Mar 31, 2015
Dear Members,
The Directors are pleased to present the 22nd Annual Report of the
Company along with Audited Financial Statements, for the year ended
31st March, 2015.
FINANCIAL HIGHLIGHTS:
Particulars Year ended Year ended
31st March, 31st March,
2015 2014
Total Income 504.57 498.61
Total Expenditure 530.49 597.81
Profit / (Loss) from Operations (25.92) (99.20)
before Other Income, Finance
Cost & Exceptional Items
Profit / (Loss) from Ordinary (25.92) (99.20)
Activities before Finance Cost &
Exceptional Items
Profit / (Loss) from Ordinary (46.71) (111.26)
Activities after Finance Cost but
before Exceptional Items
Exceptional Items Profit / (Loss) 18.99 12.20
Profit / (Loss) from Ordinary (27.72) (99.06)
Activities before Tax
Total Tax 0.09 0.00
Net Profit / (Loss) from (27.81) (99.06)
Ordinary Activities After Tax
Net Profit / (Loss) For the (27.81) (99.06)
period
PERFORMANCE REVIEW:
During the year ended 31st March, 2015, your Company earned
consolidated revenue of Rs. 596.49 Lacs as compared to Rs. 583.50 Lacs
in the previous year. The consolidated operations have recorded a loss
of Rs. 33.33 Lacs as compared to a loss of Rs. 152.91 Lacs in the
previous year. The net loss suffered is being carried over to the
Balance Sheet.
Detailed information on operational and financial performance, etc. of
the Company for the financial year is given in the Management
Discussion and Analysis which is set out separately with the Directors'
Report.
DIVIDEND:
Due to inadequacy of profits your Directors regret their inability to
recommend any Dividend for the year.
CONSOLIDATED ACCOUNTS:
The Consolidated Statement of Profit and Loss for the year ended 31st
March, 2015 and the Balance Sheet as on that date as required under
Listing Agreement is also enclosed herewith.
During the year, the Issued, Subscribed and Paid Up Equity Share
Capital of the Company has increased due to conversion of 5,206,454
0.5% Fully Convertible Preference shares of Rs. 10/- each into
26,032,270 Equity Shares of Rs. 2/- each. There is no change in the
Total Authorised and Paid Up Equity Share Capital of the Company.
OPERATIONS OF SuBSIDIARY:
Vertex Commodities and Finpro Private Limited:
During the year ended 31st March, 2015 the subsidiary company Vertex
Commodities And Finpro Private Limited had total
SHARE CAPITAL STRuCTuRE:
Year ended Year ended
Particulars 31st March, 31st March,
2015 2014
SHARE CAPITAL:
73,753,805 (P.Y 73,753,805) 147,507,610 14,75,07,610
Equity Shares of Rs. 2/- each
5,981,739 (P.Y 5,981,739) 0.5% 59,817,390 5,98,17,390
Preference shares of Rs. 10/- each
5,00,000 (P.Y 5,00,000) 15% 50,000,000 5,00,00,000
Non-Cumulative Redeemable Preference
shares of Rs. 100/- each
TOTAL 257,325,000 257,325,000
ISSuED, SuBSCRIBED AND PAID uP CAPITAL:
73,753,750 (P.Y 47,721,480) 147,507,500 95,442,960
Equity Shares of Rs. 2/- each
Nil (P.Y 5,206,454) 0.5% Fully  52,064,540
Convertible Preference shares of
Rs. 10/- each fully paid up
27,758 (P.Y 27,758) 15% Non 2,775,800 2,775,800
Cumulative Redeemable Preference
Shares of Rs. 100/- each
TOTAL 150,283,300 150,283,300
revenue of Rs. 9,191,485 and loss of Rs. 552,521 as against the total
revenue of Rs. 1,33,89,365 and loss of Rs. 53,86,350 respectively in
the previous year.
In accordance with the general circular issued by the Ministry of
Corporate Affairs, Government of India, the Balance Sheet, Statement of
Profit and Loss and other documents of the subsidiary company are not
being attached with the Balance Sheet of the Company. The Company will
make available the Annual Accounts of the subsidiary company and the
related detailed information to any member of the Company who may be
interested in obtaining the same. The annual accounts of the subsidiary
company will also be kept open for inspection at the Registered Office
of the Company and that of the Subsidiary Company.
The Consolidated Financial Statements presented by the Company include
the financial results of its subsidiary company.
LISTING ON STOCK EXCHANGE
The Company's Equity Shares continue to be listed on The BSE Ltd.
DIRECTORS AND KMP:
In accordance with the provisions of Section 152 of the Companies Act,
2013 read with Companies (Appointment and Qualification of Directors)
Rules, 2014, Mr. U. Ramachandran, Director of the Company (DIN:
00493707), retires by rotation at the ensuing Annual General Meeting
and being eligible, has offered himself for re-appointment and your
Board has recommended his re-appointment.
Mrs. Latha Anand was appointed as an Additional Independent Woman
Director of the Company pursuant to Section 161 of the Companies Act,
2013 by the Board of Directors on 12th May, 2015. In accordance with
the provisions of Section 149 of the Companies Act, 2014 read with
Companies (Appointment and Qualification of Directors) Rules, 2014, the
approval of Members is being sought at the ensuing Annual General
Meeting of the Company for the appointment of Mrs. Latha Anand as
Independent Director who shall hold office for a term up to five
consecutive years on the Board of the company and will not be liable to
retire by rotation.
Pursuant to Clause 49(g) (1) of the Listing Agreement with the Stock
Exchange, brief resume of the Directors proposed for
appointment/re-appointment has been given in the Notice convening the
Annual General Meeting.
In accordance with the provisions of Section 203 of the Companies Act,
2013, Ms. Aswathi C Madhavadas, an Associate Member of the Institute of
Company Secretaries of India, was appointed as Company Secretary and
Compliance Officer of the Company w.e.f. 12th May, 2015.
MANAGEMENT DISCUSSION AND ANALYSIS
The Management Discussion and Analysis Report for 2014- 15, as required
under Clause 49 of the Listing Agreement,forms part of the Annual
Report and is attached separately as Annexure A.
REPORT ON CORPORATE GOVERNANCE
The report on Corporate Governance as per the requirement of the
Listing Agreement forms an integral part of this Annual Report. The
Report on Corporate Governance is provided as Annexure B
AUDITORS' REPORT
Referring to observations a) and b) given under "Basis for Qualified
Opinion" in the Independent Auditors Report, it is clarified that:
(a) as stated in notes forming part of accounts the management has
evaluated long term investments and confirm that there exist no
circumstances which warrant any provision in the accounts for a
possible diminution in the value.
(b) as the company has initiated legal actions for the recovery of the
dues, it will not be prudent to make any provisions as the cases are in
various stages in different Courts.
SECRETARIAL AUDIT
A Report on Secretarial Audit is appended to this report as Annexure C
Referring to the qualifications by the Secretarial auditors, it is
clarified that:
i. The Company has not yet found a suitable person for the post of
Chief Financial Officer (CFO). However, the appointment of CFO is under
process as the requirement is mandated by the Companies Act, 2013.
ii. The change in shareholding of the Promoters and Top Ten
Shareholders, which is to be intimated to the Registrar of Companies in
the prescribed form pursuant to Section 93 of the Companies Act, 2013,
is delayed as there were some discrepancies in the Distinctive Numbers
of the Shares provided by the Registrar and Transfer Agents and the
Stock Exchange. The matter is clarified and the prescribed return have
since been filed.
EXTRACT OF ANNuAL RETURN
An extract of Annual return in Form MGT-9 is appended to this report as
Annexure D
BOARD COMMITTEES:
The Board of Directors of the Company had already constituted various
Committees in compliance with the provisions of the Companies Act, 2013
and Listing Agreement, such as Audit Committee, Remuneration and
Compensation Committee, Share Transfer and Stakeholders' Relationship
Committee.
