Mar 31, 2018
DIRECTOR REPORT'S
To,
The Members,
CAPITAL INDIA FINANCE LIMITED
(FORMERLY KNOWN AS BHILWARA TEX-FIN LIMITED)
Your directors have pleasure in presenting their 24th Annual Report together with the Audited Financial Statements (both Standalone and Consolidated) for the Financial Year ended on March 31, 2018 ("FY 2017-18" or "period under review"). The summarised Consolidated and Standalone financial performance of your Company is as follows:
1. FINANCIAL RESULTS
 (Amount in Rs.)
Particulars |
Consolidated* |
Standalone |
||
 |
Year ended |
Year ended |
Year ended |
Year ended |
Total Income |
26,04,60,113 |
NA |
25,70,90,477 |
8,78,21,461 |
Total Expenditure |
21,61,13,566 |
NA |
21,06,34,455 |
8,33,67,339 |
Profit before tax |
4,43,46,547 |
NA |
4,64,56,022 |
44,54,122 |
Provision for tax (including Deferred Tax) |
164,59,174 |
NA |
1,69,69,426 |
21,02,197 |
Profit after tax |
2,78,87,373 |
NA |
2,94,86,596 |
23,51,925 |
Add: Profit and Loss account balance brought forward from previous year |
26,46,488 |
NA |
26,46,488 |
7,64,948 |
Transfer to Special Reserve under Section 45- IC of the RBI Act, 1934 |
58,97,319 |
NA |
58,97,319 |
4,70,385 |
Surplus carried to Balance Sheet |
2,46,36,542 |
NA |
2,62,35,765 |
26,46,488 |
* The Company did not have any subsidiaries as on year ended March 31, 2017 and therefore, the consolidated figures are given for the Financial Year ended on March 31, 2018 in which the Company has 5 subsidiaries.
2. RESERVES
In order to comply with the provisions of Reserve Bank of India Act, 1934, the Company has transferred Rs. 58,97,319/-(Rupees Fifty Eight Lakhs Ninety Seven Thousand Three Hundred and Nineteen only) to Special Reserve Funds under Section 45-IC of the RBI Act, 1934 and has also made provision of Rs. 10,41,140/-(Rupees Ten Lakhs Forty One Thousand and One Hundred Forty Only) for Standard Assets during the year under review. Total provisions for Standard Assets of the Company at the Financial Year ended March 31, 2018 is Rs. 41,57,750/- (Rupees Forty One Lakhs Fifty Seven Thousand Seven Hundred and Fifty only). Except as mentioned above, no amount was transferred to any reserve by the Company during the year under review.
3. SHARE CAPITAL
During the year under review, the Company had increased its authorised share capital to Rs. 2,14,00,00,000/- (Rupees Two Hundred Fourteen Crores only) from Rs. 4,00,00,000/- (Rupees Four Crores only). The increased share capital was approved by the shareholders through e-voting and postal ballot on January 27, 2018.
Consequently, the paid-up share capital and authorised share capital of the Company stands at Rs. 3,50,27,000/- (Rupees Three Crores Fifty Lacs and Twenty Seven Thousand only) and Rs. 2,14,00,00,000/- (Rupees Two Hundred Fourteen Crores only) respectively.
4. INFORMATION ON THE STATE OF AFFAIRS OF THE COMPANY
Your directors intend to strengthen its core business operations in order to make the Company more profitable in the upcoming year. During the period under review, the name of the Company was changed from Bhilwara Tex - Fin Limited to Capital India Finance Limited. Further, your Company's entire Management and Control was changed during the year as Sainik Mining and Allied Services Limited, erstwhile promoters of the Company had divested their stake in favour of Capital India Corp LLP by adhering to the procedure laid down under SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015, RBI Master Directions for NBFCs and all other applicable laws.
During the year under review, the Company was engaged into the business of financing and doing investments as Non -Banking Financial Company without accepting public deposit for which the Certificate of Registration was obtained from the Department of Non-Banking Supervision, Reserve Bank of India. The Company had provided / taken inter-corporate loans and investments in ordinary course of business at Arm's Length Price (ALP), which forms part of the Financial Statements enclosed with this Annual Report.
