Mar 31, 2023
The Directors have pleasure in presenting the 76th Annual Report together with the Audited Financial Statements of the Company for the financial year ended 31st March, 2023.
The Company is a Core Investment Company-Non Deposit Taking-Systemically Important (CIC-ND-SI) registered with the Reserve Bank of India (RBI) and has been complying with all the stipulations prescribed by RBI.
Dynamic Global Economy & Geo-Political developments impeded the economic recovery. Consequential disruptions due to high inflation & tight monetary Policies resulted slow-down in growth during the first half of the year. However, situations stablised to some extent in the second half. Indian Economy continued to be one of the fastest growing economies of the world and registered close to 7% growth during the year under review.
Your Company recorded Profit after Tax of Rs. 12,185.44 lacs on standalone basis and Rs. 1,07,065.41 lacs on consolidated basis for the year. The Company being a Core-Investment Company, holds significant investment in the Group Companies having diversified Industrial segments. With the Government thrust on the Infrastructure development, the outlook of Indian Economy remains positive. This augurs well for the Company keeping in mind that the sectors in which your Company is invested in i.e. paper/tyre/automotive components/ cement to name a few, are performing well and also have a positive outlook.
Your Directors are pleased to recommend a dividend of Rs. 25/- per equity share of Rs. 10 each (250%) on the equity share capital of Rs. 11.29 Crore for the financial year ended 31st March, 2023. The Dividend outgo would be Rs. 28.24 Crores. The dividend is subject to deduction of tax at source as may be applicable. The Dividend pay-out is in accordance with the Dividend Distribution Policy of the Company.
The amount available for appropriation, including surplus from previous year after adjusting the dividend paid for the financial year 2021-22 is Rs. 38,972.39 Lacs.
The Directors propose this to be appropriated |
as under: |
||
Transfer to Reserves (As per RBI guidelines) |
Rs. |
2,437.09 |
Lacs |
Transfer to Capital Redemption Reserve |
Rs. |
700.00 |
Lacs |
Surplus carried to Balance Sheet |
Rs. |
35,835.30 |
Lacs |
Total |
Rs. |
38,972.39 |
Lacs |
The Annual Return referred to in Section 134 (3)(a) of the Companies Act, 2013 is available on the website of the Company at the link https://www.bengalassam.com/pdf/Annual%20Return%202021-22.pdf
PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS
The Company being a Core Investment Company registered with the Reserve Bank of India, Section 186 of the Companies Act, 2013 is not applicable to it. The particulars of loans, guarantees and investments are furnished in the financial statements.
During the financial year ended 31st March, 2023, all the contracts or arrangements or transactions entered into by the Company with the Related Parties were in the ordinary course of business and on an armsâ length basis and were in compliance with the applicable provisions of the Companies Act, 2013 and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (âSEBI Listing Regulationsâ).
Further, the Company had not entered into any contract or arrangement or transaction with the related parties which could be considered material in accordance with the policy of the Company on materiality of the Related Party Transactions. In view of the above, disclosure in FORM AOC-2 is not applicable.
The Policy on materiality of Related Party Transactions and on dealing with Related Party Transactions, as amended and approved by the Board, is available on the Companyâs website.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
Shri Bharat Hari Singhania (DIN: 00041156) Director, retires by rotation and being eligible offers himself for re-appointment at the ensuing Annual General Meeting (AGM). The Board recommends re-appointment of Shri Bharat Hari Singhania as Director liable to retire by rotation. Further, pursuant to Regulation 17(1A) of SEBI Listing Regulations, the Board has also approved continuation of his appointment as Non-executive Director of the Company, since he has attained the age of 85 years. Requisite Special Resolution regarding his re-appointment and continuation as Non-executive Director of the Company, is included in the Notice of ensuing AGM for approval of the Members.
Declarations have been received from all the Independent Directors of the Company that they meet the criteria of independence prescribed under the Companies Act, 2013 & SEBI Listing Regulations. All the Independent Directors are registered in the Independent Directorâs Data Bank.
Shri Upendra Kumar Gupta was re-appointed as âManagerâ with the designation âChief Executive Officer and Chief Financial Officerâ of the Company for a further period of three years w.e.f. 1st July, 2023 subject to approval of the Members at the ensuing AGM. Requisite Resolution regarding his re-appointment is included in the Notice of ensuing AGM for approval of the Members.
Except as stated above, there was no other change in Directors and Key Managerial Personnel of the Company, during the year under review.
CONSOLIDATED FINANCIAL STATEMENTS
The Consolidated Financial Statements of your Company for the financial year ended 31st March, 2023 have been prepared in accordance with the provisions of the Companies Act, 2013, SEBI Listing Regulations and Indian Accounting Standards. The audited Consolidated Financial Statements together with Auditorsâ Report form part of the Annual Report.
A report on the performance and financial position of each of the subsidiaries and associates, included in the Consolidated Financial Statements is presented in a separate section in this Annual Report. Please refer AOC-1 annexed to the Financial Statements forming part of the Annual Report.
Pursuant to the provisions of Section 136 of the Companies Act, 2013, the financial statements of the Company, Consolidated audited Financial Statements alongwith relevant documents and separate audited accounts in respect of subsidiaries, are available on the website of the Company.
During the financial year under review, JKF Evolve Limited became the Subsidiary of the Company and Gram Power Infrastructure Private Limited ceased to be the Associate of the Company. The Company does not have any Joint Venture.
The Company is a registered Non-Banking Finance Company and does not accept public deposits and as required by the Reserve Bank of India (RBI), the Board of Directors have also passed necessary resolution not to accept public deposits during the financial year 2023-24, without prior approval of RBI.
(a) Statutory Auditors and their Report
The observations of the Auditors in their Report on Accounts and the Financial Statements read with the relevant notes are self-explanatory. The Audit Report does not contain any qualifications, reservations, adverse remarks or disclaimer.
(b) Secretarial Auditor and Secretarial Audit Report
Pursuant to the provisions of Section 204 of the Companies Act, 2013, the Board of Directors appointed Shri Namo Narain Agarwal, Company Secretary in Practice as Secretarial Auditor to carry out Secretarial Audit of the Company for the financial year 2022-23. The Report given by him for the said financial year in the prescribed format is annexed to this Report as Annexure-1. The Secretarial Audit Report does not contain any qualifications, reservations, adverse remarks or disclaimer.
The Company has one material unlisted subsidiary, namely- J.K. Fenner (India) Limited (JKFIL). The Secretarial Audit Report of M/s R. Shridharan & Associates, the Secretarial Auditor, for the financial year 2022-23 of JKFIL in the prescribed format is annexed as Annexure- 2.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS
During the financial year under review, there were no significant and material orders passed by the Regulators or Courts or Tribunals which would impact the going concern status of the Company and its future operations.
MATERIAL CHANGES AND COMMITMENTS
There have been no material changes and commitments affecting the financial position of the Company which have occurred between the end of the financial year of the Company.
CHANGE IN THE NATURE OF BUSINESS
During the financial year under review, there was no change in the nature of business of the Company.
Disclosure of the ratio of the remuneration of each Director to the median employeeâs remuneration and other requisite details pursuant to Section 197 (12) of the Companies Act, 2013 (âActâ) read with Rule 5 (1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is annexed to this Report as Annexure-3. Further, particulars of employees pursuant to Rule 5(2) & (3) of the above Rules, forms part of this Board Report. However, in terms of the provisions of Section 136 of the Act, the Annual Report for the financial year 2022-23 is being sent to all the Members of the Company and others entitled thereto, excluding the particulars of employees. Any Member interested in obtaining such particulars may write to the Company Secretary. The said information is also available for inspection at the Registered Office of the Company on working days during working hours upto the ensuing AGM.
The Company has in place a strong Internal Financial Control System, Policies & Procedures which ensures accuracy & completeness of Accounting Records and also helps in timely preparation of the reliable Financial
Statements. These Internal Financial Control Systems are designed for safeguarding the assets of the Company and for the prevention and detection of errors & frauds commensurate with the size, nature & complexities of the Operations of the Company. These Policies & Procedures were found by the Statutory Auditors of the Company to be adequate for smooth, orderly & efficient conduct of the business of the Company.
The Internal Financial Control Systems are regularly reviewed to ensure their effectiveness, taking into account the essential components of Internal Financial Controls as stated in the Guidance Note on the Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. Based on such assessments carried out by the Management, no reportable material weaknesses in the adequacy in the System of Operations of Internal Financial Controls were observed during the year.
Maintenance of cost records as specified by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013 is not applicable to the Company.
DIRECTORSâ RESPONSIBILITY STATEMENT
As required under Section 134(3)(c) of the Companies Act, 2013, your Directors state that:-
(a) in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;
(b) the accounting policies have been selected and applied consistently and judgments and estimates made are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period;
(c) proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the said 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 a going concern basis ;
(e) the internal financial controls to be followed by the Company have been laid down and that such internal financial controls are adequate and were operating effectively; and
(f) the proper systems to ensure compliance with the provisions of all applicable laws have been devised and that such systems were adequate and operating effectively.
BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT
Pursuant to Regulation 34(2)(f) of the SEBI Listing Regulations, Business Responsibility and Sustainability Report of the Company for the Financial Year 2022-23 ended 31st March, 2023 in the prescribed format, is given in a separate section and forms part of the Annual Report.
Your Company re-affirms its commitment to the highest standards of corporate governance practices. Pursuant to the SEBI Listing Regulations a Management Discussion and Analysis, Corporate Governance Report and Auditorsâ Certificate regarding compliance of conditions of Corporate Governance are made a part of this Report. The Corporate Governance Report which forms part of this Report also covers the following:
(a) Particulars of the four Board Meetings held during the financial year under review.
(b) Policy on Nomination and Remuneration of Directors, Key Managerial Personnel and Senior Management including, inter alia, the criteria for performance evaluation of Directors. The policy is also available on the website of the Company at www.bengalassam.com.
(c) The manner in which formal annual evaluation has been made by the Board of its own performance and that of its Committees and individual Directors.
(d) The details with respect to composition of Audit Committee and establishment of Vigil Mechanism.
(e) Details regarding Risk Management.
(f) Dividend Distribution Policy.
The Company is mainly exposed to capital market risks in the form of change in value of its investments. The Company is also exposed to the fluctuations of economy and industry cycles.
The statements made in the Directorsâ and Management Discussion and Analysis Report, describes the Companyâs outlook, projections, estimates, expectations, which may be âForward-looking Statementsâ within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied.
CORPORATE SOCIAL RESPONSIBILITY
The requirement of Corporate Social Responsibility (CSR) in terms of Section 135 of the Companies Act, 2013 and the rules made thereunder is not applicable to the Company, since the Companyâs main source of income is dividend from CSR compliant companies.
COMPLIANCE WITH SECRETARIAL STANDARDS
During the financial year under review, the Company has complied with the applicable Secretarial Standards issued under Section 118 of Companies Act, 2013.
As required under Section 134(3)(m) of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014, the requirement of furnishing particulars of energy conservation, technology absorption, etc. is not applicable to the Company. Further, particulars of Foreign Exchange Earning and Outgo are as under:-
i) Foreign Exchange earned : NIL
ii) Foreign Exchange Outgo : Rs. 56.91 Lacs
The Directors wish to place on record and acknowledge their appreciation for the continued support and co-operation received from the various Government Authorities, Lending Institutions and the esteemed Shareholders of the Company. The Directors also record their appreciation for the total dedication of the employees.
On behalf of the Board
Bharat Hari Singhania
Place: New Delhi Chairman
Date: 29th May, 2023 DIN: 00041156
With a view to avoid duplication between the Directorsâ Report and Management Discussion and Analysis, a Combined Report has been presented.