During the year under review, in compliance with the above said
provisions, the Board has re-constituted Remuneration and Compensation
Committee into Nomination, Remuneration and Compensation Committee. The
Committee acts as a Nomination and Remuneration Committee under Section
178(1) of the Companies Act, 2013 and as Compensation Committee under
Regulation 5 of Securities and Exchange Board of India (Employee Stock
Option Scheme and Employee Share Purchase Scheme) Guidelines, 1999.
All decisions pertaining to the constitution of the Committees,
appointment of members and fixing of terms of reference/role of the
Committees are taken by the Board of Directors.
Details of the role and composition of these Committees, including the
number of meetings held during the financial year and attendance at
meetings, are provided in the Corporate Governance Report, which forms
a part of the Annual Report.
MEETINGS
The details regarding the meeting of the Board of Directors, Committees
of the Board and meeting of Independent Directors are provided in the
Report on Corporate Governance, which forms part of the Annual Report.
NOMINATION AND REMUNERATION POLICY
The Nomination and Remuneration Policy recommended by the Nomination
and Remuneration Committee is duly approved by the Board of Directors
of the Company and the policy is attached to the Board's Report as
Annexure E
VIGILANCE MECHANISM AND WHISTLE BLOWER POLICY
The Company has a Vigilance Mechanism and Whistle Blower Policy to deal
with instances of fraud and mismanagement. The policy is uploaded in
the website of the Company.
RISK MANAGEMENT
Pursuant to the requirement of Section 134 of the Companies Act, 2013,
the Company has in place a Risk Management Policy, to identify and
evaluate business risk and opportunities. The policy has different risk
models which help in identifying risks trend, exposure and potential
impact analysis at a Company Level.
PERFORMANCE REVIEW OF BOARD, COMMITTEE AND INDIVIDUAL DIRECTORS
Pursuant to the provisions of Section 134(3) (p), Section 149(8) and
Schedule IV of the Companies Act, 2013 and Clause 49 of the Listing
Agreement, annual performance evaluation of the Directors as well as
the Committees of the Board has been carried out.
The performance evaluation of the Independent Directors was carried out
by the entire Board of Directors of the Company and the performance
evaluation of the Chairman and Non- Independent Directors was carried
out by the Independent Directors.
STATEMENT OF DECLARATION ON INDEPENDENT DIRECTORS
The Board of Directors declares that the Independent Directors
of the Company are persons:
* who possess relevant expertise and experience to be an independent
director in the Company;
* who was/were not a promoter of the company or its holding,
subsidiary or associate company;
* who is not related to promoters / directors / persons occupying
management position at the board level or level below the board in the
company, its holding, subsidiary or associate company;
* who, apart from receiving director sitting fees / remuneration,
has/had no pecuniary relationship / transactions with the company, its
promoters, its directors, its senior management or its holding,
subsidiary or associate company, or their promoters, or directors,
during the two immediately preceding financial years or during the
current financial;
* none of whose relatives has or had any pecuniary relationship or
transaction with the company, its holding, subsidiary or associate
company, or their promoters, or directors, amounting to 2% or more of
its gross turnover or total income or Rs. 50 Lacs or such higher amount
as may be prescribed, whichever is lower, during the two immediately
preceding financial years or during the current financial year;
* who, neither himself nor any of his relatives:
a) holds or has held the position of a key managerial personnel or is
or has been employee/executive of the company or its holding,
subsidiary or associate company in any of the three financial years
immediately preceding the financial year;
b) is or has been an employee or proprietor or a partner, in any of the
three financial years immediately preceding the financial year of;
a. a firm of auditors or company secretaries in practice or cost
auditors of the company or its holding, subsidiary or associate
company; or
b. any legal or a consulting firm that has or had any transaction with
the company, its holding, subsidiary or associate company amounting to
10% or more of the gross turnover of such firm;
c) holds together with my relatives 2% or more of the total voting
power of the company; or
d) is a Chief Executive or director, by whatever name called, of any
nonprofit organization that receives 25% or more of its receipts from
the company, any of its promoters, directors or its holding, subsidiary
or associate company or that holds 2% or more of the total voting power
of the company; or
* who is not a material supplier, service provider or customer or a
lessor or lessee of the company;
* who is not less than 21 years of age.
AUDITORS
M/s. Rahul Gautam Divan & Associates, Chartered Accountants, Mumbai will
retire at the ensuing Annual General Meeting and have confirmed their
eligibility and willingness for re- appointment. Your Directors
recommend their appointment.
EMPLOYEE STOCK OPTION SCHEME (ESOP)
Disclosures as per the Securities and Exchange Board of India (Employee
Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines,
1999, and disclosure pursuant to the Rule 12(9) of Companies (Share
Capital and Debenture) Rules, 2014 are provided as Annexure F to the
Board's Report.
PENALITIES/PUNISHMENTS OR COMPOUNDING OF OFFENCES
There are no significant and material orders passed by the Courts,
Tribunal or other Regulators impacting the going concern status and
company's operations in future.
PARTICULARS OF LOANS, GUARANTEES OR INVESTEMENTS MADE U/S 186
Details of Loans, Guarantees and Investments covered under the
provisions of Section 186 of the Companies Act, 2013 are provided in
the Notes to Financial Statements of the Company.
RELATED PARTY TRANSACTIONS
All Related Party Transactions attracting compliance under Section 188
of the Companies Act are placed before the Audit Committee as well as
before the Board for approval.
The disclosures on the Related Party Transactions in the Form AOC-2 are
provided as Annexure G.
PUBLIC DEPOSITS
Your Company has not accepted any deposits from the public, or its
employees during the year under review.
TRANSFER TO INVESTOR EDuCATION AND PROTECTION FUND (IEPF)
Your Company has, during the year, transferred an amount of Rs. 9,666/-
to Investor Education and Protection Fund (IEPF), in compliance with
the provisions of the Companies Act, 1956. The amount represents the
dividend for the year 2006-07 which remained unclaimed by the members
of the Company for a period exceeding 7 years from its due date of
payment.
PARTICuLARS OF EMPLOYEES AND OTHER ADDITIONAL INFORMATION
The information required under Rule 5(1) of the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014 is attached
herewith as Annexure H.
CONSERVATION OF Energy, Technology ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OuTGO
In view of the nature of activities which are being carried on by the
Company, the disclosures regarding Conservation of Energy & Technology
Absorption are not applicable to the Company.
SEXUAL HARASSMENT
The Company has constituted an Internal Complaints
Committee as per Section 4 of the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013.
During the year, there were no cases filed pursuant to the above said
provisions.
MATERIAL CHANGES
There are no material changes affecting the financial position of the
Company between the date of Financial Statements and the Board's
report.
DIRECTORS' RESPONSIBILITY STATEMENT:
In accordance with the provisions of Section 134(5) of the Companies
Act, 2013, your Directors confirm that:-
a) in the preparation of the Annual Accounts for the year ended 31st
March, 2015, applicable Accounting Standards have been followed along
with proper explanation relating to material departures, wherever
necessary.
b) the Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the financial year and the loss of the
Company for the year ended 31st March, 2015.
c) the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities.
d) the Directors have prepared the annual accounts on an ongoing
concern basis.
e) the Directors have laid down internal financial controls to be
followed by the Company and that such internal financial control is
adequate and was operating effectively.
f) the Directors have devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively.
ACKNOWLEDGEMENT
Your Directors would like to express their gratitude to the officials
of National Stock Exchange of India Limited, Bombay Stock Exchange
Limited, Cochin Stock Exchange, Over the Counter Exchange of India,
National Securities Depository Limited, Central Depository Services
(India) Limited and also to the Shareholders and Bankers.
