Mar 31, 2019
Dear Members,
The Directors have pleasure in presenting their Twenty Fifth Annual Report and the Audited Statements of Accounts for the financial year ended March 31, 2019.
Financial Highlights:
Particulars |
Year Ended March 31, 2019 (â) |
Year Ended March 31, 2018 (â) |
Gross Income for the year |
50,995,151 |
34,437,921 |
Total Expenditure before Depreciation and Tax |
61,773,033 |
38,504,389 |
Profit /(Loss) before Depreciation and Tax |
(10,777,882) |
(4,066,468) |
Less: Depreciation |
311,672 |
235,841 |
Profit /(Loss) after Depreciation and Tax |
(11,089,554) |
(4,302,309) |
Tax Provisions for Earlier Years |
(4,840,946) |
670,131 |
Other Comprehensive Income for the year |
(638,785) |
(65,344) |
Balance brought forward from previous year |
(37,280,439) |
(33,582,917) |
Profit /(Loss) available for Appropriation |
(53,849,723) |
(37,280,439) |
Balance carried to Balance Sheet |
(53,849,723) |
(37,280,439) |
Dividend:
In the absence of profits, your Directors do not recommend payment of any dividend for the Financial Year 2018-2019. State of Companyâs Affairs:
Some highlights of your Companyâs performance during the year under review are:
- The gross loss (before depreciation and tax) for the year was Rs.10,777,882/- as against Rs. 4,066,468/- during the last year.
- Net loss after taxation for the year was Rs. 16,569,285/- as against Rs. 3,697,521/- in the last year.
- The total asset under management was Rs.128.14 Crore as against Rs. 42.72 Crore in the last year.
Shriram Hybrid Equity Fund, launched in November 2013, delivered return of 10.32% (at the end of March 2019 on a CAGR basis) since inception accompanied by lower levels of volatility. Two more funds have been launched by your Company during FY 2018-19 -Shriram Multicap Fund and Shriram Long Term Equity Fund.
Mutual fund industry continued to support the market, infusing Rs. 87,879 crores into equities during FY19, which was however lower than Rs. 132,774 crores in FY18. The steep correction in mid and small cap stocks, the IL&FS crisis led tight liquidity conditions for the NBFC space perhaps led to comparatively lower inflow & investments by mutual funds into equities.
However, the buoyancy of mutual fund investment can be gauged by the massive increase in contributions through Systematic Investment Plan (SIPs). The contribution of SIP stood at Rs. 92,693 crores in FY19, up 38% even in a volatile equity market 9.13 lakh SIP accounts were added on an average each month during the financial year with an average SIP size of about Rs. 3,070 per account taking the total number of SIP accounts to about 2.62 crores in FY19. Rising awareness about mutual funds through various initiatives and campaigns like âMutual Funds Sahi Haiâ has bolstered investor sentiment about the benefits of SIPs. Despite a volatile equity market and several headwinds, Average Assets Under Management (AAUM) of Indian Mutual Fund Industry at the end of March 2019 grew 7% to Rs. 24.58 crores.
In view of the strong potential of Indian equities and considering the prevailing market scenario, the Company is also in the process of finalizing and filing new schemes that have a complementary objective to our existing offering and address the need of lower risk adjusted stable returns from the idle funds of investors without compromising liquidity.
Nature of Business:
There was no change in the nature of the business.
Share Capital:
The total Paid up Share Capital as on March 31, 2019 was Rs. 55 Crores comprising of 60 Lakhs Equity Shares of Rs. 10/each and 49 Lakhs Redeemable Non-Convertible Preference Shares of Rs. 100/- each.
Material Changes and Commitments:
No material changes or commitments affecting the financial position of the Company have taken place from March 31, 2019 till the date of this report.
Particulars of Loans, Guarantees or Investments:
The details of the Investments and Loans covered under the provisions of Section 186 of the Act are given in the notes to the financial statements.
Cash Flow Statement:
The Cash Flow statement for the year 2018-2019 is attached to the Balance Sheet.
Directors:
In accordance with the provisions of the Companies Act , 2013 ( âthe Actâ) and in terms of the Memorandum and Articles of Association of the Company, Mrs. Jayashree Mahesh, retires by rotation at the ensuing AGM and being eligible, offers herself for reappointment.
Further, Nomination and Remuneration Committee on the basis of performance evaluation of Independent Directors has recommended to the Board that the continued association of Mr. Arindom Mukherjee, as Independent Director of the Company would be beneficial to the Company. Based on the above, the Board recommends the re-appointment of Mr. Mukherjee as Independent Director of the Company, not liable to retire by rotation, to hold office for a second term of 5 (five) consecutive years i.e. up to June 06, 2024.
Necessary proposals for reappointment of the aforesaid Directors have been included in the notice convening the AGM and the respective Resolutions are recommended for your approval.
All the Independent Directors have given declarations that they meet the criteria of independence as laid down under Section 149 (6) of the Act and Regulation 16 (1) (b) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, hereinafter referred to as âListing Regulationsâ. In the opinion of the Board, they fulfil the conditions of independence as specified in the Act and the Listing Regulations and are independent of the management. Further, the Independent Directors have complied with the Code for Independent Directors prescribed in Schedule IV to the Act.
Profile of the Directors, as required under Regulation 36 of the Listing Regulations, are given in the Notice of the 25th Annual General Meeting.
Fixed Deposits:
During the year under report, your Company has not accepted any fixed deposits.
Board Evaluation:
Pursuant to the provisions of the Act, and the Listing Regulations, the Board has carried out an annual performance evaluation of its own performance and the Directors individually as well as the evaluation of the working of its Committees. The manner in which the evaluation has been carried out has been explained in the Corporate Governance Report.
Policy on Directorsâ Appointment and Remuneration:
The Board has framed a policy which lays down a framework in relation to remuneration of Directors, Key Managerial Personnel and Senior Management of the Company.
The key features of the policy are as follows:
1. Criteria for appointment and removal of Director, Key Managerial Personnel and Senior Management.
2. Criteria for performance evaluation.
3. Criteria for fixing the remuneration of Director, Key Managerial Personnel and Senior Management.
The details of this policy are explained in the Corporate Governance Report and are also available at www.shriramamc.com.
Meetings:
During the year 4 Board Meetings and 4 Audit Committee Meetings were convened and held. The details of the meetings are given in the Corporate Governance Report. The gap between the Meetings was within the period prescribed under the Act and as per Regulation 17(2) and 18 (2) of the Listing Regulations respectively.
Risk Management:
Pursuant to the requirement of Regulation 21 of the Listing Regulations, the Company has constituted Risk Management Committee. The Company has in place a Risk Management Policy, commensurate with its size of operations, which lays down a process for identification and mitigation of risks that could materially impact its performance.
Corporate Social Responsibility:
The Company has not developed and implemented any Corporate Social Responsibility initiatives as the said provisions are not applicable.
Directorsâ Responsibility Statement:
Pursuant to the provisions of Section 134 (3) (c) of the Act, the Directors confirm that to the best of their knowledge and belief:
a) In the preparation of Annual Accounts and Financial Statements for the year ended March 31, 2019, the applicable Accounting Standards have been followed along with proper explanations relating to material departures, if any;
b) That such accounting policies as mentioned in Notes to the Financial Statements have been selected and applied consistently, and judgments and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2019 and of the Loss of the Company for the year ended on that date;
c) That proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
d) The Annual Accounts have been prepared on an ongoing concern basis;
e) That they have laid down internal financial controls commensurate with the size of the Company and that such financial controls were adequate and were operating effectively;
f) That systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively.
Related Party Transactions:
All related party transactions of the Company are at armâs length basis and are in the ordinary course of business. None of the related party transactions entered into by the Company were in conflict with the Companyâs interest. There are no materially significant related party transactions made by the Company with Promoters, Directors or Key Managerial Personnel etc. which may have potential conflict with the interest of the Company at large. Members approval for material Related Party Transaction, as defined under the Listing Regulations shall be obtained at the ensuing Annual General Meeting.
All Related Party Transactions are placed before the Audit Committee/Board, as applicable, for their approval. The particulars of contracts or arrangements with related parties in Form AOC -2 are annexed herewith as âAnnexure Aâ.
Significant and Material Orders Passed by the Regulators or Courts or Tribunals:
During the year under report, there were no significant material orders passed by the Regulators/ Courts/ Tribunals impacting the going concern status and Companyâs operations in future.
Internal Financial Controls and their adequacy:
The Company has put in place adequate internal financial controls with reference to the Financial Statements commensurate with the size of the Company.
Disclosures:
Audit Committee:
The Audit Committee comprises of Mr. Prabhakar Karandikar (Independent Director) as Chairman, Mr. Arindom Mukherjee (Independent Director) as Member, Mrs. Jayashree Mahesh (Non- Independent Director) as Member and Mr. Kshiti Ranjan Das (Independent Director) as Member. All the recommendations made by the Audit Committee were accepted by the Board.
Vigil Mechanism / Whistle Blower Policy:
As per the provisions of Section 177(9) of the Act, the Company is required to establish a Vigil Mechanism for Directors and employees to report genuine concerns. Regulation 4 (2) (d) (iv) of Listing Regulations also provides for establishment of vigil mechanism for directors and employees for above mentioned matters. The Company has a Policy for Prevention, Detection and Investigation of Frauds and Protection of Whistleblower. The detail of the Vigil Mechanism is posted on the website of the Company i.e. www.shriramamc.com.
Establishment of Internal Complaints Committee:
The Company has in place an Anti Sexual Harassment Policy in line with the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Internal Complaints Committee has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy. No complaints of sexual harassment were received during the year.
Auditors and Auditorsâ Report:
The Companyâs Statutory Auditors, M/s. G. D. Apte & Co., (Firm Registration No. 100515W) Chartered Accountants, Mumbai, were appointed as Statutory Auditors of the Company for a period of five consecutive years at the 23rd Annual General Meeting held on August 10, 2017 on a remuneration mutually agreed upon by the Board of Directors and the Statutory Auditors.
Their appointment was subject to ratification by the Members at every subsequent AGM held after the AGM held on August 10, 2017. Pursuant to the amendments made to Section 139 of the Act, by the Companies (Amendment) Act, 2017 effective from May 07, 2018, the requirement of seeking ratification of the Members for the appointment of the Statutory Auditors has been withdrawn from the Statute.
In view of the above, ratification by the Members for continuance of their appointment at this AGM is not being sought. The Statutory Auditors have given a confirmation to the effect that they are eligible to continue with their appointment and that they have not been disqualified in any manner from continuing as Statutory Auditors.
The Notes on financial statement referred to in the Auditorsâ Report are self-explanatory and do not call for any further comments. The Auditorsâ Report does not contain any qualification, reservation or adverse remark.
No fraud has been reported by the Auditors to the Audit Committee or the Board.
Secretarial Audit:
Pursuant to the provisions of Section 204 of the Act and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 the Company has appointed Mr. Suhas S. Ganpule, Practising Company Secretary, Proprietor of M/s. SG & Associates, to undertake the Secretarial Audit of the Company. The Secretarial Audit Report is annexed herewith as âAnnexure Bâ. The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.
