on a periodic basis.
In the opinion of Board, there are no elements of risks threatening the existence of the Company.
The details of composition of the Risk Management Committee and its terms of reference, is provided in Corporate Governance Report which forms part of this Annual Report.
statutory Auditors
At the 28th Annual General Meeting ("AGM") held on 24th September, 2019, M/s Ramesh M. Sheth & Associates, Chartered Accountants, having Firm Registration Number 111883W were appointed as statutory auditors of the Company for the term of five years to hold the office from the conclusion of 28th Annual General Meeting held in the calendar year 2019 till the conclusion of 33rd Annual General Meeting to be held in the year 2024 subject to ratification of their appointment by members at every AGM, if so required under the Act. The requirement to place the matter relating to appointment of auditors for ratification by members at every AGM has been done away by the Companies (Amendment) Act, 2017 with effect from May 7, 2018. Accordingly, no resolution is being proposed for ratification of appointment of statutory auditors at the ensuing AGM.
statutory auditors'' report
The Statutory Auditors'' Report issued by M/s Ramesh M. Sheth & Associates, Chartered Accountants for the year under review does not contain any qualification, reservations or adverse remarks. The Notes to the Accounts referred to in the Auditors'' Report are self-explanatory and therefore do not call for any further clarifications under Section 134(3)(f) of the Act. Further, pursuant to Section 143(12) of the Act, the Statutory Auditors of the Company have not reported any instances of frauds committed in the Company by its officers or employees.
Pursuant to the provisions of Section 204 of the Act and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 (as amended from time to time), the Company had appointed M/s. DM & Associates Company Secretaries LLP, to undertake the Secretarial Audit of the Company for the FY 2022-23.
secretarial audit & annual secretarial compliance report
Pursuant to the provisions of Regulation 24A of the Listing Regulations, Annual Secretarial Compliance Report for the financial year ended March 31,2023 was obtained from M/s. DM & Associates Company Secretaries LLP the Secretarial Auditor of the Company.
The Secretarial Audit Report and Annual Secretarial Compliance Report issued by the Secretarial Auditor has been annexed to this Board''s Report as "annexure IV".
secretarial audit of Material subsidiaries
In terms of Regulation 24A of Listing Regulations, the Secretarial Audit Report of material subsidiaries i.e ITI Credit Limited (Formerly known as Fortune Credit Capital Limited ("ICL"), ITI Asset Management Limited ("IAML"), Antique Stock Broking Limited ("ASBL") and ITI Gold Loans Limited (formerly known United Petro Finance Limited ("IGLL") for the FY 2022-23 are made available at website of the Company at www.itiorg.com.
Maintenance of Cost Records & Cost Audit
The provisions related to maintenance of cost records and requirement of cost audit as prescribed under the provisions of Section 148(1) of the Act are not applicable.
Directors'' Responsibility Statement
Pursuant to the provisions of Section 134(5) of the Act in relation to the Audited Financial Statements of the Company for the year ended March 31,2023, the Board of Directors confirm that, to the best of its knowledge and belief:
1. in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;
2. the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31,2023 and of the profit of the Company for that period;
3. the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
4. the Directors have prepared the annual accounts on a going concern basis;
5. the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and operating effectively;
6. the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
Corporate social Responsibility
The provisions relating to the Corporate Social Responsibility are not applicable to the Company during the year under the review. Compliance with Secretarial Standard
The Company has followed the applicable Secretarial Standards, i.e. SS-1 and SS-2, relating to ''Meetings of the Board of Directors'' and ''General Meetings'' respectively.
significant and Material orders Passed By the regulators or courts
During the year under review, there were no significant and material orders passed by the regulators or courts or tribunals that would impact the going concern status of the Company and its future operations.
Your Directors state that no disclosure or reporting is required in respect of the following matters as there were no transactions on these matters during the year under review:
⢠Issue of equity shares with differential rights as to dividend, voting or otherwise.
⢠Manager of the Company do not received any remuneration or commission from any of its subsidiaries.
⢠There are no proceedings, either filed by the Company or filed against the Company, pending under the Insolvency and Bankruptcy Code, 2016 as amended, before National Company Law Tribunal or other courts during the year 2022.
⢠There was no instance of one-time settlement with any Bank or Financial Institution.
acknowledgement
The Directors express their sincere gratitude to the Reserve Bank of India, Securities and Exchange Board of India, BSE Limited, National Stock Exchange of India Limited, Ministry of Finance, Ministry of Corporate Affairs, Regional Directors, Registrar of Companies, other Government and Regulatory Authorities, Lenders, Financial Institutions and the Company''s Bankers for the ongoing support extended by them. The Directors also place on record their sincere appreciation for the continued support extended by the Company''s stakeholders and trust reposed by them in your Company. The Directors sincerely appreciate the commitment displayed by the employees of the Company and its subsidiaries across all levels, resulting in successful performance during the year under review.
Mar 31, 2018
Dear Shareholders,
The Directors have pleasure in presenting the twenty seventh annual report and audited financial statements of the Company for the year ended 31st March, 2018.
Change in the name of the Company :
The name of the Company has been changed to The Investment Trust of India Limited as per fresh certificate of Incorporation dated 9th June, 2018 issued by the Registrar of Companies, Maharashtra, Mumbai.
Extension for holding of annual general meeting
The Board of Directors have obtained approval from the Registrar of Companies, Maharashtra, Mumbai for extension of holding Annual General Meeting of the members of the Company by three months.
Financial summary and highlights :
(Rs. in lakhs)
2017-2018 |
2016-2017 |
2017-2018 |
2016-2017 |
|
Standalone |
Consolidated |
|||
Income from continuing operations |
11,439.71 |
1,229.19 |
33,140.85 |
15,995.25 |
Other Income |
1,297.27 |
666.69 |
1,997.15 |
1,006.11 |
Total Income |
12,736.98 |
1,895.88 |
35,138.00 |
17,001.36 |
Profit / (Loss) before depreciation, exceptional item and tax |
(1,811.62) |
(45.33) |
5,456.24 |
4,029.96 |
Depreciation and amortization |
6.71 |
5.63 |
853.15 |
818.61 |
Profit / (Loss) before exceptional item and tax |
(1,818.33) |
(50.93) |
4,603.09 |
3,211.35 |
Exceptional item |
--- |
60.00 |
--- |
(0.89) |
Add : Share of profit from Associates |
--- |
--- |
2,050.46 |
771.28 |
Profit / (Loss) before tax |
(1,818.33) |
9.07 |
6,653.55 |
3,981.74 |
Provision for tax |
||||
- Current tax |
--- |
77.22 |
1,758.82 |
1,252.57 |
- Deferred tax |
6.94 |
(88.43) |
(3,088.43) |
(201.00) |
- Current tax relating to prior years |
(27.74) |
0.53 |
(41.64) |
(20.48) |
Profit after tax but before minority interest |
(1,797.53) |
19.75 |
8,024.81 |
2,950.64 |
Add : Other Comprehensive Income |
(1.30) |
4.31 |
73.81 |
(17.78) |
Less : Profit attributable to non controlling interest |
--- |
--- |
308.16 |
119.53 |
Total Comprehensive Income for the year |
(1,798.83) |
24.06 |
7,790.46 |
2,813.33 |
Add: Balance as per last financial statements |
2,538.17 |
2,514.11 |
4,622.54 |
1,812.16 |
Add: Addition on account of merger |
42.05 |
--- |
11.68 |
--- |
Add: Adjustment on account of equity method for associate |
--- |
--- |
(245.81) |
--- |
Profit available for appropriations |
781.39 |
2,538.17 |
11,204.68 |
4,625.49 |
Less : Appropriations |
||||
IND AS Adjustments |
--- |
--- |
--- |
(0.51) |
Transfers with in other equity (including statutory reserves) |
--- |
--- |
(974.18) |
(2.44) |
Net Surplus in Statement of Profit and Loss |
781.39 |
2,538.17 |
11,204.68 |
4,622.54 |
Nominal value per share (in Rs.) |
10.00 |
10.00 |
10.00 |
10.00 |
Basic and diluted earnings per share |
||||
- Basic (in Rs.) |
(3.52) |
0.04 |
15.09 |
5.69 |
- Diluted (in Rs.) |
(3.52) |
0.04 |
15.09 |
5.69 |
The state of Companyâs affairs Standalone
The total income during the year 2017-2018 stood at Rs. 12,736.98 lakhs as against Rs. 1,895.88 lakhs during the previous year, showing an increase of income compared to the previous year. The Company has incurred a loss of before tax Rs. 1818.33 lakhs as compared to a profit of Rs. 9.07 lakhs in the previous year. The loss after tax and Other Comprehensive Income stood at Rs. 1,798.83 lakhs as against the profit of Rs. 24.06 lakhs in the previous year.
Consolidated
The total revenue during the year 2017-2018 stood at Rs. 35,138.00 lakhs as against Rs. 17,001.36 lakhs during the previous year. The Company has earned a profit of before tax Rs. 6,653.55 lakhs as compared to a profit of Rs. 3,981.74 lakhs in the previous year. The profit after tax and Other Comprehensive Income stood at Rs. 8,024.81 lakhs as against the profit of Rs. 2,950.64 lakhs in the previous year.
Consolidated Financial Statements
The Board of Directors of your Company at its meeting held on 26th October, 2018 approved the consolidated financial statements for the financial year 2017 - 2018 in accordance with the Accounting Standard (AS-21) and other applicable Accounting Standards issued by the Institute of Chartered Accountants of India as well as Regulation 34 (2) (c) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 which includes financial information of all its subsidiaries.
Transfer to General Reserves
The Board of Directors does not propose to transfer any amount to General Reserve for the financial year 2017 - 2018.
Dividend
In view of the losses incurred by the Company, the Board of Directors does not recommend any dividend for the financial year 2017 - 2018. The Company has complied with the dividend distribution policy :
Web link for dividend distribution policy : https://www.itigroup.co.in/investorrelations/compliance Major events occurred during the year
a) State of the Companyâs affairs
Segment wise position of business and its operations
The company mainly operates two segments
1. Financial advisory and consultancy
2. Trading activities
Change in status of the Company : During the year under review there has been no change in the status of the Company.
Key business developments :
a) Setting up of Mutual Fund
The Company has received the SEBI Registration Certificate No. MF/073/18/01 dated 14.05.2018 for setting up of Mutual Fund and expected to launch schemes on approval from the SEBI.
The Mutual Fund has been sponsored by the Company and its wholly owned subsidiary viz. Fortune Credit Capital Limited (FCCL).
The Companyâs shareholding in ITI Asset Management Limited is 60% and that of FCCL is 40%.
ITI Asset Management Limited (ITIAML) is a subsidiary of FFSIL. The companyâs principal activity is to act as an Investment Manager to the proposed âITI Mutual Fundâ. The Investment Management Agreement was executed between ITI Mutual Fund Trustee Private Limited and ITIAML on April 7, 2017. The entire infrastructure of the business including all systems, processes, policies and personnel are in place and the Company is fully geared to enter the markets as soon as the necessary regulatory approvals are received.
ITI Mutual Fund Trustee Private Limited (ITIMFTPL) is subsidiary of FFSIL. The companyâs principal activity is to act as Trustee to the proposed âITI Mutual Fundâ The Trust Deed was executed on April 6, 2017 between the Company, Fortune Credit Capital Limited and ITIMFTPL.
b) Alternative Investment Fund
During the year, the Company has received registration certificate from SEBI to act as Alternative Investment Fund in the name of ITI Long Short Equity Fund. Category III.
The Company has also SEBI registration for Alternative Investment Fund i.e. ITI Infrastructure Fund a Category I Infrastructure Fund under Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012. The operations of the fund is yet to be commenced.
The Company through its LLP has made an application to the SEBI for registration as Category III Alternative Investment Fund viz. ITI Growth Opportunities Fund
Change in the financial year : During the year under review there has been no change in the financial year of the Company.
Capital expenditure programs : The Company does not have any material capital expenditure program for the financial year 20182019.
Details and status of acquisitions, merger, expansion, modernization and diversification
a) Demerger of United Petro Finance Limited
In the Board meeting held on 31st March, 2017, the Board has unanimously approved Scheme of Arrangement between United Petro Finance Limited (âUPFLâ or the âDemerged Companyâ) and Fortune Credit Capital Limited (âFCCLâ or the âResulting Companyâ) and Fortune Financial Services (India) Limited (now known as The Investment Trust of India Limited) (âFFSILâ or the âHolding Company of the Resulting Companyâ) and their respective shareholders providing for the demerger of Lending Business (âNBFC Businessâ) of UPFL to FCCL (Wholly Owned Subsidiary of FFSIL), and issue of equity shares of FFSIL to the shareholders of UPFL. By operation of section 2(19AA) read with 2(41A) of the Income Tax Act, 1961, the consideration for demerger will be discharged by the Company to the shareholders of UPFL. The Company has made applications to the BSE Limited and The National Stock Exchange of India Limited for seeking prior approval. The application for in principle approval has been returned by the exchange for ensuring compliance of the amended provision of the SEBI Circular. The company has provided undertaking to the exchanges for ensuring compliance with applicable provision of the SEBI Circular and the same is being processed by SEBI. The company is awaiting the response from the exchanges.
b) Merger of Fortune Integrated Assets Finance Limited with the Company
In the Board meeting held on 25th April, 2017, the Board has Unanimously approved Scheme of Amalgamation of Fortune Integrated Assets Finance Limited (âFIAFLâ or the âTransferor Companyâ) with Fortune Financial Services (India) Limited (now known as The Investment Trust of India Limited) (âFFSILâ or the âTransferee Companyâ) and their respective shareholders providing for the merger of Fortune Integrated Assets Finance Limited with Fortune Financial Services (India) Limited. The Company has made applications to the BSE Limited and The National Stock Exchange of India Limited for seeking prior approval. The application for in principle approval has been returned by the exchange for ensuring compliance of the amended provision of the SEBI Circular. The company has provided undertaking to the exchanges for ensuring compliance with applicable provision of the SEBI Circular and the same is being processed by SEBI. The company is awaiting the response from the exchanges.
c) Merger of ITI Wealth Management Limited with the Company
The Company has received approvals from High Court Judicature at Bombay and National Company Law Tribunal at Chennai for merger of The Investment Trust of India Limited (the then transferee Company) with the Company. On merger of The Investment Trust of India Limited (earlier known as ITI Wealth Management Limited) with the Company, the Board of Directors in their meeting held on 1st January, 2018 issued 2,25,000 1 % Redeemable Preference shares of Rs. 100 each fully paid aggregating to Rs. 225.00 lakhs as per the approved Scheme to the shareholders of ITI Wealth Management Limited.
Further 22,70,000 equity shares of Rs. 10 each fully paid aggregating to Rs. 227.00 lakhs of The Investment Trust of India Limited held by the Company have been cancelled in the Companyâs books on merger of ITI Wealth Management Limited and as per the approved Scheme the Companyâs name has been changes to The Investment Trust of India Limited.
Developments, acquisitions and assignments of material intellectual property rights : There are no Developments, acquisitions and assignments of material intellectual property rights.
Any other material event having an impact on the affairs of the Company : There are no material event having an impact on the affairs of the Company.
Change in nature of business : There has been no change in the nature of business during the year under review except for becoming a sponsor of Mutual Fund and Alternative Investment Fund. The Company is yet to commence business in these lines of activities.
Material changes and commitments, affecting financial statements of the Company, having occurred since the end of the year and till the date of the report : There are no material changes and commitments affecting financial statements of the Company.
Details of revision of financial statements or the report :
Financial statements for the year ended 31st March, 2018 have been revised after taking in to consideration the effect of demerger of NBFC business of Napean Finvest Private Limited in to Fortune Credit Capital Limited, a wholly owned subsidiary of the Company. The appointed date as per the scheme of arrangement was 15th February, 2018. The National Company Law Tribunal has passed the order for approving the Scheme on 12th July, 2018.
General Information
Overview of industry and important changes in the industry during the last year :
The Company is in to the financial advisory and consultancy services. No specific comments available for this type of services.
The Company is also in to the trading activities of goods. During the year under review, the company has traded in electrical goods.
External environment and economic outlook :
Induction of strategic and financial partners during the year : During the year under review the Company has not inducted any strategic and financial partners.
Details of listing / delisting :
During the year under review the Company has not delisted any securities on any exchange.
During the year under review, the Companyâs equity shares are admitted for trading on The National Stock Exchange of India Limited w e f 2nd August, 2017.
Capital and Debt Structure
During the year under review
a) The authorised capital was increased from Rs. 100.00 crores divided into 10,00,00,000 (Ten Crore) Equity Shares of Rs. 10 (Rupees Ten only) each to Rs. 105.25 crores divided in to 10,30,00,000 (Ten Crore Thirty Lakhs) Equity Shares of Rs. 10 (Rupees Ten only) each aggregating to Rs. 103,00,00,000 (Rupees One Hundred Three Crores) and 2,25,000 1 % Redeemable Preference shares of Rs. 100 each aggregating to Rs. 2,25,00,000 (Rupees Two Crores Twenty Five Lakhs) both aggregating to Rs. 105,25,00,000 (Rupees One Hundred Five Crores Twenty Five Lakhs only) as per Scheme of merger passed by the High Court judicature at Bombay and National /Company law Tribunal, Chennai Bench for merger of The Investment Trust of India Limited with the Company and the said order has been taken on record by the Board of Directors in their meeting held on 151 January, 2018.
b) The authorised capital was increased from Rs. 60 crores divided into 6,00,00,000 (Six Crores) Equity Shares of Rs. 10 (Rupees Ten only) each to Rs. 100 crores divided in to 10,00,00,000 (Ten Crores) Equity Shares of Rs. 10 each was amended vide Special Resolution passed by the members in 26th annual general meeting held on 8th September, 2017.
c) the issued, subscribed and paid up capital of the Company increased from Rs. 5,102.38 lakhs divided in to 5,10,23,767 equity shares of Rs. 10 each fully paid to Rs. 5,327.38 lakhs divided in to 5,10,23,767 equity shares of Rs. 10 each fully paid and 2,25,000 1 % Redeemable Preference shares of Rs. 100 each fully paid.
d) the Company has not reclassified, sub divided the authorized capital of the Company;
e) there has been no reduction of share capital or buy back of shares; or
f) there has been no change in capital structure resulting from restructuring or change in voting rights.