Your directors recognize and appreciate the efforts and hard work of
all the employees of the Company and their continued contribution it
its progress.
For and On behalf of the Board of Directors
kumar Nair
Chairman and Managing Director
(DIN: 00320541)
Place : Cochin-18
Date : 27.07.2015
Mar 31, 2014
Dear Members,
The Directors have pleasure in presenting before you the 21st Annual
Report of the Company along with Audited Accounts, for the financial
year ended 31st March, 2014.
The Standalone Statement of Profit & Loss for the year ended 31st
March, 2014 and Balance Sheet as on that date together with the notes
forming part of accounts as audited and reported by the Auditors of the
Company and also Consolidated Accounts incorporating the Statement of
Profit & Loss and Balance Sheet of the Subsidiary Company, M/s. Vertex
Commodities And Finpro Private Limited as required under the Listing
Agreement are also attached herewith.
FINANCIAL RESULTS:
The Financial highlights of the Company for the year ended 31st March,
2014 with corresponding figures of the previous year are given below:-
(in Lacs)
Particulars 31.03.2014 31.03.2013
Total Income 498.61 768.36
Total Expenditure 597.81 861.60
Profit / (Loss) from Operations (99.20) (93.23)
before Other Income, Finance Cost &
Exceptional Items
Profit / (Loss) from Ordinary (99.20) (93.23)
Activities before Finance Cost &
Exceptional Items
Profit / (Loss) from Ordinary (111.26) (138.11)
Activities after Finance Cost but before
Exceptional Items
Exceptional Items Profit / (Loss) 12.20 (9.29)
Profit / (Loss) from Ordinary (99.06) (147.40)
Activities before Tax
Total Tax - (14.46)
Net Profit / (Loss) from Ordinary (99.06) (161.86)
Activities After Tax
Net Profit / (Loss) For the period (99.06) (161.86)
BUSINESS
During the year ended 31st March, 2014 your Company earned consolidated
revenue of '' 583.50 Lacs as compared to '' 1,088.56 Lacs in the previous
year. The consolidated operations have recorded a net loss of '' 152.92
Lacs as compared to a net loss of '' 163.25 Lacs in the previous year.
The net loss suffered is being carried over to the Balance Sheet.
Detailed information on operational and financial performance, etc. of
the Company for the financial year is given in the Management
Discussion and Analysis which is set out as Annexure to the Directors''
Report.
DIVIDEND
Due to inadequacy of profits your Directors regret their inability to
recommend any Dividend for the year.
DIRECTORS
In accordance with the provisions of Sections 149, 152 and other
applicable provisions, if any, of the Companies Act, 2013 read with the
Companies (Appointment and Qualification of Directors) Rules, 2014,
approval of the Members will be sought at the ensuing Annual General
Meeting of the Company for the appointment of Mr. James Pothen
(DIN-02492330) and Mr. Jose Thomas Polachira (DIN-01049189) as
Independent Directors of the Company not liable to retire by rotation,
for a term of five years.
Pursuant to Clause 49(g) (1) of the Listing Agreement with the Stock
Exchange, brief resume of the Directors proposed for re- appointment
has been given in the Notice convening the Annual General Meeting.
Further it is proposed to modify the terms and of Appointment of Mr.
Kumar Nair, Chairman and Managing Director (DIN- 00320541) by altering
his period of appointment from five (5) years to liable to retire by
rotation. This is to ensure compliance with Section 152 sub Section 6
(a) of Companies Act 2013. Mr. Kumar Nair shall retire by rotation at
the ensuing Annual General Meeting and being eligible offers for
reappointment.
During the Year the Company''s Subscribed and issued capital has
increased due to conversion of 7,74,500 0.5% Compulsorily Convertible
Preference Shares of '' 10/- each into 38,72,500 Equity shares of '' 2/-
each. There has been no change in the Authorised Capital of the
Company.
CORPORATE GOVERNANCE
The Securities and Exchange Board of India (SEBI) has prescribed
Corporate Governance standards. Your Directors reaffirm their
commitment to these standards and this Annual Report carries a section
on Corporate Governance.
DIRECTORS'' RESPONSIBILITY STATEMENT Your Directors hereby confirm:-
a) That in the preparation of the Annual Accounts for the year ended
31st March, 2014, applicable Accounting Standards have been followed
along with proper explanation relating to material departures, wherever
necessary.
b) That the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and the loss
of the Company for the year ended 31st March, 2014.
c) That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956, for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities.
d) That the Directors have prepared the annual accounts on an ongoing
concern basis.
CONSOLIDATED ACCOUNTS
The Consolidated Statement of Profit and Loss for the year ended 31st
March, 2014 and the Balance Sheet as on that date as required under
Listing Agreement is also attached herewith.
OPERATIONS OF SUBSIDIARY
During the year ended 31st March, 2014 the subsidiary company Vertex
Commodities And Finpro Private Limited had total revenue
of Rs.1,33,89,365 and loss of Rs.53,86,350 as against Rs.40,901,969 and
loss of Rs.1,38,959 respectively in the previous year.
In accordance with the general circular issued by the Ministry of
Corporate Affairs, Government of India, the Balance Sheet, Statement of
Profit and Loss and other documents of the subsidiary company are not
being attached with the Balance Sheet of the Company. The Company will
make available the Annual Accounts of the subsidiary company and the
related detailed information to any member of the Company who may be
interested in obtaining the same. The annual accounts of the subsidiary
company will also be kept open for inspection at the Registered Office
of the Company and that of the Subsidiary Company.
The Consolidated Financial Statements presented by the Company include
the financial results of its subsidiary company.
PARTICULARS OF EMPLOYEES'' U/S 217 (2A) OF THE COMPANIES ACT, 1956
There are no employees drawing a monthly or yearly remuneration in
excess of the limits specified in Section 217(2A) of the Companies Act,
1956
DISCLOSURE OF EMPLOYEE STOCK OPTIONS
Details as per the Securities and Exchange Board of India (Employee
Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines,
1999, are set out below:
a) The Vertex Employee Stock Option Plan 2010 has been approved by the
Board Of Directors of the company on 10th March, 2008.
b) The vesting period is five years from the date of grant, commencing
after one year from the date of grant.
c) Exercise Period would commence one year from date of grant and will
expire on completion of five years from the date of vesting.
d) The options will be settled in equity shares of the company.
e) The company used the intrinsic value method to account for ESOPs.
g) Had fair value method been used, the compensation cost would have
been higher by Rs.14.55 Lakhs (Previous Year Rs.21.44 Lakhs). Loss after
tax would have been higher by Rs.113.61 Lakhs (Previous year Rs.21.44
Lakhs) and Basic EPS would have been Rs.(0.24) Per share (Previous Year
Rs.(0.42) Per share) and Diluted EPS would have been Rs.(0.15) (Previous
Year Rs.(0.25).
MANAGEMENT DISCUSSION AND ANALYSIS
The Management Discussion and Analysis Report for 2013-14, as required
under Clause 49 of the Listing Agreement, is given as a separate
statement in the Annual Report.
DISCLOSURE OF ADDITIONAL PARTICULARS
In view of the nature of activities which are being carried on by
the Company, the particulars prescribed under Section 217(1)(e) of the
Companies Act, 1956 read with Companies (Disclosure of Particulars in
the Report of the Board of Directors) Rules, 1988 regarding
conservation of Energy & Technology Absorption are not applicable to
the Company.
AUDITORS
M/s. Rahul Gautam Divan & Associates, Chartered Accountants, Mumbai
will retire at the ensuing Annual General Meeting and have confirmed
their eligibility and willingness for re-appointment. Your Directors
recommend their appointment.
LISTING PARTICULARS
The Company''s Equity Shares continue to be listed on Bombay Stock
Exchange.
