Mar 31, 2022
Your Directors have pleasure in presenting their 28th Annual Report of the Company for the financial year ended 31st March, 2022.
(''in Crores) |
||||||||
Particulars |
Standalone |
Consolidated |
||||||
2021-22 |
2020-21 |
Change (%) |
2021-22 |
2020-21 |
Change (%) |
|||
Total Revenue |
482.54 |
406.08 |
18.83 |
501.12 |
426.81 |
17.41 |
||
Total Expenditure |
291.44 |
253.80 |
14.83 |
298.82 |
261.64 |
14.21 |
||
Profit before tax |
191.11 |
152.28 |
25.50 |
202.31 |
165.18 |
22.48 |
||
Total Tax Expenses |
48.12 |
38.16 |
26.10 |
51.61 |
41.99 |
22.91 |
||
Share of Profit/loss in Associate |
- |
- |
- |
3.72 |
3.32 |
12.04 |
||
Profit for the year |
142.98 |
114.12 |
25.29 |
154.42 |
126.51 |
22.06 |
||
Total Comprehensive Income |
142.70 |
114.41 |
24.73 |
154.12 |
126.80 |
21.54 |
||
Financial Highlights of Subsidiaries |
||||||||
Company Name |
FY 2021-22 Total income |
FY 2021-22 Total Expense |
FY 2021-22 Profit / Loss for the year |
|||||
Indian Subsidiaries ('' in crores) |
||||||||
Geojit Technologies (P) Ltd. |
25.83 |
12.53 |
9.81 |
|||||
Geojit Credits (P) Ltd |
1.97 |
1.90 |
0.06 |
|||||
Geojit Techloan (P) Limited |
0.10 |
0.02 |
0.06 |
|||||
Overseas Subsidiaries, joint ventures & Associates ('' in lakhs) |
||||||||
Barjeel Geojit Financial Services LLC |
1215 |
864 |
351 |
|||||
Qurum Business Group Geojit Securities LLC |
316 |
241 |
75 |
|||||
BBK Geojit Securities KSC |
64 |
43 |
21 |
Note :
Consolidation of Barjeel, and BBK (Joint ventures) is on "equity methodâ. Therefore the consolidated profit / (loss) is directly adjusted to the carrying amount of investments in the books. (i.e. The total income and total expense do not directly get consolidated. Only the share of GFSL in total gain / (loss) is consolidated into P&L.)
On a standalone basis, your Company has recorded a total income of '' 482.54 crores for the financial year ended 31st March, 2022. The profit before tax is '' 191.11 crores and the net profit after tax is '' 142.98 crores. Basic earnings per share work out to '' 5.99 compared to '' 4.79 in the previous year.
On a consolidated basis your company earned a total income of '' 501.12 crores for the financial year, profit before exceptional item and tax of '' 202.31 crores and a net profit of '' 154.42 crores.
A detailed analysis of the performance is given in the Management Discussion and Analysis Report appended hereto.
The Board at their meeting held on 29th April 2022 has recommended a final dividend of '' 3.00 per equity share for the financial year 2021-22. The proposal is subject to the approval of the shareholders of the Company at its ensuing Annual General Meeting to be held on Friday, July 15, 2022.
Consolidated Financial Statement
The Consolidated Financial Statements of the Company are prepared in accordance with Section 129 of the Companies Act, 2013 read with relevant Accounting Standards issued by the Institute of Chartered Accountants of India and forms part of this Annual Report.
State of Companyâs Affairs and Operations
Through in-depth research and accrued knowledge of capital markets, the Company helps investors to channelise their household savings into the capital market and building wealth over the long term. It offers a wide range of products and services to facilitate customers grow their financial assets. The Company''s advanced trading and investment platforms, domain expertise and wide footprint distinguishes it from its peers. It is focusing on future-proofing the business by gradually increase the ratio of our non-brokerage income. This is aimed at diversifying and de-risking the business from pure brokerage income by adding new sources of revenue through mutual funds and insurance distribution, and essentially making the non-brokerage income cover the fixed costs. To further reap the benefits of digitalisation and power stronger return on investment, it continued to make IT-related investments during the year. Currently, 86% of its new customer addition is through Aadhar-based digital onboarding, whereas 83% of the trading volume is digital, helping the customers trade from the comfort and safety of their homes.
During the year under review, the paid-up share capital of the Company increased from '' 23,83,74,115/-divided into 23,83,74,115 equity shares of '' 1/- each to '' 23,89,96,515/- divided into 23,89,96,515 equity shares of '' 1/- each, consequent to the issue of 6,22,400 equity shares to employees upon exercise of stock options under Employee Stock Option Scheme-2016 & Employee Stock Option Scheme-2017 of the Company.
Subsidiaries, Joint Ventures and Associate Companies
As on 31st March, 2022, following are the subsidiaries/ associates/joint ventures of the Company:
Subsidiaries:
i. Geojit Credits Private Limited
ii. Geojit Investment Services Limited
iii. Geojit Technologies Private Limited
iv. Geojit Techloan Private Limited
v. Geojit IFSC Limited
vi. Qurum Business Group Geojit Securities LLC
Joint Ventures:
i. Barjeel Geojit Financial Services L.L.C
ii. Aloula Geojit Capital Company
Associates:
i. BBK Geojit Securities KSC
The Company had filed a Scheme of Merger by Absorption of Geojit Investment Services Limited, with Geojit Financial Services Limited, with Kochi Bench of Hon''ble National Company Law Tribunal. Hon''ble Tribunal approved the said scheme vide its order dated 16.03.2022. Geojit Investment Services Limited is a wholly owned subsidiary of Geojit Financial Services Limited.
Directors and Key Managerial Personnel
I. Inductions
The following appointments were made during the year
⢠Mr. M P Vijay Kumar as Non-Executive
Independent Director with effect from
November 16, 2021
⢠Mr. Sebastian Morris as Non-Executive
Independent Director with effect from
November 16, 2021
⢠Mr. Jones George as Whole-time (Executive) Director with effect from November 16, 2021
⢠Ms. Mini Nair as Chief Financial Officer with effect from April 05, 2021
II. Re-appointments
As per the provisions of the Companies Act, 2013, Mr. Punnoose George (DIN: 00049968), retires by rotation at the ensuing Annual General Meeting and being eligible seeks re-appointment. The Board recommends his re-appointment.
III. Retirements and Cessation
There was no cessation of Directors during the year 2021-22.
Mr. Sanjeev Kumar Rajan resigned from the post of Chief Financial Officer with effect from April 04, 2021.
Annual Evaluation of the Board, its Committee and Individual Directors
Pursuant to the provisions of Companies Act, 2013 and the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, the Board of Directors has carried out an annual evaluation of its own performance, its Committee and individual Directors. Assessment for evaluation of performance of Board, its committees and individual directors were prepared based on various aspects, which among other parameters, included composition of the Board and its Committees, conducting of Board Meetings, effectiveness of its governance practices etc.
Further the Independent Directors, at their meetings held during the year, reviewed the performance of the Board, the non-Independent Directors and the Chairman.
Code of Conduct for Directors & Senior Management
The Board has adopted a Code of Conduct for Directors & Senior Management in accordance with the provisions of the Companies Act, 2013 and Regulation 17(5) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Code also incorporates the duties of Independent Directors. All the Board Members and Senior Management Personnel have confirmed compliance with the Code. A declaration to that effect signed by the Managing Director forms part of the Corporate Governance Report. A copy of the Code has been put on the Company''s website.
Familiarization Programme for Independent Directors
The Independent Directors of the Company are persons of integrity, possessing rich experience and expertise in the field of corporate management, finance, capital market, economic and business information. The company has issued appointment letter to the Independent Directors setting out in detail, the terms of appointment, duties, roles & responsibilities and expectations of the Independent Director. The Board of Directors has complete access to the information within the Company. Presentations are regularly made to the Board of Directors / Audit Committee / Nomination & Remuneration Committee / Corporate Social
Responsibility Committee / Stakeholders'' Relationship Committee on various related matters, where Directors have interactive sessions with the Management.
The details on the Company''s familiarization programme for Independent Directors can be accessed at https://www.geoiit.com/investor-relations
Declaration by Independent Directors
The Company has received necessary declaration from each Independent Director under Section 149(7) of the Companies Act, 2013 that he/ she meets the criteria of Independence laid down in Section 149(6) of the Companies Act, 2013 and in terms of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.
Directorsâ Responsibility Statement
Pursuant to requirement of Section 134(3)(c) and Section 134(5) of the Companies Act, 2013 and based on the representations received from the Management, your Directors state that:
i. i n the preparation of the annual accounts for the financial year ended March 31, 2022, the applicable accounting standards have been followed and there are no material departures from the same;
ii. the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2022 and of the profit of the company for the year ended on that date;
iii. the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;
iv. the Directors have prepared the annual accounts on a going concern basis;
v. the Directors have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively; and
vi. the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
Policy Relating to Directorsâ Appointment
The Company with the approval of Nomination & Remuneration Committee has adopted a policy on Board diversity and the recommendation of candidature for Board appointment will be based on merit that complements and expands the skills, experience and expertise of the Board as a whole, taking into account gender, age, professional experience and qualifications, cultural and educational background, and any other factors that the Board might consider relevant and applicable from time to time towards achieving a diverse Board.
Managementâs Discussion & Analysis
The Management''s Discussion and Analysis is given separately and forms part of this Annual Report.
Business Responsibility Report
The Ministry of Corporate Affairs, Government of India, in July 2011, came out with the ''National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business''. These guidelines contain certain principles which are to be adopted by companies as part of its business practices and disclosures regarding the steps taken to implement these principles through a structured reporting format, viz., Business Responsibility Report. Pursuant to Regulation 34(2) (f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has prepared the Business Responsibility Report which forms part of this Annual Report.
Corporate Governance
Your Company has complied with the Corporate Governance requirements under Companies Act, 2013 and as stipulated under the provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. A detailed Report on Corporate Governance forms part of this Annual Report. A certificate of Statutory Auditor confirming compliance of the Corporate Governance requirements by the Company is attached to the Report on Corporate Governance.
Annual Return
Pursuant to the amendments to Section 134(3)(a) and Section 92(3) of the Act read with Rule 12 of the Companies (Management and Administration) Rules, 2014, the Annual Return (Form MGT-7) for the financial year ended March 31, 2022, is available on the Company''s website and can be accessed at www. geojit.com.
At the Annual General Meeting held on July 30, 2021, M/s. B S R & Associates LLP, Chartered Accountants, were re-appointed as statutory auditors of the Company to hold office till the conclusion of the Thirty Second Annual General Meeting to be held in the year 2026.
The Auditors'' Report to the Shareholders for the year under review does not contain any qualification.
In accordance with the provisions of Section 204 of the Companies Act, 2013, the Board has appointed M/s. Satheesh & Remesh - Company Secretaries in Wholetime Practice, Kochi as the Secretarial Auditor for the financial year 2021-22. The report of the Secretarial Auditor for the FY 2021-22 is annexed to this report as Annexure I.
There are no audit qualifications, in the said Secretarial Audit Report.
The Board of Directors met 7 (seven) times in the financial year 2021-22. The details of the Board meetings and the attendance of the Directors are provided in the Corporate Governance Report.
Composition of Audit Committee
The Audit Committee is constituted with five NonExecutive Independent Directors comprising of Mr. R Bupathy as the Chairman, Mr. Mahesh Vyas, Mr. Radhakrishnan Nair, Mr. M P Vijay Kumar and Mr. Sebastian Morris as other Committee Members.
Pursuant to the provisions of Regulation 43A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors of the Company has adopted a Dividend Distribution Policy for determining circumstances and parameters under which Dividend pay-out could be made on periodical basis. The policy highlighted the factors to be considered by the Board of Directors at the time of recommending/ declaring of Dividend.
Dividend Distribution Policy of the Company can be accessed at https://www.geoiit.com/StaticPdf/ Dividend-Distribution-Policy.pdf.
The company follows a policy on remuneration of Directors, Key Managerial Personnel (KMP), Senior Management Personnel (SMP) and other employees
of the Company. The policy was approved by the Nomination & Remuneration Committee of the Company.
The Non-Executive Directors of the Company shall be entitled to receive remuneration by way of sitting fees for attending meeting of the Board and Committees thereof.
The remuneration to KMP''s and SMP''s and employees shall include direct remuneration and indirect remuneration primarily and strategic remuneration which can be Performance Linked and/or Profit linked incentive.
Remuneration Policy of the Company can be accessed at https://www.geojit.com/StaticPdf/06 Remuneration%20Policy.pdf
Risks are an integral part of business and it is imperative to manage these risks at acceptable levels in order to achieve business objectives. The risks to which the Company is exposed are both external and internal. Your company has formulated a Risk Management Policy to provide an integrated and standardized approach in managing all aspects of risk to which your Company is exposed. An Internal Risk Management Committee monitors the Enterprise Risk Management Policy with participation from officers responsible for risk management and to take appropriate steps to ensure that these risks are at acceptable levels.
Whistle Blower Policy & Vigil Mechanism
Your Company has laid down a Vigil Mechanism and formulated a Whistle Blower Policy in order to provide a framework for responsible and secure whistle blowing mechanism. The Policy aims to provide an avenue for Employees and Directors to raise their concerns about unethical behavior, actual or suspected fraud or violation of the company''s code of conduct and it also empowers the Audit Committee of the Board of Directors to investigate the concerns raised by the employees.
All Directors and Employees of the Company are eligible to make protected disclosures under the Policy addressed to the Vigilance Officer of the Company in relation to matters concerning the Company. We further affirm that, no employee of the Company was denied access to the Audit Committee.
The details on the Company''s Whistle Blower Policy and Vigil Mechanism can be accessed at https://www. geoiit.com/StaticPdf/01 Vigil%20Mechanism%20 and%20Whistle%20Blower%20Policy.pdf
Corporate Social Responsibility (CSR)
The Corporate Social Responsibility Committee has formulated and recommended to the Board a Corporate Social Responsibility Policy (CSR Policy) indicating activities to be undertaken by the Company, which has been approved by the Board. The Company established a charitable trust namely Geojit Foundation and carry most of the CSR activities of the company through the foundation.
The Company has identified Education and Health as key focus areas of engagement for CSR activities. The Company would also undertake other initiatives in compliance with the Section 135 read with Schedule VII of the Companies Act 2013. The Annual Report on CSR activities is annexed herewith and marked as Annexure II to this report. The CSR Policy of the company is available on website of the company at https://www. geoiit.com/csr-policy
Disclosure as per Sexual Harrassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
The Company has zero tolerance for sexual harassment at work place and has adopted a policy on prevention, prohibition and redressal of sexual harassment at workplace in line with the provision of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the rules framed thereunder. As required under the Law, an internal complaints committee has been constituted for reporting and conducting inquiry into the complaints made by the victim on the harassments at the work place.
Your Directors further state that during the year under review, there was no complaint received pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act 2013.
The Company has put in place an adequate system of internal control commensurate with its size and nature of business. These systems provide a reasonable assurance in respect of providing financial and operational information, complying with applicable statutes, safeguarding of assets of the Company and ensuring compliance with corporate policies.
The scope and authority of the Internal Audit activity are well defined in the Internal Audit Charter, approved by the Audit Committee. The Company has a dedicated Internal Audit team with skills commensurate with the size, nature & complexity of operations of the Company. The Company has engaged M/s Mahajan & Aibara,
Chartered Accountants LLP as Internal Auditor along with a dedicated internal Internal Audit team. Internal Audit department reports functionally to the Audit Committee of the Board which reviews and approves risk based annual internal audit plan. Audit Committee periodically reviews the performance of internal audit function. During the year, the Audit Committee met regularly to review reports submitted by the Internal Audit team. All significant audit observations and follow-up actions thereon were reported to the Audit Committee.
The Company''s Board & Audit Committee reviews adherence to internal control systems, internal audit reports and legal compliances. The Audit Committee reviews all quarterly and yearly financial results of the Company and recommends the same to Board for its approval.
Based on the requirements under SEBI (Prohibition of Insider Trading) Regulations, 2015, as amended from time to time, the Company has adopted a Code of Conduct for Prevention of Insider Trading and Policy on Disclosure of Material Events/ Information which is applicable to all Directors and the Designated Employees of the Company. The Code lays down the guidelines, which advices on the procedures to be followed and disclosures to be made while dealing in shares of the Company and indicate the consequences of non-compliance. A copy of the Code has been put on the Company''s website.
All contracts/arrangements/transactions entered by the Company during the financial year with the related parties were in the ordinary course of business and on an arm''s length basis. During the year the company had not entered into any contract/ arrangement/transaction with any related party which could be considered material in accordance with the policy of the company on materiality of related party transactions. Disclosure in Form AOC-2 is given as Annexure III.
The Policy on materiality of related party transactions and dealing with related party transactions as approved by the Board may be accessed on the Company''s website.
Your Directors draw attention of the members to Note 40 to the financial statement, which sets out related party disclosures.
Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo
The Company''s head office is an energy efficient building consuming 25 percent less energy and over 40 percent less water than conventional buildings of similar size. The company also ensures optimized and efficient energy management in all its offices, located across India. With the implementation of its digital initiatives the company has also substantially reduced its paper consumption.
The company has always leveraged technological innovations to improve its operational efficiency to satisfy and retain its customer base. Keeping in line with SEBI guidelines, the company has been automating the customer on-boarding process. This has enabled the Company to reduce time-consuming activities and complexity of physical on-boarding of clients.