Issue of preference shares
1 |
Date of issue and allotment |
1st January, 2018 |
2 |
Details of securities issued |
2,25,000 1 % Redeemable Preference shares of Rs. 100 each |
3 |
Method of allotment |
Pursuant to the approval of the merger scheme by the High Court judicature at Bombay and National Company law Tribunal, Chennai bench. |
4 |
Issue price |
Rs. 100 (Rupees One Hundred only) per preference share |
5 |
Conversion price |
Not applicable |
6 |
Number of shares allotted or to be allotted in case the right or option is exercised by all the holders of such securities |
Not applicable |
7 |
Number of shares or securities allotted to the promoter group including shares represented by Depository Receipts |
Nil |
8 |
Issue of shares for consideration other than cash |
Not applicable |
Issue of convertible securities
1 |
Date of issue and allotment |
27th March, 2018 |
2 |
Details of securities issued |
30,000 Optionally Convertible Debentures |
3 |
Method of allotment |
Preferential |
4 |
Issue price |
Rs. 1,00,000 (Rupees One Lakh only) per debenture. |
5 |
Conversion price |
The Debentures allowed to be converted in to preference shares only. |
6 |
Number of shares allotted or to be allotted in case the right or option is exercised by all the holders of such securities |
3,00,00,000 preference shares of Rs. 100 each will be issued to the holders of debentures on conversion. The Debentures are optionally convertible in to preference shares. |
7 |
Number of shares or securities allotted to the promoter group including shares represented by Depository Receipts |
Nil |
8 |
Issue of debentures for consideration other than cash |
Not applicable |
During the year the Company has not issued of shares for consideration other than cash, issue of equity shares with differential rights or Issue of Sweat equity shares
Details of Employee Stock Options
Sr. No. |
Particulars |
Remarks |
1 |
Options granted |
3,00,000 |
2 |
Options vested |
Nil |
3 |
Options exercised |
Nil |
4 |
The total number of shares arising as a result of exercise of options |
Nil |
5 |
options lapsed; |
Nil |
6 |
the exercise price; |
Rs. 247.25 |
7 |
variation in terms of options; |
Not applicable |
8 |
money realised by exercise of options; |
Not yet due for exercise |
9 |
total number of options in force; |
3,00,000 |
10 |
employee wise details of options granted to : |
|
a) |
Key Managerial Personnel; |
Nil |
b) |
any other employee who receives a grant of options in any one year of options amounting to five percent or more of total options granted during that year; |
Mr. Rajesh Bhatia was granted 3,00,000 options. |
c) |
identified employees who were granted options, during any one year, equal to or exceeding one percent of the issued capital, excluding outstanding warrants and conversions, of the company at the time of grant. |
Not applicable |
11 |
||
a) |
any material change to the scheme and whether such scheme is in compliance with the SEBI (Share Based Employee Benefits) Regulations, 2014; |
No |
b) |
web-link of disclosures made on the website of the company, as required under SEBI (Share Based Employee Benefits) Regulations, 2014. |
https://www.itigroup.co.in/investorrelations /corporateactions#ESOPScheme |
Shares held in trust for the benefit of employees where the voting rights are not exercised directly by the Employees : Not applicable Issue of debentures, bonds or any non-convertible securities
1 |
Date of issue and allotment of the securities |
27th March, 2018 |
2 |
Number of securities; |
30,000 Unsecured Optionally Convertible Debentures of Rs. 1,00,000/- (Rupees One Lakh) each fully paid at par. |
3 |
Whether the issue of the securities was by way of preferential allotment, private placement or public issue; |
Preferential allotment |
4 |
Brief details of the debt restructuring pursuant to which the securities are issued; |
Not applicable |
5 |
Issue price |
Rs. 1,00,000 per debenture |
6 |
Coupon rate |
The debentures carries 0% interest for the time being paid-up thereon. The Company will pay redemption premium calculated @ 10% per annum cumulative to the debentures on redemption by the Company from the date of receipt of the money and upto the date of redemption of the Debentures. |
7 |
Maturity date |
60 months from the date of issue |
8 |
Amount raised |
Rs. 300.00 crores |
Issue of warrants : During the year the Company has not issued any warrants. Credit rating of securities : Not applicable
INVESTOR EDUCATION AND PROTECTION FUND (IEPF)
details of the transfer/s to the IEPF made during the year : |
|||||
1 |
amount of unclaimed/unpaid dividend and the corresponding shares |
Rs. 6,03,188 Unclaimed dividend for the financial year 2009-2010 Number of shares pertaining to the unclaimed dividend amount : 2,41,275 |
|||
2 |
redemption amount of preference shares |
Nil |
|||
3 |
amount of matured deposits, for companies other than banking companies, along with interest accrued thereon |
Nil |
|||
4 |
amount of matured debentures along with interest accrued thereon; |
Nil |
|||
5 |
application money received for allotment of any securities and due for refund along with interest accrued |
Nil |
|||
6 |
sale proceeds of fractional shares arising out of issuance of bonus shares, merger and amalgamation |
Nil |
|||
7 |
details of the resultant benefits arising out of shares already transferred to the IEPF |
||||
8 |
year wise amount of unpaid/unclaimed dividend lying in the unpaid account up to the year and the corresponding shares, which are liable to be transferred to the IEPF, and the due dates for such transfer; as on 31st March, 2018 |
Year |
Amount (Rupees) |
No. of shares |
Due Date |
2010-2011 |
4,95,288 |
2,47,644 |
02/10/2018 |
||
2011-2012 |
1,12,794 |
2,25,588 |
30/09/2019 |
||
9 |
the amount of donation, if any, given by the company to the IEPF |
Nil |
|||
10 |
such other amounts transferred to the IEPF, if any, during the year. |
Nil |
Management
Directors and Key Managerial Personnel
names of the persons who have been appointed / ceased to be Directors and/or Key Managerial Personnel of the company: |
||
1 |
During the year |
Ms. Shaily Maheshwari was been appointed as an additional non executive Director liable to retire by rotation w. e. f. 8th September, 2017 |
2 |
After the end of the year and up to the date of the Report |
Mr. Suryakant B. Mainak has been appointed as an Additional Independent Director of the Company not liable to retire by rotation w e f 11th October, 2018 |
3 |
Mode of such appointments; |
Appointed by Board of Directors in their meeting held on 8th September, 2017 and by Circular resolution passed on 11th October, 2018 respectively. |
4 |
Names of the Director retiring by rotation at the ensuing annual general meeting and whether they offer themselves for re-appointment. |
Mr. Chintan Valia - being eligible offered himself for re-appointment |
5 |
Specific sector where approval of any regulatory authority is required before the appointment of a Director/ Key Managerial Personnel |
Not applicable |
6 |
Independent Directors |
|
7 |
Appointment of Independent Directors, the justification for choosing the proposed appointees for appointment as Independent Directors; and |
No Independent Director has been appointed during the year under review |
8 |
Re-appointment after completion of the first term, the rationale for such re-appointment |
The Board has re-appointed Mr. Pankaj Bhuta as an Independent Director for a second term subject to approval from the members. His first term expired on 30th July, 2018. Being experienced and specialized in fields of Accounts, Finance and taxation, the Board has re-appointed him as an Independent Director for the second term. |
9 |
Declaration by Independent Directors and statement on compliance of code of conduct |
|
a) |
that necessary declaration with respect to independence has been received from all the Independent Directors of the company; |
|
b) |
that the Independent Directors have complied with the Code for Independent Directors prescribed in Schedule IV to the Act. |
c) |
The company has formulated a Code of Conduct for Directors and senior management personnel. |
||
10 |
Board Meetings : |
||
The number and dates of meetings of the Board held during the year |
During the year under review ten meetings of the Board of Directors of the Company were held on 25th April, 2017, 17th May, 2017, 25th May, 2017, 8th September, 2017, 25th November, 2017, 7th December, 2017, 1st January, 2018, 5th February, 2018, 1st March, 2018 and 27th March, 2018. |
||
11 |
Committees : |
as on 26th October, 2018 |
|
Composition of Committees constituted by the Board |
|||
under the Act and the Listing Regulations |
Audit Committee : |
||
Constitution |
|||
Mr. Pankaj Bhuta |
Chairman |
||
Mr. Alok Kumar Misra |
Member |
||
Mr. Chintan Valia |
Member |
||
Mr. Suryakant B. Mainak |
Member |
||
Stakeholder Relationship Committee |
|||
Constitution |
|||
Mr. Chintan Valia |
Chairman |
||
Mr. Pankaj Bhuta |
Member |
||
Mr. Alok Kumar Misra |
Member |
||
Mr. Suryakant B. Mainak |
Member |
||
Nomination & Remuneration Committee |
|||
Constitution |
|||
Mr. Alok Kumar Misra |
Chairman |
||
Mr. Chintan Valia |
Member |
||
Mr. Pankaj Bhuta |
Member |
||
Mr. Suryakant B. Mainak |
Member |
||
Internal Finance Committee |
|||
Constitution |
|||
Mr. Chintan Valia |
Chairman |
||
Mr. Pankaj Bhuta |
Member |
||
Mr. Alok Kumar Misra |
Member |
||
Mr. Suryakant B. Mainak |
Member |
||
The number and dates of meetings of such committees held during the year. |
Audit Committee : Six meetings were held during the financial year on 25th April, 2017, 17th May, 2017, 8th September, 2017, 7th December, 2017, 5th February, 2018 and 27th March, 2018 |
||
Stakeholder Relationship Committee : Four meetings were held during the financial year on 17th May, 2017, 8th September, 2017, 7th December, 2017 and 5th February, 2018 |
|||
Nomination & Remuneration Committee review, no meeting was held. |
: During the year under |
||
Internal Finance Committee : During the year under review, no meeting was held. |
|||
12 |
Recommendations of Audit Committee |
All the recommendations given by the Audit committed were accepted by the board. |
|
reasons for such non-acceptance of any such recommendations |
Not applicable |
||
13 |
Companyâs Policy on Directorsâ appointment and remuneration |
Annexure â I â |
|
Web link of policy. |
14 |
Board Evaluation |
||
A statement indicating the manner in which formal annual evaluation of the performance of the Board, its Committees and of individual Directors has been made. |
The company has a system in place for formal annual evaluation of the performance of the Board, its Committees and of individual Directors. The same has been implemented. |
||
15 |
Remuneration of Directors and Employees |
||
the number of permanent employees on the rolls of the company; |
24 |
||
the ratio of remuneration of each Director to the median remuneration of the employees of the company for the year |
The Company has not paid any remuneration to Directors except for the meeting fees |
||
the percentage increase in remuneration of each Director, Chief Financial Officer, Chief Executive Officer, Company Secretary or Manager, if any, in the year |
Average increase in remuneration of Manager : 10% Company Secretary : 10% Directors : Not applicable Chief Executive Officer : Not applicable |
||
the percentage increase in the median remuneration of employees in the year; |
10% |
||
average percentile increase already made in the salaries of employees other than managerial personnel in the last year and its comparison with the percentile increase in the managerial remuneration and justification thereof and whether there are any exceptional circumstances for increase in the managerial remuneration |
10% |
||
affirmation that the remuneration is as per the remuneration policy of the company |
Remuneration paid to the Company Secretary is as per the remuneration policy of the company |
||
names of top ten employees of the company in terms of remuneration drawn. |
Name |
Remuneration (Rupees) |
|
Rajesh Bhatia * |
1,46,11,382 |
||
Prateek Tayal |
34,53,832 |
||
Rajesh Kumar Acha |
29,60,956 |
||
Hersh Sanjiv Shah |
25,00,633 |
||
Rajesh G Aynor * |
15,01,484 |
||
Subbiah Manickam |
13,05,884 |
||
Haroon Mansuri |
11,83,406 |
||
Siddhartha Bhotika * |
9,43,526 |
||
Bhaurao S Desai |
7,29,850 |
||
Akash Jhaveri * |
5,04,160 |
||
( * ) employed for part of the year |
|||
name of every employees who |
|||
if employed throughout the year, was in receipt of remuneration not less than one crore and two lakh rupees in the aggregate; |
Not applicable |
||
if employed for a part of the year, was in receipt of remuneration not less than eight lakh and fifty |
NAME |
Remuneration (Rupees) |
|
thousand rupees per month in the aggregate |
Rajesh Bhatia * |
1,46,11,382 |
|
if employed throughout the year or part thereof, was in receipt of remuneration which is in excess of that drawn by the Managing Director or Wholetime Director or Manager and who holds by himself or along with his spouse and dependent children, not less than two percent of the equity shares of the company. |
Name of employee |
Rajesh Bhatia |
|
designation of the employee |
President & CIO AIF III |
|
remuneration received |
Rs. 1,46,11,382 |
|
nature of employment, whether contractual or otherwise |
Contractual |
|
qualifications and experience of he employee |
B. Com., CFA and ACWA |
|
date of commencement of employment |
10/07/2017 |
|
the age of such employee |
49 years |
|
the last employment held by such employee before joining the company; |
Simto Investments (Tata Group) |
|
the percentage of equity shares held by the employee along with his spouse and dependent children, if such shareholding is not less than two percent of the total equity shares |
Nil |
|
whether any such employee is a relative of any Director or Manager of the company and if so, the name of such Director or Manager. |
No |
|
Remuneration received by Managing/Whole time Director from holding or subsidiary company |
Nil |
Internal Financial Controls
The Company has in place adequate systems of internal control that are commensurate with its size and nature of the business and documented procedures covering all financial and operating functions. The Company being in service industry, it has in place clear processes and well-defined roles and responsibilities for its staff at various levels. The Management has a defined reporting system, which facilitates monitoring and adherence to the process and systems in place.
Frauds reported by the Auditor : During the year under review, no fraud occurred and reported by the Auditors.
Disclosures relating to Subsidiaries, Associates and Joint Ventures
Report on performance and financial position of the subsidiaries, associates and joint ventures :
In terms of section 129 (3) of the Companies Act, 2013 the Company has prepared consolidated financial statements and a statement of salient features of the subsidiaries in form AOC 1 which is attached to notes forming part of financial statements.
Companies which have become or ceased to be subsidiaries, associates and joint ventures During the year or at any time after the closure of the year and till the date of the Report.
During the year under review a new subsidiary in the name of ITI Nirman Limited has been incorporated as per certificate of incorporation dated 30th August, 2017 issued by the Registrar of Companies, Maharashtra, Mumbai. The object of the new company is to undertake and carry on the business of real estate developers and related activities.
A new subsidiary in the name of ITI Alternate Funds Management Limited has been incorporated as per certificate of incorporation dated 28th June, 2018 issued by the Registrar of Companies, Maharashtra, Mumbai. The object of the new company is to undertake and carry on the business of Portfolio Management Services, Alternative Investment Find and other financial advisory activities.
During the year under review, ITI Wealth Management Limited ceased to be a subsidiary of the Company due to approval of the merger scheme by the High Court judicature at Bombay and National Company law Tribunal, Chennai bench.
1 |
Listing of Specified Securities |
Not applicable |
2 |
the name of material subsidiary as per the Listing Regulations |
1 Fortune Credit Capital Limited 2 Antique Stock Broking Limited 3 ITI Reinsurance Limited |
3 |
Sale and disposal and leased assets of more than twenty percent of the assets of the material subsidiary on an aggregate basis during a year |
The Company together with its subsidiary has entered in to a Share Purchase Agreement (SPA) with the proposed buyer for selling the equity shares of ITI Reinsurance Limited held by the Company. The Company holds 80% of the total issued capital of ITI Reinsurance Limited. The SPA is subject to approval by the IRDA. |
Details of Deposits
The Company does not hold and has not accepted any deposits from the public during the year under review, within the meaning of Section 73 of the Companies Act, 2013 and the rules made there under.
Particulars of loans, guarantees and investments
The details of Loans made, Investments and Guarantees given are provided in the notes forming part of the financial statements for the year ended 31st March, 2018
Particulars of contracts or arrangements with related parties
The Company has entered in to transactions with related parties during the financial year 2017 - 2018. All such transactions are on armâs length basis and in the ordinary course of business except for investments and/or disinvestments made by the Company which are not in ordinary course of business and such transactions are with the wholly owned subsidiary companies that the provisions of section 188 of the Companies Act, 2013 relating to the approval are not attracted. Related Party Transactions with the Directors and Key Managerial Personnel have been entered in the normal course of business and that also to the extent of payment of remuneration to the executive directors and KMPs. The disclosure in Form AOC - 2 forms part of the annual report and marked as Annexure â II â . All related party transactions are placed before the Audit Committee and Board meetings on quarterly basis for review and approval
Corporate Social Responsibility (CSR) : The provisions relating to the Corporate Social Responsibility are not applicable to the Company.
Conservation of Energy, Technology Absorption : The Company being in service sector, provisions relating to Conservation of energy and Technology absorption are not applicable. The information required under section 134 (3) (m) of the Companies Act, 2013 read with the Companies (Disclosures of Particulars in the Report of the Board of Directors) Rules, 2014 with respect to the matters specified therein are not applicable to your company.
Foreign exchange earnings and Outgo :
Foreign exchange earnings : Nil
Foreign exchange outgo : Business Promotion expenses : Rs. 8.38 lakhs
Travelling & Conveyance expenses : Rs. 8.40 lakhs Risk Management : The provisions relating to the risk management are not applicable to the Company.
Details of Establishment of Vigil Mechanism
a) the Directors and employees to report their genuine concerns about unethical behaviour, actual or suspected fraud or violation of the companyâs code of conduct;
b) providing adequate safeguards against victimisation;
c) providing direct access to the higher levels of supervisors and/or to the Chairman of the Audit Committee, in appropriate or exceptional cases.
Web-link of the aforesaid mechanism : https://www.itigroup.co.in/investorrelations/compliance
Material Orders of Judicial Bodies / Regulators : No material Orders have been passed by the Judicial bodies and/or regulators for or against the Company during the year under review.
Auditors
Names of the Statutory Auditor : Bathiya & Associates, LLP Secretarial Auditor : Dinesh Kumar Deora Cost Auditor : Not applicable
During the year under review and up to the date of the Report there has been no change in such Auditors due to resignation / casual vacancy / removal / completion of term.
Explanations in response to Auditorsâ qualifications : There are no qualifications in the auditors report for the year ended 31st March, 2018.
Compliance with Secretarial Standards : The Company has complied with all the applicable Secretarial Standards during the year ended 31st March, 2018.
Corporate Insolvency Resolution process initiated under The Insolvency and Bankruptcy Code, 2016 (IBC) : Not applicable
Failure to implement any Corporate Action : Not applicable
Annual Return : Web Link : https://www.itigroup.co.in/investorrelations/compliance
Other Disclosures :
(a) the consolidated financial statement is also being presented in addition to the standalone financial statement of the company.
(b) the Company has taken initiatives with respect to Stakeholder relationship, Customer relationship, Environment, Sustainability, Health and Safety.
(c) reasons for delay in holding the annual general meeting; the Company has obtained approval from the Registrar of Companies, Maharashtra, Mumbai for extension for holding annual general meeting for the year 2018 by three months.
(d) cost records are not required to be maintained by the company.
24. Additional disclosures under listing regulations 24.1 Statement of deviation or variation
(a) use of proceeds from the objects stated in the offer document or explanatory statement to the notice for the general meeting, as applicable; Not Applicable
(b) category wise variation (capital expenditure, sales and marketing, working capital etc.) between the projected utilisation of funds made by the company in its offer document or explanatory statement to the notice for the general meeting, as applicable, and the actual utilisation of funds. Not Applicable
Management Discussion and Analysis Report (MDAR) : Annexure â III â
Certificate on Compliance of conditions of Corporate Governance : Annexure â IV â
Suspension of Trading : During the year under review, there had been no suspension of trading by any of the exchanges on which the Companyâs equity shares are listed.