Subsidiaries, Joint Ventures or Associate Companies:
During the year under report, there was no change in the associate company. The Company does not have any subsidiary or joint venture.
Corporate Governance:
The Report on Corporate Governance forms part of the Directorsâ Report and is annexed herewith.
As required by the Listing Regulations, Auditorsâ Report on Corporate Governance and a declaration by the Managing Director with regards to Code of Conduct are attached to the said Report.
The Management Discussion and Analysis is given as a separate statement forming part of the Annual Report.
As required under Listing Regulations, a detailed report on Corporate Governance along with the Certificate from the Company Auditorsâ confirming compliance forms an integral part of this Report and certificate duly signed by the Managing Director and Chief Financial Officer (CFO) on the Financial Statements of the Company for the year ended March 31, 2019 was submitted to the Board of Directors at their Meeting held on May 08, 2019. These certificates are attached to the Report on Corporate Governance.
Energy Conservation, Technology Absorption and Foreign Exchange Earnings and Outgo:
1. Conservation of Energy
The Company has no activity involving Conservation of Energy.
2. Technology Absorption
The Company has no activity involving Technology Absorption.
3. Foreign Exchange earnings and outgo
The Company did not have any foreign exchange earnings or outgo during the year under review.
Extract of Annual Return
Pursuant to Section 92 (3) of the Act and Rule 12 (1) of the Companies (Management and Administration) Rules, 2014, the extract of the Annual Return in the prescribed Form MGT-9 is annexed herewith as âAnnexure Câ. The complete Annual Return is available on the Companyâs Website www.shriramamc.com
Compliance with Secretarial Standards:
The Board of Directors affirms that the Company has complied with the applicable Secretarial Standards issued by the Institute of Company Secretaries of India (SS1 and SS2) respectively relating to Meetings of the Board and its Committees which have mandatory application.
Amount, if any, proposed to transfer to reserves:
The Company has made no transfers to reserves during FY 2018-2019.
Particulars of Employees:
During the year under report, your Company has not employed any person who was in receipt of remuneration in excess of the limits specified under Section 197 of the Act read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
The details required as per Rule 5 (1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed herewith as âAnnexure Dâ. As per the provisions of Section 136(1) of the Act, the Annual Report excluding the information required as per Rule 5 (2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 on employeeâs particulars is being sent to the members which is, however, available for inspection at the Registered office of the Company during working hours of the Company up to the date of the ensuing Annual General Meeting. If any Member is interested in obtaining such information may write to the Company Secretary in this regard.
Acknowledgment:
The Board of Directors take this opportunity to express their sincere appreciation for the excellent support and cooperation received from the Securities and Exchange Board of India, Association of Mutual Funds of India, Stock Exchange Authorities, Auditors, Bankers, Distributors, other Service providers and Board of Trustees of Shriram Mutual Fund.
The Directors wish to place on record the continued enthusiasm, total commitment, dedication and efforts of the employees of the Company at all levels.
We are also deeply grateful to the Shareholders of the Company and also to the large body of investors of scheme of Shriram Mutual Fund for the continued confidence and the faith reposed in the Fund and look forward to their continued patronage.
By Order of the Board
For Shriram Asset Management Company Limited
Place: Mumbai Prabhakar Karandikar
Date: May 08, 2019 Chairman
DIN No: 02142050
Mar 31, 2018
DIRECTORS'' REPORT
Dear Members,
Your Directors have pleasure in presenting their Twenty Fourth Annual Report and the Audited Statements of Accounts for the financial year ended March 31, 2018.
Financial Highlights:
Particulars |
Year Ended March 31, 2018 (Rs.) |
Year Ended March 31, 2017 (Rs.) |
Gross Income for the year |
18,872,844 |
20,949,050 |
Total Expenditure before Depreciation and Tax |
38,462,976 |
27,596,316 |
Profit /(Loss) before Depreciation and Tax |
(19,590,132) |
(6,647,266) |
Less: Depreciation |
235,841 |
331,729 |
Profit /(Loss) after Depreciation and Tax |
(19,825,973) |
(6,978,995) |
Tax Provisions for Earlier Years |
(302,769) |
- |
Balance brought forward from previous year |
(47,851,793) |
(40,872,798) |
Profit /(Loss) available for Appropriation |
(67,980,535) |
(47,851,793) |
Balance carried to Balance Sheet |
(67,980,535) |
(47,851,793) |
Dividend:
In the absence of profits, your Directors do not recommend payment of any dividend for the Financial Year 2017-2018.
State of Company''s Affairs:
Some highlights of your Company''s performance during the year under review are:
The gross loss (before depreciation and tax) for the year was Rs. 19,590,132/- as against Rs. 6,647,266/- during the last year.
Net loss after taxation for the year was Rs. 20,128,742/- as against Rs. 6,978,995/- in the last year. The total asset under management was Rs.42.72 Crore as against Rs. 41.14 Crore in the last year.
The maiden scheme managed by your Company has delivered a return of 10.97% (at the end of March 2018) CAGR since inception accompanied by lower levels of volatility.
Mutual fund industry continued to support the market, infusing Rs. 1,37,624 crore into equities during FY18, which was more than double compared to Rs. 55,000 crore in FY17. The buoyancy of mutual fund investment can be gauged by the fact that mutual fund SIP accounts grew by 52% (70 lakh) to 2.05 crore in FY18. Meanwhile, the average monthly SIP contribution for the industry stood at Rs. 6,425 crore from 2.05 crore SIP accounts during the year. Better penetration into smaller towns and falling interest rate in bank FDs attracted more investors into mutual funds. As a result, asset base of the mutual fund industry surged to over Rs. 23 lakh crore in FY18. Overall addition in the last year was 32 lakh investors, while the total number of folios grew by 1.05 crore or 26% during the period.
In view of the strong potential of Indian equities and considering the prevailing market scenario, the Company is also in the process of finalizing and filing new schemes that have a complementary objective to our existing offering and address the need of lower risk adjusted stable returns from the idle funds of investors without compromising liquidity.
Nature of Business:
There was no change in the nature of the business.
Share Capital:
The total Paid up Share Capital as on March 31, 2018 was Rs. 55 Crores comprising of 60 Lakhs Equity Shares of Rs 10/-each and 49 Lakhs Redeemable Non-Convertible Preference Shares of Rs. 100/- each.
Material Changes and Commitments:
No material changes or commitments affecting the financial position of the Company have taken place from March 31, 2018 till the date of this report.
Particulars of Loans, Guarantees or Investments:
The details of the Investments and loans covered under the provisions of Section 186 of the Act are given in the notes to the financial statements.
Cash Flow Statement:
The Cash Flow statement for the year 2017-2018 is attached to the Balance Sheet.
Directors:
The Board at its meeting held on January 31, 2018 re-appointed Mr. Akhilesh Kumar Singh as Managing Director not liable to retire by rotation for a period of three years effective February 14, 2018 subject to the approval of the Members.
In accordance with the provisions of the Act and in terms of the Memorandum and Articles of Association of the Company, Mr. Dhruv Mehta retires by rotation at the ensuing AGM and being eligible, offers himself for reappointment.
Necessary proposals for reappointment of the aforesaid Directors have been included in the notice convening the AGM and the respective Resolutions are recommended for your approval.
All the Independent Directors have given declarations that they meet the criteria of independence as laid down under Section 149 (6) of the Act and Regulation 16 (1) (b) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, hereinafter referred to as ''Listing Regulations''.
Profile of the Directors, as required under Regulation 36 of the Listing Regulations, are given in the Notice of the 24th Annual General Meeting.
Fixed Deposits:
During the year under report, your Company has not accepted any fixed deposits.
Board Evaluation:
Pursuant to the provisions of the Companies Act, 2013 and the Listing Regulations, the Board has carried out an annual performance evaluation of its own performance and the Directors individually as well as the evaluation of the working of its Committees. The manner in which the evaluation has been carried out has been explained in the Corporate Governance Report.
Policy on Directors'' Appointment and Remuneration:
The Board has framed a policy which lays down a framework in relation to remuneration of Directors, Key Managerial Personnel and Senior Management of the Company.
The key features of the policy are as follows:
1. Criteria for appointment and removal of Director, Key Managerial Personnel and Senior Management.
2. Criteria for performance evaluation.
3. Criteria for fixing the remuneration of Director, Key Managerial Personnel and Senior Management.
The details of this policy are explained in the Corporate Governance Report and are also available at www.shriramamc.com.
Meetings:
During the year 7 Board Meetings and 5 Audit Committee Meetings were convened and held. The details of the meetings are given in the Corporate Governance Report. The gap between the Meetings was within the period prescribed under the Act and as per Regulation 17(2) and 18 (2) of the Listing Regulations respectively.
Risk Management:
Pursuant to the requirement of Regulation 21 of the Listing Regulations, the Company has constituted Risk Management Committee. The Company has in place a Risk Management Policy, commensurate with its size of operations, which lays down a process for identification and mitigation of risks that could materially impact its performance.
Corporate Social Responsibility:
The Company has not developed and implemented any Corporate Social Responsibility initiatives as the said provisions are not applicable.
Directors'' Responsibility Statement:
Pursuant to the provisions of Section 134 (3) (c) of the Act, the Directors confirm that to the best of their knowledge and belief:
a) In the preparation of Annual Accounts and Financial Statements for the year ended March 31, 2018, the applicable Accounting Standards have been followed along with proper explanations relating to material departures, if any;
b) That such accounting policies as mentioned in Notes to the Financial Statements have been selected and applied consistently and judgments and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2018 and of the Loss of the Company for the year ended on that date;
c) That proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
d) The Annual Accounts have been prepared on an ongoing concern basis;
e) That they have laid down internal financial controls commensurate with the size of the Company and that such financial controls were adequate and were operating effectively;
f) That systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively.
Related Party Transactions:
All related party transactions of the Company are at arm''s length basis and are in the ordinary course of business. None of the related party transactions entered into by the Company were in conflict with the Company''s interest. There are no materially significant related party transactions made by the Company with Promoters, Directors or Key Managerial Personnel etc. which may have potential conflict with the interest of the Company at large. Member''s approval for material Related Party Transaction, as defined under the Listing Regulations shall be obtained at the ensuing Annual General Meeting.
All Related Party Transactions are placed before the Audit Committee/Board, as applicable, for their approval. The particulars of contracts or arrangements with related parties in Form AOC -2 are annexed herewith as ''Annexure A''.
Significant and Material Orders Passed by the Regulators or Courts or Tribunals:
During the year under report, there were no significant material orders passed by the Regulators/ Courts/ Tribunals impacting the going concern status and Company''s operations in future.
Internal Financial Controls and their adequacy:
The Company has put in place adequate internal financial controls with reference to the Financial Statements commensurate with the size of the Company.
Disclosures: Audit Committee:
The Audit Committee comprises of Mr. Prabhakar Karandikar (Independent Director) as Chairman, Mr. Arindom Mukherjee (Independent Director) as Member, Mrs. Jayashree Mahesh (Non-independent Director) as Member and Mr. Kshiti Ranjan Das (Independent Director) as Member. All the recommendations made by the Audit Committee were accepted by the Board.