On standalone basis, the Company's total income during FY 2017-18 was Rs. 25,70,90,477/-(Rupees Twenty Five Crores Seventy Lakhs Ninety Thousand Four Hundred and Seventy Seven only) as compared to Rs. 8,78,21,461/- (Rupees Eight Crores Seventy Eight Lakhs Twenty One Thousand Four Hundred and Sixty One only) in FY 2016-17 and the Company has earned a Profit Before Tax (PBT) of Rs. 4,64,56,022/-(Rupees Four Crores Sixty Four Lakhs Fifty Six Thousand and Twenty Two only) in FY 2017-18 as compared to Rs. 44,54,122 /-(Rupees Forty Four Lakhs Fifty Four Thousand One Hundred and Twenty Two only) in FY 2016-17. Further, the Company did not have any subsidiaries in the FY 2016-17 but during the period under review, the Company had incorporated 5 wholly owned subsidiary companies with an aim to further expand its business activities. The Financial Statements forming part of this Annual Report also includes the Consolidated Financial Statements for the FY 2017-18.
5. CHANGE IN NATURE OF BUSINESS, IF ANY
There was no change in the nature of business activity of the Company during the period under review. The Company has however, formed 5 wholly owned subsidiaries with an aim to expand its business activities in financial services, details of which are given below in Para 6.
6. HOLDING & SUBSIDIARY COMPANY
 i) Holding Company
Your Company does not have any holding company
 ii) Subsidiary Companu
Your Company has following 5 subsidiaries:
S.NO |
Company's name |
Shareholding |
1 |
Capital India Home Loans Limited |
100% |
2 |
Capital India Asset Management Private Limited |
100% |
3 |
Capital India Wealth Management Private Limited |
100% |
4 |
CIFL Holdings Private Limited |
100% |
5 |
CIFL Investment Manager Private Limited |
100% |
Note:
As required under Rule 8 (1) of the Companies (Accounts) Rules, 2014, the Board's Report has been prepared on Standalone Financial Statements and a Report on Performance and Financial Position of each of the subsidiaries, as included in the Consolidated Financial Statements, is presented herewith in Form AOC-I as Annexure-I.
⢠In accordance with third proviso of Section 136 (1) of the Companies Act, 2013, the Annual Report of the Company, containing therein its Standalone and the Consolidated Financial Statements would be placed on the website of the Company at http://capitalindia.com under the "Investors" tab.
7. DIVIDEND
Your Directors recommend a final dividend of Rs. 1/- per equity share for the Financial Year 2017-18. The final dividend on the 35,02,700 equity shares, if approved by the members of the Company at the ensuing Annual General Meeting, would entail an outflow of Rs. 35,02,700/- (Thirty Five Lakhs Two Thousand and Seven Hundred Only) towards dividend and Rs. 7,13,069/- (Rupees Seven Lakh Thirteen Thousand and Sixty Nine only) towards dividend distribution tax @20.36%, resulting in a total outflow of Rs. 42,15,769/- (Rupees Forty Two Lakhs Fifteen Thousand Seven Hundred and Sixty Nine only).
8. INTERNAL CONTROL SYSTEM AND INTERNAL FINANCIAL CONTROLS
The Company has in place adequate Internal Financial Control System with reference to financial statements. The Company also has in place an Internal Control System, commensurate with the size, scale and complexity of its operations.
The Directors had laid down Internal Financial Controls Procedures to be followed by the Company which ensure compliance with various policies, practices and statutes, keeping in view the organization's pace of growth and increasing complexity of operations for orderly and efficient conduct of its business. The Audit Committee of the Board, is vested with the powers to evaluate the adequacy and effectiveness of Internal Financial Control System of the Company, thereby ensuring that:-
1. Systems have been established to ensure that all transactions are executed in accordance with management's general and specific authorization.
2. Systems and procedures exist to ensure that all transactions are recorded as necessary to permit preparation of Financial Statements in conformity with Generally Accepted Accounting Principles (GAAP) or any other criteria applicable to such Statements, and to maintain accountability for effectively and the timely preparation of reliable financial information.
3. Access to assets is permitted only in accordance with management's general and specific authorization. No assets of the Company are allowed to be used for personal purposes, except in accordance with terms of employment or except as specifically permitted.
4. The existing assets of the Company are verified /checked at reasonable intervals and appropriate action is taken with respect to differences, if any.
5. Appropriate systems are in place for prevention and detection of frauds and errors and for ensuring adherence to the Company's various policies as listed on the website and otherwise disseminated internally.