Mar 31, 2022
The Directors have pleasure in presenting the 75th Annual Report together with the Audited Financial Statements of the Company for the financial year ended 31st March, 2022.
The Company is a Core Investment Company-Non Deposit Taking-Systemically Important (CIC-ND-SI) registered with the Reserve Bank of India (RBI) and has been complying with all the conditions prescribed by RBI.
Covid-19 Pandemic resurged during the last Quarter of the year leading to disruptions, however, the country was well prepared to meet these challenges. Despite these headwinds, the Indian economy made a gradual recovery by recording 8.3% GDP growth in Financial Year 2021-22. Stock markets surged ahead with occasional fluctuations due to geo-political disturbances.
Your Company recorded Profit after Tax of Rs. 6,127.55 lacs for the year. The Company being a Core Investment Company, holds significant investments in the Group Companies, which are engaged in diversified industrial segments and have improved performance in the year under review.
The expected improved performance of Indian economy in the coming years augurs well for the Indian industry.
Your Directors are pleased to recommend a dividend of Rs. 15/- per equity share of Rs. 10/- each (150%) on the equity share capital of Rs. 11.29 Crore for the financial year ended 31st March, 2022. The Dividend outgo would be Rs. 16.94 Crore. The dividend is subject to deduction of tax at source as may be applicable. The Dividend pay-out is in accordance with the Dividend Distribution Policy of the Company.
The amount available for appropriation, including profit on sale of Equity Investments at Fair Value through other Comprehensive Income and surplus from previous year after adjusting the dividend paid for the financial year 2020-21 is Rs. 30,406.91 Lacs.
The Directors propose this to be appropriated |
as under: |
||
Transfer to Reserves (As per RBI guidelines) |
Rs. |
1,225.51 |
Lacs |
Transfer to Capital Redemption Reserve |
Rs. |
700.00 |
Lacs |
Surplus carried to Balance Sheet |
Rs. |
28,481.40 |
Lacs |
Total |
Rs. |
30,406.91 |
Lacs |
The Annual Return referred to in Section 134 (3)(a) of the Companies Act, 2013 is available on the website of the Company at the link https://www.bengalassam.com/pdf/BACL%20Annual%20Return%202020-21.pdf.
PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS
The Company being a Core Investment Company registered with the Reserve Bank of India, Section 186 of the Companies Act, 2013 is not applicable to it. The particulars of loans, guarantees and investments are furnished in the financial statements.
During the financial year ended 31st March, 2022, all the contracts or arrangements or transactions entered into by the Company with the Related Parties were in the ordinary course of business and on armsâ length basis and were in compliance with the applicable provisions of the Companies Act, 2013 and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI Listing Regulations).
Further, the Company had not entered into any contract or arrangement or transaction with the related parties which could be considered material in accordance with the policy of the Company on materiality of the Related Party Transactions. In view of the above, disclosure in FORM AOC-2 is not applicable.
The Policy on materiality of Related Party Transactions and on dealing with Related Party Transactions, as amended and approved by the Board, is available on the Companyâs website.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
Smt. Vinita Singhania (DIN: 00042983) Director, retires by rotation and being eligible offers herself for re-appointment at the ensuing Annual General Meeting (AGM). The Board recommends re-appointment of Smt. Vinita Singhania.
Shri Sanjeev Kumar Jhunjhunwala (DIN: 00177747) and Smt. Deepa Gopalan Wadhwa (DIN: 07862942), Independent Directors were re-appointed for the second term of five consecutive years w.e.f. 6th October, 2022 and 28th March, 2023 respectively, subject to approval of the Members at the ensuing AGM. Requisite Resolutions regarding their re-appointments are included in the Notice of ensuing AGM for approval of the Members.
Declarations have been received from all the Independent Directors of the Company, that they meet the criteria of independence prescribed under the Companies Act, 2013 & SEBI Listing Regulations. All the Independent Directors are registered in the Independent Directorâs Data Bank.
Except as stated above, there were no other change in Directors and Key Managerial Personnel of the Company, during the year under review.
CONSOLIDATED FINANCIAL STATEMENTS
The Consolidated Financial Statements of your Company for the financial year ended 31st March, 2022 have been prepared in accordance with the provisions of the Companies Act, 2013, SEBI Listing Regulations and Indian Accounting Standards. The audited Consolidated Financial Statements together with Auditorsâ Report form part of the Annual Report. A report on the performance and financial position of each of the subsidiaries and associates, included in the Consolidated Financial Statements is presented in a separate section in this Annual Report. Please refer AOC-1 annexed to the Financial Statements forming the part of the Annual Report.
Pursuant to the provisions of Section 136 of the Companies Act, 2013, the financial statements of the Company, Consolidated audited Financial Statements alongwith relevant documents and separate audited accounts in respect of subsidiaries, are available on the website of the Company.
During the financial year under review, Gram Power Infrastructure Pvt. Ltd. became the Associate of the Company and no other company has become or ceased to be your Companyâs subsidiary/associate Company. The Company does not have any Joint Venture.
The Company is a registered Non-Banking Finance Company and does not accept public deposits and as required by the Reserve Bank of India (RBI), the Board of Directors have also passed necessary resolution not to accept public deposits during the financial year 2022-23, without prior approval of RBI.
(a) Statutory Auditors and their Report
The first term of office of M/s. BGJC & Associates, LLP, Chartered Accountants, as Statutory Auditors of the Company, will expire on the conclusion of the 75th Annual General Meeting (AGM) of the Company. The Audit Committee and Board of Directors of the Company have recommended their re-appointment as the Statutory Auditors of the Company for the second and third term commencing from the conclusion of the 75th AGM till the conclusion of 77th AGM, subject to the approval of the members at the ensuing AGM. Requisite Resolution regarding their appointment is included in the Notice of ensuing AGM for approval of the Members.
The observations of the Auditors, in their Report on Accounts and the Financial Statements, read with the relevant notes are self-explanatory. The Audit Report does not contain any qualifications, reservations, adverse remarks or disclaimer.
(b) Secretarial Auditor and Secretarial Audit Report
Pursuant to the provisions of Section 204 of the Companies Act, 2013, the Board of Directors appointed Shri Namo Narain Agarwal, Company Secretary in Practice as Secretarial Auditor to carry out Secretarial Audit of the Company for the financial year 2021-22. The Report given by him for the said financial year in the prescribed format is annexed to this Report as Annexure-1. The Secretarial Audit Report does not contain any qualifications, reservations, adverse remarks or disclaimer.
The Company has one material unlisted subsidiary, namely- J.K. Fenner (India) Limited (JKFIL). The Secretarial Audit Report of M/s R. Shridharan & Associates, the Secretarial Auditor, for the financial year 2021-22 of JKFIL in the prescribed format is annexed as Annexure- 2.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS
During the financial year under review, there were no significant and material orders passed by the Regulators or Courts or Tribunals which would impact the going concern status of the Company and its future operations.
MATERIAL CHANGES AND COMMITMENTS
There have been no material changes and commitments affecting the financial position of the Company which have occurred between the end of the financial year of the Company and the date of this report.
CHANGE IN THE NATURE OF BUSINESS
During the financial year under review, there was no change in the nature of business of the Company.
Disclosure of the ratio of the remuneration of each Director to the median employeeâs remuneration and other requisite details pursuant to section 197 (12) of the Companies Act, 2013 (âthe Actâ) read with Rule 5 (1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is annexed to this Report as Annexure-3. Further, particulars of Employees pursuant to Rule 5(2) & (3) of the above Rules, forms part of this Board Report. However, in terms of the provisions of Section 136 of the Act, the Annual Report for the financial year 2021-22 is being sent to all the Members of the Company and others entitled thereto, excluding the particulars of employees. Any Member interested in obtaining such particulars may write to the Company Secretary. The said information is also available for inspection at the Registered Office of the Company on working days during working hours upto the ensuing AGM.
The Company has in place a strong internal financial control system, Policies & Procedures which ensures accuracy & completeness of Accounting Records and helps also in timely preparation of the reliable Financial statements. These internal Financial Control Systems are designed for safeguarding the assets of the Company and for the prevention and detection of errors & frauds commensurate with the size, nature & complexities of the operations of the Company. These Policies & Procedures were found by the Statutory Auditors of the Company to be adequate for smooth, orderly & efficient conduct of the business of the Company.
The Internal Financial Control Systems are regularly reviewed to ensure their effectiveness, taking into account the essential components of Internal Financial Controls as stated in the Guidance Note on the Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. Based on such assessments carried out by the Management, no reportable material weaknesses in the adequacy in the System of Operations of Internal Financial Controls were observed during the year.
Maintenance of cost records as specified by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013 is not applicable to the Company.
DIRECTORSâ RESPONSIBILITY STATEMENT
As required under Section 134(3)(c) of the Companies Act, 2013, your Directors state that:-
(a) in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;
(b) the accounting policies have been selected and applied consistently and judgments and estimates made are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period;
(c) proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the said 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 a going concern basis ;
(e) the internal financial controls to be followed by the Company have been laid down and that such internal financial controls are adequate and were operating effectively; and
(f) the proper systems to ensure compliance with the provisions of all applicable laws have been devised and that such systems were adequate and operating effectively.
BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT
Pursuant to Regulation 34(2)(f) of the SEBI Listing Regulations, Business Responsibility and Sustainability Report of the Company for the Financial Year 2021-22 ended 31st March, 2022 in the prescribed format, is given in a separate section and forms part of the Annual Report.
Your Company re-affirms its commitment to the highest standards of corporate governance practices. Pursuant to the Listing Regulations, Management Discussion and Analysis, Corporate Governance Report and Auditorsâ Certificate regarding compliance of conditions of Corporate Governance are made a part of this Report. The Corporate Governance Report which forms part of this Report also covers the following:
(a) Particulars of the five Board Meetings held during the financial year under review.
(b) Policy on Nomination and Remuneration of Directors, Key Managerial Personnel and Senior Management including, inter alia, the criteria for performance evaluation of Directors. The policy is also available on the website of the Company at www.bengalassam.com.
(c) The manner in which formal annual evaluation of the Board has been made by the Board of its own performance and that of its Committees and individual Directors.
(d) The details with respect to composition of Audit Committee and establishment of Vigil Mechanism.
(e) Details regarding Risk Management.
(f) Dividend Distribution Policy.
The Company is mainly exposed to capital market risks in the form of change in value of its investments. The Company is also exposed to the fluctuations of economy and industry cycles.
The statements made in the Directorsâ and Management Discussion and Analysis Report, describes the Companyâs outlook, projections, estimates, expectations, which may be âForward-looking Statementsâ within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied.
CORPORATE SOCIAL RESPONSIBILITY
The requirement of Corporate Social Responsibility (CSR) in terms of Section 135 of the Companies Act, 2013 and the rules made thereunder is not applicable to the Company, since the Companyâs main source of income is dividend from CSR compliant companies.
COMPLIANCE WITH SECRETARIAL STANDARDS
During the financial year under review, the Company has complied with the applicable Secretarial Standards issued under Section 118 of Companies Act, 2013.
As required under Section 134(3)(m) of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014 the requirement of furnishing particulars of energy conservation, technology absorption, etc. is not applicable to the Company. Further, particulars of Foreign Exchange Earning and Outgo are as under:-
i) Foreign Exchange earned : NIL
ii) Foreign Exchange Outgo : Rs. 28.46 Lacs
The Directors wish to place on record and acknowledge their appreciation for the continued support and co-operation received from the various Government Authorities, Lending Institutions and the esteemed Shareholders of the Company. The Directors also record their appreciation for the total dedication of the employees.
Mar 31, 2018
Directorsâ Report and Management Discussion & Analysis
TO THE MEMBERS
The Directors have pleasure in presenting the 71st Annual Report together with the Audited Financial Statements of the Company for the year ended 31stMarch, 2018.