Vigil Mechanism / Whistle Blower Policy:
As per the provisions of Section 177(9) of the Act, the Company is required to establish a Vigil Mechanism for Directors and employees to report genuine concerns. The Company has a Policy for Prevention, Detection and Investigation of Frauds and Protection of Whistleblower. The detail of the Vigil Mechanism is posted on the website of the Company i.e. www.shriramamc.com.
Establishment of Internal Complaints Committee:
The Company has in place an Anti Sexual Harassment Policy in line with the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Internal Complaints Committee has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy. No complaints of sexual harassment were received during the year.
Auditors and Auditor''s Report:
Pursuant to provisions of Section 139 of the Act read with the Companies (Audit and Auditors) Rules, 2014, M/s. G. D. Apte and Co., (Firm Registration No. 100515W) Chartered Accountants, Mumbai were appointed as Statutory Auditors of the Company for a term of five years, to hold the office from the conclusion of 23rd Annual General Meeting held on August 10, 2017, until the conclusion of 28th Annual General Meeting, subject to ratification of their appointment at every subsequent Annual General Meeting.
A certificate from Statutory Auditors has been received to the effect that their appointment as Statutory Auditors of the Company, if ratified at ensuing Annual General Meeting, would be according to the terms and conditions prescribed under Section 139 of the Act and Rules framed there under.
A resolution seeking ratification of their appointment forms part of the Notice convening the 24th AGM and the same is recommended for your consideration and approval.
The Notes on financial statement referred to in the Auditor''s Report are self-explanatory and do not call for any further comments. The Auditor''s Report does not contain any qualification, reservation or adverse remark.
No fraud has been reported by the Auditors to the Audit Committee or the Board.
Secretarial Audit:
Pursuant to the provisions of Section 204 of the Act and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed Mr. Suhas S. Ganpule, Practising Company Secretary, Proprietor of M/s. SG & Associates, to undertake the Secretarial Audit of the Company. The Secretarial Audit Report is annexed herewith as "Annexure B". The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.
Subsidiaries, Joint Ventures or Associate Companies:
During the year under report, there was no change in the associate company. The Company does not have any subsidiary or joint venture.
Corporate Governance:
The Report on Corporate Governance forms part of the Directors'' Report and is annexed herewith.
As required by the Listing Regulations, Auditor''s Report on Corporate Governance and a declaration by the Managing Director with regards to Code of Conduct are attached to the said Report.
The Management Discussion and Analysis is given as a separate statement forming part of the Annual Report.
As required under Listing Regulations, a detailed report on Corporate Governance along with the Certificate from the Company Auditor''s confirming compliance forms an integral part of this Report and certificate duly signed by the Managing Director and Chief Financial Officer (CFO) on the Financial Statements of the Company for the year ended March 31, 2018 was submitted to the Board of Directors at their Meeting held on April 27, 2018. These certificates are attached to the Report on Corporate Governance.
Energy Conservation, Technology Absorption and Foreign Exchange Earnings and Outgo:
1. Conservation of Energy
The Company has no activity involving Conservation of Energy.
2. Technology Absorption
The Company has no activity involving Technology Absorption.
3. Foreign Exchange earnings and outgo
The Company did not have any foreign exchange earnings or outgo during the year under review.
Extract of Annual Return:
The Annual Return in Form MGT 9 is available on the Company Website www.shriramamc.com.
Amount, if any, proposed to transfer to reserves:
The Company has made no transfers to reserves during FY 2017-2018.
Particulars of Employees:
During the year under report, your Company has not employed any person who was in receipt of remuneration in excess of the limits specified under Section 197 of the Act read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
The details required as per Rule 5 (1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed herewith as "Annexure C". As per the provisions of Section 136(1) of the Companies Act, 2013, the Annual Report excluding the information required as per Rule 5 (2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 on employee''s particulars is being sent to the members which is, however, available for inspection at the Registered office of the Company during working hours of the Company up to the date of the ensuing Annual General Meeting. If any Member is interested in obtaining such information may write to the Company Secretary in this regard.
Acknowledgement:
The Board of Directors take this opportunity to express their sincere appreciation for the excellent support and cooperation received from the Securities and Exchange Board of India, Association of Mutual Funds of India, Stock Exchange Authorities, Auditors, Bankers, Distributors, other Service providers and Board of Trustees of Shriram Mutual Fund.
The Directors wish to place on record the continued enthusiasm, total commitment, dedication and efforts of the employees of the Company at all levels.
We are also deeply grateful to the Shareholders of the Company and also to the large body of investors of scheme of Shriram Mutual Fund for the continued confidence and the faith reposed in the Fund and look forward to their continued patronage.
By Order of the Board |
|
For Shriram Asset Management Company Limited |
|
Place: Chennai |
Prabhakar Karandikar |
Date: April 27, 2018 |
Chairman |
Annexure ''A'' to Directors'' Report
FORM NO. AOC-2
(Pursuant to clause (h) of sub-section (3) of Section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)
Form for disclosure of particulars of contracts/arrangements entered into by the Company with related parties referred to in sub-section (1) of Section 188 of the Companies Act, 2013 including certain arms length
transactions under third proviso thereto
1. Details of contracts or arrangements or transactions not at arm''s length basis: Not Applicable
2. Details of material contracts or arrangement or transactions at arm''s length basis:
(a) Name(s) of the related party and nature of relationship:
(1) Shriram Credit Company Limited (SCCL) - Holding Company
(2) Shriram Insight Share Brokers Limited (SISBL) - Fellow Subsidiary
(3) Shriram Fortune Solutions Limited (SFSL) - Fellow Subsidiary
(4) Shriram Ownership Trust (SOT) - Promoter Group
(b) Nature of contracts/arrangements/transactions:
(1) SCCL- Infrastructure Sharing
(2) SISBL- (i) Rental Agreement-
â¢CK-5
⢠Turner Morrison Building
(ii) Infrastructure Sharing
(iii) Brokerage & Distribution Commission
(3) SFSL - Distribution Commission
(4) SOT- Royalty Expenses (artistic work on labels, letterhead, commercial literature, use of Intellectual Property)
(c) Duration of the contracts / arrangements/transactions:
(1) SCCL - Infrastructure Sharing - Duration - 3 Years
(2) SISBL- (i) Rental Agreement-
⢠CK-5 - Duration -1 Year
⢠Turner Morrison Building - Duration - 3 Years (ii) Infrastructure Sharing - Duration - 3 Years
(iii) Brokerage & Distribution Commission - Duration - 5 Years
(3) SFSL - Distribution Commission - Duration - 5 Years
(4) SOT - Royalty Expenses (artistic work on labels, - Duration - 5 Years letterhead, commercial literature, use of Intellectual Property)
(d) The material terms of the contracts or arrangements including the value, if any:
(1) SCCL- Infrastructure Sharing - including telecommunication services- Reimbursement on basis of actual usage.
(2) SISBL - (i) Rental Agreement - Rs. 38433/- and Rs. 9100/- per month for CK-5 and Turner Morrison Building respectively.
(ii) Infrastructure sharing - Infrastructure sharing including telecommunication services-Reimbursement on basis of actual usage.
(iii) Brokerage & Distribution Commission - Broking and Distribution of the present and future schemes of Shriram Mutual Fund.
(3) SFSL- Distrbution Commission - Distribution of the present and future schemes of Shriram Mutual Fund.
(4) SOT - Royalty Expenses -1 % on the Total Income of the Licensee, subject to a limit of 5% on Profit before Tax and License Fee and subject to a minimum of Rs.5 lacs, in a financial year, with effect from April 01, 2017.
(e) Any advance paid or received for the contract or arrangement, if any:
(1) SCCL |
NIL |
(2) SISBL |
NIL |
(3) SFSL |
NIL |
(4) SOT |
NIL |
(f) Whether all factors relevant to the contract have been considered, if not, the details of factors not considered with the rationale for not considering those factors:
(1) SCCL |
NA |
(2) SISBL |
NA |
(3) SFSL |
NA |
(4) SOT |
NA |
(g) Any other information relevant or important for the Board to take a decision on the proposed transaction:
(1) SCCL |
NA |
(2) SISBL |
NA |
(3) SFSL |
NA |
(4) SOT |
NA |
(h) Date(s) of approval by the Board, if any |
: January 31, 2018 and April 27, 2018 |
(i) Amount paid as advances, if any |
: NIL |
By Order of the Board |
|
For Shriram Asset Management Company Limited |
|
Place: Chennai |
Prabhakar Karandikar |
Date: April 27, 2018 |
Chairman |
Annexure ''B'' to Directors'' Report
FORM NO. MR-3 SECRETARIAL AUDIT REPORT
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies
(Appointment and Remuneration Personnel) Rules, 2014]
For the Financial Year ended March 31, 2018
To,
The Members,
Shriram Asset Management Company Limited,
We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by Shriram Asset Management Company Limited (hereinafter called the Company).
Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/ statutory compliances and expressing our opinion thereon.
Based on our verification of the Company''s books, papers, minute books, forms and returns filed and other records maintained by the Company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of secretarial audit, we hereby report that in our opinion, the company has, during the audit period covering the financial year ended on March 31, 2018 has complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:
We have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the financial year ended on March 31, 2018 according to the provisions of:
I. The Companies Act, 2013 (the Act) and the rules made there under;
II. The Securities Contract (Regulation) Act, 1956 (''SCRA'') and the rules made there under;
III. The Depositories Act, 1996 and the Regulations and Bye-laws framed there under;
IV. Foreign Exchange Management Act, 1999 and the rules and regulations made there under to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings; (Not Applicable during the year under review)
V. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992(''SEBI Act''):-
1) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
2) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
3) The Securities and Exchange Board of India (Mutual Funds) Regulations, 1996;
4) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015;
We further state that there were no events / actions in pursuance of the following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (''SEBI Act''):-
1) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009;
2) The Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999;
3) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;
4) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with client;
5) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009;
6) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998; We have also examined Compliance with the Applicable Clauses/Regulations of the following:
Secretarial Standards Issued by the Institute of Company Secretaries of India
During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc.
We further report that
The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors.
Adequate notice is given to all Directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting.
All the decisions were carried out unanimously by the members of the Board and the same were duly recorded in the minutes of the meeting of the Board of Directors.
We further report that there are adequate systems and processes in the Company commensurate with the size and operations of the Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.
We further report that during the audit period the Company has issued and allotted 35,00,000 (Thirty Five Lacs) ''Redeemable Non-Convertible Preference Shares'' (RNCPS) of face value of Rs. 100/- (Rupees One Hundred Only) each aggregating to Rs. 35,00,00,000/- (Rupees Thirty Five Crores Only) on Private Placement basis.
We further report that during the audit period, there was no instances of:
i. Public / Right/ Preferential issue of shares / debentures / sweat equity.
ii. Redemption/ Buy-Back of securities.
iii. Major decisions taken by the Members in pursuance to Section 180 of the Companies Act, 2013.
iv. Merger /Amalgamation / Reconstruction etc.
v. Foreign technical collaborations.