Today, almost 60 percent of the Company''s client''s trade online and over 40 percent buy and sell mutual funds using its online trading platforms and mobile apps. The latest updates on our online platforms and apps give investors a more powerful trading experience.
The details regarding foreign exchange earnings and outgo are given as Annexure IV to this Report.
As a service Company, the Company''s operations are heavily dependent on qualified and competent personnel. As on 31st March 2022, the total strength of the Company''s permanent employees stood at 2,174 excluding casual & contract staff. Your Company takes significant effort in training all employees at various levels.
Particulars of employees covered by the provisions of Section 197 of the Companies Act, 2013 read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is given as Annexure V to this Report.
In accordance with the provisions of Section 197(12) of the Act and Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the names and particulars of remuneration of top ten employees who have drawn remuneration not less than the limits specified in the Rules are available with the Company and in terms of provisions of Section 136(1) of the Act. This report is being sent to the members without this detail and any member desirous
of obtaining information may write to the Company and the same shall be provided through electronic mode till the date of the ensuing Annual General Meeting.
Employee Stock Option Scheme (ESOS)
The Company presently has two Employee Stock Option Schemes viz, ESOS 2016 and ESOS 2017. The Nomination & Remuneration Committee at its meetings held during the year granted 1,00,000 options under ESOS 2017. The Board of Directors of the Company has allotted total 6,22,400 equity shares of '' 1/- each under ESOS 2016 and ESOS 2017 to its employees who exercised the stock options on various dates at various exercise prices in accordance with the terms and conditions of ESOS.
The aforesaid ESOS schemes are in compliance with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 and the details are attached as Annexure VI to this report and also available on our website and can be accessed at https://www.geoiit. com/StaticPdf/ESOSDisclosure.pdf
Transfer of Unpaid and Unclaimed Amounts to IEPF
Pursuant to the provisions of Section 124 of the Companies Act, 2013, money transferred to the Unpaid Dividend Account of the Company and which has remained unpaid or unclaimed for a period of seven years from the date of transfer has been transferred by the Company to the Investor Education and Protection Fund (âIEPFâ) established by the Central Government pursuant to Section 125 of the said Act.
Particulars of Loans, Guarantees or Investments
Loans, guarantees and investments covered under Section 186 of the Companies Act, 2013 forms part of the notes to the financial statements provided in this Annual Report.
Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review.
a. Details relating to deposits covered under Chapter V of the Companies Act 2013.
b. Issue of equity shares with differential right as to dividend, voting or otherwise.
c. Issue of shares (including sweat equity shares) to employees of the company under any scheme save and except ESOS referred to in this report.
d. No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Company''s operation in future.
e. Maintenance of cost records as specified by the Central Government under section 148(1) of the Companies Act, 2013.
Your Directors wish to acknowledge the valuable guidance and assistance received from Securities and Exchange Board of India, Stock Exchanges, Commodity Exchanges, Depositories & other Regulatory Authorities, BNP Paribas S A, Kerala State Industrial Development Corporation Limited, our clients and business partners. We look forward to receiving their continued support and encouragement. The Board of Directors wishes to extend their thanks and appreciation and express their gratitude for the continuing commitment and dedication of employees at all levels. The Directors are thankful to the esteemed shareholders for their support and the confidence reposed in the Company.
For and on behalf of the Board of Directors
Place : Kochi Sd/-
Date : 29.04.2022 Chairman
Mar 31, 2018
To,
The Members,
The Directors have pleasure in presenting their 24th Annual Report of the Company for the financial year ended 31st March 2018.
FINANCIAL HIGHLIGHTS
(Rs. in crore)
Particulars |
Standalone |
Consolidated |
||||
2017-18 |
2016-17 |
Change (%) |
2017-18 |
2016-17 |
Change (%) |
|
Total Revenue |
334.18 |
266.75 |
25 |
367.95 |
305.76 |
20 |
Total Expenditure |
232.74 |
192.71 |
21 |
252.74 |
214.31 |
18 |
Profit / (Loss) before tax |
101.44 |
74.04 |
37 |
115.21 |
91.45 |
26 |
Exceptional Item |
- |
(10.00) |
100 |
- |
- |
- |
Provision for tax |
33.96 |
25.73 |
32 |
37.60 |
30.19 |
25 |
Minority Interests |
- |
- |
- |
4.49 |
5.26 |
(15) |
Share of Profit/(loss) in Associate |
- |
- |
- |
0.11 |
0.02 |
365 |
Profit after tax |
67.49 |
38.31 |
76 |
73.24 |
56.02 |
31 |
FINANCIAL HIGHLIGHTS OF SUBSIDIARIES
(Rs. in crore)
Company Name |
FY 2017-18 Total income |
FY 2017-18 Total Expense |
FY 2017-18 Profit / (Loss) after tax |
Indian Subsidiaries (Rs. in crores ) |
|||
Geojit Technologies |
30.11 |
15.07 |
11.84 |
Geojit Credits |
1.62 |
1.83 |
(0.27) |
Geojit Investment Services |
0.81 |
0.29 |
1.12 |
Geojit Financial Management Services Pvt Ltd |
0.09 |
0.008 |
0.06 |
Geojit Financial Distribution Pvt Ltd |
0.28 |
0.006 |
0.20 |
Overseas Subsidiaries, joint ventures & Associates
(Rs. in crore)
Company Name |
FY 2017-18 Total income |
FY 2017-18 Total Expense |
FY 2017-18 Profit / (Loss) after tax |
Barjeel Geojit Securities |
10.18 |
7.33 |
2.85 |
Al-Oula Geojit Brokerage Co. |
2.35 |
4.11 |
(1.76) |
QBG Geojit Securities |
3.32 |
2.59 |
0.73 |
BBK Geojit Securities |
0.66 |
0.55 |
0.11 |
Note :
1. For Barjeel and Aloula (Joint ventures) the figures shown above are the share of GFSL, which is getting consolidated based on âProportionate consolidation methodâ
2. Consolidation of BBK is on âequity methodâ. Therefore the consolidated profit / (loss) is directly adjusted to the carrying amount of investments in the books. (ie. The total income and total expense do not directly get consolidated. Only the share of GFSL in total gain / (loss) is consolidated into P&L.)
REVIEW OF PERFORMANCE
On a standalone basis, your Company has recorded a total income of Rs.334.18 crores for the financial year ended 31st March 2018, an increase of 25% compared to last yearâs figure of Rs.266.75 crores. The profit before tax is Rs.101.44 crores and the net profit after tax is Rs.67.49 crores. Basic earnings per share work out to Rs.2.85 compared to Rs.1.63 in the previous year.
On a consolidated basis your company earned a total income of Rs.367.95 crores for the financial year, an increase of 20% over the previous yearâs figure of Rs.305.76 crores, and profit before tax of Rs.115.21 crores and a net profit of Rs.73.24 crores.
A detailed analysis of the performance is given in the Management Discussion and Analysis Report appended hereto.
DIVIDEND
The Board in its meeting held on 16th May, 2018 has recommended a final dividend of Rs.2 per equity share (200%) for the financial year 2017-18. The proposal is subject to the approval of the shareholders of the Company at its ensuing Annual General Meeting to be held on 2nd August, 2018.
INCREASE IN SHARE CAPITAL
During the year under review, the paid up share capital of the Company increased from Rs.23,55,44,665/- divided into 23,55,44,665 equity shares of Rs.1/- each to Rs.23,78,69,523/divided into 23,78,69,523 equity shares of Rs.1/- each, consequent to the issue of 23,24,858 equity shares to employees upon exercise of stock options under Employee Stock Option Plan-2010 of the Company.
STATE OF COMPANYâS AFFAIRS AND OPERATIONS
Your Companyâs income is largely driven by equity brokerage. But the Companyâs strategic move to the active distribution of Mutual Fund SIP has also shown impressive growth. Your Company has re-entered the commodity broking business after 10 years and has obtained trading cum clearing membership of MCX India, NCDEX and NMCE for commodities derivatives broking. Sensing a potential for passive funds in India, the Company has also initiated the process of setting up an AMC. The Company will also focus on building the PMS business.
CONSOLIDATED FINANCIAL STATEMENT
The Consolidated Financial Statements of the Company are prepared in accordance with Section 129 of the Companies Act, 2013 read with relevant Accounting Standards issued by the Institute of Chartered Accountants of India and forms part of this Annual Report.
SUBSIDIARIES , JOINT VENTURES AND ASSOCIATE COMPANIES
As on 31st March 2018, following are the subsidiaries/associate/ joint ventures of the Company:
Subsidiaries :
i. Geojit Credits Private Limited
ii. Geojit Investment Services Limited
iii. Geojit Financial Management Services Private Limited
iv. Qurum Business Group Geojit Securities LLC
v. Geojit Technologies Private Limited
vi. Geojit Financial Distribution Private Limited Joint Ventures :
i. Barjeel Geojit Securities L.L.C
ii. Aloula Geojit Capital Company Associates :
i. BBK Geojit Securities KSC Geojit Financial Services Limited
The Board of Directors of the company proposed a scheme of merger with Geojit Investment Services Limited (wholly owned subsidiary) pursuant to section 230 - 233 of Companies Act,2013 and Rules made thereunder .
The Board of Directors of two wholly owned subsidiary companies viz, Geojit Financial Management Services Private Limited and Geojit Financial Distribution Private Limited proposed a scheme of merger with Geojit Investment Service Ltd (another wholly owned subsidiary) pursuant to the provisions of Sections 391-394 of Companies Act 1956( pending notifications of the corresponding provisions of the Companies Act 2013). A Petition was filed seeking sanction of the Scheme of Amalgamation between the said companies. Meetings of the shareholders for approval of the scheme of merger were held on 10 March, 2016 after giving due notice and publication in accordance with the directions of the High Court.
The petition has been transferred to National Company Law Tribunal (NCLT) and is currently pending with NCLT.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
I. CHANGE IN DIRECTORS
Mr. Rakesh Jhunjhunwala resigned as the Director of the Company w.e.f 25th July, 2017. Mr. Radhakrishnan Nair was appointed as an Independent Director (Additional) w.e.f. 25th October, 2017.
II. CHANGE IN KEY MANAGERIAL PERSONNEL
Mr. Joe Peter, Chief Financial Officer of the company resigned from the company w.e.f 30 September, 2017 .The Board has appointed Mr. Sanjeev Kumar Rajan as the Chief Financial officer of the company w.e.f 25th October, 2017.
III. RETIREMENT BY ROTATION
In accordance with Article 80 of the Articles of Association of the Company, Mr. Punnoose George, Non-Executive Director (DIN 00049968) will retire by rotation at the ensuing Annual General Meeting of the company and being eligible, offers himself for re-appointment. The Board recommends his re-appointment.
ANNUAL EVALUATION OF THE BOARD, ITS COMMITTEE AND INDIVIDUAL DIRECTORS
Pursuant to the provisions of Companies Act, 2013 and the Listing Regulations, the Board of Directors has carried out an annual evaluation of its own performance, its Committee and individual Directors. Assessment sheets for evaluation of performance of Board, its committees and individual directors were prepared based on various aspects, which among other parameters, included composition of the Board and its Committees, conducting of Board Meetings, effectiveness of its governance practices etc.
Further the Independent Directors, at their meetings held during the year, reviewed the performance of the Board, the non Independent Directors and the Chairman.
FAMILIARIZATION PROGRAMME FOR INDEPENDENT DIRECTORS
The Independent Directors of the Company are persons of integrity, possessing rich experience and expertise in the field of corporate management, finance, capital market, economic and business information. The company has issued appointment letter to the Independent Directors setting out in detail, the terms of appointment, duties, roles & responsibilities and expectations of the Independent Director. The Board of Directors has complete access to the information within the Company. Presentations are regularly made to the Board of Directors / Audit Committee / Nomination & Remuneration Committee / Corporate Social Responsibilities Committee / Stakeholders Relationship Committee on various related matters, where Directors have interactive sessions with the Management.
The details on the Companyâs familiarization programme for Independent Directors can be accessed at http://www.geojit.com/pdfs/ FAMILIARIZATIONPROGRAMMEFORINDEPENDENTDIRECTORS. pdf
REMUNERATION POLICY
The company follows a policy on remuneration of Directors, Key Ma nag eri al Person nel (KMP), Seni or Man agement Personnel (SMP) and other employees of the Company. The policy was approved by the Nomination & Remuneration Committee of the Company.
The Non-Executive Directors of the Company shall be entitled to receive remuneration by way of sitting fees for attending meeting of the Board and Committees thereof.
The remuneration to KMPâs and SMPâs and employees shall include direct remuneration and indirect remuneration primarily and strategic remuneration which can be Performance Linked and/or Profit linked incentive.
Remuneration Policy of the Company is given as Annexure VIII to the Directors Report.
RISK MANAGEMENT POLICY
Risks are an integral part of business and it is imperative to manage these risks at acceptable levels in order to achieve business objectives. The risks to which the Company is exposed are both external and internal. Your company has formulated a Risk Management Policy to provide an integrated and standardized approach in managing all aspects of risk to which your Company is exposed. An Internal Risk Management Committee monitors the Enterprise risk management policy with participation from officers responsible for risk management and to take appropriate steps to ensure that these risks are at acceptable levels.
WHISTLE BLOWER POLICY & VIGIL MECHANISM
Your Company has laid down a Vigil Mechanism and formulated a Whistle Blower Policy in order to provide a framework for responsible and secure whistle blowing mechanism. The Policy aims to provide an avenue for Employees and Directors to raise their concerns about unethical behavior, actual or suspected fraud or violation of the companyâs code of conduct and it also empowers the Audit Committee of the Board of Directors to investigate the concerns raised by the employees.
All Directors and Employees of the Company are eligible to make protected disclosures under the Policy addressed to the Vigilance Officer of the Company in relation to matters concerning the Company. We further affirm that, no employee of the Company was denied access to the Audit Committee.
The details on the Companyâs Whistle Blower Policy and Vigil Mechanism can be accessed at http://www.geojit.com/pdfs/ VIGIL_MECHANISM%20_%20Final%20Draft_Revised.pdf
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
Loans guarantees and investments covered under Section 186 of the Companies Act, 2013 forms part of the notes to the financial statements provided in this Annual Report.
INTERNAL CONTROL SYSTEM
The Company has put in place an adequate system of internal control commensurate with its size and nature of business. These systems provide a reasonable assurance in respect of providing financial and operational information, complying with applicable statutes, safeguarding of assets of the Company and ensuring compliance with corporate policies.
The scope and authority of the Internal Audit activity are well defined in the Internal Audit Charter, approved by the Audit Committee. The Company has a dedicated Internal Audit team with skills commensurate with the size, nature & complexity of operations of the Company. Internal Audit reports functionally to the Audit Committee of Board which reviews and approves risk based annual internal audit plan. Audit Committee periodically reviews the performance of internal audit function. During the year, the Audit Committee met regularly to review reports submitted by the Internal Audit department. All significant audit observations and follow-up actions there on were reported to the Audit Committee.
The Companyâs Board & Audit Committee reviews adherence to internal control systems, internal audit reports and legal compliances. The Audit Committee reviews all quarterly and yearly financial results of the Company and recommends the same to Board for its approval.
TRANSFER OF UNPAID AND UNCLAIMED AMOUNTS TO IEPF
Pursuant to the provisions of Section 124 of the Companies Act, 2013, money transferred to the Unpaid Dividend Account of the Company and which has remained unpaid or unclaimed for a period of seven years from the date of transfer has been transferred by the Company to the Investor Education and Protection Fund (âIEPFâ) established by the Central Government pursuant to Section 125 of the said Act.
MANAGEMENTâS DISCUSSION & ANALYSIS
The Managementâs Discussion and Analysis is given separately and forms part of this Boardâs Report.
INSIDER TRADING REGULATIONS
Based on the requirements under SEBI (Prohibition of Insider Trading) Regulations, 2015, as amended from time to time, the Company has adopted a Code of Conduct for Prevention of Insider Trading and Code of Corporate Disclosures which is applicable to all Directors and the Designated Employees of the Company. The Code lays down the guidelines, which advices on the procedures to be followed and disclosures to be made while dealing in shares of the Company and indicate the consequences of non-compliance. A copy of the Code has been put on the Companyâs website.
CODE OF CONDUCT FOR DIRECTORS & SENIOR OFFICERS
The Board has adopted a Code of Conduct for Directors & Senior Management in accordance with the provisions of the Companies Act, 2013 and Regulation 17(5) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Code also incorporates the duties of Independent Directors. All the Board Members and Senior Management Personnel have confirmed compliance with the Code. A declaration to that effect signed by the Managing Director forms part of the Corporate Governance Report. A copy of the Code has been put on the Companyâs website.
HUMAN RESOURCES
As a service Company, the Companyâs operations are heavily dependent on qualified and competent personnel. As on 31st March 2018, the Company had 2460 permanent employees on its rolls. Your Company takes significant effort in training all employees at various levels.
EMPLOYEE STOCK OPTION SCHEME (ESOS)
The Company presently have three Employee Stock Option Schemes viz, ESOS 2010, ESOS 2016 and ESOS 2017. The Nomination & Remuneration Committee at its meetings held during the year, granted 12,23,568 options under ESOS 2016 and 10,73,780 options under ESOS 2017 . The Board of Directors of the Company has allotted total 23,24,858 equity shares of Re.1/- each under ESOS 2010 Scheme to its employees who exercised the stock options on various dates at various exercise prices in accordance with the terms and conditions of ESOS.