DIVIDEND
Your Directors are pleased to recommend a dividend of Rs, 10/- per share (100%) for the financial year ended 31st March, 2018. The total dividend outgo would be Rs, 8.68 Crores.
APPROPRIATIONS
The amount available for appropriation, including surplus from previous year is Rs, 7,049.07 lacs. The Directors propose this to be appropriated as under:
Transfer to Reserves (As per RBI guidelines) |
571.12 |
Lacs |
||
Surplus carried to Balance Sheet |
6,477.95 |
Lacs |
||
Total |
7,049.07 |
Lacs |
SCHEME OF ARRANGEMENT
The Scheme of Arrangement between Florence Investech Limited (âFlorenceâ), BMF Investments Limited, J.K. Fenner (India) Limited (âJK Fennerâ) and Bengal & Assam Company Limited (âThe Transferee Companyâ) and their respective shareholders, approved by the Board of Directors and BSE Limited is pending for approval of the Shareholders of the Transferee Company, Florence, JK Fenner and National Company Law Tribunal, Kolkata and Chennai. The Scheme inter alia provides for the following:
(i) Amalgamation of Florence and BMF (âTransferor Companiesâ) with the Transferee Company in consideration of issue and allotment of Equity Shares in the Transferee Company to the Equity Shareholders of Florence and Equity Shareholders of JK Fenner, other than the Transferee Company itself; and
(ii) Exchange of Equity Shares of JK Fenner for Equity Shares of the Transferee Company at the option of Equity Shareholders of JK Fenner.
An extract of the Annual Return as on 31st March, 2018 in the prescribed form MGT-9 is attached as Annexure-1 to this Report and forms part of it.
PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS
The Company being a Core Investment Company registered with the Reserve Bank of India, Section 186 of the Companies Act, 2013 is not applicable to it. The particulars of loans, guarantees and investments are given in the financial statements.
RELATED PARTY TRANSACTIONS
During the financial year ended 31st March, 2018, all the contracts or arrangements or transactions entered into by the Company with the Related Parties were in the ordinary course of business and on armsâ length basis and were in compliance with the applicable provisions of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Further, the Company has not entered into any contract or arrangement or transaction with the related parties which could be considered material in accordance with the policy of the Company on materiality of the Related Party Transactions. In view of the above, disclosure in Form AOC-2 is not applicable.
The Related Party Transactions Policy as approved by the Board is available on the website of the Company. DIRECTORS AND KEY MANAGERIAL PERSONNEL
Shri J.R.C. Bhandari, Independent Director of the Company had resigned from the Directorship of the Company w.e.f. 1st September, 2017 due to his ill health. Your Directors places on record their appreciation for the valuable services rendered and guidance provided by Shri Bhandari during his long tenure of office of over 8 years in the capacity as an Independent Director of the Company.
Smt. Vinita Singhania, retires by rotation and being eligible offers herself for re-appointment at the ensuing AGM.
Shri Sanjeev Kumar Jhunjhunwala was appointed as an Independent Director of the Company with effect from 6th October, 2017 for a term of five consecutive years subject to approval of the members at the ensuing AGM. Shri Jhunjhunwala has given declaration about his independence pursuant to Section 149 of the Companies Act, 2013. The Company has also received requisite Notice from a Member of the Company proposing the name of Shri Sanjeev Kumar Jhunjhunwala for appointment as Director at the ensuing AGM. The Board of Directors recommends his appointment as aforesaid.
Shri U.K. Gupta, Manager and Chief Financial Officer of the Company was re-appointed as Manager with the designation Manager and Chief Financial Officer of the Company for a further period of 5 years w.e.f. 1st July, 2018 subject to approval of the Members at the ensuing AGM.
CONSOLIDATED FINANCIAL STATEMENTS
The Consolidated Financial Statements have been prepared by the Company in accordance with the applicable Accounting Standards. The Audited Consolidated Financial Statements together with Auditorsâ Report form part of the Annual Report.
A report on the performance and financial position of each of the subsidiaries and associates, included in the Consolidated Financial Statements is presented in a separate section in this Annual Report. Please refer AOC-1 annexed to the Financial Statements in the Annual Report.
Pursuant to the provisions of Section 136 of the Act, the financial statements of the Company, Consolidated Financial Statements along with relevant documents and separate audited accounts in respect of subsidiaries are available on the website of the Company.
During the financial year under review, no company has become or ceased to be your Companyâs subsidiary. In terms of provisions of the Companies Act 2013, JK Lakshmi Cement Ltd., JK Tyre & Industries Ltd., JK Paper Ltd., JK Agri Genetics Ltd., Umang Dairies Ltd., Pranav Investment (M.P.) Company Ltd., Dwarkesh Energy Ltd., Global Strategic Technologies Ltd., Deepti Electronics & Electro-Optics Pvt. Ltd., PSV Energy Pvt. Ltd., J.K. Risk Managers & Insurance Brokers Ltd. and CliniRx Research Private Ltd. continues to be associates of the Company.
DEPOSITS
The Company is a registered Non-Banking Finance Company and does not accept public deposits and as required by the Reserve Bank of India (RBI), the Board of Directors have also passed necessary resolution not to accept public deposits during the financial year 2018-19, without prior approval of RBI.
AUDITORS
(a) Statutory Auditors and their Report
M/s Lodha & Co., Chartered Accountants, have been appointed as Statutory Auditors of the Company by the Members at the 67th Annual General Meeting (AGM) held on 2nd September, 2014 for a term of 5 (five) consecutive years from the conclusion of the 67th AGM until the conclusion of the 72nd AGM, subject to ratification of the appointment by the Members at the respective Annual General Meetings. However, pursuant to the Companies (Amendment) Act, 2017, the requirement of ratification of appointment of the Auditors on yearly basis has been dispensed with. The observations of the Auditors in their report on Accounts and the Financial Statements, read with the relevant notes are self-explanatory.
(b) Secretarial Auditor and Secretarial Audit Report
Pursuant to the provisions of Section 204 of the Companies Act, 2013, the Board of Directors appointed Shri Namo Narain Agarwal, Company Secretary in Practice as Secretarial Auditor to carry out Secretarial Audit of the Company for the financial year 2017-18. The Report given by him for the said financial year in the prescribed format is annexed to this Report as Annexure 2. The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS
During the financial year under review, there were no significant and material orders passed by the Regulators or Courts or Tribunals which would impact the going concern status of the Company and its future operations.
PARTICULARS OF REMUNERATION
Disclosure of the ratio of the remuneration of each Director to the median employeeâs remuneration and other requisite details pursuant to section 197 (12) of the Companies Act, 2013 (âActâ) read with Rule 5 (1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 as amended, is annexed to this Report as Annexure-3.
Further, Particulars of Employees pursuant to Rule 5(2) & (3) of the above Rules, forms part of this Report. However, as per the provisions of Section 136 of the said Act, the Report and Accounts are being sent to all the Members of the Company and others entitled thereto, excluding the aforesaid information. Any Member interested in obtaining such particulars may write to the Company Secretary at the Registered Office of the Company. The said information is available for inspection at the Registered Office of the Company during working hours.
INTERNAL FINANCIAL CONTROLS
The Company has in place adequate internal financial controls with reference to financial statements and no material reportable weakness was observed in the system. Further, the Company has in place adequate internal financial controls commensurate with the size and nature of its operations. The Company also has robust Budgetary Control System and Management Information System (MIS) which is the backbone of the Company for ensuring that your Companyâs assets and interests are safeguarded.
DIRECTORSâ RESPONSIBILITY STATEMENT
As required under Section 134(3)(c) of the Companies Act, 2013, your Directors state that:-
(a) in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;
(b) the accounting policies have been selected and applied consistently and judgments and estimates made are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period;
(c) proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the said 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 a going concern basis;
(e) the internal financial controls to be followed by the Company have been laid down and that such internal financial controls are adequate and were operating effectively; and
(f) the proper systems to ensure compliance with the provisions of all applicable laws have been devised and that such systems were adequate and operating effectively.
CORPORATE GOVERNANCE Including details pertaining to Board Meetings, Nomination and Remuneration Policy, Performance Evaluation, Risk Management, Audit Committee and Vigil Mechanism
Your Company re-affirms its commitment to the highest standards of corporate governance practices. Pursuant to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 a Management Discussion and Analysis, Corporate Governance Report and Auditorsâ Certificate regarding compliance of conditions of Corporate Governance are made a part of this Report.
The Corporate Governance Report which forms part of this Report, also covers the following:
(a) Particulars of the five Board Meetings held during the financial year under review.
(b) Policy on Nomination and Remuneration of Directors, Key Managerial Personnel and Senior Management including, inter alia, the criteria for performance evaluation of Directors.
(c) The manner in which formal annual evaluation has been made by the Board of its own performance and that of its Committees and individual Directors.
(d) The details with respect to composition of Audit Committee and establishment of Vigil Mechanism.
(e) Details regarding Risk Management.
CORPORATE SOCIAL RESPONSIBILITY
The requirement of Corporate Social Responsibility (CSR) in terms of Section 135 of the Companies Act, 2013 and the rules made thereunder is not applicable to the Company, since the Companyâs main source of income is dividend from CSR compliant companies.
SECRETARIAL STANDARDS
During the financial year under review, the Company has complied with the applicable Secretarial Standards for Board and General Meetings.
CONSERVATION OF ENERGY ETC.
As required under Section 134(3)(m) read with the Companies (Accounts) Rules, 2014, the requirement of furnishing particulars of energy conservation, technology absorption, etc. is not applicable to the Company. Further, particulars of Foreign Exchange Earning and Outgo are as under:-
i) Foreign Exchange earned : NIL
ii) Foreign Exchange Outgo : '' 20.30 Lacs
ACKNOWLEDGEMENTS
Your Directors wish to place on record and acknowledge their appreciation for the continued support and co-operation received from the various Government Authorities, Lending Institutions and the esteemed shareholders of the Company. The Directors also record their appreciation for the total dedication of the employees.
On behalf of the Board
Dr. Raghupati Singhania
New Delhi A.K. Kinra
Date: 19th May, 2018 Directors
Mar 31, 2017
TO THE MEMBERS
The Directors have pleasure in presenting the 70th Annual Report together with the Audited Financial Statements of the Company for the year ended 31st March, 2017.
CORE INVESTMENT COMPANY
The Company is a Core Investment Company-Non Deposit Taking-Systemically Important (CIC-ND-SI) registered with the Reserve Bank of India (RBI) and has been complying with all the conditions prescribed by RBI.
DIVIDEND
Your Directors are pleased to recommend a dividend of Rs. 10/- per share (100%) for the financial year ended 31st March, 2017. The total dividend outgo would be Rs. 8.68 Crores.
REGISTERED OFFICE
The Registered Office of the Company has been shifted from NCT of Delhi to 7, Council House Street, Kolkata in the State of West Bengal, w.e.f. 7th June, 2017.
APPROPRIATIONS
The amount available for appropriation, including surplus from previous year is Rs. 5,522.54 lacs. The Directors propose this to be appropriated as under:
Transfer to Reserves (As per RBI guidelines) Rs. 460.74 Lacs
Surplus carried to Balance Sheet Rs. 5,061.80 Lacs
Total Rs. 5,522.54 Lacs
EXTRACT OF ANNUAL RETURN
An extract of the Annual Return as on 31st March, 2017 in the prescribed form MGT-9 is attached as Annexure-1 to this Report and forms part of it.
PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS
The Company being a Core Investment Company registered with the Reserve Bank of India, Section 186 of the Companies Act, 2013 is not applicable to it. The particulars of loans, guarantees and investments are given in the financial statements.