For SG & Associates |
|
Suhas Ganpule |
|
Proprietor |
|
Practicing Company Secretaries |
|
Place: Mumbai Date: April 27, 2018 |
Membership No: 12122 C. P No: 5722 |
Annexure ''C'' to the Directors'' Report
DISCLOSURE
[Pursuant to Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]
Sr. No. |
Particulars |
Remarks |
|||
(i) |
the ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the financial year: |
||||
Sr. No. |
Name of Director / Key Managerial Personnel |
Designation |
Ratio of remuneration of each Director to the median remuneration of the employees |
||
1. |
Mr. Akhilesh Kumar Singh |
Managing Director |
5.51:1 |
||
2. |
Mrs. Reena Yadav |
Company Secretary |
3.31:1 |
||
3. |
Mrs. Chandana Dutt |
Chief Financial Officer |
2.68:1 |
||
(ii) |
the percentage increase in remuneration of each Director, Chief Financial Officer, Chief Executive Officer, Company Secretary or Manager, if any, in the financial year; |
||||
a) Managing Director |
0.41% |
||||
b) Chief Financial Officer |
3.23% |
||||
c) Company Secretary |
17.70% |
||||
(iii) |
the percentage increase in the median remuneration of employees in the financial year; |
17.29% |
|||
(iv) |
the number of permanent employees on the rolls of Company; |
17 |
|||
(v) |
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; |
||||
a) Average % increase in Managerial personnel : |
11.74% |
||||
b) Average % increase in other personnel: |
20.29% |
||||
(vi) |
affirmation that the remuneration is as per the remuneration policy of the Company. |
Yes |
Mar 31, 2017
Dear Members,
The Directors have pleasure in presenting their Twenty Third Annual Report and the Audited Statements of Accounts for the financial year ended March 31, 2017.
Financial Highlights:
Particulars |
Year Ended March 31, 2017 (Rs.) |
Year Ended March 31, 2016 (Rs.) |
Gross Income for the year |
20,949,050 |
17,975,343 |
Total Expenditure before Depreciation and Tax |
27,596,316 |
29,000,785 |
Profit /(Loss) before Depreciation and Tax |
(6,647,266) |
(11,024,442) |
Less: Depreciation |
331,729 |
428,107 |
Profit /(Loss) after Depreciation and Tax |
(6,978,995) |
(11,453,549) |
Balance brought forward from previous year |
(40,872,798) |
(29,419,249) |
Profit /(Loss) available for Appropriation |
(47,851,793) |
(40,872,798) |
Balance carried to Balance Sheet |
(47,851,793) |
(40,872,798) |
Dividend:
In the absence of profits, your Directors do not recommend payment of any dividend for the Financial Year 2016-2017. State of Companyâs Affairs:
Your Company has managed to bring down the loss during the financial year 2016-17 primarily by cutting down on its expenditures and taking effective measures to raise its income as compared to the last financial year.
Some highlights of your Company''s performance during the year under review are:
- The gross loss (before depreciation and tax) for the year was Rs. 6,647,266 as against Rs. 11,024,442 during the last year.
- Net loss after taxation for the year was Rs. 6,978,995 as against Rs. 11,453,549 in the last year.
- The total asset under management was Rs. 41.14 Crore as against Rs. 38.06 Crore in the last year.
Your Company has complied with all the prescribed norms and regulations with respect to its fund management activities, risk management, customer service, employees'' training, etc. The Company has laid down guidelines to be adhered by employees to ensure compliances with all applicable laws and regulations.
On the administrative controls side, your Company has a proper reporting structure, defined roles and responsibilities at all levels and rigorous. The Company has an Internal Financial Control System, commensurate with the nature of its business and the size and complexity of its operations.
The maiden scheme managed by your Company has delivered a return of 11.651% (at the end of March 2017) CAGR since inception accompanied by lower levels of volatility. The fund portfolio has been re-aligned to include stocks from sectors which hold promise in the current scenario. As a result, the fund has generated 10.8% return in the first quarter of CY2017 compared with benchmark return of 8.54%.
Mutual fund industry witnessed strong inflow of funds from domestic investors during FY17. Mutual fund investment in equities during FY17 stood at Rs. 55,000 crores in the backdrop of SIPs gaining popularity. Better penetration into smaller towns and falling interest rate in bank FDs attracted more investors to mutual funds. As a result, average AUMs of mutual funds increased a whopping 35% y/y to Rs. 18.29 lakh crores for the quarter January-March 2017.
In view of the strong potential of Indian equities and considering the prevailing market scenario, your Company intends to take significant steps by augmenting the capital. This will include launching of new schemes that will have a complementary objective to our existing offering and address the need of lower risk adjusted stable returns from the idle funds of investors without compromising liquidity.
Nature of Business:
There was no change in the nature of the business.
Share Capital:
The total paid up Share Capital as on March 31, 2017 was Rs. 20 Crores comprising of 60 Lakhs Equity Shares of Rs. 10/each and 14 Lakhs Redeemable Non-Convertible Preference Shares of Rs. 100/- each.
Material Changes and Commitments:
No material changes or commitments affecting the financial position of the Company have taken place from March 31, 2017 till the date of this report.
Particulars of Loans, Guarantees or Investments:
Company has not given any guarantees or loans covered under the provisions of Section 186 of the Companies Act, 2013 (Act). As regards the details of the Investments covered under the provisions of Section 186 of the Act, the same are given in the notes to the financial statements.
Cash Flow Statement:
The Cash Flow statement for the year 2016-17 is attached to the Balance Sheet.
Directors:
The Board of Directors had appointed Mr. Kshiti Ranjan Das as an Additional Director of the Company w.e.f. March
06, 2017 and Mr. Kalyanaraman Chandrachoodan and Mrs. Chandra Iyengar as Additional Directors of the Company (in the category of Independent Director) with effect from March 31, 2017. Pursuant to Section 161 of the Act, they will hold the office only up to the date of the ensuing Annual General Meeting (AGM) of the Company. The Company has received a notice in writing from a member under Section 160 of the Act proposing the candidature of Mr. Das, Mr. Chandrachoodan and Mrs. Iyengar for the office of Director. Suitable resolutions for appointment of Mr. Das as an Independent Director for period up to March 05, 2022 and Mr. Chandrachoodan and Mrs. Iyengar as Independent Directors for period up to March 30, 2022 are being proposed for adoption by the Members at this Annual General Meeting.
In accordance with the provisions of the Act and in terms of the Memorandum and Articles of Association of the Company, Mr. R. Sundara Rajan retires by rotation at the ensuing AGM and being eligible, offers himself for reappointment.
Necessary proposals for appointment/ reappointment of the aforesaid Directors have been included in the notice convening the AGM and the respective Resolutions are recommended for your approval.
Requirement of Regulation 21 (1) (d) of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 relating to composition of the Board in respect of Independent Directors has been complied with.
All the Independent Directors have given declarations that they meet the criteria of independence as laid down under Section 149(6) of the Act and Regulation 16 (1) (b) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, hereinafter referred to as âListing Regulations''.
Profile of the Directors, as required under Regulation 36 of the Listing Regulations, are given in the Notice of the 23rd Annual General Meeting.
Fixed Deposits:
During the year under report, your Company has not accepted any fixed deposits.
Board Evaluation:
Pursuant to the provisions of the Companies Act, 2013 and the Listing Regulations, the Board has carried out an annual performance evaluation of its own performance, the Directors individually as well as the evaluation of the working of its Committees. The manner in which the evaluation has been carried out has been explained in the Corporate Governance Report.
Policy on Directorsâ Appointment and Remuneration:
The Board has framed a policy which lays down a framework in relation to remuneration of Directors, Key Managerial Personnel and Senior Management of the Company.
The key features of the policy are as follows:
1. Criteria for appointment and removal of Director, Key Managerial Personnel and Senior Management.
2. Criteria for performance evaluation.
3. Criteria for fixing the remuneration of Director, Key Managerial Personnel and Senior Management.
The details of this policy are explained in the Corporate Governance Report.
Meetings:
During the year 4 Board Meetings and 4 Audit Committee Meetings were convened and held. The details of the meetings are given in the Corporate Governance Report. The gap between the Meetings was within the period prescribed under the Act and as per Regulation 17(2) and 18 (2) of the Listing Regulations respectively.
Risk Management:
Pursuant to the requirement of Regulation 21 of the Listing Regulations, the Company has constituted Risk Management Committee. The Company has in place a Risk Management Policy, commensurate with its size of operations, which lays down a process for identification and mitigation of risks that could materially impact its performance.
Corporate Social Responsibility:
The Company has not developed and implemented any Corporate Social Responsibility initiatives as the said provisions are not applicable.
Directorsâ Responsibility Statement:
Pursuant to the provisions of Section 134 (3) (c) of the Act, the Directors confirm that to the best of their knowledge and belief:
a) In the preparation of Annual Accounts and Financial Statements for the year ended March 31, 2017, the applicable Accounting Standards have been followed along with proper explanations relating to material departures, if any;
b) That such accounting policies as mentioned in Notes to the Financial Statements have been selected and applied consistently, and judgments and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2017 and of the Loss of the Company for the year ended on that date;
c) That proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
d) The Annual Accounts have been prepared on an ongoing concern basis;
e) That they have laid down internal financial controls commensurate with the size of the Company and that such financial controls were adequate and were operating effectively;
f) That systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively.
Related Party Transactions:
During the year, the Company has not entered into any fresh related party agreements. All the previous related party transactions of the Company were at arm''s length basis and were in the ordinary course of business. The particulars of contracts or arrangements with related parties in Form AOC -2 are annexed herewith as âAnnexure Aâ.
Significant and Material Orders Passed by the Regulators or Courts or Tribunals:
During the year under report, there were no significant material orders passed by the Regulators/ Courts/ Tribunals impacting the going concern status and Company''s operations in future.
Internal Financial Controls and their adequacy:
The Company has put in place adequate internal financial controls with reference to the Financial Statements commensurate with the size of the Company.
Disclosures:
Audit Committee:
The Audit Committee comprises of Mr. Prabhakar Karandikar (Independent Director) as Chairman, Mr. Arindom Mukherjee (Independent Director) as Member, Mrs. Jayashree Mahesh (Non- Independent Director) as Member, Mr. Kshiti Ranjan Das (Independent Director) as Member and Mr. Kalyanaraman Chandrachoodan (Independent Director) as Member. All the recommendations made by the Audit Committee were accepted by the Board.
Vigil Mechanism / Whistle Blower Policy:
The Company has established a Vigil Mechanism to deal with instance of fraud and mismanagement, if any. The detail of the Vigil Mechanism is posted on the website of the Company i.e. www.shriramamc.com.
Establishment of Internal Complaints Committee:
The Company has in place an Anti Sexual Harassment Policy in line with the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Internal Complaints Committee has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy. No complaints of sexual harassment were received during the year.