REPLIES TO AUDITORS'' OBSERVATIONS
Referring to observations a) and b) given under Basis for Qualified
Opinion in the Independent Auditors Report, it is clarified that:
(a) as stated in notes forming part of accounts the management has
evaluated long term investments and confirm that there exist no
circumstances which warrant any provision in the accounts for a
possible diminution in the value.
(b) as the company has initiated legal actions for the recovery of the
dues, it will not be prudent to make any provisions as the cases are in
various stages in different Courts.
ACKNOWLEDGEMENT
Your Directors would like to express their gratitude to the officials
of National Stock Exchange of India Limited, Bombay Stock Exchange
Limited, Cochin Stock Exchange, Over the Counter Exchange of India,
National Securities Depository Limited, Central Depository Services
(India) Limited and also to the Shareholders and Bankers. Your
directors also express their deep appreciation of the valuable services
of the Officers and Staff Members of the Company.
FOR AND ON BEHALF OF THE
BOARD OF DIRECTORS
Place : Cochin KUMAR NAIR
Date : 18.07.2014 Chairman
Mar 31, 2013
The Directors present herewith the 20th Annual Report of the Company.
The Standalqne Statement of Profit & Loss and Balance Sheet for the
year ended 31st March, 2013 as audited and reported by the Auditors of
the Company and also Consolidated Accounts incorporating the Statement
of Profit & Loss and Balance Sheet of the Subsidiary Company, Vertex
Commodities And Finpro Private Limited as required under the Listing
Agreement are also attached herewith.
FINANCIAL RESULTS:
The Financial highlights of the Company for the year ended 31st March,
2013 with corresponding figures of the previous year are given below:-
(Rs.in Lacs)
2012-13 2012-13
Total Revenue 768.36 872.60
Profit before Depreciation, Taxation (110.52) (87.74)
and Prior period items
Depreciation and Preliminary 36.88 40.22
Expenses
Profit / (Loss) before Tax (147.40) (127.96)
Profit/ (Loss) after Tax (161.86) (96.96)
Profit/(Loss) carried forward to (161.86) (96.96)
Reserves
BUSINESS
During the year ended 31st March, 2013 your Company earned consolidated
revenue of Rs. 1,063.86 Lacs as compared to Rs. 1,111.84 Lacs in the
previous year. The consolidated operations have recorded a net loss of
Detailed information on operational and financial performance, etc. of
the Company for the financial year is given in the
Management Discussion and Analysis which is set out as Annexure to the
Directors'' Report.
DIVIDEND
No dividend is recommended during the year due to inadequacy of
profits.
DIRECTORS
In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company, Mr. U. Ramachandran is liable
to retire by rotation and is eligible for re-appointment.
The resolution for appointment of Mr. U. Ramachandran is being placed
before the ensuing Annual General Meeting for approval.
The term of office of Mr. Kumar Nair as Managing Director of the
Company was upto 31.03 20013. On expiry of the term of office of the
Managing Director, your Board of Directors have re-appointed Mr. Kumar
Nair as Managing Director for a period of five years on and from 1st
April 2013 which is subject to the approval of shareholders.
Considering the present financial position of the Company, Mr. Kumar
Nair has kindly consented not to accept any remuneration for his
services as the Managing Director of the Company.
Pursuant to Clause 49(g) (1) of the Listing Agreement with the Stock
Exchange, brief resume of the Directors proposed for re- appointment
has been given in the Notice convening the Annual General Meeting.
INCREASE OF AUTHORISED SHARE CAPITAL:
During the year under review, with the consent of the Members through
Postal Ballot the Company was obtained for increased its authorised
share capital as per the provision of Section 94 of Companies Act,
1956. The rationale of increasing the authorized share capital was for
converting the fully convertible preference shares of Rs. 10/- each into
Equity shares of Rs. 2/- each. These shares were issued to erstwhile
shareholders of Transwarranty Capital Pvt. Ltd. As per the scheme of
amalgamation.
SHARE CAPITAL STRUCTURE
SHARE CAPITAL
A. 73,753,805Equity Shares of Rs. 2/- each 147,507,610 134,582,610 (P.Y.
67,291,305 Equity Shares of Rs. 2/- each)
B. 5,981,739 0.5% Fully Convertible Preference Shares of Rs. 10/- each
5,98,17,390 5,98,17,390 (P.Y. 5,981,739 0.5% Fully Convertible
Preference Shares of Rs. 10/- each)
C. 500,000 15% Non-Cumulative Redeemable Preference Shares of Rs. 100/-
each 50,000,000 40,00,000 (P.Y. 40,000 15% Nbn-Cumulative Redeemable
Preference Shares of Rs. 100/- each)
ISSUED, SUBSCRIBED AND PAID UP CAPITAL :
A. 43,848,980 Equity Shares of Rs. 2/- each 87,697,960 87,697,960 (P.Y.
43,848,980 Equity Shares of Rs. 2/- each)
B. 59,80,954 0.5% Fully Convertible Preference Shares of Rs. 10/- each
59,809,540 59,809,540 (P.Y. 59,80,954 0.5% Fully Convertible Preference
Shares of Rs. 10/- each )
C. 27,758 15% Non Cumulative Redeemable Preference Shares of Rs. 100/-
each 2,775,800 2,775,800 (P.Y. 27,758 15% Non Cumulative Redeemable
Preference Shares of Rs. 100/- each)
TOTAL 150,283,300 150,283,300
CORPORATE GOVERNANCE
The Securities and Exchange Board of India (SEBI) prescribed Corporate
Governance standards. Your Directors reaffirm their commitment to these
standards and this Annual Report carries a section on Corporate
Governance.
DIRECTORS'' RESPONSIBILITY STATEMENT Your Directors hereby confirm:-
a) That in the preparation of the Annual Accounts for the year ended
31stMarch, 2013, applicable Accounting Standards have been followed
along with proper explanation relating to material departures, wherever
necessary.
b) That the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and the loss
of the Company for the year ended 31st March, 2013.
c) That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956, for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities.
d) That the Directors have prepared the annual accounts on an ongoing
concern basis.
CONSOLIDATED ACCOUNTS
The Consolidated Statement of Profit and Loss for the year ended 31st
March, 2013 and the Balance Sheet as on that date as required under
Listing Agreement is also attached herewith.
OPERATIONS OF SUBSIDIARY
During the year ended 31stMarch, 2013 the subsidiary company Vertex
Commodities And Finpro Private Limited had total revenue of Rs. 382.01
Lacs and loss of Rs. 1.39 Lacs as against Rs. 361.22 Lacs and loss of Rs.
71.08 Lacs respectively in the previous year.
In accordance with the general circular issued by the Ministry of
Corporate Affairs, Government of India, the Balance Sheet, Statement of
Profit and Loss and other documents of the subsidiary company are not
being attached with the Balance Sheet of the Company. The Company will
make available the Annual Accounts of the subsidiary company and the
related detailed information to any member of the Company who may be
interested in obtaining the same. The annual accounts of the subsidiary
company will also be kept open for inspection at the Registered Office
of the Company and that of the Subsidiary Company.
The Consolidated Financial Statements presented by the Company include
the financial results of its subsidiary company.
PARTICULARS OF EMPLOYEES'' U/S 217 (2A) OF THE COMPANIES ACT, 1956
There are no employees drawing a monthly or yearly remuneration in
excess of the limits specified in Section 217(2A) of the Companies Act,
1956.