RELATED PARTY TRANSACTIONS
During the financial year ended 31st March, 2017, all the contracts or arrangements or transactions entered into by the Company with the Related Parties were in the ordinary course of business and on armsâ length basis and were in compliance with the applicable provisions of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Further, the Company has not entered into any contract or arrangement or transaction with the related parties which could be considered material in accordance with the policy of the Company on materiality of the Related Party Transactions. In view of the above, disclosure in Form AOC-2 is not applicable.
The Related Party Transactions Policy as approved by the Board is available on the website of the Company.
CONSOLIDATED FINANCIAL STATEMENTS
The Consolidated Financial Statements have been prepared by the Company in accordance with the applicable Accounting Standards. The Audited Consolidated Financial Statements together with Auditorsâ Report form part of the Annual Report.
A report on the performance and financial position of each of the subsidiaries and associates, included in the Consolidated Financial Statements is presented in a separate section in this Annual Report. Please refer AOC-1 annexed to the Financial Statements in the Annual Report.
Pursuant to the provisions of Section 136 of the Act, the financial statements of the Company, Consolidated Financial Statements along with relevant documents and separate audited accounts in respect of subsidiaries are available on the website of the Company.
During the financial year under review, no company has become or ceased to be your Companyâs subsidiary. With the coming into effect of the Companies Act 2013, JK Lakshmi Cement Ltd., JK Tyre & Industries Ltd., JK Paper Ltd., JK Agri Genetics Ltd., Umang Dairies Ltd., Pranav Investment (M.P.) Company Ltd., Dwarkesh Energy Ltd., Global Strategic Technologies Ltd., Deepti Electronics & Electro-Optics Pvt. Ltd., PSV Energy Pvt. Ltd., J.K. Risk Managers & Insurance Brokers Ltd. and CliniRx Research Private Ltd. have become associates of the Company.
DEPOSITS
The Company is a registered Non-Banking Finance Company and does not accept public deposits and as required by the Reserve Bank of India (RBI), the Board of Directors have also passed necessary resolution not to accept public deposits during the financial year 2017-18, without prior approval of RBI.
AUDITORS
(a) Statutory Auditors and their Report
M/s Lodha & Co., Chartered Accountants, have been appointed as Auditors of the Company to hold the office from the conclusion of the 67th Annual General Meeting until the conclusion of the 72nd Annual General Meeting, subject to ratification of the appointment by the Members at the respective Annual General Meetings. Accordingly, being eligible, matter relating to the appointment of the Auditors will be placed for ratification by members at the forthcoming Annual General Meeting. The observations of the Auditors in their report on Accounts and the Financial Statements, read with the relevant notes are self explanatory.
(b) Secretarial Auditor and Secretarial Audit Report
Pursuant to the provisions of Section 204 of the Companies Act, 2013, the Board of Directors appointed Shri Namo Narain Agarwal, Company Secretary in Practice as Secretarial Auditor to carry out Secretarial Audit of the Company for the financial year 2016-17. The Report given by him for the said financial year in the prescribed format is annexed to this Report as Annexure 2. The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS
During the financial year under review, there were no significant and material orders passed by the Regulators or Courts or Tribunals which would impact the going concern status of the Company and its future operations.
PARTICULARS OF REMUNERATION
Disclosure of the ratio of the remuneration of each Director to the median employeeâs remuneration and other requisite details pursuant to section 197 (12) of the Companies Act, 2013 (âActâ) read with Rule 5 (1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 as amended, is annexed to this Report as Annexure-3. Further, particulars of Employees pursuant to Rule 5(2) & (3) of the above Rules, forms part of this Report. However, as per the provisions of Section 136 of the said Act, the Report and Accounts are being sent to all the Members of the Company and others entitled thereto, excluding the aforesaid information. Any Member interested in obtaining such particulars may write to the Company Secretary at the Registered Office of the Company. The said information is available for inspection at the Registered Office of the Company during working hours.
INTERNAL FINANCIAL CONTROLS
The Company has in place adequate internal financial controls with reference to financial statements and no material reportable weakness was observed in the system. Further, the Company has in place adequate internal financial controls commensurate with the size and nature of its operations. The Company also has robust Budgetary Control System and Management Information System (MIS) which is the backbone of the Company for ensuring that your Companyâs assets and interests are safeguarded.
DIRECTORSâ RESPONSIBILITY STATEMENT
As required under Section 134(3)(c) of the Companies Act, 2013, your Directors state that:-
(a) in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;
(b) the accounting policies have been selected and applied consistently and judgments and estimates made are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period;
(c) proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the said 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 a going concern basis;
(e) the internal financial controls to be followed by the Company have been laid down and that such internal financial controls are adequate and were operating effectively; and
(f) the proper systems to ensure compliance with the provisions of all applicable laws have been devised and that such systems were adequate and operating effectively.
CORPORATE GOVERNANCE
Your Company re-affirms its commitment to the highest standards of corporate governance practices. Pursuant to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 a Management Discussion and Analysis, Corporate Governance Report and Auditorsâ Certificate regarding compliance of conditions of Corporate Governance are made a part of this Report.
The Corporate Governance Report which forms part of this Report, also covers the following:
(a) Particulars of the four Board Meetings held during the financial year under review.
(b) Policy on Nomination and Remuneration of Directors, Key Managerial Personnel and Senior Management including, inter alia, the criteria for performance evaluation of Directors.
(c) The manner in which formal annual evaluation has been made by the Board of its own performance and that of its Committees and individual Directors.
(d) The details with respect to composition of Audit Committee and establishment of Vigil Mechanism.
(e) Details regarding Risk Management.
CONSERVATION OF ENERGY ETC.
As required under Section 134(3)(m) read with the Companies (Accounts) Rules, 2014, the requirement of furnishing particulars of energy conservation, technology absorption, etc. is not applicable to the Company. Further, particulars of Foreign Exchange Earning and Outgo are as under:-
i) Foreign Exchange earned : NIL
ii) Foreign Exchange Outgo : NIL
ACKNOWLEDGEMENTS
Your Directors wish to place on record and acknowledge their appreciation for the continued support and co-operation received from the various Government Authorities, Lending Institutions and the esteemed shareholders of the Company. The Directors also record their appreciation for the total dedication of the employees.
On behalf of the Board
BHARAT HARI SINGHANIA
New Delhi Chairman
Date: 8th June, 2017
Mar 31, 2016
The Directors have pleasure in presenting the 69th Annual Report
together with the Audited Financial Statements of the Company for the
year ended 31st March, 2016.
CORE INVESTMENT COMPANY
The Company is a Core Investment Company-Non Deposit
Taking-Systemically Important (CIC-ND-SI) registered with the Reserve
Bank of India (RBI) and has been complying with all the conditions
prescribed by RBI.
OPERATIONS & OUTLOOK
The Company achieved Profit after Tax of Rs, 2297.86 lacs for the year,
recording an increase of 11.74% over the previous year. The Company
(being a Core Investment Company), holds significant investments in
Group Companies which are engaged in diversified industrial segments.
Fiscal 2015-16 witnessed an unusual volatility in the international
economic environment. Fortunately, India stood out on the back of
economic stability. It''s macro economic outlook was founded on the
Central Government emphasis on achieving fiscal consolidation and
lowering inflation. As a result, the Indian economy recorded a slightly
higher GDP growth of 7.6%. There was an upturn, especially in the
manufacturing sector, which had a positive impact on the capital
markets.
The economic growth in the coming year is expected to be higher which
augurs well for the Indian industry. This should have a positive
impact on the working of the investee companies and the capital market
leading to better valuations.
DIVIDEND
The Directors have recommended the Interim Dividend of Rs, 10/- per
share (100%) paid by the Company during the financial year ended 31st
March, 2016, as Final Dividend for the financial year 2015-16.
APPROPRIATIONS
The amount available for appropriation, including surplus from previous
year is Rs, 4546.78 lacs. The Directors propose this to be appropriated
as under:
Transfer to Reserves (As per RBI guidelines) Rs, 459.57 Lacs
Interim Dividend Rs, 868.36 Lacs
Surplus carried to Balance Sheet Rs, 3218.85 Lacs
Total Rs, 4546.78 Lacs
EXTRACT OF ANNUAL RETURN
An extract of the Annual Return as on 31st March, 2016 in the
prescribed form MGT-9 is attached as Annexure-1 to this Report and
forms part of it.
PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS
The Company being a Core Investment Company registered with the Reserve
Bank of India, Section 186 of the Companies Act, 2013 is not applicable
to it. The particulars of loans, guarantees and investments are given
in the financial statements.
RELATED PARTY TRANSACTIONS
During the financial year ended 31st March, 2016, all the contracts or
arrangements or transactions entered into by the Company with the
Related Parties were in the ordinary course of business and on arms''
length basis and were in compliance with the applicable provisions of
the Companies Act, 2013 and the Listing Agreement.
Further, the Company has not entered into any contract or arrangement
or transaction with the related parties which could be considered
material in accordance with the policy of the Company on materiality of
the Related Party Transactions. In view of the above, disclosure in
Form AOC-2 is not applicable.
The Related Party Transactions Policy as approved by the Board is
available on the website of the Company.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
Your Directors express their profound grief and sorrow on the sad
demise of Shri Om Prakash Khaitan, Director of the Company, on 6th
December, 2015. He had joined the Company as an Independent Director in
the year 2009. Shri Khaitan was a Member of International Bar
Association, London and a renowned solicitor and an advocate in the
fields of commercial, corporate, industrial disputes & labour,
maritime, insurance laws, arbitration, convincing, foreign
collaborations, etc. Your Directors pay their respectful homage and
tribute to Shri O. P. Khaitan and highly valued his contribution in
Board deliberations with commitment and sincerity in the best interest
of various stakeholders.
Shri Sanjay Kumar Khaitan was appointed as an Independent Director of
the Company with effect from 25th January, 2016 for a term of five
consecutive years subject to approval of the members at the ensuing
AGM. Shri Khaitan has given declaration about his independence
pursuant to Section 149 of the Companies Act, 2013. The Company has
also received requisite Notice from a Member of the Company proposing
the name of Shri Sanjay Kumar Khaitan for appointment as Director at
the ensuing AGM. The Board of Directors recommends his appointment as
aforesaid.
Dr. Raghupati Singhania, retires by rotation and being eligible offers
himself for re-appointment at the ensuing AGM.
CONSOLIDATED FINANCIAL STATEMENTS
The Consolidated Financial Statements have been prepared by the Company
in accordance with the applicable Accounting Standards. The Audited
Consolidated Financial Statements together with Auditors'' Report form
part of the Annual Report.
A report on the performance and financial position of each of the
subsidiaries and associates, included in the Consolidated Financial
Statements is presented in a separate section in this Annual Report.
Please refer AOC-1 annexed to the Financial Statements in the Annual
Report.
Pursuant to the provisions of Section 136 of the Act, the financial
statements of the Company, Consolidated Financial Statements along with
relevant documents and separate audited accounts in respect of
subsidiaries are available on the website of the Company.
During the financial year under review, no company has become or ceased
to be your Company''s subsidiary. With the coming into effect of the
Companies Act, 2013, JK Lakshmi Cement Ltd., JK Tyre & Industries Ltd.,
JK Paper Ltd., JK Agri Genetics Ltd., Umang Dairies Ltd., Pranav
Investment (M.P.) Company Ltd., Dwarkesh Energy Ltd., Global Strategic
Technologies Ltd., Deepti Electronics & Electro-Optics Pvt. Ltd. and
PSV Energy Pvt. Ltd. have become associates of the Company.
DEPOSITS
The Company is a registered Non-Banking Finance Company and does not
accept public deposits and as required by the Reserve Bank of India
(RBI), the Board of Directors have also passed necessary resolution not
to accept public deposits during the financial year 2016-17, without
prior approval of RBI.