9. DIRECTORS AND KEY MANAGERIAL PERSONNEL
i. Board of Directors
As on March 31, 2018, the Board of Directors consists of following 9 directors:
Sr. No |
Name |
DIN |
Designation |
Details |
1. |
Mr. Vinod Kumar Somani |
00327231 |
Independent Director |
He was appointed as an Additional Director in the capacity of Non - Executive Independent Director of the Company w.e.f. December 20, 2017, subject to approval of the shareholders at the ensuing Annual General Meeting of the Company. |
2. |
Mr. Achal Kumar Gupta |
02192183 |
Independent Director |
He was appointed as an Additional Director in the capacity of Non - Executive Independent Director of the Company w.e.f. December 20, 2017, subject to approval of the shareholders at the ensuing Annual General Meeting of the Company. |
3. |
Ms. Promila Bhardwaj |
06428534 |
Independent Director |
She was appointed as an Additional Director in the capacity of Non - Executive Independent Director of the Company w.e.f. December 20, 2017, subject to approval of the shareholders at the ensuing Annual General Meeting of the Company. |
4. |
Mr. Keshav Porwal |
06706341 |
Managing Director |
He was appointed as an Additional Director of the Company and subsequently designated as the Managing Director of the Company we.f. November 27, 2017 subject to the approval of the shareholders at the ensuing Annual General Meeting of the Company. |
5. |
Mr. Amit Sahai Kulshreshtha |
07869849 |
Executive Director and CEO |
He was appointed as an Additional Director of the Company and subsequently designated as the Chief Executive Officer of the Company we.f. November 27, 2017 subject to the approval of the shareholders at the ensuing Annual General Meeting of the Company. |
6. |
Mr. Vineet Kumar Saxena |
07710277 |
Non- Executive Director |
He was appointed as an Additional Director of the Company in the capacity of Non -Executive Director of the Company w.e.f. November 27, 2017 subject to the approval of the shareholders at the ensuing Annual General Meeting of the Company. |
7. |
Mr. Rahul Rameshkumar Jain |
07541089 |
Non- Executive Director |
He was appointed as Non-Executive Director on the Board of the Company w.e.f. January 27, 2017. His appointment was duly approved by the shareholders as Independent Director of the Company through postal ballot dated August 10, 2017 and later on his designation was changed to Non- Executive director of the Company w.e.f. November 27, 2017. He is eligible to retire by rotation at the ensuing Annual General Meeting of the Company and has tendered his unwillingness to be re-appointed as director of the Company and therefore will retire at the ensuing Annual General Meeting of the Company. |
8. |
Ms. Shraddha Kamat Suresh |
07555355 |
Non- Executive Director |
She has been appointed as an Additional Director of the Company in the capacity of Women Non - Executive Director of the Company w.e.f. November 27, 2017 subject to the approval of the shareholders at the ensuing Annual General Meeting of the Company. |
9. |
Mr. Subodh Kumar |
07781250 |
Non- Executive Director |
He was appointed as an Additional Director of the Company in the capacity of Non -Executive Director of the Company w.e.f. November 27, 2017 subject to the approval of the shareholders at the ensuing Annual General Meeting of the Company. |
ii. Ceased directorships during the year:
Mr. Satish Kumar Sharma, Director of the Company had tendered his resignation from the Board w.e.f. November 27, 2017 due to change in management of the Company.
Mr. Samai Singh and Ms. Seema Kumari, being the Independent Directors of the Company had also tendered their resignation from the Board w.e.f. November 27, 2017 due to change in management of the Company.
iii. Declaration of Independence:
Pursuant to the provisions of Section 149 of the Act, Mr. Achal Kumar Gupta, Mr. Vinod Kumar Somani and Ms. Promila Bhardwaj were appointed as Independent Director(s) of the Company. They have submitted a declaration that each of them meets the criteria of independence as laid down under Section 149(6) of the Companies Act, 2013 and there has been no change in the circumstances which may affect their status as Independent Director during the year. Further, none of the directors of your Company are disqualified under the provisions of Section 16(2)(a) & (b) of the Companies Act, 2013. During the year under review, the Independent Directors of the Company had no pecuniary relationship or transactions with the Company, other than the sitting fees, commission and reimbursement of expenses incurred by them for the purpose of attending meetings of the Company. As required under regulation 36(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the information on the particulars of the Directors proposed for appointment / re-appointment has been given in the Notice of the Annual General Meeting.
iv. Retirement by Rotation of the Directors
In accordance with the provisions of the Companies Act, 2013 and the Articles of Association of the Company, Mr. Rahul Rameshkumar Jain, Non-Executive Director of the Company, is liable to retire by rotation at the ensuing Annual General Meeting and has tendered his unwillingness to be re-appointed as the director of the Company and therefore shall retire at the ensuing Annual General Meeting. The matter has been placed for noting by members at the ensuing Annual General Meeting, details of which are given in the Notice of Annual General Meeting.
v. Change in Key Managerial Personnel
During the period under review, Mr. Himmat Singh Bedla, Chief Executive Officer, Mr. Sukomal Bhuniya,
Chief Financial Officer of the company had resigned w.e.f November 27, 2017. Ms. Archana Aggarwal,
Company Secretary of the Company had resigned w.e.f. January 11, 2018.