Disclosures pertaining to the Sexual Harassment of women at the workplace (Prevention, Prohibition and Redressal) Act, 2013
The company has complied with the provision relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013.
The details of number of cases filed and disposed as required under the Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013. Not Applicable
Subsidiaries, Associates and Step down Subsidiaries :
As on 31st March, 2018 the Company had eleven wholly owned subsidiaries, two subsidiaries, two step down subsidiaries and two associates. The Board of Directors reviews the performance of these companies on quarterly basis.
Financial statements of subsidiary companies
In terms of proviso to section 136 of the Companies Act, 2013 the Company has not attached the financial statements of its subsidiaries with the accounts of the Company. However, the audited annual financial statements of the subsidiary companies will be made available for inspection by the members of the holding and subsidiary companies at the registered office of the Company and will also be uploaded on the website of the Company. The audited annual financial statements of the subsidiary companies will be made available on request to members of the company and its subsidiaries, seeking such information at any point of time.
ESOP
The Company has formulated an Employee Stock Option Scheme known as FFSIL Employees Stock Option Plan 2017 ( âESOP - 2017â ) in accordance with the provisions of Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014
Subject to the members approval board of Directors in its meeting held on 25th May, 2017 approved the Scheme ESOP-2017 and the shareholders approval was obtained in 26th Annual General Meeting held on 8th September, 2017. Nomination and Remuneration Committee (âCommitteeâ) was authorised to formulate, administer and implement the detailed and conditions of the Scheme.
The Company has received a certificate dated 24th October, 2017 from Bathiya & Associates LLP, Chartered Accountants, Statutory Auditors of the Company confirming that the FFSIL Employees Stock Option Plan 2017 has been implemented in accordance with Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014.
The Certificate would be placed at the Annual General Meeting for inspection by Members.
The Company has received in principle approvals from BSE Limited and The National Stock Exchange of India Limited.
On 19th April, 2018 the Nomination and Remuneration Committee has granted (Grant I) 3,00,000 options. Each option when exercised will be converted in to one equity share of Rs. 10 each fully paid.
Summary of Employee Stock Option Schemes (âESOSâ) |
||
For the Period from 01/04/2017 to till 26th October, 2018 |
||
Sr. No. |
Particulars of Options / Scheme |
ESOP 2017 |
1 |
Outstanding as at beginning of the Period |
--- |
2 |
Granted during the Period |
3,00,000 |
3 |
Date of Grant |
19/04/2018 |
4 |
Forfeited during the Period |
--- |
5 |
Cancelled during the Period |
--- |
6 |
Lapsed during the Period |
--- |
7 |
Exercised during the Period |
--- |
8 |
Allotted during the Period |
--- |
9 |
Number of shares arising as a result of exercise of options |
--- |
10 |
Money realized by exercise of options (INR), if scheme is implemented directly by the company |
--- |
11 |
Number of options vested during the Period |
--- |
12 |
Outstanding as at the end of the Period |
3,00,000 |
13 |
Exercisable at the end of the Period |
--- |
14 |
Weighted average remaining contractual life (in years) |
3.5 years |
15 |
Weighted average fair value of options granted |
62.27 |
Postal Ballot
During the year under review, the Company had issued Postal Ballot Notice dated 8th September, 2017 to the members of the Company seeking approvals alteration of Object Clause of the Memorandum of Association of the Company.
The Scrutinizer appointed by the Board of Directors has submitted his report on the Postal Ballot on 18th October, 2017 and the following result was announced by Director of the Company on 18th October, 2017 at the registered Office of the company situated at Naman Midtown, âAâ Wing, 2151 Floor, Unit No. 2103, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400 013.
Resolutions |
Particulars |
||
No. of valid votes polled |
Votes casted in favour of the Resolution |
Votes casted against the Resolution |
|
Item No. 1 (Special Resolution ) Alteration of Object Clause of the Memorandum of Association of the Company |
3,87,82,618 |
3,87,82,613 |
5 |
Material changes and commitments affecting financial statements between financial year end : There has been no material changes and commitments affecting financial statements between financial year end.
Details of significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and companyâs operations in future : Not applicable
Adequacy of internal financial controls with reference to the Financial Statements : The Company has adequate internal financial control in its place.
Directors
Mr. Chintan Valia, Director of the Company retires by rotation and being eligible offers himself for re-appointment.
Ms. Shaily Maheshwari had been appointed as an Additional Director of the Company effective from 8th September, 2017. Ms. Shaily Maheshwari holds office up to the date of this Annual General Meeting.
Mr. Suryakant B. Mainak had been appointed as an Additional Independent Director of the Company effective from 11th October, 2018. Mr. Suryakant B. Mainak holds office up to the date of this Annual General Meeting.
The Board proposes to appoint Ms. Shaily Maheshwari as Non Executive Director of the Company liable to retire by rotation and Mr. Suryakant B. Mainak as an Independent Director of the Company not liable to retire by rotation and seeks members approval for the same.
The Company has received a letter from a member of the Company proposing the candidature of Ms. Shaily Maheshwari and Mr. Suryakant B. Mainak as Non Executive Director and Independent Director of the Company respectively.
Re-appointment of Mr. Pankaj Bhuta as an Independent Director
Mr. Pankaj Bhuta who had been appointed as an Independent Director of the Company w e f 31st July, 2013 for a period of five years from the date of appointment. His term expired on 30th July, 2018 and the Board of Directors have subject to the members approval re-appointed Mr. Pankaj Bhuta as an Independent Director of the Company for a second term of five years.
Brief profiles of the Directors to be appointed/re-appointed in the ensuing Annual General Meeting of the members of the Company have been provided as an annexure to the notice.
Statement of particulars of appointment and remuneration of managerial personnel
[Pursuant to section 134 (3) (q) of the Companies Act, 2013 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]
1 |
Name |
Mr. Prateek Tayal |
2 |
Designation |
Manager under the Companies Act |
3 |
Remuneration paid for the year 2017-2018 |
Rs. 34,53,832/- |
4 |
Nature of employment, whether contractual or otherwise |
Contractual |
5 |
Qualifications and experience of the employee |
M.B.A. from S P Jain Institute of Management and BBA |
6 |
Date of commencement of employment |
6th October, 2016 |
7 |
The age of employee |
29 years |
8 |
Last employment held by such employee before joining the Company |
Sunmarg Securities Private Limited |
9 |
The percentage of equity shares held by the employee in the Company within meaning clause (iii) of sub rule 2 above as on 31st March, 2017 |
Nil |
10 |
Whether any such employee is a relative of any director or manager of the Company and if so, name of such director or manager |
No |
Key Managerial Personnel (KMP)
The followings have been designated as Key Managerial Personnel of the Company pursuant to section 2(51) and 203 of the Companies Act, 2013 read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014
1. Mr. Prateek Tayal - Manager under the Companies Act
2. Mr. S. G. Muthu Kumar - Chief Financial Officer
3. Mr. Haroon Mansuri - Company Secretary
Particulars of employees :
Information pursuant to Rule 5 (2) of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014
Details of the employee(s) who were employed for part of the year and were in receipt of remuneration for any part of the year, at a rate which, was not less than Rs. 8,50,000 per month.
1 |
Name of the Employee |
Mr. Rajesh Bhatia |
2 |
Designation |
President & CIO AIF III |
3 |
Remuneration |
Rs. 1,46,11,382 |
4 |
Nature of employment |
Contractual |
5 |
Qualification |
B. Com., CFA and ACWA |
6 |
Experience with the company |
Six months |
7 |
Date of joining |
10/07/2017 |
8 |
Age |
49 years |
9 |
Last employment |
Simto Investments (Tata Group) |
10 |
No. of shares held as on 31st March, 2018 |
Nil |
11 |
Relation to Board of Directors |
Not applicable |
Statement on declaration given by independent directors
The Independent Director of the Company have submitted the declarations of independence, as required under section 149 (7) of the Companies Act, 2013 confirming that they all meet the criteria of independence as required in sub section 6 of section 149 of the Companies Act, 2013.
Committees
The Company has four committees of the Board of Directors. These committees are - Audit Committee, Nomination & Remuneration Committee, Stakeholder Relationship Committee and Internal Finance Committee.
The terms of reference, composition and the details of the meetings of the committees held during the year under review are provided in corporate governance report.
Corporate Governance
A report on the corporate governance along with a certificate from the auditors of the Company regarding the compliance of conditions of the corporate governance as stipulated under Regulation 17 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is included and forms part of this annual report.
All Board members and senior management personnel of the Company have affirmed compliance with code of conduct for the year 20172018. A declaration to this effect certified by the Director of the Company is also attached in the annual report.
The Director and the Chief Financial Officer (CFO) of the Company have certified to the Board with regard to the financial statements and other matters as required under Regulation 17 (8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the said certificate is attached in the annual report.
Management Discussion and Analysis
A detailed review of operations, performance and future outlook of your Company and its businesses is given in the Management Discussion and Analysis, which forms part of this annual report.
Performance evaluation of Directors
In terms of applicable provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 has carried out an annual evaluation of its own performance, its committees and individual Directors.
Further there had been an exclusive meeting of the Independent Directors of the Company without presence of the non independent Directors, discussed the performance evaluation of the Board members.
Prevention of insider trading
The Company has in its place the policy for prevention of insider trading.
Policies :
The Company has in place the following policies which have been approved by the Board of Director of the Company.
1. Criteria for payment to non executive Directors
2. Directors familiarization program
3. Policy for dealing with related parties
4. Policy on group entities
5. Policy on materiality
6. Terms and conditions of appointment of Independent Directors
7. Whistle blower policy
8. Code of Conduct for Directors and Senior Management
9. Archival Policy
10. Remuneration Policy
11. Policy for prevention of Insider Trading
12. Dividend Distribution Policy
The above are posted on the website of the Company - www.itigroup.co.in Extract of the Annual Return
Extract of the Annual Return as required under section 92 (3) of the Companies Act, 2013 read with Rule 12 of the Companies (Management and Administration) Rules, 2014 in the prescribed Form MGT 9 is annexed and marked as Annexure â V â and forms part of the annual report.
Statutory Auditors
At the 23rd Annual General Meeting held on 22nd September, 2014, M/s Bathiya & Associates LLP, (earlier known as M/s S H Bathiya & Associates) Chartered Accountants, were appointed as statutory auditors of the Company for the term of five years to hold the office up to the conclusion of 28th Annual General Meeting to be held in the calendar year 2019. As required under first proviso of section 139 of the Companies Act, 2013, the appointment of auditors shall be placed for ratification at every Annual General Meeting of the members of the Company.
Auditorsâ Report
Your Directors refer to the observations made by the Auditors in their report and wish to state that the notes forming part of accounts are self explanatory and hence do not require any further comments.
Secretarial Auditors
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board has appointed Dinesh Kumar Deora, Practicing Company Secretary to undertake the Secretarial Audit of the Company for the financial year ended 31st March, 2018.
Secretarial Audit Report
As required under section 204 of the Companies Act, 2013, a Secretarial Audit Report dated 5th May, 2018 issued by Dinesh Kumar Deora, a Practicing Company Secretary is attached herewith and marked as Annexure â VI â.
Explanation on observations by Secretarial Auditors in Secretarial Audit Report
1. The Board of Directors of the Company is not duly constituted with proper balance of Non Executive Directors and Independent Directors
2. Appointment of Independent Director in its material subsidiary company viz. Antique Stock Broking Limited
The Company has appointed Mr. Suryakant B. Mainak as an Independent Director of the company and is in process for identifying the suitable person to be appointed as an Independent Director in the subsidiary company.
Transfer of unclaimed dividend to the Investor Education and Protection Fund (IEPF)
As required under section 124 (5) of the Companies Act, 2013 the Company has transferred Rs. 6,03,187/- to the Investor Education and Protection Fund (IEPF) during the year under review towards unclaimed dividend for the financial year 2009 - 2010 declared on 28th August, 2010.
Transfer of shares to the Fund
During the year under review, the Company has in terms of notification dated 13th October, 2017 transferred 36,693 equity shares of Rs. 10 each fully paid to the credit of Investor Education and Protection Fund (IEPF)
Directorsâ Responsibility Statement
Pursuant to Section 134 (5) of the Companies Act, 2013 read with rule 8 of the Companies (Accounts) Rules, 2014 to the best of their knowledge and belief confirm that:
- in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;
- the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the year and of the profit and loss of the company for that period;
- the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities
- the Directors had prepared the annual accounts on a going concern basis
- the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively;
- the Directors had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and operating effectively
Acknowledgement
Your Directors are pleased to place on record their deep appreciation towards the sincere services and co-operation extended by employees of the organization at all levels. They also wish to place on record their gratitude for the confidence placed in by the shareholders of the Company, banks, financial institutions and intermediaries they are associated with. Further, your Directors wish to thank the various regulatory authorities, business associates and clients for their valued co-operation.
On behalf of the Board
Chintan V. Valia Khyati Valia
Non Executive Chairman Non Executive Director
(DIN : 05333936) (DIN: 03445571)
Mumbai, 26th October, 2018
Mar 31, 2017
Dear Shareholders
The Directors have pleasure in presenting the Twenty Sixth Annual Report and Audited Financial Statements of the Company for the year ended 31st March, 2017.
Financial Results (Rs, in lakhs)
2016-2017 |
2015-2016 |
2016-2017 |
2015-2016 |
|
Stand-alone |
Consolidated |
|||
Total Income |
1,786.59 |
352.52 |
16,838.41 |
14,153.11 |
Profit/(Loss) before depreciation, exceptional item and tax |
(166.43) |
(52.55) |
3,805.45 |
1,528.02 |
Depreciation and amortization |
5.63 |
3.67 |
818.62 |
845.06 |
Profit/(Loss) before exceptional item and tax |
(172.06) |
(56.22) |
2,986.83 |
682.96 |
Exceptional item |
317.98 |
68.75 |
257.09 |
21.40 |
Profit before tax Provision for tax |
145.92 |
12.53 |
3,243.92 |
704.36 |
- Current tax |
75.00 |
1.40 |
1,242.56 |
237.98 |
- Current tax relating to prior years (including MAT credit) |
0.53 |
â |
(20.48) |
2.43 |
- Deferred tax |
(1.37) |
0.24 |
(53.47) |
155.50 |
Profit after tax but before minority interest |
71.76 |
10.89 |
2,075.31 |
308.45 |
Less : Minority Interest |
--- |
--- |
127.90 |
27.25 |
Add : Share of profit from Associate Company |
--- |
--- |
784.11 |
285.18 |
Profit for the year |
71.76 |
10.89 |
2,731.52 |
566.38 |
Add: Balance as per last financial statements |
2,200.78 |
2,189.89 |
1,697.72 |
2,086.52 |
Adjustments pursuant to Scheme of amalgamation |
--- |
--- |
--- |
(1,022.19) |
Discontinuation of a subsidiary |
--- |
--- |
--- |
(67.91) |
Adjustment on account of investments in associates |
--- |
--- |
(8.52) |
135.98 |
Profit available for appropriations |
2,272.54 |
2,200.78 |
4,420.72 |
1,698.78 |
Less: Transfer to statutory reserve |
--- |
--- |
2.44 |
0.63 |
Less: Preference Dividend |
--- |
--- |
1.50 |
0.36 |
Less: Tax on preference dividend |
--- |
--- |
0.31 |
0.07 |
Net Surplus in Statement of Profit and Loss |
2,272.54 |
2,200.78 |
4,416.47 |
1,697.72 |
Nominal value per share (in '' Basic and diluted earnings per share |
10.00 |
10.00 |
10.00 |
10.00 |
- Basic (in '' |
0.14 |
0.03 |
5.49 |
1.60 |
- Diluted (in '' |
0.14 |
0.03 |
5.49 |
1.60 |
The state of Company''s affairs Standalone
The total income during the year 2016-2017 stood at Rs, 1,786.59 lakhs as against Rs, 352.52 lakhs during the previous year, showing an increase of income by four times as compared to the previous year. The Company has earned a profit before tax Rs, 145.92 lakhs as compared to a profit of Rs, 12.53 lakhs in the previous year. The profit after tax stood at Rs, 71.76 lakhs as against the profit of Rs, 10.89 lakhs in the previous year.
Consolidated
The consolidated income during the year 2016-2017 stood at Rs, 16,838.41 lakhs as against Rs, 14,153.11 lakhs during the previous year. The consolidated income has been increased by 18.97% as compared to the previous year. During the year under review the Company has on consolidated basis earned a profit of Rs, 2,731.52 lakhs after tax as against the profit of Rs, 566.38 lakhs in the previous year.
Consolidated Financial Statements
The Board of Directors of your Company at its meeting held on 17th May, 2017 approved the consolidated financial statements for the financial year 2016-2017 in accordance with the Accounting Standard (AS-21) and other applicable Accounting Standards issued by the Institute of Chartered Accountants of India as well as Regulation 34 (2) (c) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 which includes financial information of all its subsidiaries.
Dividend
In view of the marginal profit earned by the Company, the Board of Directors do not recommend any dividend for the financial year 2016 - 2017. Transfer to General Reserves
The Board of Directors do not propose to transfer any amount to General Reserve for the financial year 2016 - 2017.
Fixed Deposits
The Company does not hold and has not accepted any deposits from the public during the year under review, within the meaning of Section 73 of the Companies Act, 2013 and the rules made there under.
Share Capital
During the year under review, the Company has not issued any equity shares with differential rights or sweat equity shares or stock options and has not made any provision of money for purchase of its own shares by employees or by trustees for the benefit of employees.
Subsidiaries, Associates and Step down Subsidiaries :
As on 31st March, 2017 the Company had eight wholly owned subsidiaries, four subsidiaries, two step down subsidiaries and two associates. The Board of Directors reviews the performance of these companies on quarterly basis.
In terms of section 129 (3) of the Companies Act, 2013 the Company has prepared consolidated financial statements and a statement of salient features of the subsidiaries in form AOC 1 which is attached to the notes forming part of financial statements.
Accounts of subsidiary companies
In terms of proviso to section 136 of the Companies Act, 2013 the Company has not attached the financial statements of its subsidiaries with the accounts of the Company. However, the audited annual financial statements of the subsidiary companies will be made available for inspection by the members of the holding and subsidiary companies at the registered office of the Company and will also be uploaded on the website of the Company. The audited annual financial statements of the subsidiary companies will be made available on request to members of the company and its subsidiaries, seeking such information at any point of time.