AUDITORS
(a) Statutory Auditors and their Report
M/s Lodha & Co., Chartered Accountants, have been appointed as Auditors
of the Company to hold the office from the conclusion of the 67th
Annual General Meeting until the conclusion of the 72nd Annual General
Meeting, subject to ratification of the appointment by the members at
the respective Annual General Meetings. Accordingly, being eligible,
matter relating to the appointment of the Auditors will be placed for
ratification by members at the forthcoming Annual General Meeting. The
observations of the Auditors in their report on Accounts and the
Financial Statements, read with the relevant notes are self
explanatory.
(b) Secretarial Auditor and Secretarial Audit Report
Pursuant to the provisions of Section 204 of the Companies Act, 2013,
the Board of Directors appointed Shri Namo Narain Agarwal, Company
Secretary in Practice as Secretarial Auditor to carry out Secretarial
Audit of the Company for the financial year 2015-16. The Report given
by him for the said financial year in the prescribed format is annexed
to this Report as Annexure 2. The Secretarial Audit Report does not
contain any qualification, reservation or adverse remark.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR
TRIBUNALS
During the financial year under review, there were no significant and
material orders passed by the Regulators or Courts or Tribunals which
would impact the going concern status of the Company and its future
operations.
PARTICULARS OF REMUNERATION
Information in accordance with the provisions of Section 197 of the
Companies Act, 2013 read with Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014 is annexed to this Report.
However, as per the provisions of Section 136 of the said Act, the
Report and Accounts are being sent to all the Members of the Company
and others entitled thereto, excluding the aforesaid information. Any
Member interested in obtaining such particulars may write to the
Company Secretary at the Registered Office of the Company. The said
information is available for inspection at the Registered Office of the
Company during working hours.
INTERNAL FINANCIAL CONTROLS
The Company has in place adequate internal financial controls with
reference to financial statements and no material reportable weakness
was observed in the system. Further, the Company has in place adequate
internal financial controls commensurate with the size and nature of
its operations. The Company also has robust Budgetary Control System
and Management Information System (MIS) which is the backbone of the
Company for ensuring that your Company''s assets and interests are
safeguarded.
DIRECTORS'' RESPONSIBILITY STATEMENT
As required under Section 134(3)(c) of the Companies Act, 2013, your
Directors state that:- (a) in the preparation of the annual accounts,
the applicable accounting standards have been followed along with
proper explanation relating to material departures;
(b) the accounting policies have been selected and applied consistently
and judgments and estimates made are reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company at the
end of the financial year and of the Profit and loss of the Company for
that period;
(c) proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
said 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 a going concern basis;
(e) the internal financial controls to be followed by the Company have
been laid down and that such internal financial controls are adequate
and were operating effectively; and
(f) the proper systems to ensure compliance with the provisions of all
applicable laws have been devised and that such systems were adequate
and operating effectively.
CORPORATE GOVERNANCE - including details pertaining to Board Meetings,
Nomination and Remuneration Policy, Performance Evaluation, Risk
Management, Audit Committee and Vigil Mechanism.
Your Company re-affrms its commitment to the highest standards of
corporate governance practices. Pursuant to SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 a Management Discussion
and Analysis, Corporate Governance Report and Auditors'' Certificate
regarding compliance of conditions of Corporate Governance are made a
part of this Report.
The Corporate Governance Report which forms part of this Report, also
covers the following:
(a) Particulars of the five Board Meetings held during the financial
year under review.
(b) Policy on Nomination and Remuneration of Directors, Key Managerial
Personnel and Senior Management including, inter-alia, the criteria for
performance evaluation of Directors.
(c) The manner in which formal annual evaluation has been made by the
Board of its own performance and that of its Committees and individual
Directors.
(d) The details with respect to composition of Audit Committee and
establishment of Vigil Mechanism.
(e) Details regarding Risk Management.
RISK AND CONCERNS
The Company is mainly exposed to capital market risks in the form of
change in value of its investments. The Company is also exposed to the
fluctuations of economy and industry cycles.
CAUTIONARY STATEMENT
The statement in this Management Discussion and Analysis Report,
describing the Company''s outlook, projections, estimates, expectations
may be "Forward-looking Statements" within the meaning of applicable
securities laws or regulations. Actual results could differ materially
from those expressed or implied.
CORPORATE SOCIAL RESPONSIBILITY
The requirement of Corporate Social Responsibility (CSR) in terms of
Section 135 of the Companies Act, 2013 and the rules made there under
is not applicable to the Company, since the Company''s main source of
income is dividend from CSR compliant companies.
CONSERVATION OF ENERGY ETC.
As required under Section 134(3)(m) read with the Companies (Accounts)
Rules, 2014 the requirement of furnishing particulars of energy
conservation, technology absorption, etc. is not applicable to the
Company. Further, particulars of Foreign Exchange Earning and Outgo are
as under:- i) Foreign Exchange earned : NIL ii) Foreign Exchange Outgo
: Rs, 34.52 Lacs
ACKNOWLEDGEMENTS
Your Directors wish to place on record and acknowledge their
appreciation for the continued support and co-operation received from
the various Government Authorities, Lending Institutions and the
esteemed Shareholders of the Company. The Directors also record their
appreciation for the total dedication of the employees.
On behalf of the Board
BHARAT HARI SINGHANIA
New Delhi Chairman
Date: 30th May, 2016
Mar 31, 2015
THE MEMBERS
The Directors have pleasure in presenting the 68th Annual Report
together with the Audited Financial Statements of the Company for the
year ended 31st March, 2015.
CORE INVESTMENT COMPANY
The Company is a Core Investment Company-Non Deposit
Taking-Systemically Important (CIC-ND-SI) registered with the Reserve
Bank of India (RBI) and has been complying with all the conditions
prescribed by RBI.
OPERATIONS & OUTLOOK
Total Revenue for the year under review was Rs. 3865.56 lacs and the
profit after tax was Rs. 2056.47 lacs. The Company, being a Core
Investment Company, holds significant investments in Group Companies
with a wide and diversified industrial segment, fortunes of which are
dependent upon prevailing economic conditions. Fiscal 2014-15 was
indeed a challenging year for the Indian economy. There was a partial
acceleration in some segments of the Indian economy. Inflationary
pressures also eased during the year. In addition, there was some
softening of interest rates leading to hopes of higher economic growth.
GDP growth during the year was 7.3%. The improving investment sentiment
along with lower inflation should rebound investment activities. This
should have positive impact on the working of the Investee Companies
and the capital market leading to better valuations.
DIVIDEND
Your Directors are pleased to recommend a dividend of Rs. 7 per Share
(70%) for the year ended 31st March 2015. The dividend outgo would
amount to Rs. 607.85 lacs.
APPROPRIATIONS
The amount available for appropriation, including surplus from previous
year is Rs. 3768.06 lacs. The Directors propose this to be appropriated
as under:
Transfer to Reserves (As per RBI guidelines) Rs. 411.29 Lacs
General Reserve Rs. 500.00 Lacs
Dividend Rs. 607.85 Lacs
Surplus carried to Balance Sheet Rs. 2248.92 Lacs
Total Rs. 3768.06 Lacs
EXTRACT OF ANNUAL RETURN
An extract of the Annual Return as on 31st March, 2015 in the
prescribed form MGT-9 is attached as Annexure-1 to this Report and
forms part of it.
PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS
The Company being a Core Investment Company registered with the Reserve
Bank of India, Section 186 of the Companies Act, 2013 is not applicable
to it. The particulars of loans, guarantees and investments are given
in the financial statements.
RELATED PARTY TRANSACTIONS
During the financial year ended 31st March, 2015, all the contracts or
arrangements or transactions entered into by the Company with the
Related Parties were in the ordinary course of business and on arms'
length basis and were in compliance with the applicable provisions of
the Companies Act, 2013 and the Listing Agreement.
Further, the Company has not entered into any contract or arrangement
or transaction with the related parties which could be considered
material in accordance with the policy of the Company on materiality of
the Related Party Transactions. In view of the above, disclosure in
Form AOC-2 is not applicable.
The Related Party Transactions Policy as approved by the Board is
available on the website of the Company.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
Your Directors express their profound grief and sorrow on the sad
demise of Shri Lajpat Rai Puri, Director of the Company, on 6th April,
2015. He was associated with the Company for a long time during its
initial years and joined the Company as Director on 2nd February, 2009.
He had held various senior management positions and had rich experience
of managing industrial and commercial enterprises. He was also the
President of the Institute of Company Secretaries of India and on the
Board of several other Companies. Your Directors pay their respectful
homage and tribute to Shri Lajpat Rai Puri and highly valued his
commitment and sincerity in the best interest of the Company till his
last day.
With enactment of the Companies Act, 2013, all the four Independent
Directors of the Company, namely, Shri Shailendra Swarup and Shri O.P.
Khaitan, each for a term of five consecutive years and Late Shri L.R.
Puri and Shri J.R.C. Bhandari, each for a term of three consecutive
years commencing from the date of the Annual General Meeting (AGM),
were appointed by the members at the AGM held on 2nd September, 2014
under Section 149 of the Act. All Independent Directors of the Company
have given declarations that they meet the criteria of independence as
provided in Section 149(6) of the Companies Act, 2013 and also Clause
49 of the Listing Agreement with the Stock Exchange.
Shri Bharat Hari Singhania, retires by rotation and being eligible
offers himself for re-appointment at the ensuing Annual General Meeting
(AGM).
Shri Bakul Jain was appointed as an Additional Independent Director of
the Company with effect from 16th May, 2015 for a term of five
consecutive years subject to approval of the members at the ensuing
AGM. Shri Bakul Jain has given declaration about his independence
pursuant to Section 149 of the Companies Act, 2013. The Company has
also received requisite Notice from a Member of the Company proposing
the name of Shri Bakul Jain for appointment as Director at the ensuing
AGM. The Board of Directors recommends his appointment as aforesaid.
Further, in terms of Section 203 of the Companies Act, 2013, Shri U.K.
Gupta, Manager and Chief Financial Officer and Shri Dillip Swain,
Company Secretary were appointed as "Key Managerial Personnel" of
the Company.
CONSOLIDATED FINANCIAL STATEMENTS
The Consolidated Financial Statements have been prepared by the Company
in accordance with the applicable Accounting Standards. The Audited
Consolidated Financial Statements together with Auditors' Report form
part of the Annual Report.
A report on the performance and financial position of each of the
subsidiaries and associates, included in the Consolidated Financial
Statements is presented in a separate section in this Annual Report.
Please refer AOC-1 annexed to the Financial Statements in the Annual
Report.
Pursuant to the provisions of Section 136 of the Act, the financial
statements of the Company, Consolidated Financial Statements alongwith
relevant documents and separate audited accounts in respect of
subsidiaries are available on the website of the Company.
During the financial year under review, no company has become or ceased
to be your Company's subsidiary. With the coming into effect of the
Companies Act 2013, JK Lakshmi Cement Ltd., JK Tyre & Industries Ltd.,
JK Paper Ltd., JK Agri Genetics Ltd., Umang Dairies Ltd., Pranav
Investment (M.P.) Company Ltd., Dwarkesh Energy Ltd., Global Strategic
Technologies Ltd., Deepti Electronics & Electro-Optics Pvt. Ltd. and
PSV Energy Pvt. Ltd. have become associates of the Company.
DEPOSITS
The Company is a registered Non-Banking Finance Company and does not
accept public deposits and as required by the Reserve Bank of India
(RBI), the Board of Directors have also passed necessary resolution not
to accept public deposits during the financial year 2015-16, without
prior approval of RBI.