The aforesaid ESOS schemes are in compliance with SEBI (Share Based Employees Benefits) Regulations, 2014 and the details are attached as Annexure I to this report and also available on our website and can be accessed at https://www. geojit.com/pdfs/ESOSDisclosure.pdf
CORPORATE SOCIAL RESPONSIBILITY (CSR)
The Corporate Social Responsibility Committee has formulated and recommended to the Board a Corporate Social Responsibility Policy (CSR Policy) indicating activities to be undertaken by the Company, which has been approved by the Board. The Company established a charitable trust namely Geojit Foundation and carry the CSR activities of the company through the foundation.
The Company has identified Education and Health as key focus areas of engagement for CSR activities. The Company would also undertake other initiatives in compliance with the Section 135 read with Schedule VII of the Companies Act 2013. The Annual Report on CSR activities is annexed herewith and marked as Annexure IV to this report. The CSR Policy of the company is available on website of the company at https:// www.geojit.com/pdfs/CSR_Policy_17-5-2018.pdf
PARTICULARS OF EMPLOYEES
Particulars of employees covered by the provisions of Section 197 of the Companies Act, 2013 read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is given as Annexure III to this Report.
DIRECTORSâ RESPONSIBILITY STATEMENT
Pursuant to requirement of Section 134(3)(c) and Section 134(5) of the Companies Act, 2013 and based on the representations received from the Management, your Directors state that :
i. in the preparation of the annual accounts for the financial year ended 31st March, 2018, the applicable accounting standards have been followed and there are no material departures from the same;
ii. the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2018 and of the profit of the company for the year ended on that date;
iii. the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;
iv. the Directors have prepared the annual accounts on a going concern basis;
v. the Directors have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively; and
vi. the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
The company ensures optimized and efficient consumption of energy in all the 512 offices, located across India. With the implementation of its digital initiatives the company has also substantially reduced its paper consumption.
The Company has been at the forefront of using technology absorption and has always leveraged technological innovations to improve our operational efficiency and satisfy and retain our customer base. During the year interalia, the Company started providing solutions for automating customer on boarding process in line with SEBI guidelines and it has been approved by the depositories. Launching Fundsgenie an innovative app that uses advanced technology to enable investors to take informed decisions to invest in multiple mutual funds through a single gateway, enrolling with UIDAI as KYC user agency were other major digital initiatives during the year.
The details regarding foreign exchange earnings and outgo are given as Annexure II to this Report.
CORPORATE GOVERNANCE
Your Company has complied with the Corporate Governance requirements under Companies Act, 2013 and as stipulated under the provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. A detailed Report on Corporate Governance is given as Annexure V to this Report. A certificate of Statutory Auditor confirming compliance of the Corporate Governance requirements by the Company is attached to the Report on Corporate Governance.
SECRETARIAL AUDIT REPORT
In accordance with the provisions of Section 204 of the Companies Act, 2013, the Board has appointed M/s. Satheesh & Remesh - Company Secretaries in Whole Time Practice, Kochi as the Secretarial Auditor for the financial year 2017-18. The report of the Secretarial Auditor for the FY 2017-18 is annexed to this report as Annexure VI.
There are no audit qualifications, reservations, disclaimers or adverse remarks in the said Secretarial Audit Report.
AUDITORS
At the Annual General Meeting held on 4th August, 2016, M/s. B S R & Associates LLP, Chartered Accountants, were appointed as statutory auditors of the Company to hold office till the conclusion of the Twenty Seventh Annual General Meeting to be held in the financial year 2021.
The Auditorsâ Report to the Shareholders for the year under review does not contain any qualification.
EXTRACT OF ANNUAL RETURN
The extract of the Annual return in Form MGT - 9 is given as Annexure VII to this Report.
NUMBER OF BOARD MEETINGS
The Board of Directors met 6 (six) times in the financial year 2017-18. The details of the board meetings and the attendance of the Directors are provided in the Corporate Governance Report.
COMPOSITION OF AUDIT COMMITTEE
The Audit Committee is constituted with three Non- Executive Independent Directors comprising of Mr. R Bupathy, as the Chairman, Mr. A.P. Kurian and Mr. Mahesh Vyas as other Committee Members.
RELATED PARTY TRANSACTIONS
All contracts/arrangements/transactions entered by the Company during the financial year with the related parties were in the ordinary course of business and on an armâs length basis. During the year the company had not entered into any contract/ arrangement /transaction with any related party which could be considered material in accordance with the policy of the company on materiality of related party transactions. Thus disclosure in Form AOC-2 is not required.
The Policy on materiality of related party transactions and dealing with related party transactions as approved by the Board may be accessed on the Companyâs website.
Your Directors draw attention of the members to Note 39 to the financial statement, which sets out related party disclosures.
POLICY RELATING TO DIRECTORS APPOINTMENT
The Company with the approval of Nomination & Remuneration Committee has adopted a policy on Board diversity and the recommendation of candidature for Board appointment will be based on merit that complements and expands the skills, experience and expertise of the Board as a whole, taking into account gender, age, professional experience and qualifications, cultural and educational background, and any other factors that the Board might consider relevant and applicable from time to time towards achieving a diverse Board.
DECLARATION BY INDEPENDENT DIRECTORS
The Company has received necessary declaration from each Independent Director under Section 149(7) of the Companies Act, 2013 that he meets the criteria of Independence laid down in Section 149(6) of the Companies Act, 2013 and in terms of SEBI (Listing Obligation & Disclosure Requirements) Regulations, 2015.
DISCLOSURE AS PER SEXUAL HARRASSMENT OF WOMEN AT WORKPLACE( PREVENTION, PROHIBITION AND REDRESSAL ) ACT, 2013.
The Company has zero tolerance for sexual harassment at work place and has adopted a policy on prevention, prohibition and redressal of sexual harassment at workplace in line with the provision of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the rules framed thereunder. As required under the Law, an internal complaints committee has been constituted for reporting and conducting inquiry into the complaints made by the victim on the harassments at the work place.
Your Directors further state that during the year under review, one complaint was received pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act 2013 and the same was investigated in accordance with the procedures prescribed and adequate steps were taken to resolve them.
GENERAL
Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review.
a. Details relating to deposits covered under Chapter V of the Companies Act 2013.
b. Issue of equity shares with differential right as to dividend, voting or otherwise
c. Issue of shares (including sweat equity shares) to employees of the company under any scheme save and except ESOS referred to in this report.
d. No significant or material orders were passed by the regulators or Courts or tribunals which impact the going concern status and Companyâs operation in future.
ACKNOWLEDGEMENTS
Your Directors wish to acknowledge the valuable guidance and assistance received from Securities and Exchange Board of India, Stock Exchanges, Depositories & other Regulatory Authorities, BNP Paribas, KSIDC, our clients and business partners. We look forward to receiving their continued support and encouragement. The Board of Directors wishes to extend their thanks and appreciation and express their gratitude for the continuing commitment and dedication of employees at all levels. The Directors are thankful to the esteemed shareholders for their support and the confidence reposed in the Company.
For and on behalf of the Board of Directors
Place : Kochi A P Kurian
Date : 16.05.2017 Chairman
Mar 31, 2017
The Directors have pleasure in presenting their 23rd Annual Report of the Company for the financial year ended 31st March 2017.
FINANCIAL HIGHLIGHTS (Rs. in Crores)
particulars |
standalone |
consolidated |
||||
|
2016-17 |
2015-16 |
change (%) |
2016-17 |
2015-16 |
change (%) |
Total Revenue |
266.75 |
236.37 |
13 |
305.76 |
271.96 |
12 |
Total Expenditure |
192.71 |
181.84 |
6 |
214.31 |
209.80 |
2 |
Profit / (Loss) before tax |
74.04 |
54.53 |
36 |
91.45 |
62.16 |
47 |
Exceptional Item |
(10.00) |
- |
(100) |
- |
- |
- |
Provision for tax |
(25.73) |
(18.93) |
36 |
(30.19) |
(17.92) |
69 |
Minority Interests |
- |
- |
- |
(5.26) |
(6.51) |
(19) |
Share of Profit/(loss) in Associate |
- |
- |
- |
0.02 |
(0.12) |
120 |
Profit after tax |
38.31 |
35.60 |
8 |
56.02 |
37.61 |
49 |
Review of performance
On a standalone basis, your Company has recorded a total income of Rs.266.75 crores for the financial year ended 31st March 2017, an increase of 13% compared to last year''s figure of Rs.236.37 crores. The profit before tax is Rs.74.04 crores and the net profit after tax is Rs.38.31 crores. Basic earnings per share work out to Rs.1.63 compared to Rs.1.53 in the previous year.
On a consolidated basis your company earned a total income of Rs.305.76 crores for the financial year, an increase of 12% over the previous year''s figure of Rs.271.96 crores, and profit before tax of Rs.91.45 crores and a net profit of Rs.56.02 crores.
A detailed analysis of the performance is given in the Management Discussion and Analysis Report appended hereto.
dividend
The Board in its meeting held on 26th May, 2017 has recommended a final dividend of Rs.1.25 per equity share of Re. 1/- each (125%) for the financial year 2016-17. The proposal is subject to the approval of the shareholders of the Company at its ensuing Annual General Meeting to be held on 25th July, 2017.
Increase in share capital
During the year under review, the paid up share capital of the Company increased from Rs.23,48,98,476/- divided into 23,48,98,476 equity shares of Rs.1/- each to Rs.23,55,44,665/- divided into 23,55,44,665 equity shares of Re. 1/- each, consequent to the issue of 6,46,189 equity shares to employees upon exercise of stock options under Employee Stock option plan- 2010 of the Company.
Consolidated financial statement
The Consolidated Financial Statements of the Company are prepared in accordance with Section 129 of the Companies Act,2013 read with relevant Accounting Standards issued by the Institute of Chartered Accountants of India and forms part of this Annual Report.
Subsidiaries, joint ventures and associate companies
As on 31st March 2017, following are the subsidiaries/associate/joint ventures of the Company:
Subsidiaries :
i. Geojit Credits private Limited
ii. Geojit Investment Services Limited
iii. Geojit Financial Management Services private Limited
iv. Qurum Business Group Geojit Securities LLC
v. Geojit technologies private Limited
vi. Geojit Financial Distribution private Limited Joint Ventures :
i. Barjeel Geojit Securities LLC
ii. Aloula Geojit Capital Company
Associates :
i. BBK Geojit Securities Co. KSCC
The Board of Directors of the two wholly owned subsidiary companies viz. Geojit Financial Management Services private Limited and Geojit Financial Distribution private Limited proposed a scheme of merger with Geojit Investment Services Limited (another wholly owned subsidiary) pursuant to the provisions of Sections 391 to 394 and other applicable provisions, , of the Companies Act, 1956 (pending notification of the corresponding provisions of the Companies Act, 2013).
Meetings of the shareholders for approval of the scheme of merger were held in March, 2016 after giving due notice and publication in accordance with the directions of the High Court. the shareholders of the aforementioned companies approved the Scheme of Arrangement. A petition has been filed seeking sanction of the Scheme of Amalgamation between the said companies. on notification of relevant sections under Companies Act, 2013, the above mentioned petition has now been transferred to National Company Law tribunal (NCLr)
change of name of the company
In accordance with the provisions of restated shareholders agreement entered between Company, BNp paribas S A, its affiliate and the initial promoters of the Company, the Company has changed its name from Geojit BNp paribas Financial Services Limited to Geojit Financial Services Ltd vide approval received from the Ministry of Corporate Affairs, Government of India, dated 9th February, 2017.
Directors and key managerial personnel
I. CESSATION
Jean Christophe Gougeon, Franciska Decuypere and Jean philippe Huguet who were representing BNp paribas ceased to be Directors of the Company from 4th August, 2016, 25th November, 2016 and 23rd November, 2016 respectively. the withdrawal of BNp paribas nominee from the Board of the Company is in accordance with the provisions of restated shareholders agreement entered between Company, BNp Paribas S A, its affiliate and the initial promoters of the Company.
II. RETIREMENT BY ROTATION
In accordance with Article 80 of the Articles of Association of the Company, Mr. punnoose George, Non-Executive Director (DIN 00049968) will retire by rotation at the ensuing Annual General Meeting of the company and being eligible, offers himself for reappointment. the Board recommends his re-appointment.
Adoption of new articles of association of the company
the Company has adopted a new Articles of Association in view of the changes as per Companies Act, 2013 and the re-stated Shareholders'' Agreement between the Company, BNp paribas S A, its affiliate and the initial promoters of the Company.
Annual evaluation of the board, its committee and individual directors
pursuant to the provisions of Companies Act,2013 and the Listing Regulations, the Board of Directors has carried out an annual evaluation of its own performance, its Committee and individual Directors. Assessment sheets for evaluation of performance of Board, its committees and individual directors were prepared based on various aspects, which among other parameters, included composition of the Board and its Committees, conducting of Board Meetings, effectiveness of its governance practices etc.
Further the Independent Directors, at their meetings held during the year, reviewed the performance of the Board, the non Independent Directors and the Chairman.
Familiarization programme for independent directors
The Independent Directors of the Company are persons of integrity, possessing rich experience and expertise in the field of corporate management, finance, capital market, economic and business information. The company has issued appointment letter to the Independent Directors setting out in detail, the terms of appointment, duties, roles & responsibilities and expectations of the Independent Director. the Board of Directors has complete access to the information within the Company. presentations are regularly made to the Board of Directors / Audit Committee / nomination & Remuneration Committee / Corporate Social Responsibilities Committee / Stakeholders Relationship Committee on various related matters, where Directors have interactive sessions with the Management.
The details on the Company''s familiarisation programme for Independent Directors can be accessed at http://www.geojit.com/ pdfs/familiarizationprogrammeforindependentdirectors.pdf
Remuneration policy
The company follows a policy on remuneration of Directors, Key Managerial personnel (KMp), Senior Management personnel (SMp) and other employees of the Company. the policy was approved by the nomination & Remuneration Committee of the Company.
The non-executive Directors of the Company shall be entitled to receive remuneration by way of sitting fees for attending meeting of the Board and Committees thereof.
The remuneration to KMp''s and SMp''s and employees shall include direct remuneration and indirect remuneration primarily and strategic remuneration which can be performance Linked and/or profit linked incentive.
Remuneration policy of the Company is given as Annexure VIII to the Directors Report.
Risk management policy
Risks are an integral part of business and it is imperative to manage these risks at acceptable levels in order to achieve business objectives. the risks to which the Company is exposed are both external and internal. Your company has formulated a Risk Management policy to provide an integrated and standardized approach in managing all aspects of risk to which your Company is exposed. An Internal Risk Management Committee monitors the enterprise risk management policy with participation from officers responsible for risk management and to take appropriate steps to ensure that these risks are at acceptable levels.
Whistle blower policy & vigil mechanism
Your Company has laid down a Vigil Mechanism and formulated a Whistle Blower policy in order to provide a framework for responsible and secure whistle blowing mechanism. the policy aims to provide an avenue for employees and Directors to raise their concerns about unethical behavior, actual or suspected fraud or violation of the company''s code of conduct and it also empowers the Audit Committee of the Board of Directors to investigate the concerns raised by the employees.
All Directors and employees of the Company are eligible to make protected disclosures under the policy addressed to the Vigilance officer of the Company in relation to matters concerning the Company. We further affirm that, no employee of the Company was denied access to the Audit Committee.
The details on the Company''s Whistle Blower policy and Vigil Mechanism can be accessed at http://www.geojit.com/pdfs/vigil_ mechanism%20_%20Final%20Draft_Revised.pdf
Particulars of loans, guarantees or investments
Loans guarantees and investments covered under Section 186 of the Companies Act, 2013 forms part of the notes to the financial statements provided in this Annual Report.
Internal control system
The Company has put in place an adequate system of internal control commensurate with its size and nature of business. These systems provide a reasonable assurance in respect of providing financial and operational information, complying with applicable statutes, safeguarding of assets of the Company and ensuring compliance with corporate policies.
The scope and authority of the Internal Audit activity are well defined in the Internal Audit Charter, approved by the Audit Committee. The Company has a dedicated Internal Audit team with skills commensurate with the size, nature & complexity of operations of the Company. Internal Audit reports functionally to the Audit Committee of Board which reviews and approves risk based annual internal audit plan. Audit Committee periodically reviews the performance of internal audit function. During the year, the Audit Committee met regularly to review reports submitted by the Internal Audit department. All significant audit observations and follow-up actions there on were reported to the Audit Committee.
The Company''s Board & Audit Committee reviews adherence to internal control systems, internal audit reports and legal compliances. The Audit Committee reviews all quarterly and yearly financial results of the Company and recommends the same to Board for its approval.
Transfer of unpaid and unclaimed amounts to IEpF
Pursuant to the provisions of Section 124 of the Companies Act, 2013, money transferred to the Unpaid Dividend Account of the Company and which has remained unpaid or unclaimed for a period of seven years from the date of transfer has been transferred by the Company to the Investor Education and Protection Fund ("IEPF") established by the Central Government pursuant to Section 125 of the said Act.
Management''s discussion & analysis
The Management''s Discussion and Analysis is given separately and forms part of this Annual Report.
Insider trading regulations
Based on the requirements under SEBI (Prohibition of Insider Trading) Regulations, 2015, as amended from time to time, the Company has adopted a Code of Conduct for Prevention of Insider Trading and Code of Corporate Disclosures which is applicable to all Directors and the Designated Employees of the Company. The Code lays down the guidelines, which advises on the procedures to be followed and disclosures to be made while dealing in shares of the Company and indicate the consequences of non-compliance. A copy of the Code has been put on the Company''s website.