Investments
During the year under review, the Company has subscribed and/or acquired shares as investment in the following companies:
Sr. No. |
Date |
Name of the Company |
Nature of Securities |
Face Value (Rs,) |
No. of securities |
Amount (Rs, in lakhs) |
Investments made during the year 2016 - 2017 |
||||||
1 |
21/04/2016 |
ITI Gilts Private Limited (earlier known as Crest Debt Capital Markets Private Limited) |
Equity shares |
10 |
51,00,000 |
510.00 |
2 |
25/04/2016 |
Fortune Credit Capital Limited |
Equity shares |
10 |
1,00,00,000 |
4,000.00 |
3 |
02/05/2016 |
United Petro Finance Limited |
Equity shares |
10 |
34,60,000 |
346.00 |
4 |
03/05/2016 |
Fortune Integrated Assets Finance Limited |
Equity shares |
10 |
17,04,545 |
1874.99 |
5 |
20/05/2016 |
ITI Asset Management Limited (earlier known as ITI Investment Advisors Limited) |
Equity shares |
10 |
4,00,000 |
5,000.00 |
6 |
12/08/2016 |
Fortune Integrated Home Finance Limited |
Equity shares |
10 |
17,50,000 |
525.00 |
7 |
22/11/2016 |
ITI Reinsurance Limited (earlier known as Kohinoor India Reinsurance Co. Limited) |
Equity shares |
10 |
9,50,00,000 |
142,50.00 |
8 |
23/11/2016 |
ITI Reinsurance Limited (earlier known as Kohinoor India Reinsurance Co. Limited) |
Equity shares |
10 |
6,90,00,000 |
103,50.00 |
9 |
24/10/2016 |
ITI Mutual Fund Trustee Private Limited |
Equity shares |
10 |
10,000 |
1.00 |
10 |
23/03/2017 |
United Petro Finance Limited |
Equity shares |
10 |
41,60,000 |
603.20 |
11 |
29/03/2017 |
ITI Reinsurance Limited (earlier known as Kohinoor India Reinsurance Co. Limited) |
Equity shares |
10 |
5,33,60,000 |
8,004.00 |
Total(A) |
45,464.19 |
|||||
Disinvestments during the year 2016 - 2017 |
||||||
1 |
30/11/2016 |
ITI Asset Management Limited (earlier known as ITI Investment Advisors Limited) |
Equity shares |
10 |
4,00,000 |
2,025.00 |
2 |
10/08/2016 |
BSE Limited |
Equity shares |
1 |
70,694 |
0.05 |
Total(B) |
2,025.05 |
|||||
Total (A - B) |
43,439.14 |
Merger
The Company has received in-principle approval from BSE Limited for merger with The Investment Trust of India Limited (earlier known as ITI Wealth Management Private Limited). The Scheme has been approved by the High Court Judicature at Bombay and the approval from the National Company Law Tribunal at Chennai is awaited as all the merger applications with the high courts have been transferred to the respective National Company Law Tribunals (NCLTs).
Demerger of United Petro Finance Limited
In the Board meeting held on 31st March, 2017, the Board has unanimously approved Scheme of Arrangement between United Petro Finance Limited (''UPFL'' or the ''Demerged Company'') and Fortune Credit Capital Limited (''FCCL'' or the ''Resulting Company'') and Fortune Financial Services (India) Limited (''FFSIL'' or the ''Holding Company of the Resulting Company'') and their respective shareholders providing for the demerger of Lending Business (''NBFC Business'') of UPFL to FCCL (Wholly Owned Subsidiary of FFSIL), and issue of equity shares of FFSIL to the shareholders of UPFL. By operation of section 2(19AA) read with 2(41A) of the Income Tax Act, 1961, the consideration for demerger will be discharged by the Company to the shareholders of UPFL.
Merger of Fortune Integrated Assets Finance Limited with the Company
In the Board meeting held on 25th April, 2017, the Board has Unanimously approved Scheme of Amalgamation of Fortune Integrated Assets Finance Limited (''FIAFL'' or the ''Transferor Company'') with Fortune Financial Services (India) Limited (''FFSIL'' or the ''Transferee Company'') and their respective shareholders providing for the merger of Fortune Integrated Assets Finance Limited with Fortune Financial Services (India) Limited.
Incorporation of new subsidiary
During the year under review a new subsidiary in the name of ITI Mutual Fund Trustee Private Limited has been incorporated. The object of the new company is to undertake and carry on the functions and duties and act as a trustee, executor, administrator, attorney or nominee of, or for funds of all kinds including Mutual funds, offshore funds, pension funds, superannuation funds, provident funds, venture capital funds, growth funds, "Alternative investment Funds, "Portfolio Investment Schemes", debenture-holders, Insurance Funds , Collective or private investment schemes or any other schemes and to hold the property in trust for the benefit of the beneficiaries of the trust and devise various schemes for raising funds etc.
Incorporation of step down subsidiary
During the year under review a new subsidiary in the name of Antique Stock Broking (IFSC) Private Limited has been incorporated by Antique Stock Broking Limited. The object of the new company is to carry on the business as IFSC (International Financial Service Centre) unit in accordance with the Securities and Exchange Board of India (IFSC) Guidelines, 2015 to act as intermediary as per such guidelines in IFSC, Investment Consultants, stock brokers, underwriters and to invest, sell, purchase, exchange, surrender, extinguish, relinquish, subscribe, acquire, undertake, underwrite, hold, auction, convert, or otherwise deal in any shares, stocks, debentures, debentures stock, bonds, depository receipts, hedge instruments, warrants, certificates, options futures, money market securities, marketable or non-marketable securities, derivatives and other instruments or securities etc.
Setting up of Mutual Fund
During the year, the Company received in-principle approval from SEBI for setting up Mutual Fund vide it''s letter dated July 28, 2016 together with one of its subsidiaries viz. Fortune Credit Capital Limited. The Company''s shareholding in ITI Asset Management Limited is 60% while that of subsidiary is 40%.
ITI Asset Management Limited (ITIAML) is a subsidiary of FFSIL. The company''s principal activity is to act as an Investment Manager to the proposed "ITI Mutual Fund". The Investment Management Agreement was executed between ITI Mutual Fund Trustee Private Limited and ITIAML on April 7, 2017. The entire infrastructure of the business including all systems, processes, policies and personnel are in place and the Company is fully geared to enter the markets as soon as the necessary regulatory approvals are received.
ITI Mutual Fund Trustee Private Limited (ITIMFTPL) is subsidiary of FFSIL. The company''s principal activity is to act as Trustee to the proposed "ITI Mutual Fund" The Trust Deed was executed on April 6, 2017 between Fortune Financial Services (India) Limited, Fortune Credit Capital Limited and ITIMFTPL.
Setting up of Alternate Investment Fund
During the year, the Company has in capacity of Sponsor and Investment Manager along with Trustee formed an Alternative Investment Fund i.e. ITI Infrastructure Fund a Category I Infrastructure Fund under Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012.The said Alternative Investment Fund has received certificate of Registration from SEBI dated January 17, 2017. The operations of the fund is yet to be commenced.
New line of business
During the year under the Company has obtained members approval for commencement of new line of business for trading in goods. The Company has commenced the business in trading of textile items.
Postal Ballot
During the year under review, the Company had issued Postal Ballot Notice dated 12th December, 2016 to the members of the Company seeking approvals alteration of Object Clause of the Memorandum of Association of the Company and for related party transactions.
The Scrutinizer appointed by the Board of Directors has submitted his report on the Postal Ballot on January 27, 2017 and the following result was announced by Director of the Company on January 27, 2017 at the registered Office of the company situated at Naman Midtown, "A" Wing, 21st Floor, Unit No. 2103, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400 013.
Resolutions |
Particulars |
||
No. of valid votes polled |
Votes casted in favour of the Resolution |
Votes casted against the Resolution |
|
Item No. 1 (Special Resolution ) Alteration of Object Clause III of the Memorandum of Association of the company |
4,04,33,828 |
4,04,33,813 |
15 |
Item No. 2 (Ordinary Resolution ) Approval for related party transactions for acquiring equity shares of Suraksha Asset Reconstruction Private Limited |
29,36,382 |
29,25,014 |
11,368 |
Material changes and commitments affecting financial statements between financial year end
During the year under review the Company has allotted / issued 226,77,777 equity shares of Rs, 10 each fully paid on rights basis to the then existing shareholders of the Company. The Company had issued abridged letter of offer to the shareholders of the Company. The issue was oversubscribed by 1.2022 times. The post rights issue, the Company''s paid up capital increased to Rs, 5,102.38 lakhs divided in to 5,10,23,767 equity shares of Rs, 10 each fully paid.
Details of significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and company''s operations in future - Not applicable Adequacy of internal financial controls with reference to the Financial Statements.
The Company has in place adequate systems of internal control that are commensurate with its size and nature of the business and documented procedures covering all financial and operating functions. The Company being in service industry, it has in place clear processes and well-defined roles and responsibilities for its staff at various levels. The Management has a defined reporting system, which facilitates monitoring and adherence to the process and systems in place.
Number of meetings of the Board
During the year under review six meetings of the Board of Directors of the Company were held on 24th May, 2016, 8th August, 2016, 14th November, 2016, 12th December, 2016, 31st January, 2017 and 31st March, 2017
The details of the meetings held and the attendance thereto are given in the Corporate Governance Report of the Company for the financial year 2016 - 2017, the same forms part of the annual report of the Company.
In addition to the above a separate meeting of the Independent Directors was held on 31st March, 2017 Directors
Ms. Khyati Valia, Director of the Company retires by rotation and being eligible offers herself for re-appointment.
Mr. Alok Kumar Misra has been appointed as an Additional Independent Director of the Company effective from 16th September, 2016. Mr. Alok Kumar Misra holds office up to the date of this Annual General Meeting The Company has received requisite deposit from a member of the Company proposing the candidature of Mr. Alok Kumar Misra as an Independent Director of the Company and not liable to retire by rotation. Brief profiles of the Directors to be appointed/re-appointed in the ensuing Annual General Meeting of the members of the Company have been provided as an annexure to the notice.
Company''s policy on directors appointment, remuneration etc.
Section 178 (3) and disclosure of details as provided in Rule 5 of the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014
Sr. No. |
Particulars |
Remarks |
||
1 |
Ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the financial year |
Not applicable - as the Company has no executive Director on the Board. |
||
The details of the sitting fees paid during the financial year 2016-2017 to the Directors of the Company are as under : |
||||
Sr. No. |
Name of the Directors |
Amount paid (Rs,) |
||
1 |
Mr. Chintan Valia |
2,85,000 |
||
2 |
Mrs. Khyati Valia |
1,45,000 |
||
3 |
Mr. Pankaj Bhuta |
2,85,000 |
||
4 |
Mr. Alok Kumar Misra |
2,05,000 |
||
5 |
Mr. Nishit Dhruva |
80,000 |
||
6 |
Mrs. Deena Mehta |
95,000 |
||
Total |
10,95,000 |
2 |
The percentage increase in remuneration of each director, CFO, CEO, CS or manager if any, in the financial year 2016-2017. |
Directors - Not applicable CFO Nil CEO - Not applicable CS Nil |
|
3 |
The percentage increase in the median remuneration of the employees of the Company for the financial year 2016-2017. |
Nil |
|
4 |
The number of permanent employees on the roll of the Company as on 31st March, 2017 |
24 |
|
5 |
The explanation on the relationship between average increase in remuneration and Company performance |
During the year the management has not revised remuneration of the employees, hence relationship between average increase in remuneration and Company performance is not required to be given. |
|
6 |
Comparison of remuneration of the KMP against the performance of the Company |
Remuneration to KMP '' 47,75,845 (Manager, CFO & CS) Performance of the Company on stand-alone basis after tax for the year 2016-2017 Rs, 71.76 lakhs after considering exceptional items aggregating to Rs, 317.98 lakhs as compared to Rs, 10.89 lakhs in the previous year. |
|
7 |
Variations in the market capitalization of the Company, price earnings ratio as at the date of closing date of the current financial year and previous financial year and percentage increase over decrease in the market quotations of the shares of the Company in comparison to the rate at which the Company came out with the last public offer in case of listed companies and in case of unlisted companies, the variations in the net worth of the Company as at the close of the current financial year and previous year |
Market capitalization (BSE) Ltd. (Rs, in lakhs) |
|
as on 31/03/2017 |
157,816.51 |
||
as on 31/03/2016 |
37,473.40 |
||
Price earnings ratio = Market price / EPS |
|||
as on 31/03/2017 Market price Rs,309.30 EPS Rs, 0.14 |
2,209 |
||
as on 31/03/2016 Market price Rs, 132.20 EPS Rs, 0.04 |
3,305 |
||
Market quotation of the Company''s shares |
|||
as on 31/03/2017 |
Rs, 309.30 |
||
as on 31/03/2016 |
Rs, 132.20 |
||
8 |
Average percentile increase already made in the salaries of employees other than managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration |
The Company has not paid any remuneration to any Director except for the Sitting fees. The details of payment of sitting fees provided in item no. 1 above and also Corporate Governance Report. |
|
9 |
Comparison of the each of the remuneration of the KMP as against the performance of the Company |
Performance of the Company |
|
Rs, 71.76 lakhs after tax on stand-alone basis (after considering the exceptional items aggregating to Rs, 317.98 lakhs) as compared to Rs, 10.89 lakhs in the previous year. |
|||
Name of the KMP & Designation |
Amount of Remuneration paid |
||
Mr. Prateek Tayal Manager ( w. e. f. 6th October, 2016) |
Rs, 18,55,874 |
||
Mr. Aalok Dave Manager (up to 5th October, 2016) |
Rs, 51,82,138 |
||
Mr. S. G. Muthu Kumar Chief Financial Officer |
Rs, 20,00,509 |
||
Mr. Haroon Mansuri Company Secretary |
Rs, 9,19,462 |
||
10 |
The key parameters for any variable component of the remuneration availed by the directors |
The Company has not paid any variable component to any Director and/or KMPs. |
|
11 |
The ratio of the remuneration of the highest paid director to that of the employees who are not directors but receive remuneration in excess of the highest paid director during the year and |
Not Applicable |
|
12 |
Affirmation that the remuneration is as per the remuneration policy of the Company |
The Remuneration paid to the KMPs is as per remuneration policy of the Company. |
Statement of particulars of appointment and remuneration of managerial personnel
[Pursuant to section 134 (3) (q) of the Companies Act, 2013 read with rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rule, 2014]
1 |
Name |
Mr. Prateek Tayal |
Mr. Aalok Dave |
2 |
Designation |
Manager under the Companies Act |
Manager under the Companies Act |
3 |
Remuneration received |
Rs, 18,55,874 (w. e. f. 6th October, 2016) |
Rs, 51,82,138 (up to 5th October, 2016) |
4 |
Nature of employment, whether contractual or otherwise |
Contractual |
Contractual |
5 |
Qualifications and experience of the employee |
MBA from S P Jain School of Global Management & BBA |
B. Com., ACA |
6 |
Date of commencement of employment |
6th October, 2016 |
31st July, 2015 |
7 |
The age of employee |
28 years |
38 years |
8 |
Last employment held by such employee before joining the Company |
Sunmarg Securities Private Limited |
Asset Reconstruction Company (India) Limited |
9 |
The percentage of equity shares held by the employee in the Company within meaning clause (iii) of sub rule 2 above as on 31st March, 2017 |
Nil |
Nil |
10 |
Whether any such employee is a relative of any director or manager of the Company and if so, name of such director or manager |
No |
No |
Key Managerial Personnel (KMP)
The followings have been designated as Key Managerial Personnel of the Company pursuant to section 2(51) and 203 of the Companies Act, 2013 read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014
1. Mr. Aalok Dave - Manager under the Companies Act (ceased w e f 5th October, 2016)
2. Mr. Prateek Tayal - Manager under the Companies Act (appointed w e f 6th October, 2016)
3. Mr. S. G. Muthu Kumar - Chief Financial Officer
4. Mr. Haroon Mansuri - Company Secretary Statement on declaration given by independent directors
The Independent Director of the Company has submitted the declaration of independence, as required under section 149 (7) of the Companies Act, 2013 confirming that they all meet the criteria of independence as required in sub section 6 of section 149 of the Companies Act, 2013.
Committees
The Company has four committees of the Board of Directors. These committees are - Audit Committee, Nomination & Remuneration Committee, Stakeholder Relationship Committee and Internal Finance Committee.
The terms of reference, composition and the details of the meetings of the committees held during the year under review are provided in corporate governance report.
Corporate Governance
A report on the corporate governance along with a certificate from the auditors of the Company regarding the compliance of conditions of the corporate governance as stipulated under Regulation 17 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is included and forms part of this annual report.
All Board members and senior management personnel of the Company have affirmed compliance with code of conduct for the year 2016-2017. A declaration to this effect certified by the Director of the Company is also attached in the annual report.
The Director and the Chief Financial Officer (CFO) of the Company have certified to the Board with regard to the financial statements and other matters as required under Regulation 17 (8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the said certificate is attached in the annual report.
Management Discussion and Analysis
A detailed review of operations, performance and future outlook of your Company and its businesses is given in the Management Discussion and Analysis, which forms part of this annual report.
Corporate Social Responsibility
The provisions relating to the Corporate Social Responsibility are not applicable to the Company.
Policies :
The Company has in place the following policies which have been approved by the Board of Directors of the Company.
1. Criteria for payment to non executive Directors
2. Directors familiarization program
3. Policy for dealing with related parties
4. Policy on group entities
5. Policy on materiality
6. Terms and conditions of appointment of Independent Directors
7. Whistle blower policy
8. Code of Conduct for Directors and Senior management
The above are posted on the website of the Company - www.fortune.co.in Extract of the Annual Return
Extract of the Annual Return as required under section 92 (3) of the Companies Act, 2013 read with Rule 12 of the Companies (Management and Administration) Rules, 2014 in the prescribed Form MGT 9 is annexed and marked as Annexure I and forms part of the annual report.
Statutory Auditors
At the 23rd Annual General Meeting held on 22nd September, 2014, M/s Bathiya & Associates LLP, (earlier known as M/s S H Bathiya & Associates) Chartered Accountants, were appointed as statutory auditors of the Company for the term of five years to hold the office up to the conclusion of 28th Annual General Meeting to be held in the calendar year 2019. As required under first proviso of section 139 of the Companies Act, 2013, the appointment of auditors shall be placed for ratification at every annual general meeting of the members of the Company. Accordingly, appointment of M/s. Bathiya & Associates LLP, Chartered Accountants as statutory auditors of the Company is placed for ratification by the members of the Company. The Company has received a certificate from the auditors confirming that if they are appointed, their appointment will be in accordance with section 141 of the Companies Act, 2013.
Auditors'' Report
Your Directors refer to the observations made by the Auditors in their report and wish to state that the notes forming part of accounts are self explanatory and hence do not require any further comments.
Secretarial Auditors
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board has appointed M/s. Dinesh Kumar Deora, Practicing Company Secretary to undertake the Secretarial Audit of the Company for the financial year ended 31st March, 2017.
Secretarial Audit Report
As required under section 204 of the Companies Act, 2013, a Secretarial Audit Report dated 10th May, 2017 issued by M/s. Dinesh Kumar Deora, a Practicing Company Secretary is attached herewith and marked as Annexure II.
Explanation on observations by statutory auditors & practicing company secretary
There are no qualifications and/or adverse remarks in the Auditors report and the Secretarial Audit report.