Mr. Keshav Porwal was appointed and designated as Managing Director w.e.f. November 27, 2017.
Mr. Amit Sahai Kulshreshtha was appointed and designated as Chief Executive Officer w.e.f. November 27, 2017.
Mr. Neeraj Toshniwal was appointed and designated as Chief Financial Officer w.e.f January 11, 2018. Mr. Rachit Malhotra was appointed and designated as the Company Secretary & Compliance
Officer of the Company w.e.f January 11, 2018.
As on March 31, 2018, the Company had following Key Managerial Personnel (KMPs) as per provisions of the Companies Act, 2013 and the Rules framed thereunder:-
Mr. Keshav Porwal - Managing Director
Mr. Amit Sahai Kulshreshtha - Chief Executive Officer
Mr. Neeraj Toshniwal - Chief Financial Officer
Mr. Rachit Malhotra - Company Secretary vi. Board Meetings
During the financial year 2017-18, eleven (11) board meetings were held and the intervening gap between the meetings was within the period prescribed under the Companies Act, 2013.
vii. Committees of the Board
The following are 9 Committees constituted by the Board:
i) Audit Committee;
ii) Stakeholder Relationship Committee;
iii) Nomination and Remuneration Committee;
iv) Management Committee;
v) Risk Management Committee;
vi) Credit Committee;
vii) Asset-Liability Committee;
viii) Investment Committee; and
ix) Right Issue Committee.
viii. The Composition of Board and Committees were as is under:
S.NO |
Committee meeting |
Composition |
1 |
Audit Committee |
Mr. Vinod Kumar Somani (Chairman) |
2 |
Nomination and Remuneration Committee |
Mr. Achal Kumar Gupta (Chairman) |
3 |
Stakeholders Relationship Committee |
Mr. Vinod Kumar Somani (Chairman) |
4 |
Investment Committee |
Mr. Achal Kumar Gupta (Chairman) |
5 |
Risk Management Committee |
Mr. Achal Kumar Gupta (Chairman) |
6 |
Asset-Liability Committee |
Mr. Vinod Kumar Somani (Chairman) |
7 |
Management Committee |
Mr. Keshav Porwal (Chairman) |
8 |
Credit Committee |
Mr. Keshav Porwal (Member) |
9 |
Right Issue Committee |
Mr. Vinod Kumar Somani (Chairman) |
ix. Board and Committee Meetings
Details of meetings of Board and various committees along with dates are as below:
S. No |
Board / Committee |
No. of meetings |
Date of Meetings |
1 |
Board Meeting (BM) |
11 |
17 April 2017 |
29 May 2017 |
|||
03 June 2017 |
|||
03 July 2017 |
|||
10 August 2017 |
|||
30 August 2017 |
|||
13 November 2017 |
|||
27 November 2017 |
|||
20 December 2017 |
|||
11 January 2018 |
|||
14 February 2018 |
|||
2 |
Audit Committee (AC) |
4 |
29 May 2017 |
10 August 2017 |
|||
13 November 2017 |
|||
14 February 2018 |
|||
3 |
Stakeholder Relationship Committee (SRC) |
6 |
07 April 2017 |
17 April 2017 |
|||
31 May 2017 |
|||
22 July 2017 |
|||
02 August 2017 |
|||
02 September 2017 |
|||
4 |
Nomination and Remuneration Committee (NRC) |
4 |
29 May 2017 |
10 August 2017 |
|||
13 November 2017 |
|||
27 November 2017 |
Note: No meeting held for Risk Management Committee; Credit Committee; Asset-Liability Committee; Investment Committee; and Right Issue Committee during FY 2017-18.