Auditors and Auditorâs Report:
As per the provisions of Section 139 of the Act and the Companies (Audit and Auditors) Rules, 2014, an audit firm functioning as auditor of the Company for ten years or more after the commencement of provisions of Section 139 of the Act, may be appointed in the same Company for further period of three years from April 01, 2014. As the maximum statutory tenure of M/s. K.S. Aiyar and Co. (Firm Registration No. 100186W) is about to end, they have requested not to be considered for re-appointment at the conclusion of their present term of appointment, at this Annual General Meeting of the Company. The Board of Directors, on recommendation of the Audit Committee has appointed M/s. G. D. Apte and Co., Chartered Accountants, Mumbai, (Registration No. 100515W), as the Statutory Auditors of the Company subject to the approval of the members of the Company at this Annual General Meeting. M/s. G. D. Apte and Co., being eligible, have indicated their willingness to serve as Statutory Auditors of the Company, if appointed at this meeting. Their appointment as Statutory Auditors, if approved, by the members of the Company, will take effect from the conclusion of 23rd Annual General Meeting (subject to ratification by the Members every year in the Annual General Meeting) until the conclusion of 28th Annual General Meeting of the Company, to be held in the year 2022. A certificate from them has been received to the effect that their appointment as Statutory Auditors of the Company, if made, would be according to the terms and conditions prescribed under Sections 139 and 141 of the Act. Members are requested to consider their appointment.
The Notes on financial statement referred to in the Auditor''s Report are self-explanatory and do not call for any further comments. The Auditor''s Report does not contain any qualification, reservation or adverse remark.
Secretarial Audit:
Pursuant to the provisions of Section 204 of the Act and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed Mr. Suhas S. Ganpule, Practising Company Secretary, Proprietor of M/s. SG & Associates, to undertake the Secretarial Audit of the Company. The Secretarial Audit Report is annexed herewith as âAnnexure Bâ. The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.
Subsidiaries, Joint Ventures or Associate Companies:
During the year under report, there was no change in the associate company. The Company does not have any subsidiary or joint venture.
Corporate Governance:
The Report on Corporate Governance forms part of the Directors'' Report and is annexed herewith.
As required by the Listing Regulations, Auditor''s Report on Corporate Governance and a declaration by the Managing Director with regards to Code of Conduct are attached to the said Report.
The Management Discussion and Analysis is given as a separate statement forming part of the Annual Report.
As required under Listing Regulations, a detailed report on Corporate Governance along with the Certificate from the Company Auditor''s confirming compliance forms an integral part of this Report and certificate duly signed by the Managing Director and Chief Financial Officer (CFO) on the Financial Statements of the Company for the year ended March 31, 2017 was submitted to the Board of Directors at their Meeting held on May 02, 2017. These certificates are attached to the Report on Corporate Governance.
Energy Conservation, Technology Absorption and Foreign Exchange Earnings and Outgo:
1. Conservation of Energy
The Company has no activity involving Conservation of Energy.
2. Technology Absorption
The Company has no activity involving Technology Absorption.
3. Foreign Exchange earnings and outgo
The Company did not have any foreign exchange earnings or outgo during the year under review.
Extract of Annual Return:
The details forming part of the extract of the Annual Return in Form MGT 9 is annexed herewith as âAnnexure Câ. Particulars of Employees:
During the year under report, your Company has not employed any person who was in receipt of remuneration in excess of the limits specified under Section 197 of the Act read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
The details required as per Rule 5 (1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed herewith as âAnnexure Dâ. As per the provisions of Section 136(1) of the Companies Act, 2013, the Annual report excluding the information required as per Rule 5 (2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 on employee''s particulars is being sent to the members which is, however, available for inspection at the Registered office of the Company during working hours of the Company up to the date of the ensuing Annual General Meeting. If any Member is interested in obtaining such information may write to the Company Secretary in this regard.
Acknowledgement:
The Board of Directors take this opportunity to express their sincere appreciation for the excellent support and cooperation received from the Securities and Exchange Board of India, Association of Mutual Funds of India, Stock Exchange Authorities, Auditors, Bankers, Distributors, other Service providers and Board of Trustees of Shriram Mutual Fund.
The Directors wish to place on record the continued enthusiasm, total commitment, dedication and efforts of the employees of the Company at all levels.
We are also deeply grateful to the Shareholders of the Company and also to the large body of investors of scheme of Shriram Mutual Fund for the continued confidence and the faith reposed in the Fund and look forward to their continued patronage.
By Order of the Board
For Shriram Asset Management Company Limited
Place: Mumbai Prabhakar Karandikar
Date: May 02, 2017 Chairman
Mar 31, 2015
Dear Members,
The Directors have pleasure in presenting their Twenty First Annual
Report and the Audited Statements of Accounts for the financial year
ended March 31, 2015.
Financial Highlights:
Particulars Year Ended Year Ended
March 31, 2015 March 31, 2014
(Rs.) (Rs.)
Gross Income for the year 14,264,441 5,837,457
Total Expenditure before
Depreciation & Tax 20,803,246 21,257,640
Profit /(Loss) before
Depreciation and Tax (6,538,805) (15,420,183)
Less: Depreciation 467,461 532,110
Less: Provision for Tax - -
Profit /(Loss) after
Depreciation and Tax (7,006,266) (15,952,293)
Balance brought forward
from previous year (22,367,254) (6,414,961)
Less: WDV of Fixed assets
w/o to retained earnings (45,728) -
Profit /(Loss) available for
Appropriation (29,419,248) (22,367,254)
Balance carried to Balance Sheet (29,419,248) (22,367,254)
Dividend:
In the absence of profits, your Directors do not recommend payment of
any dividend for the Financial Year 2014-2015. State of Company's
Affairs:
It is our pleasure to declare that the maiden scheme launched by your
Company, Shriram Equity and Debt Opportunities Fund (a hybrid equity
oriented asset allocation fund) towards the very end of calendar year
2013, has delivered a return of 24.67% for the last financial year
(April 2014- March 2015) outperforming its stated benchmark by 1.64%.
This assumes greater significance considering that the positive active
returns generated by the scheme in relation to the composite benchmark
was accompanied by lower levels of volatility and with very close
alignment to the scheme mandate. It has been our endeavour to stay
invested in quality stocks with an all weather business model which are
steered by capable and professional management. Our prudent and
moderately conservative investment strategy have yielded a healthy
market defined returns and supports the fund objective of longer term
durable superior risk adjusted returns in time to come.
The fund is ideally suited for the small retail saver and common
investors whose principal objective is to build long term wealth within
an acceptable level of risk and therefore has an ideal investment
horizon of three to five years.
The market sentiment remained largely upbeat for a better part of the
financial year ended March 2015 barring the months of December 2014 and
March 2015 primarily on account of negative global cues. The equity
markets in India were one of the top performers globally with the
Sensex and Nifty gaining by 25% and 27%, respectively. Almost all
sectors contributed positively to the Index returns with Banks (65%),
Finance and Auto (both 57%), Pharma (43%) leading the rally while the
growth of FMCG and IT (both 18%), Energy (9%) and Metal (7%) were
somewhat muted.
The current market outlook presents a mixed bag with positive and
negative factors equally balanced thus supporting an overall view of
cautious optimism. The country would stand to gain from a benign
outlook on the soft prices of crude and has been one of the biggest
beneficiaries of the same in the past six months. The improving
macroeconomic condition with a concerted effort by the Reserve Bank in
tandem with the Central Government has led to a substantial bolstering
of economic stability and restored the confidence level of the
international investors. Some very necessary reforms promulgated by the
Government in the Insurance sector and Coal sector would unshackle the
economy and repair the much maligned Power sector. A few more
significant economic reforms are underway which will augment the
Government's resource base and provide the States with greater
financial flexibility. The main dampeners to the otherwise buoyant
economic growth story are the slow progress in creation of required
physical and social infrastructure and lack of evidence of revival of
the investment demand.
On balance, it is our view that India will remain a very attractive
destination for investors in the long term and therefore it would be
ideal for investors who seek to achieve their respective financial
goals through active participation in the Indian capital markets.
In terms of our current strategy for the fund, the focus is now on
sectors that are largely expected to benefit from the Government's
thrust on infrastructure and manufacturing. The challenge however
remains in these sectors, where quality investments are few and those
that exist have very high valuations. The fund would also remain
favorably disposed towards rate sensitive sectors such as banking,
automobiles and in particular housing finance companies as these are
likely to benefit the most with successive rate cuts and a lower
interest rate regime that is widely expected to prevail in the current
financial year.
In view of the strong potential of Indian equities and considering the
prevailing market scenario, your Company is also in the process of
finalizing and filing new schemes that have a complementary objective
to our existing offering and address the need of lower risk adjusted
stable returns from the idle funds of investors without compromising
liquidity.
Nature of Business:
There was no change in the nature of the business.
Share Capital:
The total paid up Share Capital as on March 31, 2015 was 10 Crores
comprising of 60 Lacs Equity Shares of Rs. 10/- each and 4 Lacs
Redeemable Non-Convertible Preference Shares of Rs. 100/- each.
Material Changes and Commitments:
No material changes or commitments have occurred during the year
affecting the financial position of the Company. Particulars of Loans,
Guarantees or Investments:
Details of the Investments covered under the provisions of Section 186
of the Companies Act, 2013 (Act) are given in the notes to the
financial statements.
Company has not given any guarantees or loans covered under the
provisions of Section 186 of the Act.
Cash Flow Statement:
The cash flow statement for the year 2014-15 is attached to the Balance
Sheet.
Directors:
The Board of Directors had appointed Mrs. Jayashree Mahesh as an
Additional Director of the Company w.e.f. October 21, 2014. Pursuant
to Section 161 of the Act, she will hold the office only up to the date
of the ensuing Annual General Meeting (AGM) of the Company. The Company
has received a notice in writing from a member under Section 160 of the
Act proposing the candidature of Mrs. Mahesh for the office of
Director. Suitable resolution for appointment of Mrs. Mahesh as a
Director is being proposed for adoption by the Members at this AGM.
During the year under report, the shareholders through Postal Ballot
dated February 02, 2015:
1. Reappointed Mr. Akhilesh Kumar Singh as a Managing Director for a
period of 3 years commencing February 14, 2015 and also approved his
remuneration.
2. Appointed Mr. Prabhakar Karandikar as an Independent Director of
the Company for a period of 5 years commencing from March 01, 2015.
3. Appointed Mr. Dhruv Mehta as an Independent Director of the Company
for a period of 5 years commencing from March 01, 2015.
All the Independent Directors have given declarations that they meet
the criteria of independence as laid down under Section 149(6) of the
Act and Clause 49 of the Listing Agreement.
In accordance with the provisions of the Act and in terms of the
Memorandum and Articles of Association of the Company, Mr. R. Sundara
Rajan retires by rotation at the ensuing AGM and being eligible, offer
himself for reappointment.
Mr. S. Rajaratnam and Mr. S. Bapu resigned from the Board of Directors
w.e.f. August 22, 2014 and October 21, 2014 respectively. The Board
placed on record its appreciation for the contributions made by them
during their tenure.
Necessary proposals for appointment /reappointment of the aforesaid
Directors have been included in the notice convening the AGM and the
respective Resolutions are recommended for your approval.
Profiles of these Directors, as required under Clause 49 of the Listing
Agreement, are given in the Notice of the 21st AGM.
Key Managerial Personnel:
Mr. Rohit Chawda, the Chief Operating Officer (also functioning as CFO)
of the Company resigned w.e.f. April 15, 2015. Mrs. Chandana Dutt was
appointed as the Chief Financial Officer of the Company w.e.f. April
01, 2015.
Fixed Deposits:
During the year under review, your Company has not accepted any fixed
deposits.