Particulars of contracts or arrangements with related parties
The Company has entered in to transactions with related parties during the financial year 2016-2017. All such transactions are on arm''s length basis and in the ordinary course of business except for investments and/or disinvestments made by the Company which are not in ordinary course of business and such transactions are with the wholly owned subsidiary companies that the provisions of Section 188 of the Companies Act, 2013 relating to the approval are not attracted. Related Party Transactions with the Directors and Key Managerial Personnel have been entered in the normal course of business and that also to the extent of payment of remuneration to the executive directors and KMPs. The disclosure in form AOC - 2 forms part of the annual report and marked as Annexure III. All related party transactions are placed before the Audit Committee and Board meetings on quarterly basis for review and approval.
Conservation of Energy, Technology Absorption
The information required under section 134 (3) (m) of the Companies Act, 2013 read with the Companies (Disclosures of Particulars in the Report of the Board of Directors) Rules, 2014 with respect to the matters specified therein are not applicable to your company.
Foreign Exchange earnings and outgo - Nil
Transfer of unclaimed dividend to the Investor Education and Protection Fund (IEPF)
As required under section 124 (5) of the Companies Act, 2013 the Company has transferred '' 2,92,059/- to the Investor Education and Protection Fund (IEPF) during the year under review towards unclaimed dividend for the financial year 2008 - 2009 declared on 29th August, 2009.
Prevention of Sexual Harassment at Workplace
The Company is committed to provide a safe and conducive work environment to its employees during the year under review.
Your Directors further state that during the year under review, there were no cases filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act 2013.
Directors'' Responsibility Statement
Pursuant to Section 134 (5) of the Companies Act, 2013 read with rule 8 of the Companies (Accounts) Rules, 2014 to the best of their knowledge and belief confirm that:
- in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;
- the Directors had selected such accounting policies and applied consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period;
- the Directors had proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and
- the Directors had prepared annual accounts on a going concern basis.
- the Directors had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively.
- The Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
Acknowledgement
Your Directors are pleased to place on record their deep appreciation towards the sincere services and co-operation extended by employees of the organization at all levels. They also wish to place on record their gratitude for the confidence placed in by the shareholders of the Company, banks, financial institutions and intermediaries they are associated with. Further, your Directors wish to thank the various regulatory authorities, business associates and clients for their valued co-operation.
On behalf of the Board
Chintan V. Valia Khyati Valia
Non Executive Director Non Executive Director
(DIN:05333936) (DIN: 03445571)
Mumbai, 17th May, 2017
Fortune Financial Services (India) Limited
CIN: L65910MH1991PLC062067 Registered Office :
Naman Midtown "A" Wing 21st Floor,
Unit No. 2103 Senapati Bapat Marg Elphinstone Road
Mumbai - 400 013
Telephone : 91 22 4027 3600
Fax : 91 22 4027 3700
e mail : [email protected]
website: www.fortune.co.in
Mar 31, 2015
Dear Members,
The Directors have pleasure in presenting the Twenty Fourth Annual
Report and Audited Accounts for the year ended 31st March, 2015.
Financial Results
2014-2015 2013-2014
Stand-alone
Total Income 518.82 828.65
Profit / (Loss) before
depreciation and tax 16.76 (1.48)
Depreciation 6.73 2.99
Profit/ (Loss) before tax 10.03 (4.47)
Provision for tax
- Current tax -- --
- Current tax relating to
prior years (Net) 0.75 0.13
- Deferred tax 7.56 19.46
Profit/ (Loss) after tax but
before minority interest 1.72 (24.06)
Minority Interest --Â ---
Profit / (loss) for the year 1.72 (24.06)
Add: Balance as per last
financial statements 2,188.17 2,212.23
Profit available for
appropriations 2,189.89 2,188.17
Transfer to statutory reserve --- ---
Balance carried forward to
balance sheet 2,189.89 2,188.17
Weighted average number of
equity shares
- Basic 2,83,45,990 1,28,79,290
- Diluted 2,79,22,245 1,30,32,715
Nominal value per share (in rupees) 10.00 10.00
Basic and diluted earnings per share
- Basic (in rupees) 0.01 (0.19)
- Diluted (in rupees) 0.01 (0.18)
(Rs. in lakhs)
2014-2015 2013-2014
Consolidated
Total Income 15,918.24 6,101.48
Profit / (Loss) before
depreciation and tax 1,292.24 288.97
Depreciation 910.64 305.94
Profit/ (Loss) before tax 381.50 (16.97)
Provision for tax
- Current tax 261.50 34.80
- Current tax relating to
prior years (Net) (9.10) 1.80
- Deferred tax (71.25) 70.64
Profit/ (Loss) after tax but
before minority interest 200.35 (124.21)
Minority Interest 52.08 --Â
Profit / (loss) for the year 148.27 (124.21)
Add: Balance as per last
financial statements 1,977.58 2,122.06
Profit available for
appropriations 2,125.85 1,997.85
Transfer to statutory reserve 39.33 20.27
Balance carried forward to
balance sheet 2,086.52 1,977.58
Weighted average number of
equity shares
- Basic 2,83,45,990 1,28,79,290
- Diluted 2,79,22,245 1,30,32,715
Nominal value per share (in rupees) 10.00 10.00
Basic and diluted earnings per share
- Basic (in rupees) 0.53 (0.96)
- Diluted (in rupees) 0.53 (0.95)
The state of Company's affairs Standalone
The total income during the year 2014-15 stood at Rs. 518.82 lakhs as
against Rs. 828.65 lakhs during the previous year, showing a decrease
of 37 % compared to the previous year. The Company has earned a profit
before tax Rs. 10.03 lakhs as compared to a loss of Rs. 4.47 lakhs in
the previous year. The profit after tax stood at Rs. 1.72 lakhs as
against a loss of Rs. 24.06 lakhs in the previous year.
Consolidated
The consolidated income during the year 2014-15 stood at Rs.15,918.24
lakhs as against Rs. 6,101.48 lakhs during the previous year. The
consolidated income has been increased substantially as compared to the
previous year. During the year under review the Company has on
consolidated basis earned a profit of Rs.148.27 lakhs after tax as
against a loss of Rs 124.21 lakhs in the previous year.
Consolidated Financial Statements
The Board of Directors of your Company at its meeting held on 12th May,
2015 approved the consolidated financial statements for the financial
year 2014-15 in accordance with the Accounting Standard (AS-21) and
other applicable Accounting Standards issued by the Institute of
Chartered Accountants of India as well as Clause 32 of the listing
agreement, which includes financial information of all its
subsidiaries.
Dividend
In view of the marginal profit earned by the Company, the Board of
Directors do not recommend any dividend for the financial year 2014-15.
Transfer to General Reserves
The Board of Directors do not propose to transfer any amount to General
Reserve for the financial year 2014-2015.
Fixed Deposits
The Company has not accepted any deposit from the public during the
year under review, within the meaning of Section 73 of the Companies
Act, 2013 and the rules made there under.
Share Capital
During the year under review, the Company has not issued any equity
shares with differential rights or sweat equity shares or stock options
and has not made any provision of money for purchase of its own shares
by employees or by trustees for the benefit of employees
Investment for acquisition of a Company
During the year under review, the Company has acquired 47,68,022 equity
shares of Rs. 10/- each fully paid up of Inga Capital Private Limited
representing 68.19% of the paid up capital of the investee Company,
whereby it became a subsidiary of the Company effective from 26th
February, 2015. Inga Capital Private Limited is engaged in the business
of Investment Banking and is a Category I Merchant Banker registered
with SEBI.
Accounts of subsidiary companies
In terms of proviso to section 136 of the Companies Act, 2013 the
Company has not attached the accounts of its subsidiaries with the
accounts of the Company. However, the audited annual accounts of the
subsidiary companies will be made available for inspection by the
members of the holding and subsidiary companies at the registered
office of the Company and will also be uploaded on the website of the
Company. The audited annual accounts of the subsidiary companies will
be made available to members of the companies and its subsidiary
Company, seeking such information at any point of time.
Details of Subsidiaries and step down subsidiaries
Statement containing salient features of the financial statements of
subsidiary companies in form AOC 1 is attached and marked as Annexure
I. The details of subsidiaries and step down subsidiaries are provided
on Form MGT 9 attached to this report and marked as Annexure II
Material changes and commitments affecting financial statements between
financial year end and date of report - Not applicable Details of
significant and material orders passed by the regulators or courts or
tribunals impacting the going concern status and company's operations
in future - Not applicable
Adequacy of internal financial controls with reference to the Financial
Statements.
The Company has in place adequate systems of internal control that are
commensurate with its size and nature of the business and documented
procedures covering all financial and operating functions. The Company
being in service industry, it has in place clear processes and
well-defined roles and responsibilities for its staff at various
levels. The Management has a defined reporting system, which
facilitates monitoring and adherence to the process and systems in
place.
Number of meetings of the Board
During the year under review five meetings of the Board of Directors
were held on 28th May, 2014, 11th August, 2014, 18th August, 2014, 28th
October, 2014 and 29th January, 2015.
The details of the meetings held and the attendance thereto are given
in the Corporate Governance Report of the Company for the financial
year 2014-15, the same forms part of the annual report of the Company.
In addition to the above a separate meeting of the Independent
Directors was held on 16th March, 2015
Directors
During the year under review, Mr. Nimish C. Shah has resigned as a
Managing Director and from the Board of the Company with effect from
10th April, 2014.
Mr. Manoj Patel resigned as a Director of the Company with effect from
31st March, 2015,
The Board of Directors wishes to take on record the valuable
contributions given by the Directors during their tenure as Directors
of the Company. Mr. Chintan Valia, Director of the Company retires by
rotation and being eligible offers himself for re-appointment.
Mrs. Khyati Valia has been appointed as an Additional Director of the
Company effective from 25th March, 2015. Mrs. Khyati Valia holds office
up to the date of this annual general meeting The Company has received
requisite deposit from a member of the Company proposing the
candidature of Mrs. Khyati Valia as a Director of the Company
In terms of the applicable provisions of the Companies Act, 2013 which
have been made effective from 1st April, 2014 shareholders' approval is
obtained in the last Annual General meeting held on 22nd September,
2014 for appointment of Mr. Pankaj Bhuta and Mr. Nishit Dhruva as
Independent Directors of the Company.
Brief profiles of the Directors to be appointed/re-appointed in the
ensuing annual general meeting of the members of the Company have been
provided as an annexure to the notice.
A statement on declaration given by independent directors
The Independent Director of the Company has submitted the declaration
of independence, as required under section 149 (7) of the Companies
Act, 2013 confirming that they all meet the criteria of independence as
required in sub section 6 of section 149 of the Companies Act, 2013.
Committees
The Company has five committees of the Board of Directors. These
committees are - Audit Committee, Nomination & Remuneration Committee,
Stakeholder Relationship Committee, Risk Management Committee and
Internal Finance Committee.
The terms of reference, composition and the details of the meetings
held during the year under review are provided in corporate governance
report.
Corporate Governance
A report on the corporate governance along with a certificate from the
auditors of the Company regarding the compliance of conditions of the
corporate governance as stipulated under Clause 49 of the listing
agreement is included and forms part of this annual report.
All Board members and senior management personnel of the Company have
affirmed compliance with code of conduct for the year 2014-2015. A
declaration to this effect certified by the Director of the Company is
also attached in the annual report.
The Director and the Chief Financial Officer (CFO) of the Company have
certified to the Board with regard to the financial statements and
other matters as required under clause 49 of the listing agreement and
the said certificate is attached in the annual report.
Management Discussion and Analysis
A detailed review of operations, performance and future outlook of your
Company and its businesses is given in the Management Discussion and
Analysis, which forms part of this annual report.
Corporate Social Responsibility
The provisions relating to the Corporate Social Responsibility are not
applicable to the Company.
Extract of the Annual Return
Extract of the Annual Return as required under section 92 (3) of the
Companies Act, 2013 read with Rule 12 of the Companies (Management and
Administration) Rules, 2014 in the prescribed Form MGT 9 is annexed and
marked as Annexure " II " and forms part of the annual report.
Statutory Auditors
At the annual general meeting held on 22nd September, 2014, M/s S. H.
Bathiya & Associates, Chartered Accountants, were appointed as
statutory auditors of the Company for the term of five years to hold
the office up the conclusion of 28th annual general meeting to be held
in the calendar year 2019. As required under first proviso of section
139 of the Companies Act, 2013, the appointment of auditors shall be
placed for ratification at every annual general meeting of the members
of the Company. Accordingly, appointment of M/s S. H. Bathiya &
Associates LLP Chartered Accountants as statutory auditors of the
Company is placed for ratification by the members of the Company. The
Company has received a certificate from the auditors confirming that if
they are appointed, their appointment will be in accordance with
section 141 of the Companies Act, 2013.
Auditors' Report
Your Directors refer to the observations made by the Auditors in their
report and wish to state that the notes forming part of accounts are
self explanatory and hence do not require any further comments.
Explanation on observations by auditors & secretary
There are no qualifications and/or adverse remarks in the Auditors
Report and the Secretarial Audit Report.
Secretarial Audit Report
As required under section 204 of the Companies Act, 2013, a Secretarial
Audit Report dated 2nd May, 2015 issued by Dinesh Kumar Deora, a
practicing Company Secretary is attached herewith and marked as
Annexure III.
Company's policy on directors appointment, remuneration etc. section
178 (3) and disclosure of details as provided in Rule 5 of the
Companies (Appointment & Remuneration of Managerial Personnel) Rules,
2014
Sr. Particulars Remarks
No.
1 Ratio of the remuneration of each Not applicable - as the
Director to the median remuneration of Company has no executive
the employees of the Company for Director on the Board.
the financial year
2 The percentage increase in
remuneration of each director,
CFO, CEO, CS or Directors - Not applicable
manager if nay, in the financial
year CFO - Rs. 11,03,477/-
CEO - Not applicable
CS - 8%
3 The percentage increase in the median
remuneration of the employees of 10%
the Company for the financial year
4 The number of permanent employees
on the rolls of the Company 8 (eight)
5 The explanation on the relationship
between average increase in During the year the Company
remuneration and Company performance has faired well as compared
to the previous year
6 Comparision of remuneration of the
KMP against the performance of the Remuneration to KMP Rs.
Company 22,59,018/-
Performance of the Company
for the year 2014-2015
Rs. 1.72 lakhs
7 Variations in the market
capitalization of the Company,
as at the date of closing date of
the current financial year and previous
financial year and percentage increase
over decrease in the market
quotations of the shares of the Company
in comparision to the rate at which
the Company came out with the last
public offer in case of listed
companies price earning ratio
and in case of unlisted companies,
the variations in the net worth of the
Company as at the close of the current
financial year and previous year
Market capitalization BSE
as on 31/03/2015 (RTinlakhs) 67 576 84
as on 31/03/2014 (Rs in lakhs) 9,530.67
price earnings ratio
as on 31/03/2015 449.81
as on 31/03/2014 7400.00
Market quotation of the Company's shares
as on 31/03/2015 Rs. 238.40
as on 31/03/2014 Rs. 74.00
8 Average percentile increase The Company has not paid any
already made in the salaries remuneration to any Directors
of employees other than managerial of the Company.
personnel in the last financial year
and its comparision with the
percentile increase in the
managerial remuneration and
justification thereof
and point out if there
are any exceptiona
l circumstances for increase
in the managerial remuneration
9 Comparision of the each of
as against the performance
the remuneration of the KMP
of the Company
Name of the KMP, Performance of the
Designation & Amount Company
of Remuneration paid (Rs. in lakhs)
Mr. Yashpal Madan
Manager Rs. 3,86,460/
(01/01/2015 - 31/03/2015
Mr. Muthukumar Ganesan 1.72
CFO Rs. 11,03,477/
Mr. Haroon Mansuri
Company Secretary
Rs. 7,69,081/
10 The key parameters for any The Company has not paid any
variable component of the variable component to
remuneration availed by the any Director and/or KMPs.
directors
11 The ratio of the remuneration Not Applicable
of the highest paid director to
that of the employees who are
not directors but receive
remuneration in excess of the
highest paid director during
the year and
12 Affirmation that the remuneration The Remuneration paid to the
is as per the remuneration policy KMPs is as per remuneration
of the Company policy of the Company.
Particulars of loans, guarantees and investments
Guarantees given during the year :
Date of Name of the Amount of transaction
Transactions person/entity (Rs. in lakhs)
to whom guarantee
is made
02/05/2014 Axis Bank Limited 500.00
11/08/2014 HDFC Bank Limited 5,000.00
20/10/2014 Axis Bank Limited 1,500.00
15/09/2014 Kotak Mahindra Bank Limited 15,750.00
29/01/2015 Yes Bank Limited 13,000.00
Period for Date of Board
which the resolution
guarantee is
given
One year 04/02/2014
One year 11/08/2014
One year 28/10/2014
One year 18/08/2014
One year 29/01/2015
Investments made during the year :
Date of Name of the Company
Transactions
06/06/2014 Fortune Credit Capital Limited
10/07/2014 Fortune Integrated Assets Finance Limited
19/08/2014 Rajesh Estates & Nirman Private Limited
27/08/2014 Antique Stock Broking Limited
29/09/2014 Fortune Integrated Assets Finance Limited
26/02/2015 Inga Capital Private Limited
05/03/2015 Inga Capital Private Limited
05/03/2015 Inga Capital Private Limited
Nature of Investments Quantity Amount
(Nos.) (Rs. in lakhs)
Equity shares 70,00,000 2,100.00
Premium on equity shares earlier issued -Â 2,475.00
Secured Non- Convertible Debentures 60 3,000.00
Equity shares 83,33,334 2,500.00
Equity shares 15,00,000 1,387.50
Equity shares 46,84,512 673.59
Equity shares 83,510 12.04
Optionally Convertible Debentures 5,00,000 50.00
Particulars of contracts or arrangements with related parties
The Company has entered in to transactions with related parties during
the financial year 2014-2015. All such transactions are on arm's length
basis and in the ordinary course of business and that the provisions of
section 188 of the Companies Act, 2013 are not attracted. Related Party
Transactions with the Directors and Key Managerial Personnel have been
entered in the normal course of business and that also to the extent of
payment of remuneration to the executive directors and KMPs. The
disclosure in form AOC - 2 is not required to be given. All related
party transactions are placed before the Audit Committee and Board
meetings on quarterly basis for review and approval.
Conservation of Energy, Technology Absorption
The information required under section 134 (3) (m) of the Companies
Act, 2013 read with the Companies (Disclosures of Particulars in the
Report of the Board of Directors) Rules, 2014 with respect to the
matters specified therein are not applicable to your company.
Foreign Exchange earnings and outgo - Nil
Transfer of unclaimed dividend to the Investor Education & Protection
Fund (IEPF)
As required under section 125 of the Companies Act, 1956 the Company
has transferred Rs. 1,71,169/- to the Investor Education and Protection
Fund (IEPF) during the year under review towards unclaimed dividend.