DISCLOSURE OF EMPLOYEE STOCK OPTIONS
Details as per the Securities and Exchange Board of India
(Employee Stock Option Scheme and Employee Stock Purchase Scheme)
Guidelines, 1999, are set out as under:
Options outstanding at the beginning of the year 2,680,315 623,500
(Face Value of Rs. 2/- (P.Y. Rs. 10/-))
Options outstanding at the beginning of the year split to - 3,117,500
face Value of Rs. 2/- share
Options granted during the year 2,075,000 1,013,750
Options vested during the year 248,627 131,565
Options exercised during the year - 128,690
Options forfeited during the year 1,751,310 1,013,250
Options lapsed /surrendered during the year 467,003 437,685
Options outstanding at the end of the year 2,537,002 2,680,315
i) Had fair value method been used , the compensation cost would have
been higher by Rs. 21.44 Lakhs (Previous
Year Rs. 75.77 Lakhs) Loss after tax would have been higher by Rs. 21.44
Lakhs (Previous year Rs. 75.77 Lakhs) and
Basic EPS would have been Rs. (0.42) Per share (Previous Year Rs. (0.43)
Per share) and Diluted EPS would have been Rs. (0.25 ) (Previous Year Rs.
(0.25)).
MANAGEMENT DISCUSSION AND ANALYSIS
The Management Discussion and Analysis Report for 2012-13, as required
under Clause 49 of the Listing Agreement, is given as a separate
statement in the Annual Report.
DISCLOSURE OF ADDITIONAL PARTICULARS
In view of the nature of activities which are being carried on by the
Company, the particulars prescribed under Section 217(l)(e) of the
Companies Act, 1956 read with Companies (Disclosure of Particulars in
the Report of the Board of Directors) Rules, 1988 regarding
conservation of Energy & Technology Absorption are not applicable to
the Company.
AUDITORS
M/s. Rahul Gautam Divan & Associates, Chartered Accountants, Mumbai
will retire at the ensuing Annual General Meeting and have confirmed
their eligibility and willingness for re-appointment. Your Directors
recommend their appointment.
LISTING PARTICULARS
The Company''s Equity Shares continue to be listed on Bombay Stock
Exchange Limited.
REPLIES TO AUDITORS'' OBSERVATIONS
Referring to the observation of the auditors, (a) it is clarified that
as stated in notes forming part of accounts the management has
evaluated long term investments and conform that there exist no
circumstances which warrant any -provision in the accounts for a
possible diminution in the value.
Referring to observation of the auditors, (b)it is clarified that as
the company has initiated legal actions for the recovery of the dues,
it will not be prudent to make any provisions as the cases are pending
in various stages in different Courts.
ACKNOWLEDGEMENT
Your Directors would like to express their gratitude to the officials
of National Stock Exchange of India Limited, Bombay Stock Exchange
Limited, Cochin Stock Exchange, Over the Counter Exchange of India,
National Securities Depository Limited, Central Depository Services
(India) Limited and also to the Shareholders and Bankers. Your
directors also express their deep appreciation of the valuable services
of the Officers and Staff Members of the Company.
FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
Place : Cochin KUMAR NAIR
Date : 16.05.2013 Chairman
Mar 31, 2012
To The Members of Vertex Securities Limited
The Directors have pleasure in presenting before you the 19th Annual
Report of the Company. The Standalone Statement of Profit & Loss and
Balance Sheet for the year ended 31st March, 2012 as audited and
reported by the Auditors of the Company and also Consolidated Accounts
incorporating the Statement of Profit & Loss and Balance Sheet of the
Subsidiary Company, M/s. Vertex Commodities And Finpro Private Limited
as required under the Listing Agreement are also attached herewith.
FINANCIAL RESULTS:
The Financial highlights of the Company for the year ended 31st March,
2012 with corresponding figures of the previous year are given below:-
(Rs in Lacs)
Financial Results Standalone
2011-12 2010-11
Total Revenue 872.60 942.45
Profit before Depreciation, Taxation
and Prior period items (87.74) 6.59
Depreciation and Preliminary Expenses 40.22 44.62
Profit / (Loss) before Tax (127.96) (38.03)
Profit/ (Loss) after Tax (96.96) (25.67)
Profit/(Loss) carried forward to Reserves (96.96) (25.67)
BUSINESS
During the year ended 31st March, 2012 your Company earned consolidated
revenue of Rs 1,111.84 Lacs as compared to Rs 1,084.43 Lacs in the
previous year. The consolidated operations have recorded a net loss of
Rs 168.04 Lacs as compared to a net loss of Rs 76.80 Lacs in the previous
year. The net loss suffered is being carried out in the Balance Sheet.
Detailed information on operational and financial performance, etc. of
the Company for the financial year is given in the Management
Discussion and Analysis which is set out as Annexure to the Directors'
Report.
DIVIDEND
No dividend is recommended during the year due to inadequacy of
profits.
DIRECTORS
In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company, Mr. James Pothen is liable to
retire by rotation and is eligible for re-appointment.
The resolution for appointment of Mr. James Pothen is being placed
before the ensuing Annual General Meeting for approval.
Pursuant to Clause 49(g) (1) of the Listing Agreement with the Stock
Exchange, brief resume of the Directors proposed for re- appointment
has been given in the Notice convening the Annual General Meeting.
SUB-DIVISION/ STOCK SPLIT OF EQUITY SHARES:
During the year under review, with the consent of the Members through
Postal Ballot the Company sub- divided Equity Shares of the face value
of Rs 10/ - (Rupees Ten) each into five (5) Equity Shares of the face
value of Rs 2/- (Rupees Two) each as per the provision of Section 94 of
Companies Act, 1956. The rationale of splitting the shares was to make
the stock affordable to retail investors, thus driving buying interest.
Also, liquidity would improve, which could drive the interest of large
funds/investors.
RECLASSIFICATION OF AUTHORISED CAPITAL:
During the year under review your Directors have, pursuant to the
Scheme of Amalgamation of Transwarranty Capital Private Limited with
the company as approved by the Hon'ble High Courts at Bombay and Kerala
approved conversion of 26,38,261 of 0.5% Fully Convertible Preference
Shares out of 83,00,715, 0.5% Fully Convertible Preference Shares by
issue and allotment of 26,38,261 Equity Shares of Rs 10/- each fully
paid up at par for each Fully Convertible Preference Shares.
After the said conversion instead of increasing the Authorized Share
Capital of the Company, it was considered prudent to reclassify part of
the existing Authorised Capital in Preference Shares into Equity Shares
of the Company. The consent of the Members for the Reclassification of
Authorised Capital of the Company was obtained through Postal Ballot as
per Section 192A of Companies Act, 1956 and the Companies (Passing of
the Resolution by Postal Ballot) Rules, 2001.
SHARE CAPITAL STRUCTURE As at
31.03.2012 As at
31.03.2011
(Rs) (Rs)
AUTHORISED CAPITAL:
67,291,305 Equity Shares of Rs 2/- each
(P.Y. 10,820,000 Equity Shares of
Rs 10/-each) 134,582,610 108,200,000
59,81,739 0.5% Fully Convertible
Preference Shares of Rs 10/- each
(P.Y. 8,620,000 0.5% Fully Convertible
Preference Shares of Rs 10/-each) 5,98,17,390 86,200,000
40,000 15% Non-Cumulative Redeemable
Preference Shares of Rs 100/- each 40,00,000 40,00,000
ISSUED, SUBSCRIBED AND PAID UP CAPITAL:
A. 43,848,980 Equity Shares of Rs 2/-
each (P.Y. 59,98,951 Equity Shares
of Rs 10/- each) 87,697,960 59,989,510
- 26,38,261 0.5% Fully Convertible
Preference Shares of Rs 10/- each
converted into Equity Shares of
Rs 2/- each
- 1,28,690 Equity Shares of Rs 2/-
each issued pursuant to ESOP
- 1,57,500 Equity Shares of Rs 2/-
each issued to the shareholders of
erstwhile Transwarranty Capital
Private Limited as per the scheme of
amalgamation.