x. Attendance of directors/members at board and committee meetings
As per Standard 9 of the Secretarial Standard on Meetings of the Board of Directors ('SS-1') issued by the Institute of Company Secretaries of India ('ICSI'), the attendance of Directors at Board and Committee meetings held during the Financial Year 2017-18 is provided as under:
Name of Director |
Board Meeting |
Audit Committee Meeting |
Stakeholders Relationship Committee |
Nomination and Remuneration Committee |
Mr. Vinod Kumar Somani |
3 |
1 |
- |
- |
Mr. Achal Kumar Gupta |
3 |
1 |
- |
- |
Ms. Promila Bhardwaj |
3 |
NA |
NA |
NA |
Mr. KeshavPorwal |
4 |
NA |
NA |
NA |
Mr. Amit Sahai Kulshreshtha |
4 |
NA |
NA |
NA |
Mr. Vineet Kumar Saxena |
4 |
1 |
- |
- |
Mr. Rahul Rameshkumar Jain |
7 |
3 |
6 |
3 |
Ms. Shraddha Kamat Suresh |
1 |
NA |
NA |
NA |
Mr. Subodh Kumar |
3 |
NA |
NA |
NA |
Mr. Satish Kumar Sharma |
8 |
3 |
6 |
NA |
Mr. Samai Singh |
8 |
NA |
NA |
4 |
Ms. Seema Kumari |
8 |
3 |
6 |
4 |
10 COMPANY'S POLICY ON DIRECTORS' APPOINTMENT, REMUNERATION AND EVALUATION
The Board had formulated an Evaluation Policy (the Policy) for evaluating the performance of the Board, Managing Director, Executive Directors, Independent Directors, Non-executive Directors and its Committees. Since the management had undergone a change, performance evaluation of the directors could not be done for the period under review and the same is proposed to be done during the year 2018-19.
The Policy safeguards the interest of the Company and to ensure compliance of applicable provisions of the Act (defined hereinafter) and the Listing Regulations (defined hereinafter) (as amended or re-enacted from time to time) relating to the evaluation of performance of the Directors, the Board and its Committees on an annual basis;
The evaluation framework for assessing the performance of Directors comprises of the following key areas:
⢠Expertise;
⢠Objectivity and Independence;
⢠Concern for stakeholders;
⢠Concern for working of the internal controls;
⢠Understanding of the Company's business;
⢠Leadership initiatives in terms of new ideas, planning for the Company and undertaking additional responsibilities;
⢠Team work attributes;
⢠Safeguarding confidential information;
⢠Rendering independent and unbiased opinions;
⢠Understanding and commitment to duties and responsibilities;
⢠Understanding the company and its unique requirements
⢠Willingness to devote the time needed for effective contribution to Company;
⢠Participation in discussions in effective and constructive manner;
The evaluation involves self-evaluation by the Board members and subsequent assessment by the Board of Directors. A member of the Board will not participate in the discussion of his/her evaluation.
Remuneration Policy
The Board has, on the recommendation of the Nomination and Remuneration Committee, framed a policy for selection and appointment of directors and senior management and to fix their remuneration. The Nomination and Remuneration Policy can be viewed here http://capitalindia.com.
Disclosures with respect to the remuneration of Directors and employees as required under Section 197 of the Act and Rule 5 (1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 (Rules) and have been appended as Annexure - II to this report. Further, details of employee remuneration as required under provisions of Section 197 of the Companies Act, 2013 and Rule 5(2) and 5(3) of Rules are available at the registered office of the Company during working hours, 21 days before the Annual General Meeting and shall be made available to any shareholder on request.
11 SEXUAL HARASSMENT OF WOMEN AT WORKPLACE
The Company has framed a Policy on Prevention of Sexual Harassment at Workplace in accordance with the applicable laws for all employees of the Company to inter alia ensure that the employees are not subject to any form of sexual harassment and to constitute the Internal Complaints Committee. Your company is fully committed to protect the rights of any women, of any age, whether employed or not, who alleges to have been subjected to any act of sexual harassment within the Company's premises. Your Company provides a safe and healthy work environment.
The Policy was approved and made effective by the Board from its meeting dated May 03, 2018. However, there were no cases reported otherwise, during the year ended on March 31, 2018 of sexual harassment.
12 MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
As required under regulation 34 of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, the Management Discussion and Analysis Report is enclosed as a part of this report.
13 DIRECTORS RESPONSIBILITY STATEMENT
The Board of Directors acknowledges the responsibility for ensuring compliance with the provisions of Section 134(3) (c) read with Section 134(5) of the Companies Act, 2013 in the preparation of the Financial Statements for the Financial Year ended on March 31, 2018 and state:
a. That in the preparation of Annual Accounts for the Financial Year ended as at March 31, 2018, the applicable Accounting Standards have been followed along with proper explanation relating to the material departures.
b. That the directors have selected such Accounting Policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the Financial Year ended as at March 31, 2018 and of the profit and loss of the Company for the Financial Year ended on March 31, 2018.
c. That the directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of Act for safeguarding the assets of the Company and for preventing and detecting fraud or other irregularities.
d. That the directors have prepared the annual accounts on a going concern basis.
e. That the directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively; and
f. There is a proper system to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.
