Mar 31, 2015
The Directors have pleasure in presenting their Annual Report together with the Audited Accounts of the Company for the Year ended March 31, 2015.
1. FINANCIAL RESULTS: (Rs. in Lacs)
Particulars March 31, March 31, 2015 2014
Revenue from Operations 51.62 19.33
Other Income 0.01 0.03
Total 51.63 19.36
Profit before depreciation & taxation & 13.46 6.28 exceptional item
Less: Depreciation Nil Nil
Add : exceptional Item Nil Nil
Profit Before Tax 13.46 6.28
Less: Provision for taxation 2.57 1.94
Add: Prior period adjustment Nil Nil
Profit after taxation 10.89 4.34
Add: Balance brought forward from (176.60) (180.10) previous year
Less : Fixed Assets Written Off Nil Nil
Less : Provision for Standard Assets (2.03) (1.22)
Surplus available for appropriation Nil 0.38
Balance carried to Balance sheet (167.74) (176.60)
Due to the accumulated loss in the balance Sheet, the company proposes to retain the Balance in the profit and loss account without any making any appropriation.
During the year under review the turnover inclined to 51.63 Lacs in comparison to that of the previous year 19.36 Lacs . Profit before depreciation and taxation was Rs. 13.46 lacs against Rs. 6.28 Lacs in the previous year. After providing for taxation of Rs. 2.57 Lacs & Rs 1.94 Lacs respectively, the net profit of the Company for the year under review after considering income from exceptional item was placed at Rs. 10.89 Lacs as against Rs. 4.34, lacs in the previous year.
The Company got listed with the Bombay Stock Exchange (BSE) on 02nd May, 2014.
In view of Accumulated Loss in the Balance Sheet your directors do not recommend any dividend for the year under operation.
The paid up equity capital as on March 31, 2015 was Rs 2420.97 Lakhs. The company has not issued shares with differential voting rights nor granted stock options nor sweat equity. As on 31ST March, 2015 none of the Directors hold any instrument convertible into equity shares of the company .
Cash and cash equivalents as at March 31, 2015 was Rs. 21.93 lakhs. The company continues to focus on judicious management of its working capital, Receivables, inventories and other working capital parameters were kept under strict check through continuous monitoring.
The Company being a Non Banking Financial Corporation (NBFC) has not accepted deposits and as such no amount on account of principal or interest on Public Deposits was outstanding as on the date of Balance Sheet.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:
Being a NBFC Company Section 186 of Companies Act, 2013 is not applicable to the Company.
The details of the investments made by company is given in the notes to the financial statements.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations. The scope and authority of the Internal Audit function is defined by the Audit Committee in consultation with the Statutory Auditor of the Company. To maintain its objectivity and independence, the Internal Audit function reports to the Chairman of the Audit Committee of the Board & to the Chairman & Managing Director.
The Internal Auditor monitors and evaluates the efficacy and adequacy of internal control system in the Company, its compliance with operating systems, accounting procedures and policies at all locations of the Company.
Based on the report of internal audit function, process owners undertake corrective action in their respective areas and thereby strengthen the controls. Significant audit observations and recommendations along with corrective actions thereon are presented to the Audit Committee of the Board.
CORPORATE SOCIAL RESPONSIBILITY INITIATIVES
Your Company does not have the requisite Net Worth nor has it achieved the requisite turnover nor it has the requisite net profit for the year for triggering the implementation of "corporate social responsibility" (CSR ) .
CONSERVATION OF ENERGY & TECHNOLOGY ABSORPTION:
Your Company is a Non Banking Finance Company hence information regarding disclosure of conservation of energy is not applicable to it. However as a part of national interest it ensures that energy consumption is kept at minimum.
There are no technology involved as the Company is a Non Banking Finance Company.
FOREIGN EXCHANGE EARNINGS AND OUT-GO :
During the period under review the Company has NIL foreign exchange earnings/foreign exchange out flow.
During the year under review, your Company enjoyed cordial relationship with employees at all levels.
For the Financial Year under review the Company has no Director who is liable to retire by rotation.
Mr. Sagarmal Nahata has been appointed as the Managing Director of the Company for period of 3 Years from 01St April, 2015. The Board of Directors have on the recommendation of the Nomination and Remuneration Committee appointed Mr. Sagarmal Nahata as Managing Director.
Mr. Sujit Kumar Panda appointed as the Director of the Company on 15th December, 2014, whose appointment will be regularize in the Annual general Meeting. The Nomination and Remuneration Committee has given their approval for his appointment.
Mrs. Kanak Nahata who was appointed in the Board as Woman Director resigned from the Board on 15th December, 2014 on the ground of her health. The Company is in search of suitable woman director to fill the vacancy caused by Mrs. Kanak Nahata resignation.