- 3,76,730 Equity Shares of Rs 2/-
each issued to the shareholders of
erstwhile Transwarranty Capital
Private Limited pursuant to Chapter VII
of SEBI (Issue of Capital and
Disclosure Requirements) Regulation,
2010 [ICDR].
B. 59,80,954 0.5% Fully Convertible
Preference Shares of Rs 10/-each
fully paid
- (3,18,500 Preference Shares of
Rs 10 each issued to the share
holders of erstwhile Transwarranty
Capital Private Limited as per the
scheme of amalgamation)
C. 27,758 15% Non Cumulative
Redeemable Preference Shares of Rs 100/-
each 2,775,800 2,775,800
TOTAL 150,283,300 145,772,460
CORPORATE GOVERNANCE
The Securities and Exchange Board of India (SEBI) prescribed Corporate
Governance standards. Your Directors reaffirm their commitment to these
standards and this Annual Report carries a section on Corporate
Governance.
DIRECTORS' RESPONSIBILITY STATEMENT
Your Directors hereby confirm:-
a) That in the preparation of the Annual Accounts for the year ended
31st March, 2012, applicable Accounting Standards have been followed
along with proper explanation relating to material departures, wherever
necessary.
b) That the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and the loss
of the Company for the year ended 31st March, 2012.
c) That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956, for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities.
d) That the Directors have prepared the annual accounts on an ongoing
concern basis.
CONSOLIDATED ACCOUNTS
The Consolidated Statement of Profit and Loss for the year ended 31st
March, 2012 and the Balance Sheet as on that date as required under
Listing Agreement is also attached herewith.
OPERATIONS OF SUBSIDIARY
During the year ended 31st March, 2012 the subsidiary company Vertex
Commodities And Finpro Private Limited had total revenue of Rs 361.22
Lacs and loss of Rs 71.08 Lacs as against Rs 237.03 Lacs and loss of Rs
51.13 Lacs respectively in the previous year.
In accordance with the general circular issued by the Ministry of
Corporate Affairs, Government of India, the Balance Sheet, Statement of
Profit and Loss and other documents of the subsidiary company are not
being attached with the Balance Sheet of the Company. The Company will
make available the Annual Accounts of the subsidiary company and the
related detailed information to any member of the Company who may be
interested in obtaining the same. The annual accounts of the subsidiary
company will also be kept open for inspection at the Registered Office
of the Company and that of the Subsidiary Company.
The Consolidated Financial Statements presented by the Company include
the financial results of its subsidiary' company.
PARTICULARS OF EMPLOYEES' U/S 217 (2A) OF THE COMPANIES ACT, 1956
Information as per Section 217(2A) of the Companies Act, 1956, read
with the Companies (Particulars of Employees) Rules, 1975 as amended,
is available at the registered office of your Company. However, as per
the provisions of Section 219(l)(b)(iv) of the said Act, the Report and
Accounts are being sent to all shareholders of the Company and others
entitled thereto excluding the aforesaid information. Any shareholder
interested in obtaining a copy of this statement may write to the
Company Secretary / Compliance Officer at the Corporate Office or
Registered Office address of the Company.
DISCLOSURE OF EMPLOYEE STOCK OPTIONS
During 2011-12, the Company granted 1,013,750 Stock Options to the
employees under its Employee Stock Option Plan 2010. Details as per the
Securities and Exchange Board of India (Employee Stock Option Scheme
and Employee Stock Purchase Scheme) Guidelines, 1999, are set out in
the Annexure to this Report.
MANAGEMENT DISCUSSION AND ANALYSIS
The Management Discussion and Analysis Report for 2011-12, as required
under Clause 49 of the Listing Agreement, is given as a separate
statement in the Annual Report.
DISCLOSURE OF ADDITIONAL PARTICULARS
In view of the nature of activities which are being carried on by the
Company, the particulars prescribed under Section 217(1) (e) of the
Companies Act, 1956 read with Companies (Disclosure of Particulars in
the Report of the Board of Directors) Rules, 1988 regarding
Conservation of Energy & Technology Absorption are not applicable to
the Company.
AUDITORS
M/s. Rahul Gautam Divan & Associates, Chartered Accountants, Mumbai
will retire at the ensuing Annual General Meeting and have confirmed
their eligibility and willingness for re-appointment. Your Directors
recommend their appointment.
LISTING PARTICULARS
The Company's Equity Shares continue to be listed in Bombay Stock
Exchange.
REPLIES TO AUDITORS' OBSERVATIONS
Referring to Para No. 4 (i) of the observation of the auditors, it is
clarified that as stated in notes forming part of accounts the
management has evaluated long term investments and conform that there
exist no circumstances which warrant any provision in the accounts for
a possible diminution in the value.
Referring to Para No. 4 (ii) it is clarified that as the company has
initiated legal actions for the recovery of the dues, and it will not
be prudent to make any provisions as the cases are in various stages in
different Courts.
ACKNOWLEDGEMENT
Your Directors would like to express their gratitude to the officials
of National Stock Exchange of India Limited, Bombay Stock Exchange
Limited, Cochin Stock Exchange Limited, Over the Counter Exchange of
India, National Securities Depository Limited, Central Depository
Services (India) Limited and also to the Shareholders and Bankers. Your
directors also express their deep appreciation of the valuable services
of the Officers and Staff Members of the Company.
For and on behalf of the Board of Directors,
Place: Mumbai Kumar Nair
Date : 16.05.2012 Chairman
Mar 31, 2011
The Directors have pleasure in presenting before you the 18th Annual
Report of the Company. The standalone Profit & Loss account and Balance
Sheet for the year ended 31st March, 2011 as audited and reported by
the Auditors of the Company and also Consolidated Accounts
incorporating the Profit & Loss account and Balance Sheet of the
Subsidiary Company, M/s. Vertex Commodities And Finpro Private Limited
as required under the Listing Agreement are attached herewith.
FINANCIAL RESULTS:
The financial highlights of the company on stand alone basis for the
year ended 31st March, 2011 with corresponding figures of the previous
year are given below:-
(Rs. in Lacs)
Financial Results 2010-11 2009-10
Total Revenue 942.45 936.44
Profit before Depreciation, Taxation 6.59 99.76
and Prior period items
Depreciation and Preliminary 44.62 43.76
Expenses
Profit/(Loss) before Tax (38.03) 56.00
Profit/(Loss) after Tax (25.67) 27.70
Provision for Proposed Dividend on à 4.16
Preference Shares
Provision for Proposed Dividend Tax à 0.71
on Preference Shares
Profit/(Loss) carried forward to (25.67) 22.83
Reserves
BUSINESS:
During the year ended 31st March, 2011 your Company earned consolidated
revenue of Rs.1084.43 Lacs as compared to Rs.1045.42 Lacs in the
previous year. The operations have recorded a net loss of Rs.76.80 Lacs
as compared to a net profit of Rs.32.58 Lacs in the previous year.
Detailed information on operational and financial performance, etc. of
the Company for the financial year is given in the Management
Discussion and Analysis which is setout as Annexure to the Directors
Report.
During the year your Company has managed to increase its talent pool by
attracting high caliber, performance oriented professionals with proven
track record. The Company recognises the importance and contribution of
our people and performance orientation and ethics are high priority
areas. The Board of Directors have introduced Vertex Employees Stock
Option Plan, 2010 according to which the equity shares of the company
will be offered to the key employees and Directors to motivate them and
to create a better working atmosphere.
DIVIDEND
Due to loss during the financial year your Directors regret that they
could not recommend the dividend for the financial year 2010-11.
DIRECTORS
In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company, Mr. Jose Thomas Polachira is
liable to retire by rotation and is eligible for re- appointment. The
resolution for appointment of Mr. Jose Thomas Polachira is being placed
before the ensuing Annual General Meeting for approval.