Based on the framework of internal financial controls and compliance systems established and maintained by the Company, work performed by the internal, statutory and secretarial auditors and external consultants, including audit of internal financial controls over financial reporting by the statutory auditors, and the reviews performed by management and the relevant board committees, including the audit committee, the board is of the opinion that the Company's internal financial controls were adequate and effective during Financial Year 2017-18.
14 PUBLIC DEPOSITS
The Company did not accept any public deposits during the year under review. Therefore, the disclosures as required under the Companies Act, 2013 and the Rules framed thereunder, and RBI Directions are not applicable.
15 PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
Loans, guarantees and investments covered under Section 186 of the Companies Act, 2013 form part of the Notes to the Financial Statements provided in this report.
16 AUDITORS REPORT AND SECRETARIAL AUDIT REPORT
The Board of Directors had appointed M/s Divyank Khullar & Associates, Chartered Accountants,
(Firm Regn. No. : 025755N), for the FY 2017-18 to carry out the statutory audit for the period under review. The Statutory Auditors submitted their Report on the Financial Statements (both standalone and consolidated), which forms part of this Annual Report.
The Board of Directors had appointed M/s Naveen Garg & Associates, Company Secretaries in
Practice, for the FY 2017-18 in terms of provisions of section 204 of the Companies Act 2013, read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 for the purpose of carrying out the secretarial audit of the Company. The Secretarial Auditors submitted their Report in Form MR-3, which forms part of this Annual Report.
Further, the Statutory Auditors' report and Secretarial Auditors' report do not contain any qualifications, reservations or adverse remarks.
17 AUDITORS
a) STATUTORY AUDITORS:
M/s Divyank Khullar & Associates, Chartered Accountants, (Firm Regn. No.:- 025755N), Statutory Auditors of the Company tendered resignation on May 2, 2018. Basis this, pursuant to provisions of Section 139 (8), the Board at the meeting held on May 03,2018 appointed , M/s. Deloitte Haskins & Sells, LLP (Firm Regn. No.:- 117366W/W100018) as the Statutory Auditors of the Company to fill the casual vacancy caused due to resignation of M/s Divyank Khullar & Associates, Chartered Accountants. The members, at the ensuing Annual General Meeting proposed to be held on June 02, 2018 shall consider approving the appointment of M/s. Deloitte Haskins & Sells, LLP as Statutory Auditor to hold office till ensuing Annual General Meeting.
Further, M/s. Deloitte Haskins & Sells, LLP (Firm Regn. No.:- 117366W/W100018) have offered themselves for appointment as Statutory Auditors to hold office from the date of conclusion of the 24th AGM of the Company till the date of conclusion of 29th Annual General Meeting. The Company has obtained a written consent from M/s. Deloitte Haskins & Sells, LLP (Firm Regn. No.: 117366W/ W100018) for their appointment. A certificate from them has been received to the effect that their appointment as Statutory Auditors of the Company, if made, would be within the limits prescribed under Section 139 of the Companies Act, 2013. The Auditors have subjected themselves for the peer review process of the Institute of Chartered Accountants of India (ICAI) and they hold a valid certificate issued by the "Peer Review Board" of ICAI.
b) SECRETARIAL AUDITOR
The Board of Directors at their meeting held on May 03, 2018 re-appointed M/s. Naveen Garg & Associates, Company Secretaries in Practice to undertake the Secretarial Audit of the Company for the Financial Year 2018-19 in terms of provisions of section 204 of the Companies Act 2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
c) INTERNAL AUDITOR
The Board of Directors has, at its meeting held on 3 May 2018 appointed M/s. Aneja Associates, Chartered Accountants, as the Internal Auditor to undertake Internal Audit of the Company for Financial Year 2018-19 in terms of provisions of section 138 of the Companies Act, 2013.
18 EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in form MGT-9 is annexed herewith as "Annexure III".
19 CORPORATE GOVERNANCE REPORT
Your Company practices a culture that is built on core values and ethical governance practices and is committed to transparency in all its dealings. The Company is having a paid up equity share capital not exceeding Rs. 10 Crore and net worth not exceeding Rs. 25 Crore, and hence, as per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('Listing Regulations'), Corporate Governance Requirements provided under Regulations 17 to 27 and clauses (b) to (i) of sub-regulation (2) of Regulation 46 and Para C, D and E of Schedule V of the Listing Regulations are not applicable to your Company.