AUDITORS
(a) Statutory Auditors and their Report
M/s Lodha & Co., Chartered Accountants, have been appointed as Auditors
of the Company to hold the office from the conclusion of the 67th
Annual General Meeting held on 2nd September, 2014 until the conclusion
of the 72nd Annual General Meeting to be held in the Year 2019, subject
to ratification of the appointment by the members at the respective
AGMs to be held in the years 2015, 2016, 2017 and 2018. Accordingly,
being eligible, matter relating to the appointment of the Auditors will
be placed for ratification by members at the forthcoming Annual General
Meeting. The observations of the Auditors in their report on Accounts
and the Financial Statements, read with the relevant notes are self
explanatory.
(b) Secretarial Auditor and Secretarial Audit Report
Pursuant to the provisions of Section 204 of the Companies Act, 2013,
the Board of Directors appointed Shri Namo Narain Agarwal, Company
Secretary in Practice as Secretarial Auditor to carry out Secretarial
Audit of the Company for the financial year 2014-15. The Report given
by him for the said financial year in the prescribed format is annexed
to this Report as Annexure-2. The Secretarial Audit Report does not
contain any qualification, reservation or adverse remark.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR
TRIBUNALS
During the financial year under review, there were no significant and
material orders passed by the Regulators or Courts or Tribunals which
would impact the going concern status of the Company and its future
operations.
PARTICULARS OF REMUNERATION
During the period under review, the Company had no employee in the
category of Section 197 of the Companies Act, 2013 read with Rule 5 (2)
of the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014. Information in accordance with the provisions of Section
197 of the Companies Act, 2013 read with Rule 5 (1) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 is
annexed to this Report. However, as per the provisions of Section 136
of the said Act, the Report and Accounts are being sent to all the
members of the Company and others entitled thereto, excluding the
aforesaid information. Any member interested in obtaining such
particulars may write to the Company Secretary at the Registered Office
of the Company. The said information is available for inspection at the
Registered Office of the Company during working hours.
INTERNAL FINANCIAL CONTROLS
The Company has in place adequate internal financial controls with
reference to financial statements and no material reportable weakness
was observed in the system. Further, the Company has in place adequate
internal financial controls commensurate with the size and nature of
its operations. The Company also has robust Budgetary Control System
and Management Information System (MIS) which is the backbone of the
Company for ensuring that your Company's assets and interests are
safeguarded.
DIRECTORS' RESPONSIBILITY STATEMENT
As required under Section 134(3)(c) of the Companies Act, 2013, your
Directors state that:-
(a) in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures;
(b) the accounting policies have been selected and applied consistently
and judgments and estimates made are reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company at the
end of the financial year and of the profit and loss of the Company for
that period;
(c) proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
said 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 a going concern basis;
(e) the internal financial controls to be followed by the Company have
been laid down and that such internal financial controls are adequate
and were operating effectively; and
(f) the proper systems to ensure compliance with the provisions of all
applicable laws have been devised and that such systems were adequate
and operating effectively.
CORPORATE GOVERNANCE - including details pertaining to Board Meetings,
Nomination and Remuneration Policy, Performance Evaluation, Risk
Management, Audit Committee and Vigil Mechanism.
Your Company re-affirms its commitment to the highest standards of
corporate governance practices. Pursuant to Clause 49 of the Listing
Agreement with the Stock Exchange, a Management Discussion and
Analysis, Corporate Governance Report and Auditors' Certificate
regarding compliance of conditions of Corporate Governance are made a
part of this Report.
The Corporate Governance Report which forms part of this Report, also
covers the following:
(a) Particulars of the four Board Meetings held during the financial
year under review.
(b) Policy on Nomination and Remuneration of Directors, Key Managerial
Personnel and Senior Management including, inter alia, the criteria for
performance evaluation of Directors.
(c) The manner in which formal annual evaluation has been made by the
Board of its own performance and that of its Committees and individual
Directors.
(d) The details with respect to composition of Audit Committee and
establishment of Vigil Mechanism.
(e) Details regarding Risk Management.
RISK AND CONCERNS
The Company is mainly exposed to capital market risks in the form of
change in value of its investments. The Company is also exposed to the
fluctuations of economy and industry cycles.
CAUTIONARY STATEMENT
The statement in this Management Discussion and Analysis Report,
describing the Company's outlook, projections, estimates,
expectations may be "Forward-looking Statements" within the meaning
of applicable securities laws or regulations. Actual results could
differ materially from those expressed or implied.
CORPORATE SOCIAL RESPONSIBILITY
The requirement of Corporate Social Responsibility (CSR) in terms of
Section 135 of the Companies Act, 2013 and the rules made thereunder is
not applicable to the Company, since the Company's main source of
income is dividend from CSR compliant companies.
CONSERVATION OF ENERGY ETC.
As required under Section 134(3)(m) read with the Companies (Accounts)
Rules, 2014 the requirement of furnishing particulars of energy
conservation, technology absorption, etc. is not applicable to the
Company. Further, particulars of Foreign Exchange Earning and Outgo are
as under:-
i) Foreign Exchange earned : NIL
ii) Foreign Exchange Outgo : Rs. 10.15 Lacs
ACKNOWLEDGEMENTS
Your Directors wish to place on record and acknowledge their
appreciation for the continued support and co-operation received from
the Government Authorities, Lending Institutions and the esteemed
shareholders of the Company. The Directors also record their
appreciation for the total dedication of the employees.
On behalf of the Board
New Delhi BHARAT HARI SINGHANIA
05th August, 2015 Chairman
Mar 31, 2014
The Directors have pleasure in presenting the 67th Annual Report
together with the Audited Accounts of the Company for the year ended
31st March 2014.
CORE INVESTMENT COMPANY
The Company is a Core Investment Company-Non Deposit
Taking-Systemically Important (CIC-ND-SI) registered with the Reserve
Bank of India (RBI) and has been complying with all the conditions
prescribed by RBI.
OPERATIONS & OUTLOOK
Total Revenue for the year under review was Rs. 9703.02 lacs and the
profit after tax at Rs. 3918.59 lacs. The Company, being a Core
Investment Company, holds significant investments in Group Companies
with a wide and diversified industrial segment, fortunes of which are
dependent upon prevailing economic conditions. It is widely perceived
that the tight monetary policy pursued by the Reserve Bank of India for
curtailing inflationary pressure has impacted economic growth. With a
stable government in place, easing of the inflationary pressure and
concern for industrial and economic growth in particular, the coming
days may see begining of recovery in the Economy. This should have
positive impact on the working of the investee companies and the
capital market leading to better valuations.
DIVIDEND
Your Directors are pleased to recommend a dividend of Rs. 5 per Share
(50%) for the year ended 31st March 2014. The dividend outgo would
amount to Rs. 434.17 lacs.
DIRECTORS
Smt. Vinita Singhania, retires by rotation at the ensuing Annual
General meeting of the Company and being eligible, offers herself for
re-appointment. Shri O.P. Khaitan and Shri Shailendra Swarup also
retire by rotation at the ensuing Annual General Meeting and being
eligible are proposed to be appointed as Independent Directors for a
term of five consecutive years commencing from the date of ensuing
Annual General Meeting. Shri L.R. Puri and Shri J.R.C. Bhandari whose
period of office is liable to determination by retirement of Directors
by rotation are also proposed to be appointed as Independent Directors
for three consecutive years commencing from the date of ensuing Annual
General Meeting. The Company has received declarations from the
aforesaid Independent Directors about their Independence pursuant to
Section 149 of the Companies Act, 2013.
SUBSIDIARY COMPANIES
The annual accounts of the subsidiary companies have been consolidated
and the Statement pursuant to Section 212 of the Companies Act, 1956
read with General Circular No. 51/12/2007-CL-III dated 8th February
2011 of the Ministry of Corporate Affairs, containing details of the
subsidiary companies is attached. The particulars required under the
provisions of the Companies Act, 1956 in respect of subsidiary
companies are appended.
In terms of the said Circular dated 8th February, 2011, and the Company
having satisfied the conditions stipulated therein, copies of the
Balance Sheets, Profit & Loss Statements, Reports of the Board of
Directors and the Auditors, etc. of all the subsidiary companies have
not been attached to the Balance Sheet of the Company. However, the
annual accounts of the subsidiary companies and the related detailed
information will be made available to the members of the Company and of
the subsidiary companies, seeking such information at any point of
time. The annual accounts of the subsidiary companies are also
available for inspection by any member at the Registered/Head office of
the Company and that of the subsidiary Companies concerned.
AUDITORS
M/s Lodha & Co., Chartered Accountants, Auditors of the Company, retire
and are eligible for re-appointment. The observations of the Auditors
in their Report on Accounts read with the relevant notes are self
explanatory.
DIRECTORS'' RESPONSIBILITY STATEMENT
As required under Section 217(2AA) of the Companies Act 1956, your
Directors state that-
- in the preparation of the Annual Accounts, the applicable Accounting
Standards have been followed along with proper explanation relating to
material departures;
- the accounting policies have been selected and applied consistently
and judgments and estimates made are reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company at the
end of the financial year and of the profit or loss of the Company for
that period;
- proper and sufficient care has been taken for maintenance of adequate
accounting records in accordance with the provisions of the said Act
for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities; and
- the annual accounts have been prepared on a going concern basis.
CORPORATE GOVERNANCE
Your Company reaffirms its commitment to good corporate governance
practices. Pursuant to Clause 49 of the Listing Agreement with the
Stock Exchanges, Management Discussion and Analysis, Corporate
Governance Report and Auditors'' Certificate regarding compliance of
conditions of Corporate Governance are made a part of this Annual
Report.
RISK AND CONCERNS
The Company is mainly exposed to capital market risks in the form of
change in value of its investments. The Company is also exposed to the
fluctuations of economy and industry cycles.
ADEQUACY OF INTERNAL CONTROL SYSTEM
The Company''s internal control system and procedures are commensurate
with the size of operation and are adequate to ensure safeguarding its
assets and resources against loss, unauthorized use or disposition,
compliance with the statutes and regulatory policies and framework and
all transactions are authorized, recorded and reported correctly.
The group Internal Audit department evaluates the functioning and
quality of internal control and provides assurance of periodic
reporting. The Audit Committee reviews the Internal Audit Reports and
the adequacy on regular basis which also acts as a tool for minimizing
any possible risks in the operations of the Company.
CAUTIONARY STATEMENT
The statement in this Management Discussion and Analysis Report,
describing the Company''s outlook, projections, estimates, expectations
may be "Forward-looking Statements" within the meaning of applicable
securities laws or regulations. Actual results could differ materially
from those expressed or implied.
PARTICULARS OF EMPLOYEES
During the period under review, the Company had no employee in the
category specified under Section 217(2A) of the Companies Act 1956.
CORPORATE SOCIAL RESPONSIBILITY
The requirement of Corporate Social Responsibility (CSR) in terms of
Section 135 of the Companies Act, 2013 and the rules made thereunder is
not applicable to the Company, since the Company''s main source of
income is dividend from CSR compliant companies.
INFORMATION PURSUANT TO SECTION 217 (1)(E) OF THE COMPANIES ACT 1956.
The requirement of furnishing particulars of energy conservation,
technology absorption, etc. is not applicable to the Company.
Particulars of Foreign Exchange Earning and Outgo:
i) Foreign Exchange earned : NIL
ii) Foreign Exchange Outgo : Rs. 8.12 Lacs
ACKNOWLEDGEMENTS
Your Directors wish to place on record and acknowledge their
appreciation for the continued support and co-operation received from
the Government Authorities, Lending Institutions and the esteemed
shareholders of the Company. The Directors also record their
appreciation for the total dedication of the employees.
On behalf of the Board
New Delhi BHARAT HARI SINGHANIA
27th May, 2014 Chairman
Mar 31, 2013
TO THE MEMBERS
The Directors have pleasure in presenting the 66th Annual Report
together with the Audited Accounts of the Company for the year ended
31st March 2013.