Code of conduct for directors & senior officers
The Board has adopted a Code of Conduct for Directors & Senior Management in accordance with the provisions of the Companies Act, 2013 and Regulation 17(5) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Code also incorporates the duties of Independent Directors. All the Board Members and Senior Management Personnel have confirmed compliance with the Code. A declaration to that effect signed by the Managing Director forms part of the Corporate Governance Report. A copy of the Code has been put on the Company''s website.
Human resources
As a service Company, the Company''s operations are heavily dependent on qualified and competent personnel. As on 31st March 2017, the Company had 2195 employees. Your Company takes significant effort in training all employees at various levels.
Employee stock option scheme (Esos)
The Company presently have two Employee Stock Option Schemes viz, ESOS 2010 and ESOS 2016. The Nomination & Remuneration Committee at its meeting held on August 04, 2016 granted 8,079,340 options under ESOS 2016. The Board of Directors of the Company has allotted total 51,27,124 equity shares of Re. 1/- each under ESOS 2010 Scheme to its employees who exercised the stock options on various dates at various exercise prices in accordance with the terms and conditions of ESOS.
The aforesaid ESOP schemes are in compliance with SEBI (Share Based Employees Benefits Scheme) Regulations, 2014 and the details are attached as Annexure I to this report and also available on our website and can be accessed at http://www.geojit.com/pdfs/esosdisclosure. pdf
Corporate social responsibility (CSR)
The Corporate Social Responsibility Committee has formulated and recommended to the Board a Corporate Social Responsibility Policy (CSR Policy) indicating activities to be undertaken by the Company, which has been approved by the Board. The Company established a charitable trust namely Geojit Foundation and carries the CSR activities of the company through the foundation.
The Company has identified Education and Health as key focus areas of engagement for CSR activities. The Company would also undertake other initiatives in compliance with Section 135 read with Schedule VII of the Companies Act 2013. The Annual Report on CSR activities is annexed herewith and marked as Annexure IV to this report.
Particulars of employees
Particulars of employees covered by the provisions of Section 197 of the Companies Act, 2013 read with Companies (Appointment and Remuneration of Managerial personnel) Rules, 2014 is given as Annexure III to this Report.
Directors'' responsibility statement
Pursuant to requirement of Section 134(3)(c) and Section 134(5) of the Companies Act, 2013 and based on the representations received from the Management, your Directors state that :
i. in the preparation of the annual accounts for the financial year ended 31st March, 2017, the applicable accounting standards have been followed and there are no material departures from the same;
ii. the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2017 and of the profit of the company for the year ended on that date;
iii. the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;
iv. the Directors have prepared the annual accounts on a going concern basis;
v. the Directors have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively; and
vi. the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
Conservation of energy, technology absorption, foreign exchange earnings and outgo
The Company has nothing to report in respect of information on conservation of energy and technology absorption as required under Section 134 of the Companies Act, 2013 read with Companies (Accounts) Rules, 2014 since the Company is not engaged in manufacturing or processing business. the details regarding foreign exchange earnings and outgo are given as Annexure II to this Report.
Corporate governance
Your Company has complied with the Corporate Governance requirements under Companies Act,2013 and as stipulated under the provisions of the SEBI (Listing obligations and Disclosure Requirements) Regulations, 2015. A detailed Report on Corporate Governance is given as Annexure V to this Report. A certificate of Statutory Auditor confirming compliance of the Corporate Governance requirements by the Company is attached to the Report on Corporate Governance.
Secretarial audit report
In accordance with the provisions of Section 204 of the Companies Act, 2013, the Board has appointed M/s. Satheesh & Remesh - Company Secretaries in Whole time practice, Kochi as the Secretarial Auditor for the financial year 2016-17. the report of the Secretarial Auditor is annexed to this report as Annexure VI.
Auditors
At the Annual General Meeting held on 4th August, 2016, M/s. B S R & Associates LLp, Chartered Accountants, were appointed as statutory auditors of the Company to hold office till the conclusion of the twenty Seventh Annual General Meeting to be held in the financial year 2021. In terms of Section 139 of the Companies Act, 2013, the appointment of auditors shall be placed for ratification at every Annual General Meeting. Accordingly, the appointment of M/s. B S R & Associates LLp Chartered Accountants as statutory auditors of the Company is placed for ratification by the shareholders.
The Auditors'' Report to the Shareholders for the year under review does not contain any qualification.
Extract of annual return
The extract of the Annual return in Form MGT - 9 is given as Annexure VII to this Report.
Number of board meetings
The Board of Directors met 8 (eight) times in the financial year 2016-17. the details of the board meetings and the attendance of the Directors are provided in the Corporate Governance Report.
Composition of audit committee
The Board has re-constituted the Audit Committee, on 8th December, 2016 with three Non- executive Independent Directors comprising of Mr. R Bupathy, as the Chairman, Mr. A.p. Kurian and Mr. Mahesh Vyas as other Committee Members.
Related party transactions
All contracts/arrangements/transactions entered by the Company during the financial year with the related parties were in the ordinary course of business and on an arm''s length basis. During the year the company had not entered into any contract/ arrangement / transaction with any related party which could be considered material in accordance with the policy of the company on materiality of related party transactions. thus, disclosure in Form AoC-2 is not required.
The policy on materiality of related party transactions and dealing with related party transactions as approved by the Board may be accessed on the Company''s website.
Your Directors draw attention of the members to note 39 to the financial statement, which sets out related party disclosures.
Policy relating to directors appointment
The Company with the approval of nomination & Remuneration Committee has adopted a policy on Board diversity and the recommendation of candidature for Board appointment will be based on merit that complements and expands the skills, experience and expertise of the Board as a whole, taking into account gender, age, professional experience and qualifications, cultural and educational background, and any other factors that the Board might consider relevant and applicable from time to time towards achieving a diverse Board.
Declaration by independent directors
The Company has received necessary declaration from each Independent Director under Section 149(7) of the Companies Act, 2013 that he meets the criteria of Independence laid down in Section 149(6) of the Companies Act, 2013.
Disclosure as per sexual harassment of women at workplace( prevention, prohibition and redressal ) Act, 2013.
The Company has zero tolerance for sexual harassment at work place and has adopted a policy on prevention, prohibition and redressal of sexual harassment at workplace in line with the provision of Sexual Harassment of Women at Workplace (prevention, prohibition and Redressal) Act, 2013 and the rules framed there under. As required under the Law, an internal complaints committee has been constituted for reporting and conducting inquiry into the complaints made by the victim on the harassments at the work place.
Your Directors further state that during the year under review, one complaint was received pursuant to the Sexual Harassment of Women at Workplace (prevention, prohibition and Redressal) Act 2013 and the same was investigated in accordance with the procedures prescribed and adequate steps were taken to resolve them.
General
Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review.
a. Details relating to deposits covered under Chapter V of the Companies Act 2013.
b. Issue of equity shares with differential right as to dividend, voting or otherwise
c. Issue of shares (including sweat equity shares) to employees of the company under any scheme save and except ESoS referred to in this report.
d. No significant or material orders were passed by the regulators or Courts or tribunals which impact the going concern status and Company''s operation in future.
Acknowledgements
Your Directors wish to acknowledge the valuable guidance and assistance received from Securities and exchange Board of India, Stock exchanges & other Regulatory Authorities, BNp paribas, KSIDC, our clients and business partners. We look forward to receiving their continued support and encouragement. the Board of Directors wishes to extend their thanks and appreciation and express their gratitude for the continuing commitment and dedication of employees at all levels. the Directors are thankful to the esteemed shareholders for their support and the confidence reposed in the Company.
For and on behalf of the Board of Directors
place : Kochi A P Kurian
Date :26.05.2017 Chairman
Mar 31, 2015
The Members,
The Directors have pleasure in presenting their 21st Annual Report of
the Company for the financial year ended 31st March 2015.
1. FINANCIAL HIGHLIGHTS (Rs. in crore)
Standalone
Particulars
2014-15 2013-14 Change
Total Revenue 289.27 195.94 48%
Total Expenditure 188.22 145.79 29%
Profit / (Loss)
before tax 101.05 50.15 101%
Exceptional - Gain /
(Loss) - (111.93) -
Provision for tax 33.50 15.69 114%
Less: Minority Interests - - -
Less: Share of Loss in
Associate - - -
Profit / (Loss) after tax 67.55 (77.47) -
Final Dividend 40.49 2.28 -
Consolidated
Particulars
2014-15 2013-14 Change
Total Revenue 326.38 232.54 40%
Total Expenditure 206.83 166.49 24%
Profit / (Loss) 119.55 66.05 81%
before tax
Exceptional - Gain / - (121.32) -
(Loss)
Provision for tax 37.43 21.98 70%
Less: Minority Interests 4.49 (4.41) -
Less: Share of Loss in 0.27 0.40 30%
Associate
Profit / (Loss) after tax 77.36 (73.24) -
Final Dividend 40.49 2.28 -
2. REVIEW OF PERFORMANCE
On a standalone basis, your Company has recorded a total income of Rs.
289.27 crore for the financial year ended 31st March 2015, an increase
of 48 % compared to last year''s figure of Rs. 195.94 crore. The
operating profit is Rs. 101.05 crores and the net profit after tax is Rs.
67.55 crores. Basic earnings per share work out to Rs. 2.94 compared to
Rs.(3.39) in the previous year.
On a consolidated basis, your company earned a total income of Rs. 326.38
crore for the financial year, an increase of 40% over the previous
year''s figure of Rs. 232.54 crore, an operating profit of Rs. 119.55
crore and a net profit of Rs. 77.36 crore.
A detailed analysis of the performance is given in the Management
Discussion and Analysis Report appended hereto.
3. DIVIDEND
Your Directors recommend a dividend of 175% (Rs.1.75 per equity share of
face value of Rs. 1/-) for the financial year ended 31st March 2015
subject to the approval of the shareholders at the ensuing Annual
General Meeting. The payment of dividend together with tax thereon will
absorb Rs. 48.74 crore.
4. INCREASE IN SHARE CAPITAL
During the year under review, the paid up share capital of the Company
increased from Rs.22,83,60,104/- divided into 22,83,60,104 equity shares
of Rs.1/- each to Rs.23,13,83,195 divided into 23,13,83,195 equity shares
of Rs.1/- each, consequent to the issue of 30,23,091 equity shares to
employees upon exercise of stock options under Employee Stock Option
Plans of the Company.
5. CONSOLIDATED FINANCIAL STATEMENT
The Consolidated Financial Statements of the Company are prepared in
accordance with Section 129 of the Companies Act read with relevant
Accounting Standards issued by the Institute of Chartered Accountants
of India and forms a part of this Annual Report.
6. SUBSIDIARIES , JOINT VENTURES AND ASSOCIATE COMPANIES
As on 31st March 2015, following are the subsidiaries/associate/joint
ventures of the Company:
Subsidiaries :
i. Geojit Credits Private Limited
ii. Geojit Investment Services Limited
iii. Geojit Financial Management Services Private Limited
iv. Qurum Business Group Geojit Securities LLC
v. Geojit Technologies Private Limited
vi. Geojit Financial Distribution Private Limited Joint Ventures :
i. Barjeel Geojit Securities L.L.C
ii. Aloula Geojit Capital Company Associates :
i. BBK Geojit Financials Brokerage Company K.S.C
Considering the insignificant activity and for operational convenience,
the Board of Directors of the two wholly owned subsidiary companies
viz. Geojit Financial Management Services Private Limited and Geojit
Financial Distribution Pvt. Limited at their Board Meetings held on
12th January 2015 proposed a scheme of merger with Geojit Investment
Services Limited (another wholly owned subsidiary) pursuant to the
provisions of Sections 391 to 394 and other applicable provisions, if
any, of the Companies Act, 1956 (pending notification of the
corresponding provisions of the Companies Act, 2013). Geojit Financial
Management Services Private Limited and Geojit Financial Distribution
Pvt. Limited have started the process for merger and the scheme of
merger is subject to the approval of the members of the subsidiary
companies and approval by the High Court of Kerala
In accordance with Section 136 of the Companies Act, 2013, the audited
financial statements including the consolidated financial statements
and related information of the Company and audited accounts of each
subsidiaries are available on our website www.geojitbnpparibas.com.
These documents will also be available for inspection during business
hours at the Registered Office of the Company. In accordance with
Section 129(3) of the Companies Act, 2013, the salient features of the
financial statement of the subsidiaries is set out in the prescribed
form AOC-1, which forms part of this Annual Report.
7. DIRECTORS AND KEY MANAGERIAL PERSONNEL
I. CESSATION
Kerala State Industrial Development Corporation Limited (KSIDC)
appointed Dr. M Beena, IAS as its Nominee Director on the Board of the
Company replacing Ms. Aruna Sundararajan w.e.f 12th December, 2014. The
Board of Directors place on record its sincere appreciation and
gratitude for the valuable contribution and guidance received from Ms.
Aruna Sundararajan during her tenure as a member of the Board.
II. RETIREMENT BY ROTATION
In accordance with Article 80 of the Articles of Association of the
Company, Mr. Punnoose George, Non-Executive Director (DIN 00049968)
will retire by rotation at the ensuing Annual General Meeting of the
company and being eligible, offers himself for re-appointment. The
Board recommends his re- appointment.
III. APPOINTMENT
The term of appointment of Mr. C.J.George (DIN 00003132) as Managing
Director of the Company expired on 23.11.2014.The Board of Directors of
the Company has re-appointed Mr. C.J.George as Managing Director for a
further period of 5 years w.e.f.24.11.2014 on terms and conditions,
details of which are provided in the Notice of Annual General Meeting.
Brief details of Directors proposed to be appointed and re-appointed
are given in the Notice of Annual General Meeting.
IV. INDEPENDENT DIRECTORS
With coming into the force of the Companies Act, 2013, the Board
appointed all the existing Independent Directors viz. Mr. A.P. Kurian,
Mr. R. Bupathy and Mr. Mahesh Vyas as Independent Directors under
Section 149 of the Companies Act, 2013 for a term upto 5 years. The
shareholders at their Annual General Meeting held on 15th July 2014
approved their appointment.
V. CHIEF FINANCIAL OFFICER
Mr. Binoy V Samuel retired as the Chief Financial Officer of the
Company on 31st March, 2015 and Mr. Joe Peter was appointed as the
Chief Financial Officer w.e.f 1st April,2015. The Board of Directors
place on record its deep appreciation for the valuable contribution
received from Mr. Binoy V Samuel in his role as CFO since 2000.
8. EVALUATION OF THE BOARD''S PERFORMANCE
In compliance with the Companies Act, 2013, and Clause 49 of the
Listing Agreement, the performance evaluation of the Board, its
Committees and individual Directors was carried out during the year
under review. Questionnaire approach was adopted for said evaluations.
The Nomination and Remuneration Committee (NRC) at its meeting carried
out a separate exercise for evaluating every Directors performance. The
evaluation of Independent Directors was carried out without the
presence of that Director. A separate meeting of the Independent
Directors was convened which reviewed the performance of the Board ( as
a whole), the non independent directors and the Chairman.
Some of the key criteria''s for performance evaluation were as follows:
Performance evaluation of Board and Committees.
1. Degree of fulfillment of key responsibilities
2. Board structure and composition
3. Effectiveness of Board processes, information and functioning
4. Board Culture and Dynamics
5. Quality of relationship between the Board and the
Management
6. Establishment and delineation of responsibilities to committees
Performance evaluation of Directors
1. provide meaningful and constructive contribution and inputs in
meetings
2. display a good degree of understanding of the company, industry,
sector, geography
3. display independence of judgment
9. FAMILIARIZATION PROGRAMME FOR INDEPENDENT
DIRECTORS
The Independent Directors of the Company are persons of integrity,
possessing rich experience and expertise in the field of corporate
management, finance, capital market, economic and business information.
The company has issued appointment letter to the Independent Directors
setting out in detail, the terms of appointment, duties, roles &
responsibilities and expectations from the appointed Director. The
Board of Directors has complete access to the information within the
Company. Presentations are regularly made to the Board of Directors /
Audit Committee / Nomination & Remuneration Committee / Corporate
Social Responsibilities Committee / Stakeholders Relationship Committee
on various related matters, where Directors have interactive sessions
with the Management.
10. REMUNERATION POLICY
The company follows a policy on remuneration of Directors, Key
Managerial Personnel ( KMP), Senior Management Personnel (SMP) and
other employees of the Company. The policy is approved by the
Nomination & Remuneration Committee of the Company.
The Non-Executive Directors of the Company shall be entitled to receive
remuneration by way of sitting fees for attending meeting of the Board
and Committees thereof. The Managing Director of the Company shall be
paid remuneration as approved by the Shareholders on the recommendation
of the Board and Nomination & Remuneration Committee.
The remuneration to KMP''s and SMP''s and employees shall include
direct remuneration and indirect remuneration
primarily and strategic remuneration which can be Performance Linked
and/or Profit linked incentive .
Remuneration Policy of the Company is given as Annexure VIII to the
Directors Report.