20 RELATED PARTY TRANSACTIONS
During the year under review, the main business of the Company was financing & investment and granting loans. All related party transactions entered into with related parties were placed before the Audit Committee for their approval in the meeting of Board and Audit Committee dated May 03, 2018. The Audit Committee decided that such transactions are in the ordinary course of business and are on arm's length basis. None of the transactions with related parties fall under the scope of section 188(1) of the Companies Act, 2013. Even though the provisions of Companies Act, 2013 read with rules made thereunder regarding related party transactions are not attracted to such transactions as these are in ordinary course of business and on an arm's length basis, some transactions were material related party transaction by virtue of the Listing Regulations and hence, the Board and Audit Committee ratified them.
All related party transactions so entered are disclosed in Note no. 29 of Financial Statements of the Company as attached herewith. Information on all transactions with related party pursuant to section 134(3) (h) of the Act read with rule 8(2) of the Companies (Accounts) Rules, 2014 are also annexed in Form AOC-2 and the same forms part of this report.
The Policy relating to related party transactions duly approved by the Board of Directors of the Company has been placed on the Company's website http://capitalindia.com.
21 CODE OF CONDUCT
The Board of Directors has approved a Code of Conduct which is applicable to the members of the Board and all employees in the course of day to day business operations of the Company. The Code has been placed on the Company's website http://capitalindia.com.
The Code lays down the standard procedure of business conduct which is expected to be followed by the Directors and the designated employees in their business dealings and in particular on matters relating to integrity in the work place, in business practices and in dealing with stakeholders. All the Board members and the Senior Management personnel have confirmed compliance with the Code.
22 VIGIL MECHANISM / WHISTLE BLOWER POLICY
Pursuant to the provisions of Section 177(9) & (10) of the Companies Act, 2013 read with the rules made thereunder and pursuant to the provision of SEBI (Listing Obligations and Disclosure Requirements), 2015, the Company has established a Vigil Mechanism to be known as the Vigil Mechanism Policy' for its Directors and Employees, to report instances of unethical behaviour, actual or suspected, fraud or violation of the Company's Code of Conduct. The aim of the policy is to provide adequate safeguards against victimization of Whistle Blower who avails the mechanism and also provides direct access to the Chairman of the Audit Committee, in appropriate or exceptional cases.
Accordingly, Vigil Mechanism Policy has been formulated with a view to provide a mechanism for the Directors and employees of the Company to approach the Ethics Officer or the Chairman of the Audit Committee of the Company.
The purpose of this policy is to provide a framework to promote responsible and secure whistle blowing. It protects employees willing to raise a concern about serious irregularities within the Company.
During the Financial Year 2017-18, no such complaint of unethical or improper activity has been received by the Company
23 PREVENTION OF INSIDER TRADING
The Company has adopted a Code of Conduct for Prevention of Insider Trading with a view to regulate trading in securities by the Directors and designated employees of the Company. The Code requires pre-clearance for dealing in the Company's shares and prohibits the purchase or sale of Company shares by the Directors and the designated employees while in possession of unpublished price sensitive information in relation to the Company and during the period when the trading window is closed. The Board is responsible for implementation of the Code. All Board of Directors and the designated employees have confirmed compliance with the Code.
The Code can be viewed here http://capitalindia.com/ .
24 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS / OUTGO
a) CONSERVATION OF ENERGY
(i) Steps taken or impact on conservation of energy - The operations of your Company are not energy-intensive. However, adequate measures have been initiated for conservation of energy.
(ii) Steps taken by the Company for utilising alternate source of energy - though the operations of the Company are not energy intensive, the Company shall explore alternative source of energy, as and when the necessity arises.
(iii) Capital investment on energy conservation equipment - Nil
b) TECHNOLOGY ABSORPTION
(i) Efforts made towards technology absorption - The minimum technology required for the business has been absorbed.
(ii) Benefits derived like product improvement, cost reduction, product development or import substitution - Not Applicable
(iii) In case of imported technology (imported during the last three years reckoned from the beginning of the financial year) - Not Applicable
(a) the details of technology imported;
(b) the year of import;
(c) whether the technology been fully absorbed; and
(d) if not fully absorbed, areas where absorption has not taken place, and the reasons thereof (iv) Expenditure incurred on Research and Development - Not Applicable
c) FOREIGN EXCHANGE EARNINGS AND OUTGO
During the year under review, there were following foreign exchange transactions:
1. Earnings: Nil
2. Outgo: Rs. 20,44,853.04/-
25 FRAUD REPORTING
There was no fraud reported by the Auditors of the Company under Section 143( 12) of the Companies Act, 2013 to the Board of Directors during the year under review.