Directors' Responsibility Statement
Pursuant to Section 134 (5) of the Companies Act, 2013 read with rule 8
of the Companies (Accounts) Rules, 2014 to the best of their knowledge
and belief confirm that:
* in the preparation of the annual accounts, the applicable accounting
standards had been followed along with proper explanation relating to
material departures;
* the Directors had selected such accounting policies and applied
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company at the end of the financial year and of the profit and loss
of the Company for that period;
* the Directors had proper and sufficient care has been taken for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities; and
* the Directors had prepared annual accounts on a going concern basis.
* the Directors had laid down internal financial controls to be
followed by the Company and that such internal financial controls are
adequate and were operating effectively.
* The Directors had devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively.
Acknowledgement
Your Directors are pleased to place on record their deep appreciation
towards the sincere services and co-operation extended by employees of
the organization at all levels. They also wish to place on record their
gratitude for the confidence placed in them by the banks & financial
institutions they are associated with. Further, your Directors wish to
thank the various regulatory authorities, business associates and
clients for their valued co-operation.
On behalf of the Board
Chintan V. Valia Khyati C. Valia
Director Director
(DIN:05333936) (DIN:03445571)
Mumbai, 12th May, 2015
Fortune Financial Services (India) Limited
Registered Office:
Naman Midtown "A"Wing
21st Floor, Unit No. 2103, Senapati Bapat Marg
Elphinstone Raod, Mumbai 400 013
CIN: L65910MH1991PLC062067
Email:[email protected]
Website: www.fortune.co.in
Mar 31, 2014
Dear Shareholders
The Directors have pleasure in presenting the Twenty Third Annual
Report and Audited Accounts for the year ended 31st March, 2014.
Financial Results
(Rupees in lakhs)
Stand-alone Consolidated
2013-14 2012-13 2013-14 2012-13
Total Income 828.65 24776 6,101.48 6,289.02
Profit/(Loss) before
depreciation and tax (1.48) (412.58) 288.97 (1,152.01)
Depreciation 2.99 6.91 305.94 172.83
Profit/(Loss) before tax (4.47) (419.49) (16.97) (1,324.84)
Provision for tax
- Current tax - - 34.80 25.08
- Current tax relating to
prior years (Net) 0.13 5.16 1.80 (2.11)
- Deferred tax 19.46 (21.52) 70.64 (85.94)
Profit/(Loss) after tax (24.06) (403.12) (124.21) (1,261.87)
Balance brought forward
from the previous year 2,212.23 2,615.35 2,122.06 3,390.21
Balance available for
appropriations 2,188.17 2,212.23 1,997.85 2,128.34
Transfer to statutory
reserve - - 20.27 6.28
Balance carried to balance
sheet 2,188.17 2,212.23 1,977.58 2,122.06
Weighted average number of
equity shares
- Basic 1,28,79,290 1,28,79,290 1,28,79,290 1,28,79,290
- Diluted 1,30,32,715 1,28,79,290 1,30,32,715 1,28,79,290
Nominal value per share
(in rupees) 10.00 10.00 10.00 10.00
Basic and diluted
earnings per share
- Basic (in rupees) (0.19) (3.13) (0.96) (9.80)
- Diluted (in rupees) (0.18) (3.13) (0.95) (9.80)
Working Results
Standalone
The total income during the year 2013-14 stood at Rs. 828.65 lakhs as
against Rs. 247.76 lakhs during the previous year. The company has
incurred a loss of Rs. 4.47 lakhs as compared to a loss of Rs. 419.49
lakhs in the previous year. The loss after tax stood at Rs. 24.06 lakhs
as against a loss of Rs. 403.12 lakhs in the previous year. During the
year the total income increased considerably and also the losses have
been reduced to a substantial extent as against those in the previous
year.
Consolidated
The consolidated income during the year 2013-14 stood at Rs.6,101.48
lakhs as against Rs.6,289.02 lakhs during the previous year. The
consolidated income has been marginally reduced as compared to that of
the previous year. During the year under review, the company has on
consolidated basis incurred a loss of Rs. 124.21 lakhs after tax as
against a loss of Rs 1,261.87 lakhs in the previous year. The
consolidated loss after tax has been substantially reduced as compared
to that of the previous year.
Dividend
In view of the loss incurred by the company, the Directors do not
recommend any dividend for the financial year 2013-14.
Consolidated Financial Statements
The Board of Directors of your company at its meeting held on May 28,
2014 approved the consolidated financial statements for the financial
year 2013-14 in accordance with the Accounting Standard (AS-21) and
other applicable Accounting Standards issued by the Institute of
Chartered Accountants of India as well as Clause 32 of the listing
agreement, which includes financial information of all its
subsidiaries.
The Companies Act, 2013
The MCA vide its circular dated 4th April, 2014 has clarified that the
financial statements, Notes forming part of accounts, Directors report,
Auditors'' Report and other documents annexed thereto for the financial
year commencing prior to 1st April, 2014 shall be governed by the
applicable provisions of the Companies Act, 1956.
Surrender of Merchant Banking & Portfolio Management Services (PMS)
Registration Certificates During the year under review, the company has
surrendered the Merchant Banking and Portfolio Management Services
Registration Certificates to SEBI for cancellation. The company has
received confirmation for cancellation of Portfolio Management Services
Registration Certificate and a confirmation for Merchant Banking
Registration Certificates is awaited from SEBI.
Investment for acquisition of a company
During the year under review, the company has acquired 100% equity
shares of Antique Stock Broking Limited, whereby it became a subsidiary
of the company effective from 31st March, 2014.
Agreement for acquisition of a company
On 2nd May, 2014 the company has entered in to share purchase agreement
for acquisition of 100% stake of Inga Capital Private Limited, subject
to applicable regulatory approvals. Inga Capital Private Limited is
engaged in the business of Investment Banking and is a Merchant Banker
registered with SEBI.
Change in control
During the year, the then existing promoters have entered in to Share
Purchase Agreements with Sharyans Resources Limited, Fine Estates
Private Limited, Neostar Developers LLP and Aditya InfoTech Private
Limited to dispose of their shares held in the company. Acquisition of
the existing promoters'' shares by the Acquirers and persons acting in
concert with them triggered the mandatory requirements for Open Offer
under the provisions of the SEBI (Substantial Acquisition of Shares and
Takeover) Regulations, 2011. The Acquirers along with the persons
acting in concert with them have made the Open Offer to the public for
acquisition of equity shares of the company. The entire process of Open
Offer completed on 10th April, 2014, when payment was dispatched to
those public shareholders of the company who tendered their shares in
the open offer and from that date onwards, the existing promoters
ceased to be the promoters of the company and the Acquirers along with
persons acting in concert acquired control over the company and also
became its new promoters.
Corporate Governance
A report on the corporate governance along with a certificate from the
auditors of the company regarding the compliance of conditions of the
corporate governance as stipulated under Clause 49 of the listing
agreement is included and forms part of this annual report.
All Board members and senior management personnel of the company have
affirmed compliance with code of conduct for the year 2013-14. A
declaration to this effect certified by the Director of the company is
also attached in the annual report.
The Director and the Chief Financial Officer (CFO) of the company have
certified to the Board with regard to the financial statements and
other matters as required under clause 49 of the listing agreement and
the said certificate is attached in the annual report.
Management Discussion and Analysis
A detailed review of operations, performance and future outlook of your
company and its businesses is given in the Management Discussion and
Analysis, which forms part of this annual report.
Accounts of subsidiary companies
In terms of Circular No. 51/12/2007-CL III dated 8th February, 2011
issued by the Ministry of Corporate Affairs, a general exemption has
been granted under section 212(8) of the Companies Act, 1956 to
companies for attaching the accounts of subsidiaries in the annual
report subject to the conditions prescribed. In view of the above
referred circular, the Board of Directors of the company has in its
meeting held on 28th May, 2014 passed the required resolution for not
attaching the annual accounts and other reports of the subsidiary
companies with the annual report of the holding company for the
financial year ended 31st March, 2014.
However, the audited annual accounts of the subsidiary companies will
be made available for inspection by the members of the holding and
subsidiary companies at the registered office of the company and will
also be uploaded on the website of the company. The audited annual
accounts of the subsidiary companies will be made available to members
of the company and subsidiary companies, seeking such information at
any point of time.
The following information in aggregate for each of the subsidiary
companies are disclosed in annual report as stipulated in the circular
issued by the Ministry of Corporate Affairs, New Delhi:
(a) capital (b) reserves (c) total assets (d) total liabilities (e)
investments (f) turnover/total income (g) profit before taxation (h)
provision for taxation (i) profit after taxation and (j) proposed
dividend.
Statement pursuant to Section 212 (3) of the Companies Act, 1956
relating to the subsidiary companies is annexed as Annexure I and forms
part of the annual report.
Fixed Deposits
The company has not accepted any deposit from the public during the
year under review, within the meaning of Section 58A of the Companies
Act, 1956 and the rules made there under.
Committees
The company has four committees of the Board of Directors. These
committees are  Audit Committee, Remuneration/ Compensation Committee,
Shareholders Grievances Committee and Internal Finance Committee.
The terms of reference, composition and the details of the meetings
held during the year under review are provided in corporate governance
report.
The Remuneration/Compensation Committee has been renamed as Nomination
and Remuneration Committee.
The Shareholders Grievances Committee has been renamed as Stakeholders
Relationship Committee.
Internal Control Systems & their adequacy
The company has in place adequate systems of internal control that are
commensurate with its size and nature of the business and documented
procedures covering all financial and operating functions. The company
being in service industry, it has in place clear processes and
well-defined roles and responsibilities for its staff at various
levels. The Management has a defined reporting system, which
facilitates monitoring and adherence to the process and systems in
place.
Auditors
M/s. Nipun Sudhir & Associates Chartered Accountants (Firm Registration
No.: 0126168W), Statutory Auditors of the Company, holds office until
the conclusion of the ensuing Annual General Meeting have expressed
their unwillingness for re-appointment as Statutory Auditors of the
company at the ensuing Annual General Meeting. Your directors recommend
the appointment of M/s. S. H. Bathiya & Associates Chartered
Accountants (Firm Registration No.: 101046W) as Statutory Auditors of
the Company, subject to approval of the members at the ensuing Annual
General Meeting. The Company has received letter from M/s. S. H.
Bathiya & Associates, Chartered Accountants, to the effect that their
appointment, if made, would be within the prescribed limits under
section 141 of the Companies Act, 2013 and that they are not
disqualified for such appointment. The necessary resolution seeking
your approval for appointment of Statutory Auditors has been
incorporated in the Notice convening the Annual General Meeting.
Auditors'' Report
Your Directors refer to the observations made by the Auditors in their
report and wish to state that the notes forming part of accounts are
self explanatory and hence do not require any further comments.
Directors
During the year under review, Mr. H. R. Prasad, Mr. Ramesh Venkat, Mr.
Sohan Mehta and Mr. J. T. Poonja have resigned as Directors of the
company with effect from 30th May, 2013, 9th July, 2013, 15th July,
2013 and 7th October, 2013 respectively.
The Board of Directors wishes to take on record the valuable
contributions given by the Directors during their tenure as Directors
of the company.
Mr. Manoj Patel, Director of the company retires by rotation and being
eligible offers himself for re-appointment.
In terms of the applicable provisions of the Companies Act, 2013 which
have been made effective from 1st April, 2014 shareholders approval is
required for appointment of all Independent Directors of the company
viz. Mr. Pankaj Bhuta and Mr. Nishit Dhruva.
Brief profiles of the Directors to be appointed/re-appointed in the
ensuing annual general meeting of the members of the company have been
provided as an annexure to the notice.
The company has received declarations from all the independent
directors of the company confirming that they meet with the criteria of
independence as prescribed under section 149 (6) of the Companies Act,
2013 and Clause 49 of the listing agreement.
Appointment of Manager
The Board of Directors at their meeting held on 4th February, 2014 has
subject to the approval of the members in the ensuing annual general
meeting, appointed Mr. Yashpal Madan as a Manager under the Companies
Act for a period of three years commencing from 4th February, 2014 on
the terms and conditions has mutually agreed.
Preferential issue of equity shares
During the year under review the company has issued a Postal Ballot
Notice to the members of the company for obtaining their approval for
issue and allotment of 1,54,66,700 equity shares of Rs. 10 each on a
preferential basis to Fine Estates Private Limited, Aditya Infotech
Private Limited and Neostar Developers LLP along with the other
resolutions.
The results of the Postal Ballot were declared on 30th December, 2013
at the registered office of the company and accordingly the company has
on 11th April, 2014 issued 1,54,66,700 equity shares of Rs.10 each
fully paid at the premium of Rs. 65 per share. On issue of these
equity shares, the paid up capital of the company increased to
Rs.2,834.60 lakhs divided in to 2,83,45,990 equity shares of Rs.10 each
fully paid.
During the year under review the authorised capital of the company has
been increased from Rs. 15 crores divided in to 1,50,00,000 equity
shares of Rs.10 each to Rs.40 crores divided in to 4,00,00,000 equity
shares of Rs. 10 each.
Conservation of Energy, Technology Absorption
The information required under section 217 (1) (e) of the Companies
Act, 1956 read with the Companies (Disclosures of Particulars in the
Report of the Board of Directors) Rules, 1988 with respect to the
matters specified therein are not applicable to your company.
Particulars of employees
Statement under section 217 (2A) of the Companies Act, 1956 read with
the Companies (Particular of Employees) Rules, 1975, as amended is
annexed as Annexure II and forms part of the Annual Report.
Transfer of unclaimed dividend to the Investor Education & Protection
Fund (IEPF)
As required under section 205A (5) of the Companies Act, 1956 the
company has transferred Rs. 96,826 & Rs.1,68,629 to the Investor
Education and Protection Fund (IEPF) during the year under review on
24th October , 2013 and 18th March, 2014 respectively towards unclaimed
dividend.
Directors'' Responsibility Statement
Pursuant to Section 217 (2AA) of the Companies Act, 1956, to the best
of their knowledge and belief confirm that:
- in the preparation of the annual accounts, the applicable accounting
standards had been followed along with proper explanation relating to
material departures;
- appropriate accounting policies had been selected and applied
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the company at the end of the financial year and of the loss of the
company for that period;
- proper and sufficient care has been taken 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; and
.The annual accounts have been prepared on a going concern basis.
Acknowledgement
Your Directors are pleased to place on record their deep appreciation
towards the sincere services and co-operation extended by employees of
the organization at all levels. They also wish to place on record their
gratitude for the confidence placed in them by the banks & financial
institutions they are associated with. Further, your Directors wish to
thank the various regulatory authorities, business associates and
clients for their valued co-operation.
On behalf of the Board
Chintan V. Valia Pankaj R. Bhuta
Director Independent Director
Mumbai, 18th August, 2014
Mar 31, 2013
Dear Shareholders
The Directors have pleasure in presenting the Twenty Second Annual
Report and Audited Accounts for the year ended 31st March, 2013.
Financial Results
(Rupees in lakhs)
2012-13 2011-12 2012-13 2011-12
Stand-alone Consolidated
Total Income 247.761 57936 6,289.02 8,034.77
Profit / (loss) before
depreciation and tax (412.57) 72.35 (1,152.01) 124.59
Depreciation and amortization 6.91 11.46 172.83 243.49
Profit/(Loss) before tax (419.48) 60.89 (1,324.84) (118.90)
Provision for tax
- Current tax 11.80 25.08 147.15
- Current tax relating
to prior years (Net) 5.16 4.10 (2.11) 20.51
- Deferred tax 421.52) (3.10) (85.94) (65.41)
Profit/(loss) after tax (403.12) 48.09 (1,261.87) (221.15)
Balance brought forward
from the previous year 2,615.35 2,639.47 3,390.21 3,720.75
Balance available for
appropriations 2,212.23 2,687.56 2,128.34 3,499.60
Transfer to statutory
reserve 6.28 34.50
Dividend 64.40 64.40
Tax on dividend 7.81 10.49
Balance carried to
balance sheet 2,212.23 2,615.35 2,122.06 3,390.21
Weighted average
number of equity
shares
- Basic 1,28,79,290 12,683,674 79,290 12,683,674
- Diluted 1,28,79,290 12,683,674 1,28,79,290 674
Nominal value
per share (in rupees) 10.00 10.00 10.00 10.00
Basic and diluted
earnings per share
- Basic (in rupees) (3.13) 0.38 (9.80) (1.74)
- Diluted (in rupees) (3.13) 0.38 (9.80) (1.74)
Working Results
Standalone
The income during the year 2012-13 stood at Rs. 247.76 lakhs as against
Rs. 579.36 lakhs during the previous year. The company has incurred a
loss of Rs. 419.48 lakhs as compared to a profit of Rs. 60.89 lakhs in
the previous year. The loss after tax stood at Rs. 403.12 lakhs as
against a profit of Rs. 48.09 lakhs in the previous year.
Consolidated
The consolidated income during the year 2012-13 stood at Rs. 6,289.02
lakhs as against Rs. 8,034.77 lakhs during the previous year. During
the year under review the company has on consolidated basis incurred a
loss of Rs. 1,261.87 lakhs after tax as against a loss of Rs. 221.15
lakhs in the previous year.
Dividend
In view of the loss incurred by the company, the Board of Directors do
not recommend any dividend for the financial year 2012-2013.
Consolidated Financial Statements
The Board of Directors of your company at its meeting held on May 29,
2013 approved the consolidated financial statements for the financial
year 2012-13 in accordance with the Accounting Standard (AS-21) and
other applicable Accounting Standards issued by the Institute of
Chartered Accountants of India as well as Clause 32 of the listing
agreement, which includes financial information of all its
subsidiaries.
Corporate Governance
A report on the corporate governance along with a certificate from the
auditors of the company regarding the compliance of conditions of the
corporate governance as stipulated under Clause 49 of the listing
agreement forms part of this annual report.
All Board members and senior management personnel have affirmed
compliance with code of conduct for the year 2012-2013. A declaration
to this effect certified by the Chairman of the company is also
attached in the annual report.
The Executive Chairman and the Chief Financial Officer (CFO) of the
company have certified to the Board with regard to the financial
statements and other matters as required under Clause 49 of the listing
agreement and the said certificate is attached in the annual report.
Management Discussion and Analysis
A detailed review of operations, performance and future outlook of your
company and its businesses is given in the Management Discussion and
Analysis, which forms part of this annual report.
Issue of equity shares on exercise of ESOP options
Details of equity shares issued under ESOP, as also the disclosures in
compliance with Clause 12 of the SEBI (Employee Stock Option Scheme and
Employee Stock Purchase Scheme) Guidelines, 1999 are set out in
Annexure - I to this report.
The company has received a certificate from the Auditors of the company
certifying that the FFSIL ESOP Schemes 2006 & 2007 have been
implemented in accordance with the SEBI Guidelines and the resolution
passed at the annual general meeting held on September 23, 2006. The
Certificate would be placed at the annual general meeting for
inspection by members.
Subsidiary Companies
During the year under review, the company has formed two more
subsidiary companies, viz. Fortune Integrated Home Finance Limited and
Fortune Integrated Assets Finance Limited.