Based on the Confirmation received none of the Director of the Company is disqualified for appointment under the applicable provisions of the Companies Act , 2013 .
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.
Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of the Listing Agreement, the Board has carried out an evaluation of its own performance, the directors individually as well as the evaluation of the working of its Audit, Appointment & Remuneration Committees.
The Board has, on the recommendation of the Nomination & Remuneration Committee framed a policy for selection and appointment of Directors, Senior Management and their remuneration. The Remuneration Policy is stated in the Corporate Governance Report.
A calendar of Meetings is prepared and circulated in advance to the Directors.
During the year Six (6) Board Meetings and Four (4) Audit Committee Meetings were convened and held. The details of which are given in the Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013.
DIRECTOR'S RESPONSIBILITY STATEMENT:
In terms of Section 134 (5) of the Companies Act, 2013, the directors would like to state that:
i) In the preparation of the annual accounts, the applicable accounting standards have been followed.
ii) The directors have selected such accounting policies and applied them consistently and made judgments and estimates that were reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the Company for the year under review.
iii) The directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.
iv) The directors have prepared the annual accounts on a going concern basis.
v) The directors had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.
vi) The directors had devised proper system to ensure compliance with the provisions of all applicable laws and that such system were adequate and operating effectively.
RELATED PARTY TRANSACTIONS:
All Related party transactions that were entered into during the financial year were on an arms length basis and in the ordinary course of business. There are no material significant related party transactions made by the Company during the year that would have required shareholder approval under Clause 49 of the Listing Agreement. All related party transactions are reported to the Audit Committee. Prior approval of the Audit Committee is obtained on a yearly basis for the transactions which are planned and/ or repetitive in nature and omnibus approvals are taken within limits laid down for unforeseen transactions. The disclosure under Section 134(3)(h) of the Companies Act, 2013 read with Rule 8(2) of the Companies (Accounts) Rules, 2014 is not applicable.
The details of the transactions with related parties during 2014-15 are provided in the accompanying financial statements.
None of the Directors had any pecuniary relationship or transactions with the Company during the year under review.
The Company does not have any subsidiary.
CODE OF CONDUCT:
The Board of Directors has approved a Code of Conduct which is applicable to the Members of the Board and all employees in the course of day to day business operations of the company. The Company believes in "Zero Tolerance" against bribery, corruption and unethical dealings / behaviors of any form and the Board has laid down the directives to counter such acts. The code laid down by the Board is known as "code of business conduct" which forms an Appendix to the Code. The Code has been posted on the Company's website .
The Code lays down the standard procedure of business conduct which is expected to be followed by the Directors and the designated employees in their business dealings and in particular on matters relating to integrity in the work place, in business practices and in dealing with stakeholders. The Code gives guidance through examples on the expected behavior from an employee in a given situation and the reporting structure.
All the Board Members and the Senior Management personnel have confirmed compliance with the Code. All Management Staff were given appropriate training in this regard.
VIGIL MECHANISM / WHISTLE BLOWER POLICY:
The Company has a vigil mechanism named Risk Management Policy to deal with instance of fraud and mismanagement, if any. In staying true to our values of Strength, Performance and Passion and in line with our vision of being the respected companies in Corporate World, the Company is committed to the high standards of Corporate Governance and stakeholder responsibility. The Company has a Framed a Risk and Management Policy to deal with instances of fraud and mismanagement, if any. The FRM Policy ensures that strict confidentiality is maintained whilst dealing with concerns and also that no discrimination will be meted out to any person for a genuinely raised concern. A high level Committee has been constituted which looks into the complaints raised. The Committee reports to the Audit Committee and the Board.
PREVENTION OF INSIDER TRADING:
The Company has adopted a Code of Conduct for Prevention of Insider Trading with a view to regulate trading in securities by the Directors and designated employees of the Company. The Code requires pre-clearance for dealing in the Company's shares and prohibits the purchase or sale of Company shares by the Directors and the designated employees while in possession of unpublished price sensitive information in relation to the Company and during the period when the Trading Window is closed. The Board is responsible for implementation of the Code.
All Board Directors and the designated employees have confirmed compliance with the Code.
AUDITOR'S REPORT/ SECRETARIAL AUDIT REPORT:
The observation made in the Auditors' Report read together with relevant notes thereon are self explanatory and hence, do not call for any further comments under Section 134 of the Companies Act, 2013.
As required under section 204 (1) of the Companies Act, 2013 the Company has obtained a secretarial audit report. Certain observations made in the report. However, the company would ensure in future that all the provisions are complied to the fullest extent.