11. RISK MANGEMENT POLICY
Risks are an integral part of business and it is imperative to manage
these risks at acceptable levels in order to achieve business
objectives. The risks to which the Company is exposed are both external
and internal. Your company has formulated a Risk Management Policy to
provide an integrated and standardized approach in managing all aspects
of risk to which your Company is exposed. An Internal Risk Management
Committee monitors the Enterprise risk management policy with
participation from officers responsible for risk management and to take
appropriate steps to ensure that these risks are at acceptable levels.
Your Company has constituted a Risk Management Committee with majority
of committee members consisting of Board of Directors and with two
Senior Executives of the Company.
12. WHISTLE BLOWER POLICY & VIGIL MECHANISM
Your Company has laid down a Vigil Mechanism and formulated a Whistle
Blower Policy in order to provide a framework for responsible and
secure whistle blowing mechanism. The Policy aims to provide an avenue
for Employees and Directors to raise their concerns about unethical
behavior, actual or suspected fraud or violation of the company''s
code of conduct and it also empowers the Audit Committee of the Board
of Directors to investigate the concerns raised by the employees. The
Policy is also posted on the website of the Company.
All Directors and Employees of the Company are eligible to make
protected disclosures under the Policy addressed to the Vigilance
Officer of the Company in relation to matters concerning the Company.
During the year under review, no employee of the Company was denied
access to the Audit Committee.
13. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
Loans guarantees and investments covered under Section 186 of the
Companies Act, 2013 forms part of the notes to the financial statements
provided in this Annual Report.
14. INTERNAL CONTROL SYSTEM
The Company has put in place an adequate system of internal control
commensurate with its size and nature of business. These systems
provide a reasonable assurance in respect of providing financial and
operational information, complying with applicable statutes,
safeguarding of assets of the Company and ensuring compliance with
corporate policies.
The scope and authority of the Internal Audit activity are well defined
in the Internal Audit Charter, approved by the Audit Committee. The
Company has a dedicated Internal Audit team with skills commensurate
with the size, nature & complexity of operations of the Company.
Internal Audit reports functionally to the Audit Committee of Board
which reviews and approves risk based annual internal audit plan.
Audit Committee periodically reviews the performance of internal
audit function. During the year, the Audit Committee met regularly
to review reports submitted by the Internal Audit department. All
significant audit observations and follow-up actions there on were
reported to the Audit Committee.
The Company has a rigorous business planning system to set targets and
parameters for operations which are reviewed with actual performance to
ensure timely initiation of corrective action, if required.
The Company''s audit committee reviews adherence to internal control
systems, internal audit reports and legal compliances. This committee
reviews all quarterly and yearly results of the Company and recommends
the same to Board for its approval.
15. TRANSFER OF UNPAID AND UNCLAIMED AMOUNTS TO IEPF
Pursuant to the provisions of Section 124 of the Companies Act, 2013,
money transferred to the Unpaid Dividend Account of the Company and
which has remained unpaid or unclaimed for a period of seven years from
the date of transfer has been transferred by the Company to the
Investor Education and Protection Fund ("IEPF") established by the
Central Government pursuant to Section 125 of the said Act.
16. MANAGEMENT''S DISCUSSION & ANALYSIS
The Management''s Discussion and Analysis is given separately and
forms part of this Annual Report.
17. INSIDER TRADING REGULATIONS
Based on the requirements under SEBI (Prohibition of Insider Trading)
Regulations, 1992, as amended from time to time, the Company has
adopted a Code of Conduct for Prevention of Insider Trading and Code of
Corporate Disclosures which is applicable to all Directors and the
Designated Employees of the Company. The Code lays down the guidelines,
which advices on the procedures to be followed and disclosures to be
made while dealing in shares of the Company and indicate the
consequences of non-compliance. A copy of the Code has been put on the
Company''s website.
18. CODE OF CONDUCT FOR DIRECTORS & SENIOR OFFICERS
The Board at its Meeting held on 18th October 2014 revised and adopted
a Code of Conduct for Directors & Senior Management in accordance with
the provisions of the Companies Act, 2013 and the Listing Agreement.
The Code also incorporates the duties of Independent Directors. All the
Board Members and Senior Management Personnel have confirmed compliance
with the Code. A
declaration to that effect signed by the Managing Director forms part
of the Corporate Governance Report. A copy of the Code has been put on
the Company''s website.
19. HUMAN RESOURCES
As a service Company, the Company''s operations are heavily dependent
on qualified and competent personnel. As on 31st March 2015, the
Company had 2161 employees. Your Company takes significant effort in
training all employees at various levels.
20. EMPLOYEE STOCK OPTION PLAN (ESOP)
During the year some employees of the Company have exercised part of
their stock options granted under the Employees Stock Option Plan 2010
(ESOP 2010) and Employees Stock Option Plan 2007 for Key Employees
(ESOP 2007 Key Employees). The Nomination and Remuneration Committee of
the Board of Directors of the Company has allotted total 25,25, 591
equity shares of Rs.1/- under ESOP 2010 Scheme and 4,97,500 equity shares
of Rs.1/- under ESOP 2007 Scheme to its employees who exercised the stock
options on various dates at various exercise prices in accordance with
the terms and conditions of ESOP.
Details of the equity shares issued under ESOP, as also the disclosures
in compliance with clause 12 of the SEBI (Employees Stock Options
Scheme and Employees Stock Purchase Scheme) Guidelines, 1999 are set
out in Annexure I to this Report.
21. CORPORATE SOCIAL RESPONSIBILITY (CSR)
The Corporate Social Responsibility Committee has formulated and
recommended to the Board a Corporate Social Responsibility Policy (CSR
Policy) indicating activities to be undertaken by the Company, which
has been approved by the Board.
The Company has identified Education and Health as key focus areas of
engagement for CSR activities. The Company would also undertake other
initiatives in compliance with the Schedule VIII of the Companies Act
2013. The Annual Report on CSR activities is annexed herewith and
marked as Annexure IV to this report.
22. PARTICULARS OF EMPLOYEES
Particulars of employees covered by the provisions of Section 197 of
the Companies Act, 2013 read with Companies (Appointment and
Remuneration of Managerial Personnel) Rules,2014 is given as Annexure
III to this Report.
23. DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to requirement of Section 134(3)(c) and Section 134 (5) of the
Companies Act, 2013 and based on the representations received from the
Management, your Directors state that :
i. in the preparation of the annual accounts for the financial year
ended 31st March, 2015, the applicable accounting standards have been
followed and there are no material departures from the same;
ii. the Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company as at 31st March, 2015 and of the profit of the company
for the year ended on that date;
iii. the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 2013 for safeguarding the assets of
the company and for preventing and detecting fraud and other
irregularities;
iv. the Directors have prepared the annual accounts on a going concern
basis;
v. the Directors have laid down internal financial controls to be
followed by the company and that such internal financial controls are
adequate and were operating effectively; and
vi. the Directors have devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively.
24. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The Company has nothing to report in respect of information on
conservation of energy and technology absorption as required under
Section 134 of the Companies Act, 2013 read with Companies (Accounts)
Rules, 2014 since the Company is not engaged in manufacturing or
processing business. The details regarding foreign exchange earnings
and outgo are given as Annexure II to this Report.
25. CORPORATE GOVERNANCE
Your Company has complied with the Corporate Governance requirements
under Companies Act,2013 and as stipulated under the provisions of the
Listing Agreement entered into with the Stock Exchanges. A detailed
Report on Corporate Governance is given as Annexure V to this Report. A
certificate of Statutory Auditor confirming compliance of the Corporate
Governance requirements by the Company is attached to the Report on
Corporate Governance.
26. SECRETARIAL AUDIT REPORT
In accordance with the provisions of Section 204 of the Companies Act,
2013, the Board has appointed M/s. Keyul M. Dedhia & Associates -
Company Secretaries in Whole Time Practice, Mumbai as the Secretarial
Auditor for the financial year 2014-15. The report of the Secretarial
Auditor is annexed to this report as Annexure VI.
M/s Keyul Dedhia and Associates in their audit report observed that
Form No. MGT-14 for filing of Resolution relating to the approval of
the Directors Report by the Board for the financial year ended 31st
March, 2014 has not been filed. It was noted by the Board that it was
an accidental omission and caused inadvertently due to oversight,
without prejudice to the interests of the Shareholders of the Company
and the General Public. It can be noted that the Company has been
prompt and compliant in filing all the other forms required to be filed
under the Companies Act, 2013 till date. In respect of the observations
pertaining to SEBI {KYC(Know Your Client) Registration Agency}
Regulations, 2011, the Company had taken appropriate steps to avoid
such instances in future.
27. AUDITORS
M/s. Deloitte Haskins & Sells, Chartered Accountants, 1st Floor,
Wilmont Park Business Centre, Warriam Road, Kochi - 682016, (ICAI
Registration No.008072S) were appointed as Statutory Auditors of your
Company to conduct the audit of accounts for the year ended 31 st March
2015. Their term of appointment expires at the conclusion of the
forthcoming Annual General Meeting.
M/s. Deloitte Haskins & Sells have expressed their willingness to get
re-appointed as the Statutory Auditors of the company and has furnished
a certificate of their eligibility and consent under Section 141 of the
Companies Act, 2013, and the rules framed there under. In terms of the
Listing Agreement, the Auditors have confirmed that they hold a valid
certificate issued by the Peer Review Board of the ICAI. The Board,
based on the recommendation of the Audit Committee, recommends the
appointment of M/s. Deloitte Haskins & Sells as the Statutory Auditors
of the Company.
The Auditors'' Report to the Shareholders for the year under review
does not contain any qualification.
28. EXTRACT OF ANNUAL RETURN
The extract of the Annual return in Form MGT - 9 is given as Annexure
VII to this Report.
29. NUMBER OF BOARD MEETINGS
The Board of Directors met 6 (six) times in the financial year 2014-15.
The details of the board meetings and the attendance of the Directors
are provided in the Corporate Governance Report.
30. COMPOSITION OF AUDIT COMMITTEE
The Board has constituted the Audit Committee, which comprises of Mr.
R. Bupathy as the Chairman and Mr. A.P. Kurian, Mr. Mahesh Vyas and
Mr. Jean Christophe Gougeon as the members. More details on the
committee are given in the Corporate Governance Report.
31. RELATED PARTY TRANSACTIONS
All contracts/arrangements/transactions entered by the Company during
the financial year with the related parties were in the ordinary course
of business and on an arm''s length basis. During the year the company
had not entered into any contract/ arrangement /transaction with
related party which could be considered material in accordance with the
policy of the company on materiality of related party transactions.
The Policy on materiality of related party transaction and dealing with
related party transactions as approved by the Board may be accessed on
the Company''s website.
Your Directors draw attention of the members to Note 38 to the
financial statement, which sets out related party disclosures.
32. POLICY RELATING TO DIRECTORS APPOINTMENT
The Company with the approval of Nomination & Remuneration Committee
has adopted a policy on Board diversity and the recommendation of
candidature for Board appointment will be based on merit that
complements and expands the skills, experience and expertise of the
Board as a whole, taking into account gender, age, professional
experience and qualifications, cultural and educational background, and
any other factors that the Board might consider relevant and applicable
from time to time towards achieving a diverse Board.
33. DECLARATION BY INDEPENDENT DIRECTORS
The Company has received necessary declaration from each Independent
Director under Section 149(7) of the Companies Act 2013 that he meets
the criteria of Independence laid down in Section 149(6) of the
Companies Act 2013 and Clause 49 of the Listing Agreement.
34. DISCLOSURE AS PER SEXUAL HARRASSMENT OF WOMEN AT WORKPLACE(
PREVENTION, PROHIBITION AND REDRESSAL ) ACT, 2013.
The Company has zero tolerance for sexual harassment at work place and
has adopted a policy on prevention, prohibition and redressal of sexual
harassment at workplace in line with the provision of Sexual Harassment
of Women at Workplace ( Prevention, Prohibition and Redressal) Act,
2013 and the rules framed thereunder.
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.
35. GENERAL
Your Directors state that no disclosure or reporting is required in
respect of the following items as there were no transactions on these
items during the year under review.
a. Details relating to deposits covered under Chapter V of the
Companies Act 2013.
b. Issue of equity shares with differential right as to dividend,
voting or otherwise
c. Issue of shares (including sweat equity shares) to employees of the
company under any scheme save and except ESOP referred to in this
report.
d. No significant or material orders were passed by the regulators or
Courts or tribunals which impact the going concern status and
Company''s operation in future.
36. ACKNOWLEDGEMENTS
Your Directors wish to acknowledge the valuable guidance and assistance
received from Securities and Exchange Board of India, Stock Exchanges &
other Regulatory Authorities, BNP Paribas, KSIDC, our clients and
business partners. We look forward to receiving their continued support
and encouragement. The Board of Directors wishes to extend their thanks
and appreciation and express their gratitude for the continuing
commitment and dedication of employees at all levels. The Directors are
thankful to the esteemed shareholders for their support and the
confidence reposed in the Company.
For and on behalf of the Board of Directors
Place: Kochi A.P. Kurian
Date : 20.05.2015 Chairman
Mar 31, 2014
Dear Members,
The Directors have pleasure in presenting the 20th Annual Report of
your Company for the financial year ended 31st March, 2014.
FINANCIAL HIGHLIGHTS
(Rs. in crore)
Standalone
Particulars
2013-14 2012-13 Change
Total Revenue 195.94 232.79 -16%
Total Expenditure 145.79 177.13 -18%
Profit / (Loss) before
tax 50.15 55.67 -10%
Exceptional - Gain /
(Loss) (111.93) - -100%
Provision for Tax 15.69 13.70 15%
Less: Minority Interests - - -
Less: Share of Loss in
Associate - - -
Profit after tax (77.47) 41.96 -285%
Final Dividend 2.28 5.70 -
Interim Dividend - 17.13 -
Transfer to General Reserve - 5 -
Particulars Consolidated
2013-14 2012-13 Change
Total Revenue 232.54 262.19 -11%
Total Expenditure 166.49 195.21 -15%
Profit / (Loss) before
tax 66.05 66.98 -1%
Exceptional - Gain /(Loss) (121.32) 42.78 -384%
Provision for Tax 21.98 22.48 -2%
Less: Minority Interests (4.41) 4.94 -189%
Less: Share of Loss in
Associate (0.4) (0.53) -24%
Profit after tax (73.25) 81.80 -190%
Final Dividend 2.28 5.70 -
Interim Dividend - 17.13 -
Transfer to General Reserve - 5 -
REVIEW OF PERFORMANCE
The company''s performance, FY 13-14, largely shadowed the performance
of the markets and is in line with broader Industry trends. Consequent
to divesting our interest in the joint venture with BNP Paribas there
is a decline in the consolidated brokerage. There was a marked increase
in business done through online and mobile channels, which is an
encouraging trend. We continue to focus on these channels. The rally in
the markets witnessed in the last quarter, led to increase in trading
activities and as a result, our client has crossed 7,00,000 and Asset
under Custody and Management crossed 15,000 crores for the first time in
our Company''s history.
As informed through quarterly results, the Company was affected by the
default of National Spot Exchange Limited, which directly affected one
of our subsidiaries. Provision of Rs.128.26 Crores was provided against
non-performing assets of the Company in accordance with the rules. This
is presented in the Profit & Loss Account as exceptional loss and has
resulted in the net loss of Rs.73.14 Crores for the year. The profit
before exceptional item is at the same level as the previous year.
A detailed survey and analysis of our company''s performance for the
year is given in the Management Discussion and Analysis Report appended
hereto.
DIVIDEND
Your Directors are pleased to recommend a dividend of 10 paise per
share of Re. 1 each for the financial year ended 31st March, 2014 taking
into account the operating performance and the exceptional loss of the
Company. The payment of dividend together with tax thereon will absorb
Rs.2.67 crore.
DIRECTORS
Kerala State Industrial Development Corporation Limited (KSIDC) has
appointed Ms. Aruna Sundararajan as its Nominee Director on the Board
of the Company replacing Mr. P H Kurian, IAS w.e.f. 14th January, 2014.
Mr. Tom Jose, IAS who was nominated by KSIDC as Nominee Director on the
Board of the Company was replaced by Mr. P H Kurian w.e.f. 4th October,
2013. Mr. Olivier Le Grand, Investor Director nominated by BNP Paribas
SA resigned from the Board on 31st March, 2014. BNP Paribas nominated
Ms. Franciska Decuypere as its Nominee and the Board appointed Ms.
Decuypere as Additional Director w.e.f. 14th May, 2014. The Board of
Directors place on record its sincere appreciation and gratitude for
the valuable contribution and guidance received from Mr. Olivier Le
Grand, Mr. Tom Jose and Mr. P H Kurian during their tenure as a member
of the Board.
In accordance with Article 80 of the Articles of Association of the
Company, Mr. Jean Christophe Gougeon, Non-Executive Director retire by
rotation at the ensuing Annual General Meeting and being eligible offer
himself for re-appointment.
Brief details of Mr. Jean Christophe Gougeon proposed to be
re-appointed is given in the Notice of Annual General Meeting.
In accordance with the Section 149 of the Companies Act, 2013 the
Company proposes to appoint Mr. A P Kurian & Mr. R Bupathy and Mr.
Mahesh Vyas as Independent Directors of the Company whose term of Office
will be upto July 14, 2019.