As per general circular issued by the Ministry of Corporate Affairs,
the balance sheet, statement of profit & loss and other documents of
the subsidiary companies for the year ended March 31, 2013 are not
attached with the accounts of the holding company. However, the annual
accounts of the subsidiary companies will be made available to
investors of the holding and subsidiary companies for inspection at the
registered office of the company and will also be uploaded on the
website of the company seeking such information at any point of time.
The following information in aggregate for each of the subsidiary
companies are disclosed in annual report as stipulated in the circular
issued by the Ministry of Corporate Affairs, New Delhi:
(a) capital (b) reserves (c) total assets (d) total liabilities (e)
details of investments (f) turnover/income (g) profit before tax (h)
provision for tax (i) profit after tax and
Statement pursuant to Section 212 (3) of the Companies Act, 1956
relating to the subsidiary companies is annexed as Annexure II and
forms part of the annual report.
Fixed Deposits
The company does not hold any public deposit and has not accepted any
deposit from the public during the year under review, within the
meaning of Section 58A of the Companies Act, 1956 and the rules made
there under.
Committees
The company has four committees of the Board of Directors. These
commktees are - Audit Committee, Remuneration / Compensation Committee,
Shareholders Grievances Committee and Internal Finance Committee.
The terms of reference, composition and the details of the meetings
held during the year under review are provided in corporate governance
report.
Internal Control Systems & their adequacy
The company has in place adequate systems of internal control that are
commensurate with its size and nature of the business and documented
procedures covering all financial and operating functions. The company
being in service industry, it has in place clear processes and
well-defined roles and responsibilities for its staff at various
levels. The Management has a defined reporting system, which
facilitates monitoring and adherence to the process and systems in
place.
Auditors
M/s. Nipun Sudhir & Associates, Chartered Accountants, Mumbai,
Statutory Auditors of the company hold office up to the conclusion of
this annual general meeting and are recommended for re-appointment. The
company has received a certificate under section 224 (1B) of the
Companies Act, 1956 stating that the appointment, if made, will be
within the limits as specified in that section.
Auditors'' Report
Your Directors refer to the observations made by the Auditors in their
report and wish to state that the notes forming part of accounts are
self explanatory and hence do not require any further comments.
Directors
The Board of Directors at their meeting held on 29th May, 2013 has
subject to the approval of the members in the ensuing annual general
meeting, re-appointed Mr. Nimish C Shah as a Managing Director of the
company for a period of three years commencing from 1st July, 2013.
During the year under review, Mr. Shailesh Haribhakti has resigned as
an Alternate Director of the company effective from 6th August, 2012.
Further during the year under review, Mrs. Sangeeta Poonja, Mr. Sanjay
Kothari and Mr. C R. Mehta have resigned as Directors of the company
with effect from 31st July, 2012, 5th February, 2013 and 7th February,
2013 respectively.
The Board of Directors wishes to take on record the valuable
contribution given by them during their tenure as Directors of the
company.
The Board of Directors through circular resolution on 25th March, 2013,
appointed Mr. Chintan Valia as an Additional Director of the Company.
Mr. Chintan Valia holds the office of Directorship till the ensuing
annual general meeting. The company has received deposit from the
member of .the company proposing the candidature of Mr. Chintan Valia
as a Director of the company.
Effective from 1st April, 2013, Mr. J. T Poonja has given up Executive
position in the Company. However, he continues to be the non-executive
Chairman of the company.
Mr. Ramesh Venkat Director of the company retires by rotation and
being eligible offers himself for re-appointment.
Conservation of Energy, Technology Absorption
The information required under section 217 (1)
Foreign Exchange earnings and outgo
(Rupees in Lakhs)
Particulars 2012 - 2013 2011 - 2012
Earnings:
Investment banking income 55.95 62.32
Outgo;
Travelling & business promotion 2.46 2.01
Miscellaneous expenses 2.04
Dividend 86.68
Particulars of employees
Statement under section 217 (2A) of the Companies Act, 1956 read with
the Companies (Particular of Employees) Rules 1975, as amended is
annexed as Annexure III and forms part of the Annual Report.
Investor Education & Protection Fund
During the year under review, the company has transferred of Rs. 68,180
& Rs. 85,075 being unclaimed dividends for the year ended 31st March,
2005 & 31st March, 2006 respectively to the Investor Education &
Protection Fund (IE&PF) as required under the applicable provisions of
the Companies Act, 1956.
Directors'' Responsibility Statement
Pursuant to Section 217 (2AA) of the Companies Act, 1956, to the best
of their knowledge and belief confirm that:
- in the preparation of the annual accounts, the applicable accounting
standards had been followed along with proper explanation relating to
material departures;
- appropriate accounting policies had been selected and applied
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the company at the end of the financial year and of the loss of the
company for that period;
- proper and sufficient care has been taken 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; and
- The annual accounts have been prepared on a going concern basis.
Acknowledgement
Your Directors are pleased to place on record their deep appreciation
towards the sincere services and co-operation extended by employees of
the organization at all levels. They also wish to place on record their
gratitude for the confidence placed in them by the banks & financial
institutions they are associated with. Further, your Directors wish to
thank the various regulatory authorities, business associates and
clients for their valued co-operation.
On behalf of the Board
J. T. Poonja
Chairman
Mumbai, May29, 2013
Mar 31, 2012
The Directors have pleasure in presenting the Twenty-First Annual
Report and Audited Accounts for the year ended 31st March, 2012.
Financial Results (Rupees in Lacs)
2011-12 2010-11 2011-12 2010-11
Stand-alone
Consolidated
Total Income 579.36 1,548.96 8,034.77 9,140.02
Profit before
depreciation and tax 72.35 821.99 124.59 2,079.31
Depreciation 11.46 21.92 243.49 285.47
Profit before tax 60.89 800.07 (118.90) 1,793.84
Provision for tax
- Current tax 11.80 189.20 1 47.15 672.80
- Current tax relating
to prior years (Net) 4.10 (1-93) 20.51 34.02
- Deferred tax (3.10) (2.46) (65.41) (49.80)
Profit after tax 48.09 615.26 (221.15) 1,136.82
Balance brought forward
from the previous year 2,639.47 2,332.93 3,720.75 3,117.85
Balance available
for appropriations 2,687.56 2,948.19 3,499.60 4,254.67
Transfer to
statutory reserve - - 34.50 102.50
Transfer to general
reserve - 61.33 - 142.10
Dividend 64.40 247.39 64.40 247.39
Tax on dividend 7.81 - 10.49 41.93
Balance carried to
balance sheet 2,615.35 2,639.47 3,390.21 3,720.75
Weighted average
number of equity
shares
- Basic 12,683,674 122,24,953 12,683,674 122,24,953
- Diluted 12,683,674 124,29,474 12,683,674 124,29,474
Nominal value per
share (in rupees) 10.00 10.00 10.00 10.00
Basic and diluted
earnings
per share
- Basic (in rupees) 0.38 5.03 (1.74) 9.30
- Diluted (in rupees) 0.38 4.95 (1.74) 9.15
Working Results Standalone
The income during the year 2011-12 stood at Rs.579.36 lacs as against
Rs.1,548.96 lacs during the previous year.
The profit before tax for the year was at Rs. 60.89 lacs as against
Rs.800.07 lacs in the previous year. The profit after tax stood at
Rs.48.09 lacs as against Rs.615.26 lacs in the previous year.
Consolidated
The consolidated income during the year 2011-12 stood at Rs.8,034.77
lacs as against Rs.9,140.02 lacs during the previous year.
During the year under review the company has on consolidated basis
incurred a loss of Rs. 221.15 after tax as against a profit of
Rs.1,136.82 lacs in the previous year.
Dividend
Your Directors have recommended dividend of Rs.0.50 per share (5%) on
128,79,290 equity shares of Rs.10 each fully paid for the financial
year 2011-12, subject to the approval of the shareholders at the
ensuing annual general meeting. The total outflow on account of equity
dividend will be Rs.64.40 lacs.
Consolidated Financial Statements
The Board of Directors of your company at its meeting held on May 30,
2012 approved the consolidated financial statements for the financial
year 2011-12 in accordance with the Accounting Standard (AS-21) and
other applicable Accounting Standards issued by the Institute of
Chartered Accountants of India as well as Clause 32 of the Listing
Agreement, which includes financial information of all its
subsidiaries.
Corporate Governance
A report on the corporate governance along with a certificate from the
auditors of the company regarding the compliance of conditions of the
corporate governance as stipulated under Clause 49 of the listing
agreement is included and forms part of this annual report.
All Board members and senior management personnel have affirmed
compliance with code of conduct for the year 2011-12. A declaration to
this effect certified by the Executive Chairman of the company is also
attached in the annual report.
The Executive Chairman and the Chief Financial Officer of the Company
have certified to the Board with regard to the financial statements and
other matters as required under clause 49 of the listing agreement and
the said certificate is attached in the annual report.
Management Discussion and Analysis
A detailed review of operations, performance and future outlook of your
company and its businesses is given in the Management Discussion and
Analysis, which forms part of this annual report.
Issue of equity shares on exercise of ESOP options
Details of equity shares issued under ESOP, as also the disclosures in
compliance with clause 12 of the SEBI (Employee Stock Option Scheme and
Employee Stock Purchase Scheme) Guidelines, 1999 are set out in
Annexure - I to this report.
The company has received a certificate from the Auditors of the company
certifying that the FFSIL ESOP Schemes 2006 & 2007 have been
implemented in accordance with the SEBI Guidelines and the resolution
passed at the annual general meeting held on September 23, 2006. The
Certificate would be placed at the annual general meeting for
inspection by members.
During the year under review, the company has granted 45,000 options to
employees of the subsidiary companies.
Capital
During the year under review the company has issued 6,00,000 equity
shares of Rs.10 each fully paid at a premium of Rs.70 per equity share
on conversion of 6,00,000 equity warrants of Rs.10/- each which were
issued on February 5, 2010. On issue of these shares, the paid up
capital of the company increased from Rs.1,227.93 lacs to Rs.1,287.93
lacs.
Issue of equity warrants
In nineteenth annual general meeting, held on August 28, 2010, the
company had obtained members' approval for issue of 4,00,000 equity
warrants of Rs.10 each at a premium of Rs.170 per warrant aggregating
to Rs.720.00 lacs on preferential basis to the promoters, relatives of
promoters and to a company in which relatives of a promoter are
interested. The Internal Finance Committee of the Board of Directors of
the company on September 13, 2010 allotted 4,00,000 equity warrants of
Rs.10 each which are convertible into one equity share of Rs.10 per
equity warrant within a period of eighteen months from the date of
allotment of the equity warrants on exercise of the option by the
allotters. These equity warrants were due for conversion latest by
March 12, 2012. None of the subscribers have exercised their options
for conversion of equity warrants in to equity shares of the company.
The initial amount of Rs.180.00 lacs received from the subscribers have
been forfeited and credited to the capital reserve account of the
company.
Subsidiary Companies
As per general circular issued by the Ministry of Corporate Affairs,
the balance sheet, statements of profit & loss and other documents of
the subsidiary companies for the year ended March 31, 2012 are not
attached with the accounts of the holding company. However, the annual
accounts of the subsidiary companies will be made available to
investors of the holding and subsidiary companies for inspection by the
members at the registered office of the company and will also be
uploaded on the website of the company.
The following information in aggregate for each of the subsidiary
companies are disclosed in annual report as stipulated in the circular
issued by the Ministry of Corporate Affairs, New Delhi:
(a) capital (b) reserves (c) total assets (d) total liabilities (e)
details of investments (f) turnover/income (g) profit before tax (h)
provision for tax (i) profit after tax and (j) proposed dividend.
Statement pursuant to Section 212 (3) of the Companies Act, 1956
relating to the subsidiary companies is annexed as Annexure II and
forms part of the annual report.
Fixed Deposits
The company has not accepted any deposit from the public during the
year under review, within the meaning of Section 58A of the Companies
Act, 1956 and the rules made there under.
Committees
The company has four committees of the Board of Directors. These
committees are - Audit Committee, Remuneration / Compensation
Committee, Shareholders Grievances Committee and Internal Finance
Committee.
The terms of reference, composition and the details of the meetings
held during the year under review are provided in corporate governance
report.
Internal Control Systems & their adequacy
The company has in place adequate systems of internal control that are
commensurate with its size and nature of the business and documented
procedures covering all financial and operating functions. The company
being in service industry, it has in place clear processes and
well-defined roles and responsibilities for its staff at various
levels. The Management has a defined reporting system, which
facilitates monitoring and adherence to the process and systems in
place.
Auditors
M/s. Nipun Sudhir & Associates, Chartered Accountants, Mumbai,
Statutory Auditors of the company hold office up to the conclusion of
this annual general meeting and are recommended for re-appointment. The
company has received a certificate under section 224 (1B) of the
Companies Act, 1956 stating that the appointment, if made, will be
within the limits as specified in that section.
Auditors' Report
Your Directors refer to the observations made by the Auditors in their
report and wish to state that the notes forming part of accounts are
self explanatory and hence do not require any further comments.
Directors
Mr. C. R. Mehta & Mr. Sohan C. Mehta Directors of the company, retire
by rotation and being eligible offer themselves for re- appointment.
Conservation of Energy, Technology Absorption
The information required under section 217 (1) (e) of the Companies
Act, 1956 read with the Companies (Disclosures of Particulars in the
Report of the Board of Directors) Rules, 1988 with respect to the
matters specified therein are not applicable to your company.
Foreign Exchange earnings and outgo
(Rupees in Lacs)
Particulars 2011-2012 2010-2011
Earnings:
Investment banking income 62.32 55.52
Outgo :
Travelling & business promotion 2.01 4.09
Miscellaneous expenses 2.04 -
Dividend 86.68 108.35
Particulars of employees
Statement under section 217 (2A) of the Companies Act, 1956 read with
the Companies (Particular of Employees) Rules 1975, as amended by the
Companies Amendment Act, 1988 is annexed as Annexure III and forms part
of the Annual Report.
Investor Education & Protection Fund
During the year under review, an amount of Rs.82,240/- lying in
unclaimed dividend for the year 2005 was transferred to the Investor
Education & Protection Fund.
Directors' Responsibility Statement
Pursuant to Section 217 (2AA) of the Companies Act, 1956, to the best
of their knowledge and belief confirm that:
- in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures;
- appropriate accounting policies had been selected and applied
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the company at the end of the financial year and of the profit of the
company for that period;
- proper and sufficient care has been taken 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; and
- the annual accounts have been prepared on a going concern basis.
Acknowledgement
Your Directors are pleased to place on record their deep appreciation
towards the sincere services and co-operation extended by employees of
the organization at all levels. They also wish to place on record their
gratitude for the confidence placed in them by the banks & financial
institutions they are associated with. Further, your Directors wish to
thank the various regulatory authorities, business associates and
clients for their valued co-operation.
On behalf of the Board
J. T. Poonja
Executive Chairman
Mumbai, May 30, 2012
Mar 31, 2011
Dear Members
The Directors are pleased to present their Twentieth Annual Report
together with the audited accounts on the business and operations of
the Company for the year ended March 31 2011.
Financial Highlights:
(Rupees in lacs)
2010-11 2009-10
Total Income 1,548.96 1,443.66
Profit before depreciation and Tax 821.99 1,011.21
Depreciation 21.92 19.91
Profit before tax 800.07 991.30
Provision for tax - Current tax 189.20 221.86
- Deferred tax (2.46) (15.71)
Profit after tax 613.33 785.15
Balance brought forward from the
previous year 2,332.93 1,946.39
Tax in respect of earlier years (Net) (1.93) 17.19
Balance available for appropriations 2,948.19 2,714.35
Transfer to General Reserve 61.33 78.51
Dividend 247.39 302.91
Balance carried to Balance Sheet 2,639.47 2,332.93
Weighted average number of equity shares
- Basic 12,224,953 11,248,799
- Diluted 12,429,474 11,470,992
Nominal value per share (in rupees) 10.00 10.00
Basic and diluted earnings per share
(in rupees)
- Basic 5.02 6.98
- Diluted 4.93 6.84
Transfer to Reserve :
The Board of Directors proposes the transfer a sum of Rs.61.33 lacs to
the general reserve out of the profits of the company.
Dividend:
Your Directors have recommended Dividend of Rs.2 per share (20%) on
122,79,290 equity shares of Rs.10 each for the financial year
2010-2011, subject to the approval of the shareholders at the ensuing
annual general meeting. The total outflow on account of equity dividend
will be Rs.247.39 lacs, including Rs.1.80 lacs dividend paid on 72,000
equity shares issued after March 31 2010 as approved by the
shareholders in the last annual general meeting.
Performance
Standalone Financial Performance:
For the financial year ended March 31 2011, your Company earned profit
before tax of Rs.800.07 lacs as against Rs.991.30 lacs in the previous
year. The profit after tax was at Rs.613.33 lacs as against Rs.785.15
lacs in the previous year. The total income for the year under
consideration was Rs.1,548.96 lacs and total expenditure was Rs.748.89
lacs.
Consolidated Financial Performance:
The consolidated income increased to Rs.9,140.02 lacs from Rs.7,226.43
lacs à growth of 26.49%. Net profit after tax of the group for the
current year is Rs.1,170.84 lacs as against Rs.1,606.34 lacs in the
previous year.
Consolidated Financial Statements:
The Board of Directors of your Company at its meeting held on May 26
2011, approved the Consolidated Financial Statements for the financial
year 2010-11 in accordance with the Accounting Standard (AS-21) and
other Accounting Standards issued by the Institute of Chartered
Accountants of India as well as Clause 32 of the Listing Agreement,
which include financial information of all its subsidiaries, are
provided in the Annual Report. The Consolidated Financial Statements
for the financial year 2010-11, are prepared in compliance with
applicable Accounting Standards and where applicable Listing Agreements
as prescribed by the Securities and Exchange Board of India.
Corporate Governance:
A report on the Corporate Governance along with a certificate from the
Auditors of the Company regarding the compliance of conditions of the
Corporate Governance as stipulated under Clause 49 of the Listing
Agreement is included and forms part of this Report.
All Board members and senior management personnel have affirmed
compliance with code of conduct for the year 2010-2011. A declaration
to this effect certified by the Executive Chairman of the Company is
also attached in the Annual Report.
The Executive Chairman and the Chief Financial Officer (CFO) of the
Company have certified to the Board with regard to the financial
statements and other matters as required under Clause 49 of the Listing
Agreement and the said certificate is attached in the Annual Report.
Management Discussion and Analysis:
A detailed review of operations, performance and future outlook of your
Company and its businesses is given in the Management Discussion and
Analysis, which forms part of this Report.
Issue of equity shares on exercise of ESOP options :
The Company had introduced stock options plan for its employees. The
details of options granted under Employee Stock Option (ESOP) Schemes
2006 & 2007 are annexed as Annexure I and forms part of this Report.
The Company has received a certificate from the Auditors of the Company
that the FFSIL ESOP Schemes 2006 & 2007 have been implemented in
accordance with the SEBI Guidelines and the resolution passed at the
Annual General Meeting held on September 23, 2006. The Certificate
would be placed at the Annual General Meeting for inspection by
Members.