Mr. Ashok K. Mittal has been appointed as the Whole-time Director of
the Company with effect from May 20, 2011 and will hold office till the
ensuing Annual General Meeting.
Pursuant to Clause 49(g) (1) of the Listing Agreement with the Stock
Exchange, brief resume of the Director being reappointed has been
provided in the Notice convening the Annual General Meeting.
AUDIT COMMITTEE
The Audit Committee of the Board consists of the following Directors:
Mr. James Pothen, (Chairman)
Mr. U. Ramachandran.,
Mr. Jose Thomas Polachira.
The Audit Committee met five times during the financial year.
ALTERATION OF MAIN OBJECT CLAUSE OF THE COMPANY
During the year under review, your Company has altered its Main Object
clause of the Memorandum of Association. The Registrar of Companies in
his report to the High Court of Kerala during the Amalgamation
proceedings had suggested that the Main Objects be modified to reflect
the present activities of the company. The
earlier Main Object included the activities of non-banking finance
companies. The company is not undertaking any Non Banking Finance
Company activities and has surrendered the Certificate issued by the
Reserve Bank of India. Further based on the Order passed by the Honble
High Court of Kerala on 23rd February, 2010 Transwarranty Capital
Private Limited was amalgamated with the Company and all the assets,
liabilities, licenses etc. of Transwarranty Capital Private Limited
were transferred to the company with effect from the appointed date.
Transwarranty Capital Private Limited was also undertaking
institutional broking and also holding necessary license from the
Securities and Exchange Board of India as a Merchant Banker. To enable
your company to undertake Merchant Banking and other activities, the
Main Objects of the company were suitably amended.
CHANGE IN REGISTRAR AND TRANSFER AGENT
The Company has changed its Registrar and Transfer Agent from M/s Cameo
Corporate Services Limited, Chennai to M/s. Link Intime India Pvt.
Ltd., C-13, Pannalal Silk Mills Compound, LBS Marg, Bhandup (West),
Mumbai - 400 078. All communication relating to Transfer can now be
sent to the above given address of the Transfer Agent. The Equity
Shares of the Company can be dematerialised with National Securities
Depository Limited and Central Depository Services (India) Limited.
CORPORATE GOVERNANCE
The Securities and Exchange Board of India (SEBI) has prescribed
Corporate Governance standards. Your Directors reaffirm their
commitment to these standards and this Annual Report carries a section
on Corporate Governance.
DIRECTORS RESPONSIBILITY STATEMENT
Your Directors hereby confirm:-
a) That in the preparation of the Annual Accounts for the year ended
31st March, 2011, applicable Accounting Standards have been followed
along with proper explanation relating to material departures, wherever
necessary.
b) That the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and the loss
of the Company for the year ended 31st March, 2011.
c) That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956, for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities.
d) That the Directors have prepared the annual accounts on an ongoing
concern basis.
CONSOLIDATED ACCOUNTS
The Consolidated Profit and Loss Account for the year ended 31st March,
2011 and the Balance Sheet as on that date as required under Listing
Agreement is attached herewith.
OPERATIONS OF SUBSIDIARY
During the year ended 31st March, 2011 the subsidiary company Vertex
Commodities And Finpro Private Limited had total revenue of Rs.237.03
Lacs and Loss after tax of Rs.51.13 Lacs as against Rs.108.98 Lacs and
Profit of Rs.4.88 Lacs respectively in the previous year.
During the year Company has invested Rs.300 Lacs in the Equity share
capital of Vertex Commodities And Finpro Private Limited thereby
increasing its stake to 99.45%. This infusion of capital is to meet the
capital and operational expenses of the Subsidiary.
In accordance with the general circular issued by the Ministry of
Corporate Affairs, Government of India, the Balance Sheet, Profit and
Loss Account and other documents of the subsidiary company are not
being attached with the Balance Sheet of the Company. The Company will
make available the Annual Accounts of the subsidiary company and the
related detailed information to any member of the Company who may be
interested in obtaining the same. The annual accounts of the subsidiary
company will also be kept open for inspection at the Registered Office
of the Company and that of the subsidiary company.
The Consolidated Financial Statements presented by the Company include
the financial results of its subsidiary company.
PARTICULARS OF EMPLOYEES U/S 217 (2A) OF THE COMPANIES ACT, 1956
Information as per Section 217(2A) of the Companies Act, 1956, read
with the Companies (Particulars of Employees) Rules, 1975 as amended,
is available at the registered office of your Company. However, as per
the provisions of Section 219(l)(b)(iv) of the said Act, the Report and
Accounts are being sent to all shareholders of the Company and others
entitled thereto excluding the aforesaid information. Any shareholder
interested in obtaining a copy of this statement may write to the
Company Secretary / Compliance Officer at the Corporate Office or
Registered Office address of the Company.
DISCLOSURE OF EMPLOYEE STOCK OPTIONS
During 2009-10, the Company granted 6,55,000 Stock Options to the
employees under its Employee Stock Option Plan 2010. Details as per the
Securities and Exchange Board of India (Employee Stock Option Scheme
and Employee Stock Purchase Scheme) Guidelines, 1999, are set out in
the Annexure to this Report.
MANAGEMENT DISCUSSION AND ANALYSIS
The Management Discussion and Analysis Report for 2010-11, as required
under Clause 49 of the Listing Agreement, are given as a separate
statement in the Annual Report.
DISCLOSURE OF ADDITIONAL PARTICULARS
In view of the nature of activities which are being carried on by the
Company, the particulars prescribed under Section 217(l)(e) of the
Companies Act, 1956 read with Companies (Disclosure of Particulars in
the Report of the Board of Directors) Rules, 1988 regarding
conservation of Energy & Technology Absorption are not applicable to
the Company.
The company has received Foreign Exchange Inward Remittance equivalent
to Rs.1,74,80,463/- which is received towards Share Capital
contribution.
AUDITORS
M/s. Rahul Gautam Divan & Associates, Chartered Accountants, Mumbai
will retire at the ensuing Annual General Meeting and have confirmed
their eligibility and willingness for re-appointment. Your Directors
recommend their appointment.
LISTING PARTICULARS
The Companys equity shares continue to be listed on the Bombay Stock
Exchange.
REPLIES TO AUDITORS OBSERVATIONS
Attention is invited to Note No. 4(i) of the Auditors Report, and it
is clarified that the management is of the view that long term
investment is having the value as specified in the Balance Sheet.
Attention is invited to Note No. 4(ii) of the audit report, it is
clarified that the company has initiated legal / other action for
recovery of the old outstanding dues and, therefore, it will not be
prudent to make any provision in the accounts which may adversely
affect the claim of the company.
ACKNOWLEDGEMENT
Your Directors would like to express their gratitude to the officials
of National Stock Exchange of India Ltd., Bombay Stock Exchange Ltd.,
Cochin Stock Exchange Ltd., Over the Counter Exchange of India (OTCEI),
National Securities Depository Limited, Central Depository Services
(India) Limited and also to the Bankers. Your Directors also express
their deep appreciation of the valuable services of the Officers and
Staff Members of the Company.
For and on behalf of the Board of Directors,
Kumar Nair
Chairman & Managing Director
Place : Kochi-18
Date : 20.05.2011
Mar 31, 2010
The Directors have pleasure in presenting before you the 17th Annual
Report of the Company. The standalone Profit & Loss account and Balance
Sheet for the year ended 31st March, 2010 as audited and reported by
the Auditors of the company and also Consolidated accounts
incorporating the Profit & Loss account and Balance Sheet of the
subsidiary company, M/s. Vertex Commodities And Finpro Private Limited
as required under the Listing Agreement are also attached herewith.