CORE INVESTMENT COMPANY
The Company is a Core Investment Company-Non Deposit
Taking-Systemically Important (CIC-ND-SI) registered with the Reserve
Bank of India (RBI) and has been complying with all the conditions
prescribed by RBI.
OPERATIONS & OUTLOOK
Total Revenue for the year under review was Rs. 29.52 crore and the
profit after tax at Rs. 12.58 crore. The Company, being a Core
Investment Company, holds significant investments in Group Companies
with a wide and diversified industrial segment, fortunes of which are
dependent upon prevailing economic conditions. It is widely perceived
that the tight monetary policy pursued by the Reserve Bank of India for
curtailing inflationary pressure has impacted economic growth. With
easing of the inflationary pressure and concern for industrial and
economic growth in particular, the coming days may see softening of the
monetary policy. This should have positive impact on the working of the
investee companies and the capital market leading to better valuations.
DIVIDEND
Your Directors are pleased to recommend a dividend of Rs. 4 per Share
(40%) for the year ended 31st March 2013. The dividend outgo would
amount to Rs. 347.34 lacs.
DIRECTORS
Your Directors express their profound grief and sorrow on the sad
demise of Shri Hari Shankarji Singhania, on 22nd February 2013. He was
associated with the Company for long time during its initial year and
joined the Board of Directors of the Company as Chairman in the year
2009. Shri Hari Shankarji who joined JK Organisation at the Young age
of 18 years learned the ropes of business under his illustrious father
late Lala Lakshmipatji. He held several positions, before assuming the
Chairmanship of various J.K.Group of Companies and JK Organisation.
Shri Singhania contributed immensely not only in the growth of your
Company but also in the growth of industrialization and economic
development of India for which he received numerous prestigious Indian
& International awards and recognitions. Your Directors pay their
respectful homage and tribute to this extraordinary human being, a
great leader, an iconic industrialist and a leading statesman.
The Board of Directors at its meeting held on 29th May 2013 appointed
Shri Bharat Hari Singhania as Chairman of the Board of Directors of the
Company. He shall now be the Chairman of the Company.
The Board has appointed Shri Ashok Kumar Kinra as Additional Director
of the Company w.e.f. 13th June 2013. He shall hold office upto the
date of the ensuing Annual General Meeting (AGM). The Company has
received requisite Notice from a Member under Section 257 of the
Companies Act, 1956 proposing the name of Shri Ashok Kumar Kinra for
appointment as Director liable to retire by rotation at the AGM. The
Board of Directors commends his appointment as aforesaid.
Shri Bharat Hari Singhania, and Dr. Raghupati Singhania retire by
rotation at the forthcoming Annual General meeting of the Company and
being eligible, offer themselves for re-appointment.
SUBSIDIARY COMPANIES
The annual accounts of the subsidiary companies, namely, Fenner (India)
Ltd., Southern Spinners & Processors Ltd., Modern Cotton Yarn Spinners
Ltd., Acorn Engineering Ltd., BMF Investments Ltd., Panchmahal
Properties Ltd., LVP Foods Pvt. Ltd. and Divyashree Company Pvt. Ltd.
have been consolidated and the Statement pursuant to Section 212 of the
Companies Act, 1956 read with General Circular No. 51/12/2007-CL-III
dated 8th February 2011 of the Ministry of Corporate Affairs,
containing details of the subsidiary companies is attached. The
particulars required under the provisions of the Companies Act, 1956 in
respect of subsidiary companies are appended.
In terms of the said Circular dated 8th February, 2011, and the Company
having satisfied the conditions stipulated therein, copies of the
Balance Sheets, Profit & Loss Statements, Reports of the Board of
Directors and the Auditors, etc. of all the aforesaid subsidiary
companies have not been attached to the Balance Sheet of the Company.
However, the annual accounts of the subsidiary companies and the
related detailed information willl be made available to the members of
the Company and of the subsidiary companies, seeking such information
at any point of time. The annual accounts of the subsidiary companies
are also available for inspection by any member at the Registered /
Head office of the Company and that of the subsidiary Companies
concerned.
AUDITORS
M/s Lodha & Co., Chartered Accountants, Auditors of the Company, retire
and are eligible for re-appointment. The observations of the Auditors
in their Report on Accounts read with the relevant notes are self
explanatory.
DIRECTORS'' RESPONSIBILITY STATEMENT
As required under Section 217(2AA) of the Companies Act 1956, your
Directors state that-
- in the preparation of the Annual Accounts, the applicable
Accounting Standards have been followed along with proper explanation
relating to material departures;
- the accounting policies have been selected and applied consistently
and judgements and estimates made are reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company at the
end of the financial year and of the profit or loss of the Company for
that period;
- proper and sufficient care has been taken for maintenance of
adequate accounting records in accordance with the provisions of the
said Act for safeguarding the assets of the Company and for preventing
and detecting fraud and other irregularities; and
- the annual accounts have been prepared on a going concern basis.
CORPORATE GOVERNANCE
Your Company reaffirms its commitment to good corporate governance
practices. Pursuant to Clause 49 of the Listing Agreement with the
Stock Exchanges, Management Discussion and Analysis, Corporate
Governance Report and Auditors'' Certificate regarding compliance of
conditions of Corporate Governance are made a part of this Annual
Report.
RISK AND CONCERNS
The Company is mainly exposed to capital market risks in the form of
change in value of its investments. The Company is also exposed to the
fluctuations of economy and industry cycles.
ADEQUACY OF INTERNAL CONTROL SYSTEM
The Company''s internal control system and procedures are commensurate
with the size of operation and are adequate to ensure safeguarding its
assets and resources against loss, unauthorized use or disposition,
compliance with the statutes and regulatory policies and framework and
all transactions are authorized, recorded and reported correctly.
The group Internal Audit department evaluates the functioning and
quality of internal control and provides assurance of periodic
reporting. The Audit Committee reviews the Internal Audit Reports and
the adequacy on regular basis which also acts as a tool for minimizing
any possible risks in the operations of the Company.
CAUTIONARY STATEMENT
The statement in this Management Discussion and Analysis Report,
describing the Company''s outlook, projections, estimates,
expectations may be "Forward-looking Statements" within the meaning
of applicable securities laws or regulations. Actual results could
differ materially from those expressed or implied.
PARTICULARS OF EMPLOYEES
During the period under review, the Company had no employee in the
category specified under Section 217(2A) of the Companies Act 1956.
INFORMATION PURSUANT TO SECTION 217(1)(e) OF THE COMPANIES ACT, 1956.
The requirement of furnishing particulars of energy conservation,
technology absorption, etc. is not applicable to the Company.
Particulars of Foreign Exchange Earning and Outgo:
i) Foreign Exchange earned : Nil
ii) Foreign Exchange Outgo : Rs. 8.12 Lacs
ACKNOWLEDGEMENTS
Your Directors wish to place on record and acknowledge their
appreciation for the continued support and co-operation received from
the Government Authorities, Lending Institutions and the esteemed
shareholders of the Company. The Directors also record their
appreciation for the total dedication of the employees.
On behalf of the Board
New Delhi BHARAT HARI SINGHANIA
13th June, 2013 Chairman
Mar 31, 2012
The Directors have pleasure in presenting the 65th Annual Report
together with the Audited Accounts of the Company for the year ended
31st March 2012.
CORE INVESTMENT COMPANY
The Company has been granted Certificate of Registration as a Core
Investment Company-Non Deposit Taking-Systemically Important
(CIC-ND-SI) from Reserve Bank of India (RBI) on 17th November 2011. The
Company is complying with all the conditions prescribed by RBI.
OPERATIONS & OUTLOOK
Total revenue for the year under review was Rs 28.20 crore and the
profit after tax Rs 14.65 crore derived from a mix of the investments
and other income. The Company, being Core Investment Company, holds
significant investments in Group Companies with diversified businesses.
The year under review witnessed improvements in the performance of most
of the investee companies and the Company is looking forward to a
sustainable growth and growing opportunities in its investee companies
in the coming years.
DIVIDEND
Your Directors are pleased to recommend a dividend of Rs 4 per Share
(40%) for the year ended 31st March 2012. The dividend outgo would
amount to Rs 347.34 lacs.
DIRECTORS
Shri Hari Shankar Singhania, Shri L.R. Puri and Shri J.R.C. Bhandari
retire by rotation at the forthcoming Annual General Meeting of the
Company and being eligible, offer themselves for re-appointment.
SUBSIDIARY COMPANIES
The annual accounts of the subsidiary companies, namely, Fenner (India)
Ltd., Southern Spinners & Processors Ltd., Modern Cotton Yarn Spinners
Ltd., Acorn Engineering Ltd., BMF Investments Ltd., Panchmahal
Properties Ltd., LVP Foods Pvt. Ltd. and Divyashree Company Pvt. Ltd.
have been consolidated and the Statement pursuant to Section 212 of the
Companies Act, 1956 read with General Circular No. 51/12/2007-CL-III
dated 8th February 2011 of the Ministry of Corporate Affairs,
containing details of the subsidiary companies is attached. During the
year under review, Dwarkesh Energy Ltd. ceased to be a subsidiary of
the Company. The particulars required under the provisions of the
Companies Act, 1956 in respect of subsidiary companies are appended.
In terms of the said Circular dated 8th February, 2011, and the Company
having satisfied the conditions stipulated therein, copies of the
Balance Sheets, Profit & Loss Accounts, Reports of the Board of
Directors and the Auditors, etc. of all the aforesaid subsidiary
companies have not been attached to the Balance Sheet of the Company.
However, the annual accounts of the subsidiary companies and the
related detailed information will be made available to the members of
the Company and of the subsidiary companies, seeking such information
at any point of time. The Annual Accounts of the subsidiary companies
are also available for inspection by any member at the Registered/Head
office of the Company and that of the subsidiary Companies concerned.
AUDITORS
M/s Lodha & Co., Chartered Accountants, Auditors of the Company, retire
and are eligible for re-appointment. The observations of the Auditors
in their Report on Accounts read with the relevant notes are self
explanatory.
DIRECTORS' RESPONSIBILITY STATEMENT
As required under Section 217(2AA) of the Companies Act, 1956, your
Directors state that-
- in the preparation of the Annual Accounts, the applicable
Accounting Standards have been followed along with proper explanation
relating to material departures;
- the accounting policies have been selected and applied consistently
and judgements and estimates made are reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company at the
end of the financial year and of the profit or loss of the Company for
the financial year ended 31st March 2012;
- proper and sufficient care has been taken for maintenance of
adequate accounting records in accordance with the provisions of the
said Act for safeguarding the assets of the Company and for preventing
and detecting fraud and other irregularities; and
- the annual accounts have been prepared on a going concern basis.
CORPORATE GOVERNANCE
Your Company reaffirms its commitment to good corporate governance
practices. Pursuant to Clause 49 of the Listing Agreement with the
Stock Exchanges, Management Discussion and Analysis, Corporate
Governance Report and Auditors' Certificate regarding compliance of
conditions of Corporate Governance are made a part of this Annual
Report.
RISK AND CONCERNS
The Company is mainly exposed to capital market risks in the form of
change in value of its investments. The Company is also exposed to the
fluctuations of economy and industry cycles.
ADEQUACY OF INTERNAL CONTROL SYSTEM
The Company's internal control system and procedures are commensurate
with the size of operation and are adequate to ensure safeguarding its
assets and resources against loss, unauthorized use or disposition,
compliance with the statutes and regulatory policies and framework and
all transactions are authorized, recorded and reported correctly.
The group Internal Audit department evaluates the functioning and
quality of internal control and provides assurance of periodic
reporting. The Audit Committee reviews the Internal Audit Reports and
the adequacy on regular basis which also acts as a tool for minimizing
any possible risks in the operations of the Company.