During the year under review, the Company has allotted 162,890 equity
shares of Rs.10 each under the FFSIL ESOP Scheme 2006 upon exercise of
options by the employees.
Consequent to the allotment of equity shares under the FFSIL ESOP
Scheme 2006, the paid up equity capital of the Company has been
increased to Rs.1,227.93 lacs.
Issue of equity warrants :
In Nineteenth Annual General Meeting, held on August 28 2010, the
Company has obtained members approval for issue of 4,00,000 equity
warrants of Rs. 10 each at a premium of Rs. 170 per warrant aggregating
to Rs. 720.00 lacs on preferential basis to the promoters, relatives of
promoters and to a Company in which relatives of a promoter are
interested. The Internal Finance Committee of the Board of Directors of
the Company on September 13 2010, allotted 4,00,000 equity warrants
which are convertible into one equity share of Rs. 10 per equity
warrant issued within a period of eighteen months from the date of
allotment at the option of the allottees.
As on March 31 2011, none of the allottees have exercised their options
to convert their holding of equity warrants into equity shares of the
Company.
The amount received on allotment of equity warrants is as under :
(Rupees in lacs)
Date of allotments No. of equity Amount Amount received on
warrants issued application
July 04 2008 ( @ ) 4,00,000 880.00 88.00
February 05 2010 6,00,000 480.00 120.00
September 13 2010 4,00,000 720.00 180.00
Total 14,00,000 2,080.00 388.00
( @ ) Amount forfeited
Subsidiary Companies:
The Company has availed the exemption from the Ministry of Corporate
Affairs, New Delhi, exempting the Company for compliance of Section 212
(1) of the Companies Act, 1956 for the year ended March 31 2011.
Accordingly, the accounts of the subsidiary companies and other
documents are not being attached with the annual report of the Company.
However, the annual accounts of the subsidiary companies will be made
available to the investors of the holding and subsidiary companies and
will also be kept for inspection by the members at the Registered
Office of the Company and will also be uploaded on the website of the
Company.
The following information in aggregate for each of the subsidiary
companies are disclosed in annual report as stipulated in the letter
issued by the Ministry of Corporate Affairs, New Delhi:
(a) capital (b) reserves (c) total assets (d) total liabilities (e)
details of investments (f) turnover/income (g) profit before tax (h)
provision for tax (i) profit after tax and (j) proposed dividend.
Statement pursuant to Section 212 (3) of the Companies Act, 1956
relating to the subsidiary companies is annexed as Annexure II and
forms part of the Annual Report.
During the year under review, the Company has invested a sum of
Rs.1,650.00 lacs in 55,00,000 equity shares of Rs.10 each fully paid at
a premium of Rs.20 per share with Fortune Credit Capital Limited.
Fixed Deposits:
The Company has not accepted any deposit from the public during the
year under review, to which the provisions of Section 58A of the
Companies Act, 1956 and the rules made there under would apply.
Committees:
The Company has four committees of the Board of Directors of the
Company. These committees are à Audit Committee,
Remuneration/Compensation Committee, Shareholders Grievances Committee
and Internal Finance Committee.
The terms of reference, composition and the details of the meetings
held during the year under review are provided in Corporate Governance
Report.
Internal Control Systems & their adequacy:
The Company has in place adequate systems of internal control that are
commensurate with its size and nature of the business and documented
procedures covering all financial and operating functions. The Company
being a service industry, it has in place clear processes and
well-defined roles and responsibilities for its staff at various
levels. The Management has a defined reporting system, which
facilitates monitoring and adherence to the process and systems in
place.
Auditors:
M/s. Nipun Sudhir & Associates, Chartered Accountants, Mumbai,
Statutory Auditors of the Company hold office up to the conclusion of
this Annual General Meeting and are recommended for reappointment. The
Company has received a certificate under Section 224 (1B) of the
Companies Act, 1956 stating that the appointment, if made, will be
within the limits as specified in that section.
Auditors' Report:
Your Directors refer to the observations made by the Auditors in their
report and wish to state that the notes forming part of accounts are
self explanatory and hence do not require any further comments.
Directors:
Mr. H. R. Prasad and Mr. Manoj G. Patel, Directors of the Company,
retire by rotation and being eligible offer themselves for re-
appointment.
Conservation of Energy, Technology Absorption:
The provision 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 are not applicable to your Company since your
company is not under the scheduled industry pursuant to the said rules.
Foreign Exchange earnings and outgo:
(Rupees in lacs)
Particulars 2010-2011 2009-2010
Earnings :
Subscription for issue of shares à 800.08
Investment & Merchant Banking 55.52 230.73
Outgo :
Foreign Travelling 3.98 2.32
Dividend 108.35 36.67
Particulars of employees:
Statement under Section 217 (2A) of the Companies Act, 1956 read with
the Companies (Particular of Employees) Rules 1975, as amended by the
Companies Amendment Act, 1988 is annexed as Annexure III and forms part
of the Annual Report.
Investor Education & Protection Fund:
During the year under review, no amount of unclaimed dividend was due
for transfer to the Investor Education & Protection Fund. Directors'
Responsibility Statement:
Pursuant to Section 217 (2AA) of the Companies Act, 1956 the Directors
to the best of their knowledge and belief confirm that:
- in the preparation of the annual accounts, the applicable accounting
standards had been followed along with proper explanation relating to
material departures;
- appropriate accounting policies had been selected and applied
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company at the end of the financial year and of the profit of the
Company for that period;
- proper and sufficient care has been taken 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; and
- the annual accounts have been prepared on a going concern basis.
Acknowledgement:
The Management of your Company is grateful to its customers, regulatory
authorities, vendors, shareholders, business associates, bankers,
financial institutions for their continued support. The Directors wish
to thank and place on record their appreciation for all employees at
all levels for their hard work, co-operation, and support towards
growth of the Company.
On behalf of the Board
J. T. Poonja
Mumbai, May 26 2011 Executive Chairman
Mar 31, 2010
The Directors are pleased to present their Nineteenth Annual Report
together with the audited accounts on the business and operations of
the Company for the year ended March 31 2010. The summarized financial
results of the Company are given below:
Financial Highlights :
(Rupees in Lacs)
2009-10 2008-09
Total Income 1,443.66 766.02
Profit before depreciation and tax 1,011.21 321.77
Depreciation & Amortisation 19.91 21.24
Profit before tax 991.30 300.53
Provision for taxes - Current tax 221.86 63.00
- Deferred tax (1.5.71) 1.85
- Fringe benefits tax - 3.35
Profit after tax 785.15 232.33
Balance
brought forward from previous year 1,946.39 1,859.80
Tax in respect of
earlier years (Net) 17.19 0.41
Balance available for appropriations 2,714.35 2,091.72
Transfer to General Reserve 78.51 23.23
Dividend 302.91 122.10
Balance carried to Balance Sheet 2,332.93 1,946.39
Weighted average number of equity shares
-Basic 11,248,799 10,816,712
-Diluted 11, 470,992 11,050,110
Nominal value per share (in rupees) 10.00 10.00
Basic and diluted earnings per share
(in rupees)
- Basic 6.98 2.15
-Diluted 6.84 2.10
Performance Review :
The efforts of the Company to expand its diversified product offerings,
geographical presence, new empanelment of customers is driving the
growth as projected. The Company continued to see profitable growth
during the year under review across its all business operations.
For the year ended March 31 2010, the Company on standalone basis
earned a total income of Rs. 1443.66 lacs, an increase of 88% over
previous years Rs. 766.02 lacs.
The net profit of the Company for the year increased to Rs. 785.15 lacs
(54% of the total income) as compared to Rs.232.33 lacs (30% of total
income) in the previous year.
Fortune did well in achieving business growth across all its product
offerings while continued to improve its operational profitability by
conserving costs and creating efficiencies. Fortune continues to focus
on acquiring new customers while increasing its level of operations
with existing customers, post high growth in all spheres it operates.
The broad range of services enables Fortune to provide end-to-end
services to its clients and able to provide comprehensive and high
value adding services to its clientele.
Consolidated Results :
As required under Accounting Standard 21 (AS 21) on Consolidated
Financial Statements issued by the Institute of Chartered Accountants
of India (ICAI), the audited Consolidated Financial Statements for the
year ended March 31 2010 together with Auditors Report thereon are
provided in the Annual Report.
As per the Consolidated Accounts, the Company has earned the total
income of Rs. 7,226.43 lacs, an increase of 71% over previous years
Rs. 4,208.31 lacs.
The Consolidated net profit for the year stood at Rs. 1,606.34 lacs
(22% of the total income) as compared to the net loss of Rs.65.06 lacs
in the previous year.
Dividend :
The Directors recommend a dividend of Rs. 2.50 per equity share of Rs.
10/- each for the financial year ended March 31 2010 on 12,116,400
equity shares of Rs. 10/- each of the Company. The dividend if declared
at the ensuing Annual General Meeting, will involve a payout of Rs.
302.91 lacs and will be payable to those members whose names appear in
the Register of Members as on date of the Annual General Meeting.
Future Prospects :
After the annus horribilis of FY09, the financial markets staged a
remarkable turnaround in FY10 on account of the ongoing stabilization
of the global financial and economic systems and consequent pick-up in
risk appetite across the various financial market participants. The
Indian securities markets were a significant beneficiary of the global
trend of bull run in financial markets.
There was significant activity in capital raising activity in the
domestic markets. In 11 months from April 2009 to February 2010, there
were 117 issues raising Rs. 83,240 crore from primary market compared
to Rs. 14,268 crore raised through 44 issues during April 2008 to
February 2009. Amount raised through QIP during 11 months were
significantly higher at Rs.41,133 crore compared to meager Rs.189 crore
done during previous financial year. Thus there was a substantial
increase in risk appetite of institutional players.
There were 38 public issues during April-February 2010 raising
Rs.37,125 crore compared to 21 public issues raising Rs.2,082 crore
during the previous year. There were total 21 Rights issue collecting
Rs. 4,982 crore compared to collecting of Rs. 11,997 crore through 21
Rights issues in the previous year. Thus investors were welcoming new
business ideas and did prefer to support existing businesses.
Increased activity in the secondary market improved the flow of funds
into mutual fund investments also. Equity oriented mutual funds have
seen inflow of Rs.182,811 crore in 11 months April-February 2010
compared to Rs.38,210 crore recorded in previous year. Many of the
corporate projects that had been deferred due to slowdown in demand
last year have witnessed resumption.
Most market participants expect that the current rally will continue in
the near-term. The continued growth of the markets will be dependent on
the aggregate global macro-environment (especially the acceleration of
growth momentum in face of the ongoing normalization of fiscal and
monetary policies in the developed world) and governments initiative
to divest stake in various PSUs and invest in infrastructure and
urbanization projects.
Share Capital :
a) Preferential allotment :
Pursuant to the consent granted by the members through Postal Ballot,
the results of which were declared on January 11 2010, the Internal
Finance Committee in its meeting held on February 5 2010 allotted
10,00,000 equity shares of Rs. 10/- each at a premium of Rs. 70/- per
share aggregating to Rs. 800.00 lacs to the strategic investors and
6,00,000 equity warrants of Rs. 10/- each at a premium of Rs. 70/- per
warrant convertible in to one equity share of Rs. 10/- each at a
premium of Rs. 70/- per share, aggregating to Rs. 480.00 lacs on
preferential basis to the promoters, relatives of promoters and a
Company in which the relatives of promoter are interested.
The 10,00,000 fresh equity shares rank pari-passu with the existing
equity shares of the Company with respect to the voting rights and
dividend entitlement. The preferential allotment of equity shares and
equity warrants has not resulted in to any change in the composition of
Board of Directors, management or control of the Company.
The holders of equity warrants have an option to apply for and obtain
one equity share of Rs. 10/- each at a premium of Rs. 70/- per share
for each equity warrant allotted to them. The option is exercisable
with in a period of 18 months from the date of allotment of equity
warrants.
The Board of Directors take this opportunity to thank the strategic
investors who have shown confidence in the Management of the Company by
investing in capital of the Company.
In July 2008, the Company had allotted 4,00,000 equity warrants of Rs.
10/-each at a premium of Rs. 210/-per warrant convertible in to one
equity share of Rs. 10/-each at a premium of Rs. 210/- per share,
aggregating to Rs. 880.00 lacs on preferential basis to the promoters,
relatives of promoters and a Company in which the relatives of promoter
are interested. Such equity warrants were due for conversion in January
2010. The holders of these equity warrants did not exercise their
options to convert their holding in to the equity shares of the
Company, hence the amount of Rs. 88.00 lacs received by the Company on
allotment of the equity warrants has been forfeited and credited to
Capital Reserve.
b) Employees Stock Option Scheme (ESOP) :
The Company had introduced stock options plan for employees. The
statement as required under Clause 12 of the SEBI (ESOP and ESPS)
Guidelines, 1999 is annexed as Annexure I and forms part of the Annual
Report.
The Company has received a certificate from the Auditors that the FFSIL
ESOP Scheme 2006 has been implemented in accordance with the SEBI
Guidelines and the resolution passed at the Annual General Meeting held
on September 23 2006. The Certificate would be placed at the Annual
General Meeting for inspection by Members.
During the year under review, the Company has allotted 16,400 equity
shares of Rs. 10/- each under the FFSIL ESOP Scheme.
Consequent to the preferential allotment of equity shares on
preferential basis and allotment of equity shares under the FFSIL ESOP
Scheme 2006, the paid up equity capital of the Company has been
increased to Rs. 1,211.64 lacs divided into 1,21,16,400 equity shares
of Rs. 10/- each fully paid up.
Subsidiary Companies :
Your Company has received an exemption from the Ministry of Corporate
Affairs, New Delhi, exempting the Company for compliance of Section 212
(1) of the Companies Act, 1956 for the year ended March 31 2010.
Accordingly, the accounts of the subsidiary companies are not attached
with the annual report of the Company. However, the annual accounts of
the subsidiary companies will be made available to the investors of the
holding and subsidiary companies and be kept for inspection by the
members at the Registered Office of the Company and will also be
uploaded on the website of the Company.
The information in aggregate for each of the subsidiary companies is
disclosed in annual report as stipulated in the letter issued by the
Ministry of Corporate Affairs, New Delhi.
Statement pursuant to Section 212 (3) of the Companies Act, 1956
relating to the subsidiary companies is annexed as Annexure II and
forms part of the Annual Report.
During the year under review, the Company has invested a sum of Rs.
862.00 lacs in subsidiary companies detailed as under.
a) 5,15,000 equity shares of Rs.10/- each fully paid at a premium of
Rs.70/- per share in Fortune Equity Brokers (India) Limited aggregating
to Rs.412.00 lacs;
b) 15,00,000 equity shares of Rs.10/- each fully paid at a premium of
Rs.20/- per share in Fortune Credit Capital Limited aggregating to
Rs.450.00 lacs.
Fixed Deposits :
The Company has not accepted any deposit from the public during the
year under review, to which the provisions of Section 58A of the
Companies Act, 1956 and the rules made there under would apply.
Corporate Governance :
A report on the Corporate Governance along with a certificate from the
Auditors of the Company regarding the compliance of conditions of the
Corporate Governance and also the Management Discussion and Analysis as
stipulated under Clause 49 of the Listing Agreement are forming part of
the Annual Report.
All Board members and senior management personnel have affirmed
compliance with code of conduct for the year 2009-2010. A declaration
to this effect certified by the Executive Chairman of the Company is
also attached in the Annual Report.
The Executive Chairman and the Chief Financial Officer (CFO) have
certified to the Board with regard to the financial statements and
other matters as required under Clause 49 of the Listing Agreement and
the said certificate is given in the Annual Report.
Committees :
The Company has four committees of the Board of Directors. These
committees are - Audit Committee, Remuneration/ Compensation Committee,
Shareholders Grievances Committee and Internal Finance Committee.
The terms of reference, composition and the details of the meetings
held during the year under review are provided in Corporate Governance
Report.
Internal Control Systems & their adequacy :
The Company has in place adequate systems of internal control that are
commensurate with its size and nature of the business and documented
procedures covering all financial and operating functions. The Company
being a service industry, it has in place clear processes and
well-defined roles and responsibilities for its staff at various
levels. The management has a defined reporting system, which
facilitates monitoring and adherence to the process and systems in
place.
Auditors :
M/s. Nipun Sudhir & Associates, Chartered Accountants, Mumbai,
Statutory Auditors of the Company hold office up to the conclusion of
this Annual General Meeting and are recommended for reappointment. The
Company has received a certificate under Section 224 (1B) of the
Companies Act, 1956 stating that the appointment, if made, will be
within the limits as specified in that section.
Directors :
The Board of Directors appointed Mr. Sanjay Kothari as an Additional
Director on September 25 2009. Mr. Kothari holds the office of
Directorship till the ensuing Annual General Meeting. The Company has
received deposit from the member of the company proposing the
candidature of Mr. Kothari as a Director of the Company.
Mr. Gaurang A. Patel has resigned as a Director of the Company
effective from November 1 2009. The Board wishes to place on record its
appreciation for the valuable contribution made by Mr. Patel during his
tenure as a Director of the Company.
Mr. Ramesh Venkat and Mrs. Sangeeta J. Poonja, Directors of the
Company, retire by rotation and being eligible offer themselves for
re-appointment.
Conservation of Energy, Technology Absorption :
The provision 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 are not applicable to your Company since your
company is not covered under the scheduled industry pursuant to the
said rules.
Foreign Exchange earnings and outgo :
(Rupees in Lacs)
Particulars 2009-2010 2008-2009
Earnings :
Subscription for issue of shares 800.08 2,436.75
Investment & Merchant Banking income 230.73 85.82
Outgo :
Foreign Travelling / Business Promotion 2.32 6.66
Subscription - 4.45
Dividend 36.67 49.15
Particulars of employees :
Statement under Section 217 (2A) of the Companies Act, 1956 read with
the Companies (Particular of Employees) Rules 1975, as amended by the
Companies Amendment Act, 1988 is annexed as Annexure III and forms part
of the Annual Report.
Investor Education & Protection Fund :
During the year under review, no amount of unclaimed dividend was due
for transfer to the Investor Education & Protection Fund. Directors
Responsibility Statement :
Pursuant to Section 217 (2AA) of the Companies Act, 1956 the Directors
to the best of their knowledge and belief confirm that.
- in the preparation of the annual accounts, the applicable accounting
standards had been followed alongwith proper explanation relating to
material departures.
- appropriate accounting policies had been selected and applied
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company at the end of the financial year and of the profit of the
Company for that period.
- proper and sufficient care had been taken 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; and
- the annual accounts had been prepared on a going concern basis.
Acknowledgement :
The Management of your Company is grateful to customers, regulatory
authorities, vendors, shareholders, business associates, companys
bankers, Financial Institutions, Government authorities, etc. for their
continued support and co-operation. The Directors appreciate and value
the contributions made by every member of Fortune family towards
growth of the Company.
On behalf of the Board
J. T. Poonja
Mumbai, May 20 2010 Executive Chairman