SUBSIDIARIES AND JOINT VENTURES
Ministry of Corporate Affairs has granted exemption under Section
212(8) of the Companies Act, 1956 exempting the Company from attaching
copies of the Balance Sheet, Profit and Loss Account, Reports of the
Board of Directors and Auditors of Subsidiaries as specified under
Section 212(1) of the Companies Act, 1956, subject to publication of
certain summarized financial information of the subsidiaries in the
Annual Report. Accordingly these documents are not attached to the
Balance Sheet and summarised financial information of the subsidiaries
is included in this Annual Report. Full Annual Report including
financial information of the subsidiaries is published on the website of
the Company and will be available upon request by any member interested
in obtaining the same. All those documents related to subsidiaries are
kept in the head Office of the Company for inspection by any interested
shareholder.
Considering the insignificant activity of Geojit Investment Services
Limited, the Board of Directors of the Company proposed a scheme of
Amalgamation of Geojit Investment Services Limited with Geojit BNP
Paribas Financial Services Limited in the year 2009 pursuant to Section
394 of the Companies Act, 1956. Since Geojit Investment Services
Limited was engaged in commodities futures brokerage as a member of
relevant exchanges, Forward Markets Commission''s clearance is awaited
for the proposed amalgamation. Such clearance is awaited.
(Rs. in lakhs)
Financial Highlights
Particulars
Total Profit/
(Loss) Profit /
(Loss)
Income Before
Tax After Tax
Subsidiaries
Geojit Investment Services
Limited (100% Shares held) 174.93 127.66 90.81
Geojit Financial Management
Services Private Limited
(100% Shares 325.53 (2672.03) (2800.83)
held)
Geojit Credits Private Limited
(67.75% Shares held) 915.69 (13318.72) (13319.35)
Qurum Business Group Geojit
Securities LLC (51% Shares held) 105.00 (126.00) (126.00)
Geojit Technologies Private
Limited (65% Shares held
through wholly 2573.49 1596.76 1149.67
owned subsidiary)
Geojit Financial Distribution
Private Limited 23.26 20.45 20.45
(100% Shares held through
wholly owned subsidiary)
Joint Ventures & Associates
Barjeel Geojit Securities LLC 602.00 96.00 96.00
(30% Shares held)
Aloula Geojit Capital Company 592.00 42.00 28.00
(28% Shares held)
BBK Geojit Securities KSC 9.00 (40.00) (40.00)
(30% Shares held)
INTERNAL CONTROL SYSTEM
The Company has put in place an adequate system of internal control
commensurate with its size and nature of business. These systems
provide a reasonable assurance in respect of providing financial and
operational information, complying with applicable statutes,
safeguarding of assets of the Company and ensuring compliance with
corporate policies.
The Company has a dedicated Internal Audit team with skills
commensurate with the size, nature & complexity of operations of the
Company. Internal Audit reports functionally to the Audit Committee of
Board which reviews and approves risk based annual internal audit plan.
Audit Committee periodically reviews the performance of internal audit
function.
The Company has a rigorous business planning system to set targets and
parameters for operations which are reviewed with actual performance to
ensure timely initiation of corrective action, if required.
The Company''s audit committee reviews adherence to internal control
systems, internal audit reports and legal compliances. This committee
reviews all quarterly and yearly results of the Company and recommends
the same to Board for its approval.
TRANSFER OF UNPAID AND UNCLAIMED AMOUNTS TO IEPF
Pursuant to the provisions of Section 205A (5) of the Companies Act,
1956, the dividend declared and paid by the Company and which have
remained unpaid or unclaimed for a period of seven years from the date
of declaration have been transferred by the Company to the Investor
Education and Protection Fund ("IEPF") established by the Central
Government pursuant to Section 205C of the said Act.
MANAGEMENT''S DISCUSSION & ANALYSIS
The Management''s Discussion and Analysis is given separately and forms
part of this Annual Report.
INSIDER TRADING REGULATIONS
Based on the requirements under SEBI (Prohibition of Insider Trading)
Regulations, 1992, as amended from time to time, the code of conduct
for prevention of insider trading and the code for corporate
disclosures are in force.
FIXED DEPOSITS
Your Company has not accepted any fixed deposits from the public under
Section 58(A) of the Companies Act, 1956 and as such, no amount of
principal or interest is outstanding as of the balance sheet date.
HUMAN RESOURCES
As a service Company, the Company''s operations are heavily dependent on
qualified and competent personnel. As on 31st March, 2014, the Company
had 2495 employees. Your Company takes significant effort in training
all employees at various levels.
EMPLOYEE STOCK OPTION PLAN (ESOP)
Details of the equity shares issued under ESOP, as also the disclosures
in compliance with clause 12 of the SEBI (Employees Stock Options
Scheme and Employees Stock Purchase Scheme) Guidelines, 1999 are set
out in Annexure I to this Report.
The Company had obtained the approval of members for issuing
1,12,00,000 (One Crore Twelve Lakh Only) stock options under Employee
Stock Option Plan 2010 (ESOP 2010) in the Annual General Meeting held
on 2010.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
The company takes special interest in promoting education and is
continuing with the Project of supporting the education of 450
underprivileged students, through the NGO, Rajagiri Outreach. We also
provided educational support to needy students pursuing professional
courses as well as participated in a Project of providing books & CD''s
on general knowledge to supplement the general studies of students of
Government Schools in Kochi. During the year the company has reached
out to the wider community to render aid and assistance wherever
possible. We contributed to the Uttarakhand food relief operations and
gave support to an organization taking care of Alzheimer patients. It
is a matter of pride for us that the young employees of the Company are
compassionate and have helped the sick and the needy and also takes
active interest in promoting social causes such as their participation
in the global campaign to end violence on women and girls and for
gender justice and gender equality conducted by the prominent Social
organizations in Kochi led by the Cultural Academy of Peace. The staff
have come together to form a blood donors data bank that has a
membership of 200 blood donors who have contributed to around 120
people in the last one year.
We are continuing with our efforts to promote financial education and
inclusion through dedicated classes focusing on students, the youth and
women. We have in the past tied up with the National Stock Exchange and
the Ministry of Corporate Affairs to run investor road shows and
outreach programs. The company also associated itself with the NSE and
CNBC TV 18 in making sure that the Cochin leg of the Investothon.
PARTICULARS OF EMPLOYEES
Particulars of employees covered by the provisions of Section 217 (2A)
of the Companies Act, 1956 read with Companies (Particulars of
Employees) Rules, 1975 is given as Annexure II to this Report.
DIRECTORS'' RESPONSIBILITY STATEMENT
As required under Section 217(2AA) of the Companies Act, 1956, your
Directors conform having :
i) followed in preparation of the Annual Accounts, the applicable
standards with proper explanation relating to material departures,
where applicable;
ii) 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 your Company at
the end of the financial year and the profit of your Company for that
period;
iii) taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Companies
Act, 1956 for safeguarding the assets of your Company and for
preventing and detecting fraud and other irregularities; and
iv) prepared the Annual Accounts on a going concern basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The Company has nothing to report in respect of information on
conservation of energy and technology absorption as required under
Section 217(1) of the Companies Act, 1956 read with Companies
(Disclosures of Particulars in the Report of Board of Directors) Rules,
1988 since the Company is not engaged in manufacturing or processing
business. The details regarding foreign exchange earnings and outgo are
given as Annexure III to this Report.
CORPORATE GOVERNANCE
Your Company has complied with the Corporate Governance norms as
stipulated under the provisions of the Listing Agreement entered into
with the Stock Exchanges. A detailed Report on Corporate Governance is
given as Annexure IV to this Report. A certificate of Statutory Auditor
confirming compliance of the Corporate Governance requirements by the
Company is attached to the Report on Corporate Governance.
AUDITORS
M/s. Deloitte Haskins & Sells, Chartered Accountants, 1st Floor,
Wilmont Park Business Centre, Warriam Road, Kochi  682 016, (ICAI
Registration No.008072S) were appointed as Statutory Auditors of your
Company to conduct the audit of accounts for the year ended 31st March,
2014. Their term of appointment expires at the conclusion of the
forthcoming Annual General Meeting. Your Directors have proposed them
for reappointment at the forthcoming AGM.
ACKNOWLEDGEMENTS
Your Directors wish to acknowledge the valuable guidance and assistance
received from Securities and Exchange Board of India, Stock Exchanges &
other Regulatory Authorities, BNP Paribas, KSIDC, our clients and
business partners. We look forward to receiving their continued
support and encouragement. The Board of Directors wishes to extend
their thanks and appreciation and express their gratitude for the
continuing commitment and dedication of employees at all levels. The
Directors are thankful to the esteemed shareholders for their support
and the confidence reposed in the Company.
For and on behalf of the Board of Directors
Place : Kochi A P Kurian
Date : 19.05.2014 Chairman
Mar 31, 2013
Dear Members,
The Directors have pleasure in presenting the 19th Annual Report of
your Company for the financial year ended 31st March 2013.
FINANCIAL HIGHLIGHTS & REVIEW OF PERFORMANCE
(Rs. in crore)
Particulars Standalone Consolidated
2012-13 2011-12 Change 2012-13 2011-12 Change
Total Revenue 232.80 235.51 (1%) 262.20 257.14 2%
Total
Expenditure 177.13 185.26 (4%) 195.21 209.55 (7%)
Profit before tax 55.67 50.25 11% 66.98 47.59 41%
Exceptional Item - - - 42.78 - -
Provision for tax 13.70 10.52 30% 22.48 24.27 (7%)
Share of Minority
Interest - - - 4.95 3.87 28%
Share in Profit
/(Loss) of
Associates - - - (0.53) - -
Profit after tax 41.97 39.73 6% 81.80 19.45 321%
Final Dividend 5.71 17.13 - - - -
Interim Dividend 17.13 - - - - -
Transfer to
general reserve 5.00 5.00 - 6.70 5.42 -
A detailed analysis of the performance is given in the Management
Discussion and Analysis Report appended hereto.
TRANSFER TO RESERVES
During the financial year 2012-13, your Company has transferred Rs.
5.00 crore to the General Reserve Account.
DIVIDEND
Your Directors are pleased to recommend a final dividend of 25 paise
per equity share of Rs. 1/- each. Along with the 75 paise interim
dividend paid during March 2013 the total dividend works out to be 100%
for the financial year 2012-13.
DIRECTORS
Kerala State Industrial Development Corporation Limited (KSIDC)
appointed Mr.Tom Jose as its Nominee Director on the Board of the
Company replacing Mr. Alkeshkumar Sharma w.e.f 12th January 2013. The
Board of Directors place on record its sincere appreciation and
gratitude for the valuable contribution and guidance received from
Mr.Alkeshkumar Sharma during his tenure as a member of the Board.
In accordance with Article 80 of the Articles of Association of the
Company, Mr.Punnoose George and Mr.Rakesh Jhunjhunwala, Non-Executive
Directors retire by rotation at the ensuing Annual General Meeting and
being eligible offer themselves for re- appointment.
Brief details of Directors proposed to be re-appointed are given in the
Notice of Annual General Meeting.
CONSOLIDATED RESULTS
The Consolidated Financial Results represent those of Geojit BNP
Paribas Financial Services Limited, its subsidiaries i.e., Geojit
Investment Services Limited (100% held), Geojit Financial Management
Services Private Limited (100% held), Geojit Credits Private Limited
(65.03% held), Qurum Business Group Geojit Securities LLC, Oman (51%
held), its step down subsidiaries i.e, Geojit Technologies Private
Limited (65% held), Geojit Financial Distribution Private Limited
(100%), and its Joint Ventures i.e., Barjeel Geojit Securities L.L.C.,
Dubai (30%held), Aloula Geojit Brokerage Company, Saudi Arabia(28%
held) and BBK Geojit Securities KSC, Kuwait (30% held) prepared in
accordance with the relevant Accounting Standards issued by the
Institute of Chartered Accountants of India.
SUBSIDIARIES AND JOINT VENTURES
Ministry of Corporate Affairs has granted exemption under Section
212(8) of the Companies Act, 1956 exempting the Company from attaching
copies of the Balance Sheet, Profit and Loss Account, Reports of the
Board of Directors and Auditors of Subsidiaries as specified under
Section 212(1) of the Companies Act, 1956, subject to publication of
certain summarized financial information of the subsidiaries in the
Annual Report. Accordingly these documents are not attached to the
Balance Sheet and summarised financial information of the subsidiaries
is included in this Annual Report. Full Annual Report including
financial information of the subsidiaries is published on the website
of the Company and will be available upon request by any member
interested in obtaining the same. All those documents related to
subsidiaries are kept in the head office of the Company for inspection
by any interested shareholder.
The Company made two new investments in Middle East Asia namely Qurum
Business Group Geojit Securities LLC located in Oman, a subsidiary
Company with QBG and National Securities Co in which Geojit BNP Paribas
holds 51% stake and BBK Geojit Securities KSC located in Kuwait, a
Joint Venture with Bank of Bahrain and JZA in which Geojit BNP Paribas
holds 30% stake.
During the period under review, the Company entered in to an agreement
to sell its entire stake in BNP Paribas Securities India Pvt. Ltd
(BNPPSI) held through its wholly owned subsidiary for an amount of Rs.
41.24 crores. About 84% of the stake was sold during the year for a
consideration of Rs. 34.3 crore. The balance holding was sold in April
2013 for Rs. 6.94 crore. On account of the said sale of stake, the
Company hasn''t considered the financials of BNPPSI for consolidated
from April 01, 2012. Therefore the consolidated financials are not
comparable with previous year to that extent.
Considering the insignificant activity of Geojit Investment Services
Limited, the Board of Directors of the Company proposed a scheme of
Amalgamation of Geojit Investment Services Limited with Geojit BNP
Paribas Financial Services Limited in the year 2009 pursuant to Section
394 of the Companies Act, 1956. Since Geojit Investment Services
Limited was engaged in commodities futures brokerage as a member of
relevant exchanges, Forward Markets Commission''s clearance is awaited
for the proposed amalgamation. Such clearance is awaited.
(Rs. in lakhs)
Particulars Financial Highlights
Total
Income Profit
Before Tax Profit
After Tax
Geojit Investment Services
Limited 172.77 121.04 88.11
Geojit Financial Management
Services Private Limited 154.91 1276.39 1033.39
Geojit Credits Private Limited 1942.72 769.98 508.09
Qurum Business Group Geojit
Securities LLC 40.62 (69.39) (69.39)
Geojit Technologies Private
Limited 2209.29 1341.23 1002.45
Geojit Financial Distribution
Private Limited 24.01 23.28 21.97
Joint Ventures & Associates
Barjeel Geojit Securities
L.L.C. (30% shares held) 524.21 94.42 94.42
Aloula Geojit Brokerage Company
(28% shares held) 412.12 (40.53) (40.53)
BBK Geojit Securities KSC
(30% shares held) 0.60 (52.93) (52.93)
INTERNAL CONTROL SYSTEM
The Company has put in place an adequate system of internal control
commensurate with its size and nature of business. These systems
provide a reasonable assurance in respect of providing financial and
operational information, complying with applicable statutes,
safeguarding of assets of the Company and ensuring compliance with
corporate policies.
The Company has a dedicated Internal Audit team which is commensurate
with the size, nature & complexity of operations of the Company.
Internal Audit reports functionally to the Audit Committee of Board
which reviews and approves risk based annual internal audit plan. Audit
Committee periodically reviews the performance of internal audit
function.
The Company has a rigorous business planning system to set targets and
parameters for operations which are reviewed with actual performance to
ensure timely initiation of corrective action, if required.
The Company''s audit committee reviews adherence to internal control
systems, internal audit reports and legal compliances. This committee
reviews all quarterly and yearly results of the Company and recommends
the same to Board for its approval.
TRANSFER OF UNPAID AND UNCLAIMED AMOUNTS TO IEPF
Pursuant to the provisions of Section 205A (5) of the Companies Act,
1956, the dividend declared and paid by the Company and which have
remain unpaid or unclaimed for a period of seven years from the date of
declaration have been transferred by the Company to the Investor
Education and Protection Fund ("IEPF") established by the Central
Government pursuant to Section 205C of the said Act. The details of the
unpaid/unclaimed dividend that will be transferred to IEPF A/c in
subsequent years are given in the corporate governance section of the
Annual Report.
MANAGEMENT''S DISCUSSION & ANALYSIS
The Management''s Discussion and Analysis is given separately and
forms part of this Annual Report.
INSIDER TRADING REGULATIONS
Based on the requirements under SEBI (Prohibition of Insider Trading)
Regulations, 1992, as amended from time to time, the code of conduct
for prevention of insider trading and the code for corporate
disclosures are in force.
FIXED DEPOSITS
Your Company has not accepted any fixed deposits from the public under
Section 58(A) of the Companies Act, 1956 and as such, no amount of
principal or interest is outstanding as of the balance sheet date.
HUMAN RESOURCES
As a service Company, the Company''s operations are heavily dependent
on qualified and competent personnel. As on 31st March 2013, the
Company had a total head count of 2579. Your Company takes significant
effort in training all employees at various levels.
EMPLOYEE STOCK OPTION PLAN
Details of the equity shares issued under ESOP, as also the disclosures
in compliance with clause 12 of the SEBI (Employees Stock Options
Scheme and Employees Stock Purchase Scheme) Guidelines, 1999 are set
out in Annexure I to this Report.
The Company had obtained the approval of members for issuing
1,12,00,000 (one crore twelve lakh only) stock options under Employee
Stock Option Plan 2010 (EsOP 2010) in the Annual General Meeting held
on 2010.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
The Company has always believed and practiced being responsible to all
its stakeholders and the public at large. Financial literacy programs
particularly for the youngsters has been a special initiative of the
Company introduced in 2006, which has so far reached out to about
500,000 students in 3,000 or so colleges through approximately 10,000
seminars. This initiative to get young people interested in savings and
investments and to take informed investment decisions got extensive
support from the National Stock Exchange and from the Ministry of
Corporate Affairs.