Board Evaluation:
Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of
the Listing Agreement, the Board has carried out an annual performance
evaluation of its own performance, the directors individually as well
as the evaluation of the working of its Committees. The manner in which
the evaluation has been carried out has been explained in the Corporate
Governance Report.
Policy on Directors' Appointment and Remuneration:
The Board has framed a policy which lays down a framework in relation
to remuneration of Directors, Key Managerial Personnel and Senior
Management of the Company.
The key features of the policy are as follows:
1. Criteria for appointment and removal of Director, key managerial
personnel and senior management.
2. Criteria for performance evaluation.
3. Criteria for fixing the remuneration of Director, key managerial
personnel and senior management.
The details of this policy are explained in the Corporate Governance
Report.
Meetings:
During the year 4 Board Meetings and 4 Audit Committee Meetings were
convened and held. The details of the meetings are given in the
Corporate Governance Report. The gap between the Meetings was within
the period prescribed under the Act.
Risk Management:
Pursuant to the requirement of Clause 49 of the Listing Agreement, the
Company has constituted Risk Management Committee. The Company has in
place a Risk Management Policy, commensurate with its size of
operations, which lays down a process for identification and mitigation
of risks that could materially impact its performance.
Directors' Responsibility Statement:
Pursuant to the provisions of Section 134(3) (c) of the Act, the
Directors confirm that to the best of their knowledge and belief:
a) In the preparation of Annual Accounts and Financial Statements for
the year ended March 31, 2015, the applicable Accounting Standards have
been followed along with proper explanations relating to material
departures, if any;
b) That such accounting policies as mentioned in Notes to the Financial
Statements have been selected and applied consistently, and judgments
and estimates have been made that are reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company as at
March 31, 2015 and of the loss of the Company for the year ended on
that date;
c) That the proper and sufficient care has been taken for the
maintenance of adequate accounting records in accordance with the
provisions of the Act, for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
d) The Annual Accounts have been prepared on an ongoing concern basis.
e) That they have laid down internal financial controls commensurate
with the size of the Company and that such financial controls were
adequate and were operating effectively.
f) That systems to ensure compliance with the provisions of all
applicable laws were in place and were adequate and operating
effectively.
Related Party Transactions:
All related party transactions of the Company are at arm's length basis
and were in the ordinary course of business. The particulars of
contracts or arrangements with related parties in Form AOC - 2 are
annexed herewith as "Annexure A".
Significant and Material Orders Passed by the Regulators or Courts or
Tribunals:
During the year under report, there were no significant material orders
passed by the Regulators/ Courts/ Tribunals impacting the going concern
status and Company's operations in future.
Internal Financial Controls and their adequacy:
The Company has put in place adequate internal financial controls with
reference to the Financial Statements commensurate with the size of the
Company.
Disclosures:
Audit Committee:
The Audit Committee comprises of Mr. Prabhakar Karandikar (Independent
Director) as Chairman, Mr. Arindom Mukherjee (Independent Director) as
Member and Mrs. Jayashree Mahesh (Non- Independent Director) as Member.
All the recommendations made by the Audit Committee were accepted by
the Board.
Vigil Mechanism / Whistle Blower Policy:
The Company has established a Vigil Mechanism to deal with instance of
fraud and mismanagement, if any. The detail of the Vigil Mechanism is
posted on the website of the Company i.e. www.shriramamc.com.
Establishment of Internal Complaints Committee:
The Company has in place an Anti Sexual Harassment Policy in line with
the requirements of the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013. Internal Complaints
Committee has been set up to redress complaints received regarding
sexual harassment. All employees (permanent, contractual, temporary,
trainees) are covered under this policy. No complaints of sexual
harassment were received during the year.
Auditors and Auditors Report:
M/s. K.S. Aiyar and Co., (Firm Registration No. 100186W) Chartered
Accountants, Kolkata, Statutory Auditors of the Company, retires at the
conclusion of the ensuing AGM and are eligible for reappointment.
Certificate has been received from them to the effect that their
reappointment as Auditors of the Company, if made, would be within the
limits prescribed under Section 139 and 141 of the Act. Members are
requested to consider their re-appointment.
The Notes on financial statement referred to in the Auditors' Report
are self-explanatory and do not call for any further comments. The
Auditors' Report does not contain any qualification, reservation or
adverse remark.
Secretarial Audit:
Pursuant to the provisions of Section 204 of the Act, and the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014, the
Company has appointed Mr. Suhas S. Ganpule, Practicing Company
Secretary, Proprietor of M/s. S.G. & Associates, to undertake the
Secretarial Audit of the Company. The Secretarial Audit Report is
annexed herewith as "Annexure B".The Secretarial Audit Report does not
contain any qualification, reservation or adverse remark.
Subsidiaries, Joint Ventures or Associate Companies:
During the year under report, there was no change in the associate
company. The Company does not have any subsidiary or joint venture.
Corporate Governance:
The Report on Corporate Governance forms part of the Directors' Report
and is annexed herewith.
As required by the Listing Agreement, Auditors' Report on Corporate
Governance and a declaration by the Managing Director with regard to
Code of Conduct are attached to the said Report.
The Management Discussion and Analysis is given as a separate statement
forming part of the Annual Report.
As required under Clause 49 of the Listing Agreement, a detailed report
on Corporate Governance along with the Certificate from the Company
Auditor's confirming compliance forms an integral part of this Report
and certificate duly signed by the Managing Director and Chief
Financial Officer (CFO) on the Financial Statements of the Company for
the year ended March 31, 2015 was submitted to the Board of Directors
at their Meeting held on April 29, 2015. These certificates are
attached to the Report on Corporate Governance.
Energy Conservation, Technology Absorption and Foreign Exchange
Earnings and Outgo:
1. Conservation of Energy
The Company has no activity involving Conservation of Energy.
2. Technology Absorption
The Company has no activity involving Technology Absorption.
3. Foreign Exchange earnings and outgo
The Company did not have any foreign exchange earnings or outgo during
the year under review.
Extract of Annual Return:
The details forming part of the extract of the Annual Return in Form
MGT-9 is annexed herewith as "Annexure C". Particulars of Employees:
During the year under report, your Company has not employed any person
who was in receipt of remuneration in excess of the limits specified
under Section 197 of the Act, read with the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014.
The details required as per Rule 5 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 is annexed herewith
as "Annexure D".
Acknowledgement:
The Board of Directors take this opportunity to express their sincere
appreciation for the excellent support and co-operation received from
the Securities and Exchange Board of India, Association of Mutual Funds
of India, Stock Exchange Authorities, Auditors, Bankers, Distributors,
other Service providers and Board of Trustees of Shriram Mutual Fund.
The Directors wish to place on record the continued enthusiasm, total
commitment, dedication and efforts of the employees of the Company at
all levels.
We are also deeply grateful to the Shareholders of the Company and also
to the large body of investors of scheme of Shriram Mutual Fund for the
continued confidence and the faith reposed in the Fund and look forward
to their continued patronage.
By Order of the Board
for Shriram Asset Management Company Limited
Place: Mumbai Prabhakar Karandikar
Date: April 29, 2015 Chairman
Mar 31, 2014
Dear Members,
The Directors have pleasure in presenting their Twentieth Annual
Report and the Audited Statements of Accounts for the financial year
ended March 31, 2014.
Financial Highlights:
Particulars Year Ended Year Ended
March 31, 2014 (Rs.) March 31, 2013
(Rs.)
Gross Income for the year 5,837,457 6,776,976
Total Expenditure before
Depreciation & Tax 21,257,640 17,846,873
Profit / (Loss) before
Depreciation and Tax (15,420,183) (11,069,897)
Less: Depreciation 532,110 425,084
Less: Provision for Tax --- ---
Profit / (Loss) after
Depreciation and Tax (15,952,293) (11,494,981)
Balance brought forward from
previous year (6,414,961) 5,080,020
Profit / (Loss) available for
Appropriation (22,367,254) (6,414,961)
Balance carried to Balance Sheet (22,367,254) (6,414,961)
Dividend:
In the absence of profits, your Directors do not recommend payment of
any dividend for the Financial Year 2013-2014.
Change in Promoter and Sponsor:
You are aware that Securities and Exchange Board of India (SEBI)
granted ''In  Principle'' approval to Shriram Credit Company Limited
(SCCL) to act as the Sponsor of Shriram Mutual Fund and to Shriram
Mutual Fund to re-start its business activity.
By an agreement dated May 09, 2013, SCCL acquired 42.67% equity shares
of your Company from the then Promoters Shriram Transport Finance
Company Limited (STFC) and Mr. R. Thyagarajan. Consequent to the
acquisition of the shares by SCCL, STFC ceased to be the Promoter of
your Company and Sponsor of Shriram Mutual Fund and SCCL in turn became
the Promoter of your Company and Sponsor of Shriram Mutual Fund. This
acquisition triggered an Open Offer under Securities and Exchange Board
of India (Substantial Acquisition of Shares and Takeovers) Regulations,
2011. Consequently, SCCL made an Open Offer to acquire 1560000 equity
shares of the Company from the shareholders of the Company at the rate
of Rs.17.70 per equity share. Pursuant to this offer, SCCL acquired
1560000 equity shares representing 26% of the paid up equity share
capital of the Company. Subsequent to the acquisition of additional 26%
equity shares, the holding of SCCL in the Company increased from 42.67%
to 68.67%. Consequently, SCCL became the holding company of your
Company as well.
Operations and Outlook:
The recent offering of your Company, Shriram Equity and Debt
Opportunities Fund (SHREDOP) has barely completed four months since its
launch. Therefore it may be little premature to comment on the
performance of the scheme as such. However, it may be pertinent to
mention at this stage that the scheme (SHREDOP) is designed to focus on
long term returns with relatively low volatility through the selection
of high quality stocks with strong fundamentals. The scheme would
therefore have lower sensitivity to sharp market movements and strong
market momentum as has been witnessed recently.
Market sentiments remained upbeat riding on the hopes of a stable
government after the forthcoming general elections that would bring the
economy back on the growth path. In anticipation of this widely
expected outcome Foreign Institutional Investors (FIIs) and hedge funds
built significant positions and aggressively increased exposure to
Indian capital markets taking total FII investments in CY14 across
equity and debt to the psychologically significant level of $10 billion
by the first week of April. FII investment in the equities segment for
the year till March stood at $3.65 billion.
The recent market rally has been driven by strong money flows linked to
a favorable outcome of the general elections. It is widely expected
that the new Government will introduce radical policy initiatives
across various productive sectors of the economy to put India on the
growth path. That said, the Government will have to squarely address
the structural challenges that face the country''s economy with respect
to fiscal consolidation, elevated levels of inflation, a burgeoning
current account deficit which was controlled by restricting bullion
imports and the spectre of stalled industrial projects.
In anticipation of some progressive market friendly reforms, we have
relocated some of the investments into cyclical sectors to make them
natural weight from an earlier underweight position. The emphasis
though continuous to be stock specific as the event trade around the
elections is largely over and we continue to remain neutral to
overweight on companies that show sustainable growth and earnings
visibility.
The fund is also in the process of filing new schemes that have a
complementary objective to our existing offering and addresses the need
of lower risk adjusted returns from the idle funds of investors without
affecting the liquidity aspect.