CAUTIONARY STATEMENT
The statement in this Management Discussion and Analysis Report,
describing the Company's outlook, projections, estimates, expectations
may be "Forward-looking Statements" within the meaning of applicable
securities laws or regulations. Actual results could differ materially
from those expressed or implied.
PARTICULARS OF EMPLOYEES
During the period under review, the Company had no employee in the
category specified under Section 217(2A) of the Companies Act, 1956.
INFORMATION PURSUANT TO SECTION 217(1)(e) OF THE COMPANIES ACT, 1956.
The requirement of furnishing particulars of energy conservation,
technology absorption, etc. is not applicable to the Company.
Particulars of Foreign Exchange Earning and Outgo:
i) Foreign Exchange earned : Nil
ii) Foreign Exchange Outgo : Rs 8.12 Lacs
ACKNOWLEDGEMENTS
Your Directors wish to place on record and acknowledge their
appreciation for the continued support and co-operation received from
the Government Authorities, Lending Institutions and the esteemed
Shareholders of the Company. The Directors also record their
appreciation for the total dedication of the Employees.
On behalf of the Board
New Delhi HARI SHANKAR SINGHANIA
19th May, 2012 Chairman
Mar 31, 2011
The Directors have pleasure in presenting the 64th Annual Report
together with the Audited Accounts of the Company for the year ended
31st March 2011.
FINANCIAL RESULTS
Rs. in Lacs
31.03.2011 31.03.2010
Profit before Depreciation and Tax 3,070.22 2,661.00
Profit after Tax 2,921.35 2403.75
Surplus brought forward 1,538.07 1,332.16
Amount available for appropriation 4,459.42 3,735.91
Appropriations:
Transfer to Reserve 584.27 480.75
Transfer to General Reserve 2,000.00 1,500.00
Dividend including Dividend Tax 347.34 217.09
Surplus carried to Balance Sheet 1,527.81 1,538.07
4,459.42 3,735.91
The Companys improved performance is due to overall improvement in the
working of the group companies, in which the Company has its major
investments.
DIVIDEND
Your Directors are pleased to recommend a dividend of Rs. 4.00 per
Share (40%) for the year ended 31st March 2011 as compared to Rs. 2.50
per share (25%) in the previous year. The dividend outgo for the year
would amount to Rs. 347.34 lacs.
SYSTEMICALLY IMPORTANT CORE INVESTMENT COMPANY
In view of the recent notification issued by the Reserve Bank of India
in January, 2011, for "Core Investment Companies", the earlier
guidelines pertaining to Systemically Important Non-Deposit Taking
Non-Banking Finance Company are no more applicable to the Company.
Now, the Company falls under the category of Systemically Important
Core Investment Company (CIC-ND-SI). Accordingly, application has been
made to Reserve Bank of India for registration of the Company as
CIC-ND-SI. This will help the Company in raising funds and expand its
operations.
PROSPECTS
As the Companys assets broadly consists of equity investment and
investments in liquid and secured instruments, the Company looks
forward to stable growth with the Indian Economy poised to achieve 8-9%
growth in GDP.
DIRECTORS
Smt.Vinita Singhania, Shri O.P. Khaitan and Shri Shailendra Swarup
retire by rotation at the forthcoming Annual General meeting of the
Company and being eligible, offer themselves for re-appointment.
SUBSIDIARY COMPANIES
The annual accounts of the subsidiary companies, namely, Fenner (India)
Ltd., Southern Spinners & Processors Ltd., Modern Cotton Yarn Spinners
Ltd., Acorn Engineering Ltd., BMF Investments Ltd., Panchmahal
Properties Ltd., LVP Foods Pvt. Ltd. and Dwarkesh Energy Ltd. have been
consolidated and the Statement pursuant to Section 212
of the Companies Act, 1956 read with General Circular
No.51/12/2007-CL-III dated 8th February 2011 of the Ministry of
Corporate Affairs, containing details of the subsidiary companies is
attached.
In terms of the said Circular, copies of the Balance Sheets, Profit &
Loss Accounts, Reports of the Board of Directors and the Auditors, etc.
of the aforesaid subsidiary companies have not been attached to the
Balance Sheet of the Company. However, the annual accounts of the
subsidiary companies shall be made available to the Shareholders of the
Company and that of the subsidiary companies, seeking such information
at any point of time and kept open for inspection at the Registered
office of the Company and that of the Subsidiary Companies.
AUDITORS
M/s. Lodha & Co., Chartered Accountants, Auditors of the Company retire
and eligible for re-appointment. The observations of the Auditors in
their Report on Accounts have been suitably explained in the relevant
notes to the Accounts.
DIRECTORS RESPONSIBILITY STATEMENT
As required under Section 217(2AA) of the Companies Act, 1956, your
Directors state thatÃ
- in the preparation of the Annual Accounts, the applicable Accounting
Standards have been followed along with proper explanation relating to
material departures in the financial statement;
- the accounting policies selected and applied are consistent and
judgements and estimates made are reasonable and prudent so as to give
a true and fair view of the state of affairs of the Company at the end
of the financial year and of the profit or loss of the Company for the
financial year ended 31st March 2011;
- proper and sufficient care has been taken for maintenance of adequate
accounting records in accordance with the provisions of the said Act
for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities; and
- the annual accounts have been prepared on a going concern basis.
CORPORATE GOVERNANCE
Your Company reaffirms its commitment to good corporate governance
practices. Pursuant to Clause 49 of the Listing Agreement with the
Stock Exchanges, Management Discussion and Analysis, Corporate
Governance Report and Auditors Certificate regarding compliance of
conditions of Corporate Governance are made a part of this Annual
Report.
PARTICULARS OF EMPLOYEES
During the period under review, the Company had no employee in the
category specified under Section 217(2A) of the Companies Act, 1956.
INFORMATION PURSUANT TO SECTION 217 (1) (E) OF THE COMPANIES ACT, 1956
The requirement of furnishing particulars of energy conservation,
technology absorption, etc. is not applicable to the Company. There has
been no foreign exchange earnings, or outgo during the year.
FIXED DEPOSITS
The Company is registered with the Reserve Bank of India (RBI) as a
Non-Banking Finance Company and does not accept public deposits and as
required by the RBI, the Directors have also passed necessary
resolution for not accepting public deposits, without prior approval of
RBI.
ACKNOWLEDGEMENTS
The Directors wish to acknowledge the continued support and
co-operation received from Government agencies, Lending Institutions
and the esteemed shareholders of the Company. The Directors also record
their appreciation for the total dedication of the employees.
On behalf of the Board
HARI SHANKAR SINGHANIA
Chairman
New Delhi
26th May, 2011
Mar 31, 2010
The Directors have pleasure in presenting the 63rd Annual Report
together with the Audited Accounts of the Company for the year ended
31st March 2010.
The Company is observing this year as the Birth Centenary Year to pay
humble respects, to Late Lala Lakshmipat Singhania (1910-1976), who had
been a great Visionary and a Key Architect of JK Organisation. He
believed in the philosophy of inclusive growth encompassing all
sections of the Society. The CompanyÃs best all round performance in
the current year is a befitting tribute to the great Founder.
FINANCIAL RESULTS
Rs. in Lacs
31.03.2010 31.03.2009
Profit before Depreciation and Tax 2,661.00 1,391.87
Profit after Tax 2,403.75 1,288.37
Surplus brought forward 1,332.16 1,932.26
Amount available for appropriation 3,735.91 3,220.63
Appropriations:
Transfer to Reserve 480.75 257.67
Transfer to General Reserve 1,500.00 1,500.00
Dividend including Dividend Tax 217.09 130.80
Surplus carried to Balance Sheet 1,538.07 1,332.16
3,735.91 3,220.63
There has been a significant improvement in the performance of the
Company on account of higher dividends received and profit on sale of
investments.
DIVIDEND
The Directors are pleased to recommend a dividend of Rs.2.50 per Share
(25%) on the Equity Share Capital of Rs. 8.68 Crores (86,83,553 Equity
Shares of Rs. 10 each) for the year ended 31st March 2010. The dividend
outgo would amount to Rs.217.09 lacs.
PROSPECTS
The capital market recovered steadily in 2009-10. With the Indian
economy poised to achieve 9% growth in GDP, the capital market is
expected to remain buoyant in the coming year. This augurs well for the
Company.
DIRECTORS
Shri Hari Shankar Singhania, Shri Bharat Hari Singhania and Dr.
Raghupati Singhania, retire by rotation at the forthcoming Annual
General meeting of the Company and being eligible, offer themselves for
re-appointment.
CONSOLIDATED ACCOUNTS
Pursuant to Accounting Standard (AS-21), consolidated financial
statements are being presented by the Company for the period under
report. In terms of approval granted by the Central Government under
Section 212(8) of the Companies Act 1956, copies of the Balance Sheets,
Profit & Loss Accounts, Reports of the Board of Directors and the
Auditors, etc. of the subsidiary companies, namely, Fenner (India)
Ltd., Southern Spinners & Processors Ltd., Modern Cotton Yarn Spinners
Ltd., Acorn Engineering Ltd., BMF Investments Ltd. (w.e.f 19th
September 2009), Panchmahal Properties Ltd., LVP Foods Pvt. Ltd. and
Dwarkesh Energy Ltd. have not been attached to the Balance Sheet of
the Company. These documents/details have been posted on the
website of the Company and will be made available upon request by the
members.
AUDITORS
M/s. J.S. Lodha & Co., Chartered Accountants, Auditors of the Company,
retire at the present Annual General Meeting (AGM). The said Auditors
have expressed their unwillingness for re-appointment at the said AGM.
The Board of Directors of the Company recommends appointment of M/s.
Lodha & Co., Chartered Accountants, New Delhi, as Auditors of the
Company from the conclusion of this AGM till the next AGM.
The observations of the Auditors in their Report on Accounts have been
suitably explained in the relevant notes to the Accounts.
DIRECTORSÃ RESPONSIBILITY STATEMENT
As required under Section 217(2AA) of the Companies Act 1956, your
Directors state thatÃ
- in the preparation of the Annual Accounts, the applicable Accounting
Standards have been followed along with proper explanation relating to
material departures;
- the accounting policies selected and applied are consistent and
judgements and estimates made are reasonable and prudent so as to give
a true and fair view of the state of affairs of the Company at the end
of the financial year and of the profit or loss of the Company for the
financial year ended 31st March 2010;
- proper and sufficient care has been taken for maintenance of adequate
accounting records in accordance with the provisions of the said Act
for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities; and
- the annual accounts have been prepared on a going concern basis.
CORPORATE GOVERNANCE
Your Company reaffirms its commitment to good corporate governance
practices. Pursuant to Clause 49 of the Listing Agreement with the
Stock Exchanges, Management Discussion and Analysis, Corporate
Governance Report and Auditorsà Certificate regarding compliance of
conditions of Corporate Governance are made a part of this Annual
Report.
PARTICULARS OF EMPLOYEES
During the period under review, the Company had no employee in the
category specified under Section 217(2A) of the Companies Act 1956.
INFORMATION PURSUANT TO SECTION 217 (1)(E) OF THE COMPANIES ACT 1956
The requirement of furnishing particulars of energy conservation,
technology absorption, etc. is not applicable to the Company. There has
been no foreign exchange earning or outgo during the year.
FIXED DEPOSITS
The Company is registered with the Reserve Bank of India(RBI) as a
Non-Banking Finance Company and does not accept public deposits and as
required by the RBI, the Board of Directors have also passed necessary
resolution for not accepting public deposits, without prior approval of
RBI.
ACKNOWLEDGEMENTS
The Directors wish to acknowledge the continued support and
co-operation received from Government agencies, Lending Institutions
and the esteemed shareholders of the Company. The Directors also record
their appreciation for the total dedication of the employees.
On behalf of the Board
HARI SHANKAR SINGHANIA
Chairman
New Delhi
26th July, 2010
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