Primary education for underprivileged children has been another area of
focus since 2006. We have been supporting 450 students of four villages
in their educational requirements and in their overall personality
development, with the help of a specialized NGO. They are not only
provided education material but are also given regular tuitions and
personality development camps which has benefitted not only these
children but also in the upliftment of their families. The employees of
the Company are also sensitive to the needs of the society and
volunteers and participates in the CSR activities of the Company such
as blood donation, planting of trees, service in the general hospital
and very recently participation in the One Billion rising program for
gender justice.
The newly built corporate office of the Company at Kochi is built to
Green standards and is awaiting Leed''s Gold certification. By
adhering to the green norms, the Company is saving on water and power
consumption. The Company is maintaining not only its own premises
beautifully but also its immediate vicinity by maintaining a garden in
the medians in front of our building.
PARTICULARS OF EMPLOYEES
Particulars of employees covered by the provisions of Section 217 (2A)
of the Companies Act, 1956 read with Companies (Particulars of
Employees) Rules, 1975 is given as Annexure II to this Report.
DIRECTORS'' RESPONSIBILITY STATEMENT
As required under Section 217(2AA) of the Companies Act, 1956, your
Directors confirm having :
i. followed in preparation of the Annual Accounts, the applicable
standards with proper explanation relating to material departures,
where applicable;
ii. 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 your Company at
the end of the financial year and the profit of your Company for that
period;
iii. taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Companies
Act, 1956 for safeguarding the assets of your Company and for
preventing and detecting fraud and other irregularities; and
iv. prepared the Annual Accounts on a going concern basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The Company has nothing to report in respect of information on
conservation of energy and technology absorption as required under
Section 217(1) of the Companies Act, 1956 read with Companies
(Disclosures of Particulars in the Report of Board of Directors) Rules,
1988 since the Company is not engaged in manufacturing or processing
business. The details regarding foreign exchange earnings and outgo are
given as Annexure III to this Report.
CORPORATE GOVERNANCE
Your Company has complied with the Corporate Governance norms as
stipulated under the provisions of the Listing Agreement entered into
with the Stock Exchanges. A detailed Report on Corporate Governance is
given as Annexure IV to this Report. A certificate of Statutory
Auditor confirming compliance of the Corporate Governance requirements
by the Company is attached to the Report on Corporate Governance.
AUDITORS
M/s. Deloitte Haskins & Sells, Chartered Accountants, 1st Floor,
Wilmont Park Business Centre, Warriam Road, Kochi - 682016, (ICAI
Registration No.008072S) were appointed as Statutory Auditors of your
Company to conduct the audit of accounts for the year ended 31st March
2013. Their term of appointment expires at the conclusion of the
forthcoming Annual General Meeting. Your Directors have proposed them
for reappointment at the forthcoming AGM.
ACKNOWLEDGEMENTS
Your Directors wish to acknowledge the valuable guidance and assistance
received from Securities and Exchange Board of India, Stock Exchanges &
other Regulatory Authorities, BNP Paribas, KSIDC, our clients and
business partners. We look forward to receiving their continued support
and encouragement. The Board of Directors wishes to extend their thanks
and appreciation and express their gratitude for the continuing
commitment and dedication of employees at all levels. The Directors are
thankful to the esteemed shareholders for their support and the
confidence reposed in the Company.
For and on behalf of the Board of Directors
Sd/-
Place : Kochi A.P. Kurian
Date : 22.05.2013 Chairman
Mar 31, 2012
The Directors have pleasure in presenting the 18th Annual Report of
your Company for the financial year ended 31st March 2012.
FINANCIAL HIGHLIGHTS
(Rs in crore)
Standalone Consolidated
Particulars 2011-12 2010-11 Change 2011-12 2010-11 Change
Total Income 235.50 271.40 (13.2%) 257.14 281.2 (8.6%)
Profit Before
Tax 50.24 63.81 (21.3%) 47.60 50.25 (5.3%)
Provision
for Tax 10.52 15.08 (30.2%) 24.28 18.80 29.2%
Profit After
Tax 39.72 48.73 (18.5%) 19.45 29.02 (32.9%)
REVIEW OF PERFORMANCE
On a standalone basis, your Company has recorded a total income from Rs
235.50. crore for the financial year ended 31st March 2012, a decrease
of 13.2% compared to last year's figure of Rs 271.40 crore. The
operating profit is Rs 50.24 crore and the net profit after tax is Rs
39.72 crore. The profit after tax decreased by 18.5%. Basic earnings
per share work out to Rs 1.74 compared to Rs 2.16 in the previous year.
On a consolidated basis your company earned a total income of Rs 257.14
crore for the financial year, a decrease of 8.6% over the previous
year's figures of Rs 281.29 crore, an operating profit of Rs 47.60 crore
and a net profit of Rs 19.45 crore.
A detailed analysis of the performance is given in the Management
Discussion and Analysis Report appended hereto.
DIVIDEND
Your Directors are pleased to recommend a dividend of 75 paise per
share of Rs 1 each for the financial year ended 31st March 2012 taking
into account the performance of the Company. The payment of dividend
together with tax thereon will absorb Rs 19.91 crore.
DIRECTORS
The Board of Directors appointed Mr.Jean Christophe Gougeon as an
Additional Director w.e.f 19.03.2012 in place of Mr. Pierre Rousseau
who resigned from the Board of Directors w.e.f 22.02.2012. Mr. Jean
Christophe Gougeon will hold office till the date of the forthcoming
Annual General Meeting. Resolution
seeking his appointment as Director has been included in the agenda of
the Annual General Meeting. The Company has received notices in writing
under section 257 of the Companies Act, 1956, along with requisite fee
from certain members proposing the candidature as Director of the
Company. The Board recommends his appointment.
The Board of Directors place on record its sincere appreciation and
gratitude for the valuable contribution and guidance received from
Mr.Pierre Rousseau during his tenure as a member of the Board.
In accordance with Article 80 of the Articles of Association of the
Company, Mr. Mahesh Vyas and Mr.Olivier Le Grand, Non- Executive
Directors, retire by rotation at the ensuing Annual General Meeting and
being eligible offer themselves for re- appointment.
Brief details of Directors proposed to be appointed and re- appointed
are given in the Notice of Annual General Meeting.
CONSOLIDATED RESULTS
The Consolidated Financial Results represent those of Geojit BNP
Paribas Financial Services Limited, its subsidiaries i.e., Geojit
Investment Services Limited (100% held), Geojit Financial Management
Services Private Limited (100% held), Geojit Credits Private Limited
(65.03% held), its step down subsidiaries i.e, Geojit Technologies
Private Limited (65% held), Geojit Financial Distribution Private
Limited (100%), and its joint ventures i.e., BNP Paribas Securities
India Private Limited (50% minus one share held).Barjeel Geojit
Securities L.L.C., Dubai (30%held) and Aloula Geojit Capital Company,
Saudi Arabia(28% held) prepared in accordance with the relevant
Accounting Standards issued by the Institute of Chartered Accountants
of India.
SUBSIDIARIES
In accordance with the general circular issued by the Ministry of
Corporate Affairs, Government of India, the Balance Sheet, Profit and
Loss Account and other documents of the subsidiary companies are not
being attached with the Balance Sheet of the Company. However the
financial information of the subsidiary companies is disclosed in the
Annual Report in compliance with the said circular. The Company will
make available the Annual Financial Highlights of Subsidiary Companies
Accounts of the subsidiary companies and the related detailed
information to any member of the Company who may be interested in
obtaining the same. The annual accounts of the subsidiary companies
will also be published on the website of the Company and kept open for
inspection at the Registered Office of the Company and that of the
respective subsidiary companies. The Consolidated Financial Statements
presented by the Company include the financial results of its
subsidiary companies.
(Rs in Crore)
Sl. No. Name of the
Subsidiary
Company Percentage Total
Income Profit
Before Provision
for Profit
After
of holding Tax Tax Tax
1 Geojit
Investment
Services
Limited 100% 3.56 2.92 10.22 (7.30)
2 Geojit
Financial
Management
Services
Private Ltd 100% - (0.006) - (0.006)
3 Geojit
Financial
Distribution
Private
Limited 100% 0.31 0.22 0.068 0.15
4 Geojit Credits
Private
Limited 65% 6.19 4.78 1.52 3.26
5 Geojit
Technologies
Private Limited 65% 16.27 10.41 1.94 8.47
Considering the insignificant business activity of Geojit Investment
Services Limited, the Board of Directors of the Company proposed a
scheme of Amalgamation of Geojit Investment Services Limited with
Geojit BNP Paribas Financial Services Limited in the year 2009 pursuant
to Section 394 of the Companies Act, 1956. Since Geojit Investment
Services Limited was engaged in commodities futures brokerage as a
member of relevant exchanges, Forward Markets Commission's clearance
is awaited for the proposed amalgamation.
JOINT VENTURES
Barjeel Geojit Securities L.L.C., a joint venture in Dubai with Al Saud
Group in which Geojit holds 30% recorded a net profit of Rs 4.98 crore
(Previous year Rs 9.31. crore) of which Geojit's share is Rs 1.49
crore.
Aloula Geojit Capital Company, the joint venture in Saudi Arabia with
Al Johar Group in which Geojit holds 28%, reported a net loss of Rs 6.42
crore (Previous year Rs 10.09 crore) of which Geojit's share is Rs 1.80
crore.
BNP Paribas Securities India Private Limited, the joint venture in
Mumbai with BNP Paribas for institutional broking in which Geojit holds
49.99%, recorded a net loss of Rs 12.80 crores ( Previous year loss of Rs
16.97 crores) of which Geojit BNP Paribas's share is Rs 6.40 crores.
Geojit BNP Paribas has in principle agreed to divest its stake in the
said Joint Venture to BNP Paribas SA and the divestment process is
going on and is expected to be completed in 2012-2013.
FIXED DEPOSITS
Your company has not accepted any fixed deposits from the public under
Section 58(A) of the Companies Act, 1956 and as such, no amount of
principal or interest is outstanding as of the balance sheet date.
HUMAN RESOURCES
As a service company, the Company's operations are heavily dependent
on qualified and competent personnel. As on 31st March 2012, the
Company had a total head count of 2685. Your Company takes significant
effort in training all employees at various levels and conducted 700
training programmers during the year, which covered 7000 participants.
EMPLOYEE STOCK OPTION PLAN
Details of the equity shares issued under ESOP, as also the disclosures
in compliance with clause 12 of the SEBI (Employees Stock Options
Scheme and Employees Stock Purchase Scheme) Guidelines, 1999 are set
out in Annexure I to this Report.
The Company had obtained the approval of members for issuing
1,12,00,000 (One Crore Twelve lakh only) stock options under Employee
Stock Option Plan 2010 (ESOP 2010) in the Annual General Meeting held
on 2010.
PARTICULARS OF EMPLOYEES
Particulars of the employees covered by the provisions of Section 217
(2A) of the Companies Act, 1956 read with Companies (Particulars of
Employees) Rules, 1975 is given as Annexure II to this report.
DIRECTORS' RESPONSIBILITY STATEMENT
As required under Section 217(2AA) of the Companies Act, 1956, your
Directors confirm having:
i. followed in preparation of the Annual Accounts, the applicable
standards with proper explanation relating to material departures,
where applicable;
ii. 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 your Company at
the end of the financial year and the profit of your company for that
period;
iii. taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Companies
Act, 1956 for safeguarding the assets of your Company and for
preventing and detecting fraud and other irregularities; and
iv. prepared the Annual Accounts on a going concern basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The Company has nothing to report in respect of information on
conservation of energy and technology absorption as required under
Section 217(1) of the Companies Act, 1956 read with Companies
(Disclosures of Particulars in the Report of Board of Directors) Rules,
1988 since the Company is not engaged in manufacturing or processing
business. The details regarding foreign exchange earnings and outgo are
given as Annexure III to this report.
CORPORATE GOVERNANCE
Your Company has complied with the Corporate Governance norms as
stipulated under the provisions of the Listing Agreement entered into
with the Stock Exchanges. A detailed Report on Corporate Governance is
given as Annexure IV to this Report. A certificate of Statutory
Auditor confirming compliance of the Corporate Governance requirements
by the Company is attached to the Report on Corporate Governance.
AUDITORS
M/s. Deloitte Haskins & Sells, Chartered Accountants, 1st Floor,
Wilmot Park Business Centre, Warriam Road, Kochi - 682016, (ICAI
Registration No. 008072S) were appointed as statutory auditors of your
company to conduct the audit of accounts for the year ended 31st March
2012. Their term of appointment expires at the conclusion of the
forthcoming Annual General Meeting. Your Directors have proposed them
for reappointment at the forthcoming AGM.
ACKNOWLEDGEMENTS
Your Directors wish to acknowledge the valuable guidance and assistance
received from Securities and Exchange Board of India, Stock Exchanges &
other Regulatory authorities, BNP Paribas, KSIDC, our clients and
business partners. We look forward to receiving their continued support
and encouragement. The Board of Directors wishes to extend their thanks
and appreciation and express their gratitude for the continuing
commitment and dedication of employees at all levels. The Directors are
thankful to the esteemed shareholders for their support and the
confidence reposed in the Company.
By Order of the Board of Directors
Sd/-
Place : Kochi A.P. Kurian
Date : 29th May 2012 Chairman
Mar 31, 2011
The Directors have pleasure in presenting the 17th Annual Report of
your Company for the financial year ended 31 March 2011.
Financial Highlights
(Rs in crore)
Standalone Consolidated
Particulars 2010-11 2009-10 Change 2010-11 2009-10 Change
Total Income 271.40 288.18 (6%) 281.29 304.24 (8%)
Profit Before Tax 63.81 81.72 (22%) 50.25 76.80 (35%)
Provision for Tax 15.08 24.56 (39%) 18.80 28.43 (34%)
Profit After Tax 48.73 57.15 (15%) 29.02 46.18 (37%)
Balance brought
forward 88.47 54.96
from previous year
Profit available for 137.20 112.11
appropriation
Appropriations :
Transfer to General
Reserve 5.00 5.72
Dividend 17.12 17.92
(Including Dividend Tax)
Balance carried to 115.08 88.47
Balance Sheet
Review of Performance
On a standalone basis, your Company has recorded a total income from
Rs271.40 crore for the financial year ended 31 March 2011, a decrease of
6% compared to last years figure of Rs288.18 crore. The operating
profit is Rs63.81 crore and the net profit after tax is Rs48.73 crore.
The profit after tax decreased by 15%. Basic earnings per share work
out to Rs2.16 compared to Rs2.55 in the previous year.
On a consolidated basis your company earned a total income of Rs281.29
crore for the financial year, a decrease of 8% from the previous years
figure of Rs304.24 crore, an operating profit of Rs50.25 crore and a net
profit of Rs29.02 crore.
A detailed analysis of the performance is given in the Management
Discussion and Analysis Report appended hereto.
Dividend
Your Directors are pleased to recommend a dividend of 75 paise per
share of Rs1 each for the financial year ended 31 March 2011. The
payment of dividend together with tax thereon will absorb Rs19.92 crore.
Increase in Share Capital
During the year under review, the paid-up share capital of the Company
increased from Rs22.52 crore to Rs22.83 crore, consequent to the issue of
3,106,479 equity shares to employees upon exercise of stock options
under the Employee Stock Option Plans of the Company.
Directors
In accordance with Article 80 of the Articles of Association of the
Company, Mr. R. Bupathy and Mr. A. P. Kurian, Non-Executive and
Independent Directors, retire by rotation at the ensuing Annual General
Meeting and being eligible offer themselves for re-appointment.
Brief details of Directors proposed to be appointed and re-appointed
are given in the Notice of Annual General Meeting.
Consolidated Results
The Consolidated Financial Results representthose of Geojit BNP Paribas
Financial Services Limited, its subsidiaries i.e., Geojit Investment
Services Limited (100% held), Geojit Financial Management Services
Private Limited (100% held), Geojit Credits Private Limited (65.03%
held), its step down subsidiaries i.e., Geojit Technologies Private
Limited (65% held), Geojit Financial Distribution Private Limited
(100%), Geojit Technologies FZ LLC, Dubai (100% held) and its joint
ventures i.e., BNP Paribas Securities India Private Limited (50% minus
one share held), Barjeel Geojit Securities L.L.C., Dubai (30% held) and
Al-Oula Geojit Brokerage Company, Saudi Arabia (28% held) prepared in
accordance with the relevant Accounting Standards issued by the
Institute of Chartered Accountants of India.
Subsidiaries
Ministry of Corporate Affairs has granted general exemption under
Section 212(8) of the Companies Act, 1956 exempting companies from
attaching copies of the Balance Sheet, Profit and Loss Account, Reports
of the Board of Directors and Auditors of Subsidiaries as specified
under Section 212(1) of the Companies Act, 1956 subject to publication
of certain summarised financial information of the subsidiaries in the
Annual Report. Accordingly these documents related to subsidiaries are
not attached to the Balance Sheet and the summarised financial
information related to subsidiaries is included in the Annual Report.
Full annual report including financial information of the subsidiaries
is published on the website of the Company and will be available upon
request by any member interested in obtaining the same. All those
documents related to subsidiaries are kept in the head office of the
Company for inspection by any interested shareholder.