Pursuant to the Provisions of SEC 139 of the Companies Act 2013 and the rules made there under, Auditors C. Ghatak & Co., Chartered Accountants, Kolkata were appointed as statutory auditors of the Company from the conclusion of the annual general meeting (AGM) of the Company held on September 29TH 2014 till the conclusion of the annual general meeting (AGM) of the Company to be held in the year 2015.
Pursuant to provisions of section 204 of the Companies Act, 2013 and The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 the company has appointed Chetna Gupta & Associates a firm of company Secretaries in practice to undertake the Secretarial Audit of the Company. The Secretarial Audit report is annexed herewith as "Annexure A"
EXTRACT OF ANNUAL RETURN:
The details forming part of the extract of the Annual Return in form MGT-9 is annexed herewith as " Annexure B".
BUSINESS RISK MANAGEMENT:
Pursuant to section 134 (3) (n) of the Companies Act, 2013 & Clause 49 of the listing agreement, the company has constituted a business risk management committee. The details of the committee and its terms of reference are set out in the corporate governance report forming part of the Boards report.
At present the company has not identified any element of risk which may threaten the existence of the company.
DISCLOSURES AS PER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
The Company has zero tolerance for sexual harassment at workplace and has adopted a policy on prevention, prohibition and redressal of sexual harassment at workplace in line with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules there under for prevention and redressal of complaints of sexual harassment at workplace.
PARTICULARS OF EMPLOYEES: ( Rule 5(2) & Rule 5(1) )
The information required pursuant to Section 197 read with rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 in respect of employees of the Company, will be provided upon request. In terms of Section 136 of the Act, the reports and accounts are being sent to the members and others entitled thereto, excluding the information on employees' particulars which is available for inspection by the members at the Registered office of the company during business hours on working days of the company up to the date of ensuing Annual General Meeting. If any member is interested in inspecting the same, such member may write to the company secretary in advance.
a. The ratio of remuneration of each director to the median remuneration of the employees of the company for the financial year
RATIO TO NON EXECUTIVE DIRECTORS MEDIAN REMUNERATION
Mr. Sandip Kumar Bej --
Mr. Radha Kant Tiwari --
Mr. Sujit Kumar Panja --
Mr. Sagarmal Nahata 1.45
b. The Percentage increase in remuneration of each Director , chief executive officer , chief financial officer , company secretary in the company .
Director , chief executive officer , chief financial officer and company secretary
% increase in remuneration in the financial year
There was no increase in the remuneration of Director , chief executive officer , chief financial officer and company secretary.
They were paid the salary last drawn by them during the FY 13-14
c. The Percentage increase in the median remuneration of employees in the financial year
Employees % increase in remuneration in the financial year
There was no increase in the remuneration of employees. They were paid the salary last drawn by them during the FY 13-14. However new employees joined the company during the FY 14-15.
d. The Number of permanent employees in the rolls of the Company other than KMP is One (1). The Employees has joined the company during the FY 14-15 is still under probation period, they are not considered as the permanent employees for the FY 14-15.
e. The explanation on the relationship between average increase in remuneration and company performances :
On an average the employees received an annual increase of 10% in India. The increase in remuneration will be in line with the market trend . In order to ensure that remuneration reflects company performance, the performance pay is also linked to organization performance, apart from an individual's performance.
f. Comparison of remuneration of the key managerial personnel against the performance of the company
Sagarmal Sonia Jain Nahata (Company (Managing Secretary) Director)
IN FY 14-15 3.00 1.20 (RS IN LACS)
REMUNERATION AS A % OF 5.81 2.32 REVENUE
PROFIT BEFORE TAX (PBT) (RS IN LACS) 13.46
REMUNERATION 22.28 8.91 AS % OF PBT
g. Variation in the market capitalization of the Company , price earnings ratio as at the closing date of the current financial year and previous financial year
Financial Year Market Capitalization P/E Ratio
13-14 Nil* Nil*
14-15 174.31 Cr 1600
*The Share of the Company was not traded in the Financial Year 13-14.
h. Percentage increase over decrease in the market quotations of the shares of the Company in comparison to the rate at which the Company came out with the last public offer
The Company Share has been increased 720% since the Company came out with last public offer
i. Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration :
There was no increase in the employees/ managerial remuneration for the year.
j. Comparison of each remuneration of the managerial personnel against the performance of the company
Mr. Sagarmal Nahata (Managing Director)
REMUNERATION IN FY 14-15 3.00 (RS IN LACS)
REMUNERATION AS A % OF 5.81
REVENUE PROFIT BEFORE TAX (PBT) 13.46 (RS IN LACS)
REMUNERATION AS % OF 22.28 PBT
k. The key parameters for any variable component of remuneration availed by the Directors Apart from remuneration paid to the executive directors no remuneration is paid to the non executive directors of the company .
l. The ratio of remuneration of the highest paid director to that of the employees who are not directors but receive remuneration in excess of the highest paid director during the year
m. Affirmation that the remuneration is as per the remuneration policy of the company
The Company affirms remuneration is as per the remuneration policy of the company.
CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION & ANALYSIS REPORTS
The Corporate Governance and Management Discussion & Analysis Report, which form an integral part of this Report, are set out as separate Annexure, together with the Certificate from the auditors of the Company regarding compliance with the requirements of Corporate Governance as stipulated in Clause 49 of the Listing Agreement.
Your Company and its Directors wish to extend their sincerest thanks to the Members of the Company, Bankers, State Government, Local Bodies, Customers, Suppliers, Executives, Staff and workers at all levels for their continuous cooperation and assistance.
For and on behalf of the
Board of Directors
SANDIP KUMAR BEJ
RADHA KANT TIWARI
Mar 31, 2014
The Directors have pleasure in submitting the Thirty Sixth Annual Report together with the Audited Statement of Accounts for the year ended 31st March, 2014.
FINANCIAL RESULTS 2013-2014 2012-2013 Rs. Rs.
Total Profit (loss) for the year 628277.00 190661.00
Less: Provision for Taxation for earlier year Nil Nil
Profit/ (Loss) after Tax 628277.00 190661.00
Transfer to special Reserve (125655.00) (38132.00)
Balance brought forward - Profit/(Loss) (18009864.00) (18162393.00)
BALANCE CARRIED TO BALANCE SHEET (l7507242.00) (l8009864.00)
The Company did not declared dividend for the financial year 2013-2014.
PERFORMANCE & PROSPECTS:
In the adverse Investment environment, the Company performance was satisfactory. The Directors expect that the Company will outperform during the near future.
CURRENT YEAR OUT LOOK :
With positive steps taken by the Board to expand the activities of the company it is expected that the earning of the company will be increased considerable.
Mr. Radha Kant Tiwari, Mr. Siddharth Nahata and Mr. Sandip Kumar Bej retires by rotation and being eligible offers themselves for re-appointment
PARTICULARS OF EMPLOYEES:
The provisions of Section 2l7(2A) of the Companies Act, 1956 and Companies Act, 2013 to the extent its applicable the rules framed there under for furnishing the particulars of employees are not applicable to the company as there is no such person drawing remuneration in excess of the specified limit.
Auditor''s has made certain comments in their report which are self explanatory and doesn''t require any clarification.
The Company''s Auditors M/s. C. Ghatak & Co., Chartered Accountants, Who were re-appointed, retire at the conclusion of ensuing Annual General Meeting and are re-eligible for re-appointment. A letter has been received from them stating that if re-appointed, the appointment will be in accordance with the provision of the Companies Act, 1956 & Companies Act, 2013 to the extent it is applicable.
During the year the company has not accepted any deposit from Public under section 58A of the Companies Act, 1956 read with the Companies (Acceptance of Deposit) Rules, 1975.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE:
These rules are not applicable for the company, but it still lays emphasis on conservation of energy, and its facility has been designed to minimize use of energy and to adopt latest technologies and for conservation of environment.
Pursuant to clause 49 of the Listing Agreement with the Stock Exchanges, Corporate Governance Report and Auditor''s Certificate regarding compliance of condition of Corporate Governance forms part of the Annual Report.
MANAGMENNT DISCUSSION & ANALYSIS REPORT:
The Management Discussion & Analysis Report forms an integral part of this report.
LISTING OF SHARES:
Your Directors confirm that The Annual Listing Fees has been regularly paid to the Calcutta Stock Exchange & Bombay Stock Exchange, where the shares of the Company are listed.
As required under Section 217 of the Companies Act, the Directors hereby confirm that:
i) In the preparation of the Annual Accounts, the Applicable Accounting Standards has been followed along with proper explanation relating to material departures;
ii) The Directors has 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 for the Company at the end of the financial year and of the profit of the Company for the period;
iii) The Directors has taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.
iv) The Directors has prepared the annual accounts on a going concern basis.
Pursuant to the provisions of Section 292A of the Companies Act, 1956, your Director have constituted an Audit Committee comprising of three Directors Shri Siddharth Nahata, Mr.Sandip Kumar Bej and Radha Kant Tiwari. The role, terms of reference and powers of the Audit Committee are in confirm with the requirements of the Companies Act, 1956.
We wish to place on record our appreciation of the devoted services of staff and executives of the Company which have largely contributed to its efficient management.
Place : Kolkata Dated: 31/05/2014
Sd/- Sagarmal Nahata Sd/- Radha kant Tiwari