FINANCIAL RESULTS:
Your Directors are happy to report that the overall performance of your
company during the year under report has recorded improvement as
compared to the previous year. The operations have shown a net profit
of Rs.27.70 Lacs as compared to net loss of Rs.21.16 Lacs in the
previous year. The financial highlights of the company on stand alone
basis for the year ended 31st March, 2010 with corresponding figures of
the previous year are given below:-
Financial Results 2009-10 2008-09
(Rs.) (Rs.)
Total Revenue 936.44 695.46
Profit before Depreciation,
Taxation 99.76 8.12
and Prior period items
Depreciation and Preliminary 43.76 34.00
Expenses
Profit/(Loss) before Tax 56.00 (26.22)
Profit after Tax 27.70 (21.16)
Provision for Proposed
Dividend on 4.16 -
Preference Shares
Provision for Proposed
Dividend Tax 0.71 -
on Preference Shares
Profit carried forward to
Reserves 22.83 (21.16)
BUSINESS:
During the year ended 31st March, 2010 your Company earned consolidated
revenue of Rs.1045.42 Lacs as compared to Rs.788.36 Lacs in the
previous year. The operations have recorded a net profit of Rs.32.58
Lacs as compared to a loss of Rs.21.56 Lacs in the previous year.
During the year under report, your company managed to consolidated its
business in Southern India and expand its business in Western India.
The company had adopted progressive Human
Resources policies, introduced ESOPs for its key employees and is now
in the process of increasing its talent pool by attracting high
caliber, performance oriented professions with proven track record to
its fold.
As your directors propose to utilise the available resources in the
business of the company, no dividend is recommended.
As you may kindly recall in our last report, we had mentioned about the
merger of Transwarranty Capital Private Limited (TCPL), a group company
with your company. Your directors are happy to report that all the
merger proceedings under the Companies Act, 1956 have been completed on
receipt of the approval of the scheme of amalgamation by the Honorable
High Courts of Bombay and Kerala. The accounts of both the companies
have been consolidated as envisaged under the merger proposal. With the
merger, your company can now undertake both Merchant Banking and
Institutional broking, which was earlier done by TCPL and retail
broking in which your company is already established.
VERTEX EMPLOYEES STOCK OPTION PLAN, 2010 { "PLAN")
Your Directors are also happy to inform that as indicated in our last
report an ESOP Scheme has been introduced by which the eligible
employees and directors of the company and group entities will be able
to get Equity Shares of the Company.
DIRECTORS
During the year under review Mr. Ranjan Verghese, Managing Director
retired from the services on attaining Superannuation. Mr. Kumar Nair,
Managing Director of the holding company, M/s. Transwarranty Finance
Limited was appointed as Managing Director of the Company. Mr. G.K.
Prem Kumar also ceased to be a Director from the Board.
Mr. U Ramachandran is retiring by rotation and is eligible for
reappointment. Pursuant to clause 49(g) (i) of Listing Agreement with
the Stock Exchange, brief resume of the Director being reappointed has
been provided in the Notice convening the Annual General Meeting.
AUDIT COMMITTEE
The Audit Committee of the Board consists of the following Directors:
Mr. James Pothen, (Chairman)
Mr. U. Ramachandran;
Mr. Jose Thomas Polachira.
The audit Committee met four times during the financial year.
CORPORATE GOVERNANCE
The detailed report on Corporate Governance as required under Clause 49
of the Listing Agreement is attached herewith.
DIRECTORS RESPONSIBILITY STATEMENT Your Directors hereby confirm:-
a) That in the preparation of the Annual Accounts for the year ended
31st March, 2010, applicable Accounting Standards have been followed
along with proper explanation relating to material departures, wherever
necessary.
b) That the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and the
profit of the Company for the year ended 31st March, 2010.
c) That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956, for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities.
d) That the Directors have prepared the annual accounts on an ongoing
concern basis.
DEMATERIALISATION OF EQUITY SHARES OF THE COMPANY
As has been already reported to you, the Companys shares have been
dematerialised and M/s. Cameo Corporate Services Limited, Subramanian
Building, 1 Club House Road, Chennai-600 002 have been appointed as the
Registrars and Share Transfer Agents and the Equity shares of the
Company can be dematerialised with National Securities Depository
Limited and Central Depository Services (India) Limited.
CONSOLIDATED ACCOUNTS
The Consolidated Profit and Loss Account for the year ended 31st March,
2010 and the Balance Sheet as on that date of M/s. Vertex Commodities
And Finpro Private Limited as required under Listing Agreement is also
attached herewith. During the year ended 31st March, 2010 the
subsidiary company had total revenue of Rs.108.98 Lacs and a net profit
after tax of Rs.9.39 Lacs as against Rs.92.90 Lacs and loss of Rs.1.26
Lacs respectively in the previous year.
Pursuant to Section 212 of the Companies Act, 1956 Directors Report,
Balance Sheet and Profit & Loss account of the Subsidiary companies are
attached with this Report. These documents are also available for
inspection during business hours at the Registered Office of the
Company.
Particulars of employees U/S 217 (2A) of the Companies Act, 1956:
None of the employees of the Company employed throughout the financial
year/part of the year were in receipt of remuneration in excess of the
limits as prescribed under Section 217(2A) of the Companies Act, 1956
read with Companies (Particulars of Employees) Rules, 1975 and hence no
particulars are required to be given.
DISCLOSURE OF ADDITIONAL PARTICULARS
Disclosures regarding conservation of energy and technology
absorption, etc. are not applicable to the company, as your company is
not engaged in any manufacturing activities. There was no foreign
exchange inflow or outflow during the year under report.
AUDITORS
M/s. Krishnamoorthy & Krishnamoorthy, Chartered Accountants, who are
Statutory Auditors of the company appointed to hold office for the
period from the last Annual General Meeting to the conclusion of next
Annual General Meeting, have tendered their resignation to the Board as
on 14th July, 2010 due to personal reasons leading to a casual vacancy
in the office of Statutory Auditor. To fill the casual vacancy caused
by the resignation of the Auditors, your Board has already called an
Extra Ordinary General Meeting of the shareholders of the company which
is scheduled to be held on 9th August, 2010. The Board has recommended
the appointment of M/s. Rahul Gautam Divan & Associates, Chartered
Accountants, as the Statutory Auditors to hold Office till the
conclusion of the Annual General Meeting. On approval of the resolution
by the general body at the Extra Ordinary General Meeting, it is
recommended that the Auditors be re-appointed at the Annual General
Meeting, for which necessary resolution is proposed in the notice
calling the Annual General Meeting.
LISTING PARTICULARS
The Companys equity shares continue to be listed on Bombay Stock
Exchange.
REPLIES TO AUDITORS OBSERVATIONS
Attention is invited to Note No.5 of the Auditors Report and it is
clarified that the management is of the view that long term investment
is having the value as specified in the Balance Sheet.
Referring to Note No.6(a) of the audit report, it is clarified that the
company has initiated legal/other action for recovery of the old
outstanding dues and, therefore, it will not be prudent to make any
provision in the accounts which may adversely affect the claim of the
company.
Referring to Note No.6(b) of the audit report, it is clarified that the
sundry debtors, advances, sundry creditors, security deposits, etc.
are having respective values as shown in the Balance Sheet.
ACKNOWLEDGEMENT
Your Directors would like to express their gratitude to the officials
of National Stock Exchange of India Ltd., Bombay Stock Exchange Ltd.,
Cochin Stock Exchange, Over the Counter Exchange of India Ltd.,
National Securities Depository Limited, Central Depository Services
(India) Limited and also to the Bankers. Your directors also express
their deep appreciation of the valuable services of the Officers and
Staff Members of the company.
For and on behalf of the Board of Directors,
Place: Kochi-18 Kumar Nair
Date: 23.07.2010 Chairman
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article