Geojit Investment Services Limited recorded revenue of Rs4.15 crore and
a profit after tax of Rs2.21 crore.
Geojit Credits Private Limited recorded total revenue of Rs6.19 crore
and profit after tax of Rs2.50 crore during the year.
The revenue of Geojit Technologies Private Limited, a step down
subsidiary engaged in software development and services registered a
consolidated revenue of Rs11.00 crore and a net profit after tax of
Rs4.27 crore during the year.
Another step down subsidiary viz., Geojit Financial Distribution
Private Limited engaged in insurance referrals has recorded a total
income of Rs0.53 crore and net profit after tax of Rs0.24 crore.
Geojit Financial Management Services Private Limited, another
subsidiary recorded a loss of Rs0.06 crore in the previous year.
Considering the insignificant business activity of Geojit Investment
Services Limited, the Board of Directors of the company proposed a
Scheme of Amalgamation of Geojit Investment Services Limited with
Geojit BNP Paribas Financial Services Limited in the year 2009 pursuant
to Section 394 of the Companies Act, 1956. Since Geojit Investment
Services Limited was engaged in commodities futures brokerage as a
member of relevant exchanges, Forward Markets Commissions clearance is
awaited for the proposed amalgamation. Such clearance is awaited.
Joint Ventures
Barjeel Geojit Securities L.L.C., a joint venture in Dubai with Al Saud
Group in which Geojit holds 30% recorded a net profit of Rs9.12 crore
(Previous year Rs7.46 crore) of which Geojits share is Rs2.74 crore.
Al-Oula Geojit Brokerage Company, the joint venture in Saudi Arabia
with Al Johar Group in which Geojit holds 28%, reported a net loss of
Rs10.09 crore (Previous year Rs2.83 crore) of which Geojits share is
Rs2.82 crore.
BNP Paribas Securities India Private Limited, the joint venture in
Mumbai with BNP Paribas for institutional broking in which Geojit holds
49.99%, recorded a net loss of Rs16.97 crore (Previous year Rs14.84
crore) of which Geojits share is Rs8.48 crore.
Fixed Deposits
Your company has not accepted any fixed deposits from the public under
Section 58(A) of the Companies Act, 1956 and as such, no amount of
principal or interest is outstanding as of the balance sheet date.
Human Resources
As a service company, the Companys operations are heavily dependent on
qualified and competent personnel. As on 31 March 2011, the Company
had a total head count of 3230. Your Company takes significant effort
in training all employees at various levels and conducted 1373 training
programmes during the year, which covered 13516 participants.
Employee Stock Option Plan
During the year some employees of the Company have exercised part of
their stock options granted under the Employees Stock Option Plan 2005
and the Compensation Committee of the Board of Directors of the Company
has allotted total 3,106,479 equity shares on various dates to those
who exercised the stock options at various exercise prices in
accordance with the terms and conditions of the ESOP.
The Company had obtained the approval of members for issuing 11,200,000
stock options under Employees Stock Option Plan 2010 (ESOP 2010) in the
last Annual General Meeting. In accordance with the said approval, the
Company has granted another 2,786,795 stock options under Employees
Stock Option Plan 2010 during the year which covered 1460 employees.
Details of the equity shares issued under ESOP, as also the disclosures
in compliance with clause 12 of the SEBI (Employees Stock Options
Scheme and Employees Stock Purchase Scheme) Guidelines, 1999 are set
ogt in Annexure I to this Report.
Particulars of Employees
Particulars of the employee covered by the provisions of Section 217
(2A) of the Companies Act, 1956 read with Companies (Particulars of
employees) Rules, 1975 is given as Annexure II to this Report.
Directors Responsibility Statement
As required under Section 217(2AA) of the Companies Act, 1956, your
Directors confirm having :
i. followed in preparation of the Annual Accounts, the applicable
standards with proper explanation relating to material departures,
where applicable;
ii. 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 your Company at
the end of the financial year and the profit of your Company for that
period;
iii. taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Companies
Act, 1956 for safeguarding the assets of your Company and for
preventing and detecting fraud and other irregularities; and
iv. prepared the Annual Accounts on a going concern basis.
Conservation of Energy, Technology Absorption, Foreign Exchange
Earnings and Outgo
The Company has nothing to report in respect of information on
conservation of energy and technology absorption as required under
Section 217(1) of the Companies Act, 1956 read with Companies
(Disclosures of Particulars in the Report of Board of Directors) Rules,
1988 since the Company is not engaged in manufacturing or processing
business. The details regarding foreign exchange earnings and outgo are
given as Annexure III to this report.
Corporate Governance
Your Company has complied with the Corporate Governance norms as
stipulated under the provisions of the Listing Agreement entered into
with the Stock Exchanges. A detailed Report on Corporate Governance is
given as Annexure IV to this Report. A certificate of Statutory Auditor
confirming compliance of the Corporate Governance requirements by the
Company is attached to the Report on Corporate Governance.
Auditors
M/s. Deloitte Haskins & Sells, Chartered Accountants, 1st Floor,
Wilmont Park Business Centre,Warriam Road, Kochi - 682 016, (ICAI
Registration No. 008072S) were appointed as statutory auditors of your
company to conduct the audit of accounts for the year ended 31 March,
2011. Their term of appointment expires at the conclusion of the
forthcoming Annual General Meeting. Your Directors have proposed them
for reappointment at the forthcoming AGM.
Acknowledgements
Your Directors wish to acknowledge the valuable guidance and assistance
received from Securities and Exchange Board of India, Stock Exchanges
and other Regulatory authorities, BNP Paribas, KSIDC, our clients and
business partners. We look forward to receiving their continued support
and encouragement. The Board of Directors wishes to extend their thanks
and appreciation and express their gratitude for the continuing
commitment and dedication of
employees at all levels. The Directors are thankful to the esteemed
shareholders for their support and the confidence reposed in the
Company.
For and on behalf of the Board of Directors
Sd/-
Place : Kochi A. P. Kurian
Date : 06-06-2011 Chairman
Mar 31, 2010
The Directors have pleasure in presenting the 16th Annual Report of
your Company for the financial year ended 31 March 2010.
FINANCIAL HIGHLIGHTS
(Rs. in crore)
Standalone Consolidated
Particulars 2009-10 2008-09 Change 2009-10 2008-09 Change
Total Income 288.05 159.42 80.6% 304.11 191.97 58.4%
Exceptional /
Extra-Ordinary income 0.00 0.00 0.00 40.00
Profit Before Tax 81.72 20.26 303.3% 76.80 51.56 48.9%
Provision for Tax 24.56 5.74 327.8% 28.43 10.48 171.2%
Profit After Tax 57.15 14.52 293.5% 46.18 40.01 15.4%
Balance brought forward 54.96 56.47
Profit available for
appropriation 112.11 70.99
Appropriations :
Transfer to General Reserve 5.72 3.00
Dividend (Including
Dividend Tax) 17.89 13.02
Balance carried to
Balance Sheet 88.47 54.96
REVIEW OF PERFORMANCE
On a standalone basis, your Company has achieved an impressive growth
of 80.6% in total income from Rs.159.42 crore to Rs.288.05 crore for
the financial year ended 31 March 2010. The Company recorded an
operating profit of Rs.81.72 crore and a net profit after tax of
Rs.57.15 crore. The profit after tax increased by 294%. Basic earnings
per share work out to Rs.2.55 compared to Rs.0.68 recorded in the
previous year.
On a consolidated basis your company earned a total income of Rs.304.11
crore for the financial year, an increase of 58% over the previous
years figures of Rs.191.97 crore, an operating profit of Rs.76.80
crore and a net profit of Rs.46.18 crore.
A detailed analysis of the performance is given in the Management
Discussion and Analysis Report appended hereto. DIVIDEND
Your Directors are pleased to redommend a dividend of 75 paise per
share of Re.1 each for the financial year ended 31 March 2010 taking
into account the performance of the Company. The payment of dividend
together with tax thereon will absorb Rs. 19.69 crore.
INCREASE IN SHARE CAPITAL
During the year under review, the paid-up share capital of the Company
increased from Rs.22.34 crore to Rs.22.52 crore, consequent to the
issue of 18,41,761 equity shares to employees upon exercise of stock
options under the Employee Stock Option Plans of the Company.
DIRECTORS
KSIDC Limited appointed Mr.Alkeshkuamr Sharma as its Nominee on the
Board of the Company replacing Mr. Manoj Joshi w.e.f. 20 July 2009.The
Board of Directors place on record its sincere appreciation and
gratitude for the valuable contribution and guidance received from Mr.
Manoj Joshi during his tenure as a member of the Board.
In accordance with Article 80 of the Articles of Association of the
Company, Mr.Punnoose George and Mr.Rakesh Jhunjhunwala, Non-executive
Directors, retire by rotation at the ensuing Annual General Meeting and
being eligible offer themselves for re-appointment.
The term of appointment of Mr. C.J.George as Managing Director of the
Company expired on 23.11.2009.The Board of Directors of the Company has
re-appointed Mr. C.J.George for a further period of 5 years w.e.f.
24.11.2009 on terms and conditions, details of which are provided in
the Notice of Annual General Meeting.
Brief details of Directors proposed to be appointed and re-appointed
are given in the Notice of Annual General Meeting. CONSOLIDATED
RESULTS
The Consolidated Financial Results represent those of Geojit BNP
Paribas Financial Services Limited, its subsidiaries i.e., Geojit
Investment Services Limited (100% held), Geojit Financial Management
Services Private Limited (100% held), Geojit Credits Private Limited
(65.03% held), its step down subsidiaries i.e, Geojit Technologies
Private Limited (65% held), Geojit Financial Distribution Private
Limited (100%), Sigma Systems International FZ LLC, Dubai (100% held)
and its joint ventures i.e., BNP Paribas Securities India Private
Limited (49.99% held), Barjeel Geojit Securities L.L.C., Dubai
(30%held) and Aloula Geojit Brokerage Company, Saudi Arabia(28% held)
prepared in accordance with the relevant Accounting Standards issued by
the Institute of Chartered Accountants of India.
SUBSIDIARIES
Ministry of Corporate Affairs granted approval under Section 212(8) of
the Companies Act, 1956 exempting the Company from attaching copies of
the Balance Sheet, Profit and Loss Account, Reports of the Board of
Directors and Auditors of Subsidiaries as specified under Section
212(1) of the Companies Act, 1956. Accordingly these documents are not
attached to the Balance Sheet. However summarised financial information
of the subsidiaries is included in this Annual Report. Full annual
report including financial information of the subsidiaries is published
on the website of the Company and will be available upon request by any
member interested in obtaining the same.
Geojit Investment Services Limited recorded revenue of Rs.5.60 crore
and a profit after tax of Rs.3.17 crore.
Geojit Credits Private Limited recorded total revenue of Rs.2.85 crore
and profit after tax of Rs.1.60 crore during the year.
The revenue of Geojit Technologies Private Limited, a step down
subsidiary engaged in software development and services, grew by 69% to
Rs.11.24 crore from Rs.6.66 crore in the previous year. The Company
recorded a net profit after tax of Rs.4.67 crore during the year, an
increase of 135%.
Another step down subsidiary viz, Geojit Financial Distribution Private
Limited engaged in insurance referrals has recorded a total income of
Rs.218.19 lakh and net profit after tax of Rs.74.63 lakh.
Geojit Financial Management Services Private Limited, another
subsidiary recorded a profit of Rs.43,357/- compared to a loss of
Rs.2.31 lakh in the previous year.
Considering the insignificant business activity of Geojit Investment
Services Limited, the Board of Directors of the company at its Meeting
held on 13.05.2009, proposed a Scheme of Amalgamation of Geojit
Investment Services Limited with Geojit BNP Paribas Financial Services
Limited pursuant to Section 394 of the Companies Act, 1956. Since
Geojit Investment Services Limited was engaged in commodities futures
brokerage as a member of relevant exchanges, Forward Markets
Commissions clearance is required for the proposed amalgamation. Such
clearance is awaited.
JOINT VENTURES
Barjeel Geojit Securities L.L.C., a joint venture in Dubai with Al Saud
Group in which Geojit holds 30% recorded a net profit of Rs.7.46 crore
(Previous year Rs.2.05 crore) of which Geojits share is Rs.2.23 crore.
Aloula Geojit Brokerage Company, the joint venture in Saudi Arabia with
Al Johar Group in which Geojit holds 28%, reported a net loss of
Rs.11.19 crore (Previous year Rs.16.67 crore) of which Geojits share
is Rs.3.13 crore.
BNP Paribas Securities India Private Limited, the joint venture in
Mumbai with BNP Paribas for institutional broking in which Geojit holds
49.99%, recorded a net loss of Rs.14.84 crore (Previous year Rs.27.32
crore) of which Geojits share is Rs.7.42 crore.
FIXED DEPOSITS
Your company has not accepted any fixed deposits from the public under
Section 58(A) of the Companies Act, 1956 and as such, no amount of
principal or interest is outstanding as of the balance sheet date.
HUMAN RESOURCES ant
As a service company, the Companys operations are heavily dependent on
qualified and competent personnel. As on 31 March 2010, the Company had
a total head count of 2739. Your Company takes significant effort in
training all employees at various levels and conducted 1703 training
programmes during the year, which covered 13959 participants.
EMPLOYEE STOCK OPTION PLAN
During the year some employees of the Company have exercised part of
their stock options granted under the Employees Stock Option Plan 2005
and the Compensation Committee of the Board of Directors of the Company
has allotted total 18,41,761 equity shares on various dates to those
who exercised the stock options at various exercise prices in
accordance with the terms and conditions of the ESOR
Details of the equity shares issued under ESOR as also the disclosures
in compliance with clause 12 of the SEBI (Employees Stock Options
Scheme and Employees Stock Purchase Scheme) Guidelines, 1999 are set
out in Annexure I to this Report. ,Sf1to & feepnBr|0x3 Ã
During the period under report, the Board of Directors of the Company
approved a proposal to issue 1,12,00,000 (one crore twelve lakh only)
new stock options under Employee Stock Option Plan 2010 (ESOP 2010).
The proposed issue will represent 4.99% of the paid up share capital of
the Company. Necessary resolution along with Explanatory Statement in
this regard is included in the notice of AGM for approval of members.
PARTICULARS OF EMPLOYEES
Particulars of employees as required under Section 217 (2A) of the
Companies Act, 1956 and the Companies (Particulars of Employees) Rules,
1975 forms part of this Report. However, in pursuance of Section
219(1)(b)(iv) of the Companies Act, 1956 this Report is being sent to
all the members of the Company excluding the aforesaid information and
the said particulars are made available at the Registered Office of the
Company. The members interested in obtaining information under Section
217(2A) may write to the company secretary at the Registered Office of
the Company.
DIRECTORS RESPONSIBILITY STATEMENT
As required under Section 217(2AA) of the Companies Act, 1956, your
Directors confirm having:
i. followed in preparation of the Annual Accounts, the applicable
standards with proper explanation relating to material departures,
where applicable;
ii. 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 your Company at
the end of the financial year and the profit of your company for that
period;
iii. taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Companies
Act, 1956 for safeguarding the assets of your Company and for
preventing and detecting fraud and other irregularities; and
iv. prepared the Annual Accounts on a going concern basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The Company has nothing to report in respect of information on
conservation of energy and technology absorption as required under
Section 217(1) of the Companies Act, 1956 read with Companies
(Disclosures of Particulars in the Report of Board of Directors) Rules,
1988 since the Company is not engaged in manufacturing or processing
business. The details regarding foreign exchange earnings and outgo are
given as Annexure II to this report.
CORPORATE GOVERNANCE
Your Company has complied with the Corporate Governance norms as
stipulated under the provisions of the Listing Agreement entered into
with the Stock Exchanges. A detailed Report on Corporate Governance is
given as Annexure III to this Report. A certificate of Statutory
Auditor confirming compliance of the Corporate Governance requirements
by the Company is attached to the Report on Corporate Governance.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Your Company, through its subsidiaries and joint ventures, now form an
integrated financial services group having business interests in retail
and institutional stock broking, wealth management, financing against
shares and commodities, margin funding, property services, distribution
of a variety of investment products, etc which caters to the needs of
retail investors, corporates and institutions, high net worth
individuals, etc. in India and overseas. A detailed review of
operations, performance and future outlook of the Company is given
separately under the head Management Discussion and Analysis Report
appended hereto.
AUDITORS
M/s. Deloitte Haskins & Sells, Chartered Accountants, 1st Floor,
Wilmont Park Business Centre.Warriam Road, Kochi - 682016, (ICAI
Registration No.008072S) were appointed as statutory auditors of your
company to conduct the audit of accounts for the year ended 31 March
2010. Their term of appointment expires at the conclusion of the
forthcoming Annual General Meeting. Your Directors have proposed them
for reappointment at the forthcoming AGM.
ACKNOWLEDGEMENTS
Your Directors wish to acknowledge the valuable guidance and assistance
received from Securities and Exchange Board of India, Stock Exchanges &
other Regulatory authorities, BNP Paribas, KSIDC, our clients and
business partners. We look forward to receiving their continued support
and encouragement. The Board of Directors wishes to extend their thanks
and appreciation and express their gratitude for the continuing
commitment and dedication of employees at all levels. The Directors are
thankful to the esteemed shareholders for their support and the
confidence reposed in the Company.
For and on behalf of the Board of Directors
Sd/-
Place : Kochi A.R Kurian
Date : 28th May, 2010 Chairman