Share Capital:
To meet the initial cost of Mutual Fund, during the year under review,
Company has issued 3,00,000 (Three Lac) Redeemable Non - Convertible
Preference Shares (RNCPS) of Rs. 100/- (Rupees One Hundred) each
amounting to Rs. 3,00,00,000/- (Rupees Three Crore) to Promoter i.e.
Shriram Credit Company Limited.
Corporate Governance:
The Report on Corporate Governance forms part of the Directors'' Report
and is annexed herewith.
As required by the Listing Agreement, Auditors'' Report on Corporate
Governance and a declaration by the Managing Director with regard to
Code of Conduct are attached to the said Report.
The Management Discussion and Analysis is given as a separate statement
forming part of the Annual Report.
As required under Clause 49 of the Listing Agreement, a certificate,
duly signed by the Managing Director and Chief Operating Officer (COO)
(also functioning as Chief Financial Officer) on the Financial
Statements of the Company for the year ended March 31, 2014 was
submitted to the Board of Directors at their Meeting held on April 28,
2014. The certificates are attached to the Report on Corporate
Governance.
Directors'' Responsibility Statement:
Pursuant to the provisions of Section 217 (2AA) of the Companies Act,
1956, the Directors confirm that to the best of their knowledge and
belief:
a) In the preparation of Annual Accounts, the applicable Accounting
Standards have been followed along with proper explanations relating to
material departures;
b) That such accounting policies as mentioned in Notes have been
selected and applied consistently, and judgments and estimates have
been made that are reasonable and prudent so as to give a true and fair
view of the state of affairs of the Company as at March 31, 2014 and of
the loss of the Company for the year ended on that date;
c) That proper and sufficient care has been taken for the maintenance
of adequate accounting records in accordance with the provisions of the
Companies Act, 1956, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
d) The Annual Accounts have been prepared on an ongoing concern basis.
Cash Flow Statement:
The cash flow statement for the year 2013-14 is attached to the Balance
Sheet.
Directorate:
Mr. R. Sundara Rajan and Mr. S. Bapu would retire by rotation at the
ensuing Annual General Meeting and being eligible, offers themselves
for reappointment.
Necessary proposals for reappointment of the aforesaid Directors have
been included in the notice convening the Annual General Meeting.
Fixed Deposits:
During the year under review, your Company has not accepted any fixed
deposits.
Particulars of Employees :
During the year under report, your Company has not employed any person
who was in receipt of remuneration in excess of the limits specified
under Section 217(2A) of the Companies Act, 1956, read with the
Companies (Particulars of Employees) Rules, 1975 as amended.
Information pursuant to the requirement under Section 217 (1) (e) read
with the Companies (Disclosure of Particulars in the Report of the
Board of Directors) Rules, 1988.
1. Conservation of Energy
The Company has no activity involving Conservation of Energy.
2. Technology Absorption
The Company has no activity involving Technology Absorption.
3. Foreign Exchange earnings and outgo
The Company did not have any foreign exchange earnings or outgo during
the year under review.
Auditors:
M/s. K.S. Aiyar and Co., Chartered Accountants, Kolkata, Statutory
Auditors of the Company, retires at the conclusion of the ensuing
Annual General Meeting and are eligible for reappointment. Certificate
has been received from them to the effect that their reappointment as
Auditors of the Company, if made, would be within the limits prescribed
under Section 139 and 141 of the Companies Act, 2013. Members are
requested to consider their re-appointment.
Acknowledgement:
The Board of Directors take this opportunity to express their sincere
appreciation for the excellent support and co-operation received from
Securities and Exchange Board of India, Association of Mutual Funds of
India, Stock Exchange Authorities, Auditors, Bankers, Distributors,
other Service providers and Board of Trustees of Shriram Mutual Fund .
The Directors wish to place on record the continued enthusiasm, total
commitment, dedication and efforts of the employees of the Company at
all levels.
We are also deeply grateful to the Shareholders of the Company and also
to the large body of investors of scheme of Shriram Mutual Fund for the
continued confidence and the faith reposed in the Fund and look forward
to their continued patronage.
By Order of the Board
for Shriram Asset Management Company Limited
Place: Chennai Prabhakar Karandikar
Date : April 28, 2014 Chairman
Mar 31, 2013
Dear Members,
The Directors have pleasure in presenting their Nineteenth Annual
Report and the Audited Statements of Accounts for the financial year
ended March 31, 2013.
Financial Highlights:
Particulars Year Ended Year Ended
March 31, 2013
(Rs.) March 31, 2012
(Rs.)
Gross Income for the year 6,776,976 8,939,855
Total Expenditure before
Depreciation & Tax 17,846,873 6,360,425
Profit /(Loss) before Depreciation
and Tax (11,069,897) 2,579,430
Less: Depreciation 425,084 247,592
Less: Provision for Tax __ 831,329
Profit/(Loss) after Depreciation
and Tax (11,494,981) 1,500,509
Balance brought forward from
previous year 5,080,020 3,579,511
Profit/(Loss) available for
Appropriation (6,414,961) 5,080,020
Balance carried to Balance Sheet (6,414,961) 5,080,020
Dividend:
In the absence of profits, your Directors have decided not to recommend
any dividend for the Financial Year 2012-2013.
Operations and Outlook:
Your Board of Directors had approached the Securities and Exchange
Board of India (SEBI) for their permission to launch new schemes and
for change of Sponsor from Shriram Transport Finance Company Limited to
Shriram Credit Company Limited. SEBI vide its letter dated November 12,
2012 has granted ''In  Principle'' approval to Shriram Credit Company
Limited to act as a sponsor subject to the compliance with certain
conditions and has also granted its approval to Shriram Mutual Fund to
re-start its business activity.
Your Company plans to launch the new Mutual Fund Schemes shortly. Your
Directors are of the view that the Company would be able to leverage
the extensive retail reach of Shriram Conglomerate to market the
Company''s Mutual Fund offerings.
During the year under report, as your Company did not launch any new
scheme on behalf of Shriram Mutual Fund and as there were no Mutual
Fund Schemes under the management of the Company, the activities of the
Company were limited only to attending to the outstanding unclaimed
redemption amounts of the Schemes wound up. However, the Company was
able to generate income out of its own investments.
Share Capital:
During the year under review, Company conducted two Postal Ballots as
per Section 192 A of the Companies Act, 1956. i) The following Special
Resolutions were passed on October 05, 2012, by way of Postal Ballot:
1. Alteration of Clause V of Memorandum of Association of the Company
for Re- Classification of Share Capital of the Company;
2. Alteration of Article 3 of Articles of Association of the Company
for Re- Classification of Share Capital of the Company;
3. Issue of Redeemable Non - Convertible Preference Shares (RNCPS) for
an amount not exceeding Rupees One Crore pursuant to Section 80 and
81(1A) of the Companies Act, 1956.
Pursuant to the above resolutions, the Company issued and allotted
1,00,000 (One Lac) 0.01% Redeemable Non  Convertible Preference Shares
of Rs. 100/- (One Hundred) each to its existing Promoter i.e. Shriram
Transport Finance Company Limited. The proceeds raised from issue of
RNCPS have been temporarily invested in liquid investments pending the
commencement of the mutual fund operations.
ii) The Special resolution relating to Issue of Redeemable
Non-Convertible Preference Shares (RNCPS) pursuant to Section 80 and 81
(1A) and all other applicable provisions, if any, of the Companies Act,
1956, for an amount not exceeding Rupees Five Crores was passed on
March 25, 2013, by way of Postal Ballot.
Corporate Governance:
The Report on Corporate Governance forms part of the Directors'' Report
and is annexed herewith.
As required by the Listing Agreement, Auditors'' Report on Corporate
Governance and a declaration by the Managing Director with regard to
Code of Conduct are attached to the said Report.
The Management Discussion and Analysis is given as a separate statement
forming part of the Annual Report.
As required under Clause 49 of the Listing Agreement, a certificate,
duly signed by the Managing Director and Chief Operating Officer (COO)
(also functioning as Chief Financial Officer) on the Financial
Statements of the Company for the year ended March 31, 2013 was
submitted to the Board of Directors at their Meeting held on April 22,
2013. The certificates are attached to the Report on Corporate
Governance.
Directors'' Responsibility Statement:
Pursuant to the provisions of Section 217 (2AA) of the Companies Act,
1956, the Directors confirm that to the best of their knowledge and
belief:
a) In the preparation of Annual Accounts, the applicable Accounting
Standards have been followed along with proper explanations relating to
material departures;
b) That such accounting policies as mentioned in Notes have been
selected and applied consistently, and judgments and estimates have
been made that are reasonable and prudent so as to give a true and fair
view of the state of affairs of the Company as at March 31, 2013 and of
the loss of the Company for the year ended on that date;
c) That proper and sufficient care has been taken for the maintenance
of adequate accounting records in accordance with the provisions of the
Companies Act, 1956, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
d) The Annual Accounts have been prepared on a ongoing concern basis.
Cash Flow Statement:
The cash flow statement for the year 2012-13 is attached to the Balance
Sheet.
Directorate:
Mr. Prabhakar Karandikar was appointed as Chairman of the Board of
Directors w.e.f. May 03, 2012. As per Section 256 of the Companies Act,
1956, Mr. S. Rajaratnam and Mr. Dhruv Mehta would retire by rotation
and being eligible, offer themselves for reappointment.
Fixed Deposits:
During the year under review, your Company has not accepted any fixed
deposits.
Particulars of Employees :
During the year under report, your Company has not employed any person
who was in receipt of remuneration in excess of the limits specified
under Section 217(2A) of the Companies Act, 1956, read with the
Companies (Particulars of Employees) Rules, 1975 as amended.
Information pursuant to the requirement under Section 217 (1) (e) read
with the Companies (Disclosure of Particulars in the Report of the
Board of Directors) Rules, 1988.
1. Conservation of Energy
The Company has no activity involving Conservation of Energy.
2. Technology Absorption
The Company has no activity involving Technology Absorption.
3. Foreign Exchange earnings and outgo
The Company did not have any foreign exchange earnings or outgo during
the year under review.
Auditors:
M/s. K.S. Aiyar and Co., Chartered Accountants, Mumbai, Statutory
Auditors of the Company, retires at the conclusion of the ensuing
Annual General Meeting and are eligible for reappointment. Certificate
has been received from them to the effect that their reappointment as
Auditors of the Company, if made, would be within the limits prescribed
under Section 224 (1B) of the Companies Act, 1956. Members are
requested to consider their re-appointment.
Acknowledgement:
The Board of Directors take this opportunity to express their sincere
appreciation for the excellent support and co-operation received from
Securities and Exchange Board of India, Stock Exchange Authorities and
for the continued enthusiasm, total commitment, dedication and efforts
of the employees of the Company at all levels. We are also deeply
grateful for the continued confidence and the faith reposed on us by
the Shareholders.
By Order of the Board
for Shriram Asset Management Company Ltd.
Place: Mumbai Prabhakar Karandikar
Date: April 22,2013 Chairman
Mar 31, 2012
The Directors have pleasure in presenting their Eighteenth Annual
Report and the Audited Statements of Accounts for the financial year
ended March 31, 2012.
Financial High Lights:
Year Ended
March 31, 2012 Year Ended
March 31, 2011
(Rs.) (Rs.)
Gross Income for the year 8,939,855 8,038,537
Total Expenditure before
Depreciation & Tax 6,360,425 5,368,722
Profit before Depreciation and Tax 2,579,430 2,669,815
Less: Depreciation 247,592 255,550
Less: Provision for Tax 831,329 2,653,000
Profit after Depreciation and Tax 1,500,509 (238,735)
Balance brought forward from previous year 3,579,511 3,818,246
Profit available for Appropriation 5,080,020 3,579,511
APPROPRIATIONS
Balance carried to Balance Sheet 5,080,020 3,579,511
Dividend:
With a view to augment the funds and to conserve the resources, your
Directors have decided not to recommend any dividend for the Financial
Year ended 2011-2012.
Operations and Outlook:
Your Board of Directors has decided to approach the Securities and
Exchange Board of India (SEBI) for their permission to launch new
schemes. Your directors are of the view that the Company would be able
to leverage the extensive retail reach of Shriram Conglomerate to
market the Company's Mutual Fund offerings. Necessary applications
are being submitted to SEBI to reactivate the mutual fund operations.
During the year under report, as your Company did not launch any new
scheme on behalf of Shriram Mutual Fund and as there were no Mutual
Fund Schemes under the management of the Company, the activities of the
Company were limited only to attending to the outstanding unclaimed
redemption amounts of the Schemes wound up. However, the Company was
able to generate income out of its own investments.
Corporate Governance:
The Report on Corporate Governance forms part of the Directors'
Report and is annexed herewith.
As required by the Listing Agreement, Auditors' Report on Corporate
Governance and a declaration by the Managing Director with regard to
Code of Conduct are attached to the said Report.
The Management Discussion and Analysis is given as a separate statement
forming part of the Annual Report.
As required under Clause 49 of the Listing Agreement, a certificate,
duly signed by the Managing Director on the Financial Statements of the
Company for the year ended March 31, 2012 was submitted to the Board of
Directors at their Meeting held on May 03, 2012. The certificate is
attached to the Report on Corporate Governance.
Directors' Responsibility Statement:
Pursuant to the provisions of Section 217 (2AA) of the Companies Act,
1956, the Directors confirm that to the best of their knowledge and
belief:
a) In the preparation of Annual Accounts, the applicable Accounting
Standards have been followed along with proper explanations relating to
material departures;
b) That such accounting policies as mentioned in Notes have been
selected and applied consistently, and judgments and estimates have
been made that are reasonable and prudent so as to give a true and fair
view of the state of affairs of the Company as at March 31, 2012 and of
the profit of the Company for the year ended on that date;
c) That proper and sufficient care has been taken for the maintenance
of adequate accounting records in accordance with the provisions of the
Companies Act, 1956, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
d) The Annual Accounts have been prepared on an ongoing concern basis.
Cash Flow Statement:
The cash flow statement for the year 2011-12 is attached to the Balance
Sheet.
Directorate:
As per Section 256 of the Companies Act, 1956, Mr. R. Sundara Rajan and
Mr. S. Bapu would retire by rotation and being eligible, offer
themselves for reappointment.
The Board at its meeting held on December 15, 2011 appointed Mr.
Akhilesh Kumar Singh as an Additional Director. Besides, the Board,
subject to the approval of the Members, also appointed Mr. A.K.Singh as
the Managing Director of the Company not liable to retire by rotation
for a period of three years commencing from February 14, 2012. As he is
an Additional Director of the Company, pursuant to Section 260 of the
Companies Act, 1956, he will hold office only up to the date of this
Annual General Meeting of the Company. The Company has received a
notice in writing from a member under Section 257 of the Companies Act,
1956, proposing the candidature of Mr.A.K.Singh for the office of
Director. Suitable resolutions for his appointment as a Director and as
Managing Director are being proposed for adoption by the Members at
this Annual General Meeting.
Mr. Prabhakar Karandikar and Mr. Dhruv Mehta were appointed as
Additional Directors of the Company on February 14, 2012 by the Board
of Directors. Pursuant to Section 260 of the Companies Act, 1956, they
will hold office only up to the date of this Annual General Meeting of
the Company. The Company has received notices in writing from a member
under Section 257 of the Companies Act, 1956, proposing the
candidatures of Mr. Prabhakar Karandikar and Mr. Dhruv Mehta for the
office of Directors. Suitable resolutions for their appointments as
Directors are being proposed for adoption by the Members at this Annual
General Meeting.
Due to health reasons, Mr. Lalit Mehta and Mr. R. Narayanan resigned as
Directors of the Company w.e.f. February 14, 2012 and April 17, 2012
respectively. Your Board of Directors place on record their
appreciation of the invaluable services rendered by Mr. Mehta and Mr.
Narayanan during their respective tenures in office.
Fixed Deposits:
During the year under review, your Company has not accepted any fixed
deposits.
Particulars of Employees :
During the year under report, your Company has not employed any person
who was in receipt of remuneration in excess of the limits specified
under Section 217(2A) of the Companies Act, 1956, read with the
Companies (Particulars of Employees) Rules, 1975 as amended.
Information pursuant to the requirement under Section 217 (1) (e) read
with the Companies (Disclosure of Particulars in the Report of the
Board of Directors) Rules, 1988.
1. Conservation of Energy
The Company has no activity involving Conservation of Energy.
2. Technology Absorption
The Company has no activity involving Technology Absorption.
3. Foreign Exchange earnings and outgo
The Company does not have any foreign exchange earnings or outgo during
the year under review.
Auditors:
M/s. K.S. Aiyar and Co., Chartered Accountants, Mumbai, Statutory
Auditors of the Company, retires at the conclusion of the ensuing
Annual General Meeting and are eligible for reappointment. Certificate
has been received from them to the effect that their reappointment as
Auditors of the Company, if made, would be within the limits prescribed
under Section 224 (1B) of the Companies Act, 1956. Members are
requested to consider their re-appointment.
Acknowledgement:
The Board of Directors take this opportunity to express their sincere
appreciation for the excellent support and co-operation received from
Securities and Exchange Board of India, Stock Exchange Authorities and
for the continued enthusiasm, total commitment, dedication and efforts
of the employees of the Company at all levels. We are also deeply
grateful for the continued confidence and the faith reposed on us by
the Shareholders.
By Order of the Board
for Shriram Asset Management Company Ltd.
Place: Mumbai Prabhakar Karandikar
Date: May 03, 2012 Chairman
Mar 31, 2010
The Directors present their Sixteenth Annual Report together with the
Audited Statements of Accounts for the year ended 31.03.2010
Financial High Lights:
Particulars Year Ended
31.03.2010 Nine Months
Ended 31.03.2009
(Rs.) (Rs.)
Gross Income for the year 13,850,332 4,928,736
Total Expenditure before
Depreciation & Tax 12,767,158 7,090,146
Profit before Depreciation and Tax 1,083,174 (2,161,410)
Less : Depreciation 286,692 168,951
Less: Provision for Tax 2,655,311 2,133,343
Profit after Depreciation and Tax (1,858,829) (4,463,704)
Balance brought forward from
previous year 5,677,075 10,140,779
Profit available for
Appropriation 3,818,246 5,677,075
APPROPRIATIONS
Balance carried to Balance Sheet 3,818,246 5,677,075
Dividend:
With a view to augment the funds and to conserve the resources, your
Directors have decided not to recommend any dividend for the Financial
Year ended 2009-10.
Operations and Outlook:
During the year under report, your Company did not launch any new
scheme on behalf of Shriram Mutual Fund. As there were no Mutual Fund
Schemes under the management of the Company, the activities of the
Company were limited only to attending to the outstanding unclaimed
redemption amounts of the Schemes wound up. However, the Company was
able to generate income out of its own investments.
Corporate Governance:
The Report on Corporate Governance forms part of the Directorsà Report
and is annexed herewith.
As required by the Listing Agreement, AuditorÃs Report on Corporate
Governance and a declaration by the Managing Director with regard to
Code of Conduct are attached to the said Report.
The Management Discussion and Analysis is given as a separate statement
forming part of the Annual Report.
As required under Clause 49 of the Listing Agreement, a certificate,
duly signed by the Managing Director on the financial statements of the
Company for the year ended 31.03.2010 was submitted to the Board of
Directors at their Meeting held on 22.04.2010. The certificate is
attached to the Report on Corporate Governance.
DirectorsResponsibility Statement:
Pursuant to the provision of the Companies Act, 1956, the Directors
confirm that to the best of their knowledge and belief:
a) In the preparation of Annual Accounts, the applicable Accounting
Standards have been followed along with proper explanation relating to
material departures.
b) That such accounting policies as mentioned in schedule K(1) have
been selected and applied consistently, and judgments and estimates
have been made that are reasonable and prudent so as to give a true and
fair view of the state of affairs of the Company as at 31.03.2010 and
of the loss of the Company for the year ended on that date.
c) That proper and sufficient care has been taken for the maintenance
of adequate accounting records in accordance with the provisions of the
Companies Act, 1956, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities.
d) The Annual Accounts have been prepared on an ongoing concern basis.
Cash Flow Statement:
The cash flow statement for the year 2009-10 is attached to the Balance
Sheet.
Directorate:
As per Section 256 of the Companies Act, 1956, Mr. Lalit P. Mehta and
Mr. S. Bapu would retire by rotation and being eligible, offer
themselves for reappointment. Mr. K. R. Rajagopalan, Director of the
Company passed away on 02.07.2009. His rich contributions for the
overall growth of the Company will always be remembered.
Fixed Deposits:
During the year under review, your Company has not accepted any fixed
deposits.
Personnel:
During the year under report, your Company has not employed any person
who was in receipt of remuneration in excess of the limits specified
under Section 217(2A) of the Companies Act, 1956, read with the
Companies (Particulars of Employees) Rules, 1975.
Information pursuant to the requirement under Section 217 (1) (e) read
with the Companies (Disclosure of Particulars in the Report of the
Board of Directors) Rules, 1988.
1. Conservation of Energy
The Company has no activity involving Conservation of Energy.
2. Technology Absorption
The Company has no activity involving Technology Absorption.
3. Foreign Exchange earning and outgo
The Company does not have any foreign exchange earnings or outgo during
the year under review.
Auditors:
M/s. K.S.Aiyar and Co; the Statutory Auditors of the Company, retire at
the conclusion of the ensuing Annual General Meeting and are eligible
for reappointment. Certificate has been received from them to the
effect that their reappointment as Auditor of the Company, if made,
would be within the limits prescribed under Section 224 (1B) of the
Companies Act, 1956.
Acknowledgement:
The Board of Directors take this opportunity to express their sincere
appreciation for the excellent support and co-operation received from
the CompanyÃs Bankers, Securities and Exchange Board of India, Stock
Exchange Authorities and for the continued enthusiasm, total
commitment, dedication and efforts of the employees of the Company at
all levels. We are also deeply grateful for the continued confidence,
and the faith reposed on us by the Shareholders.
By Order of the Board
for Shriram Asset Management Company Ltd.
Place: Chennai R. Sundara Rajan Lalit P. Mehta
Date: 22.04.2010 Managing Director Director