26 DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY'S OPERATIONS IN FUTURE
There have been no significant and material orders passed by the Regulators or Courts or Tribunals impacting the going concern status and company's operations in future. It is to be noted that pursuant to the approval of appropriate authorities, Sainik Mining and Allied Services Limited, erstwhile promoters of the Company had divested their stake in favour of Capital India Corp LLP as a result of which there was a change in management and control of the Company by following the procedures laid down under the applicable laws.
27 MATERIAL CHANGES AND COMMITMENTS, IF ANY
There are material changes and commitments affecting the financial position of the Company which, inter-alia includes the following:
1. Company has changed the name of the Company from Bhilwara Tex-Fin Limited to Capital India Finance Limited, the same has been approved by the shareholders through Postal Ballot on January 27, 2017. Company has received the fresh Certificate of Incorporation from the Registrar of Companies, NCT of Delhi & Haryana for the same.
2. Company has shifted its registered office from 129, Transport Centre, New Rohtak Road, Punjabi Bagh, New Delhi -110035 to 2nd Floor, DLF Centre, Sansad Marg, New Delhi -110001 on December 20, 2017.
3. Company had undergone change of management, which had been duly approved by the appropriate stakeholders and authorities which includes the approval of Reserve Bank of India and Securities Exchange Board of India.
4. Company had during the year under review proposed an issue of securities on Rights basis but the same was withdrawn on April 25, 2018.
5. Company has incorporated five wholly owned subsidiaries namely:
a. Capital India Home Loans Limited
b. Capital India Wealth Management Private Limited
c. Capital India Asset Management Private Limited
d. CIFL Holdings Private Limited
e. CIFL Investment Manager Private Limited
28 CORPORATE SOCIAL RESPONSIBILITY (CSR)
During the year under review, provision of section 135 and Schedule VII of the Companies Act, 2013 pertaining to Corporate Social Responsibility are not applicable to our Company. Hence, details of expenditures on CSR activities are not required to be furnished.
29 CREDIT RATING
There was no credit rating obtained from any agency during the period under review.
30 CONSOLIDATED FINANCIAL STATEMENTS
The Audited Consolidated Financial Statements are provided in this annual report which have been prepared in accordance with relevant Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI).
31 RISK MANAGEMENT
The Risk Management Committee constituted by the Board of Directors of the Company has framed and implemented a Risk Management framework depicting the process for loan proposal approval, loan management post disbursement and day to day monitoring to manage credit risk. It sets out the standards helpful in achieving a high-quality loan portfolio with optimal returns.
32 HUMAN RESOURCE-INITIATIVES
During the year under review, your Company has strengthened its Management team and Core Leadership team to steer the Company's business conscientiously and diligently. Efforts has been put in to attract the best Talent from Industry to build a strong foundation.
Your Company provides an employee friendly environment where employees are empowered and given an opportunity to demonstrate their talent, that eventually boost their career growth in the Company.
33 LISTING OF SECURITIES
Presently, the Securities of the Company are listed on BSE Limited, Mumbai. The listing fee for the Financial Year 2018-19 has been paid.
34 COMPLIANCE WITH SECRETARIAL STANDARDS ON BOARD MEETINGS
Your Company has complied with the applicable provisions of the Secretarial Standards -1 (SS-1) on Meetings of the Board of Directors issued by The Institute of Company Secretaries of India (ICSI).
35 GENERAL DISCLOSURES
Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review:
1. Issue of equity shares with differential rights as to dividend, voting or otherwise;
2. There was no issuance of any shares/options to the employees under the Employees Stock Option Scheme (ESOS) or Employees Stock Purchase Scheme (ESPS);
3. Issue of sweat equity shares;
4. There was no revision in the Financial Statements;
5. There was no change in the nature of business.
It is hereby intimated that your Company had initiated the procedure for issuance of Equity Shares of Rs. 525 crores to the existing shareholders on right issue basis. The proposed issue was withdrawn on April 25, 2018.
36 ACKNOWLEDGEMENTS
Your directors would gratefully like to place their appreciation for the assistance and co- operation received from the Company's bankers during the year under review. The directors also acknowledge with appreciation the support and co-operation rendered by various Government Agencies and Departments. Your Directors would also wish to place on record their deep sense of appreciation for the continued support from all the investors of the Company.
By order and on behalf of the Board  |
|
Sd/- |
Sd/- |
Place: New Delhi |
 |
Annexure-I Form AOC-I
Statement containing salient features of the Financial Statement of Subsidiaries / Associate Companies / Joint Ventures
(Pursuant to first proviso to Sub-Section (3) of Section 129 of Companies Act. 2013 read with Rule 5 of Companies (Accounts) Rules. 20141
SR. No. |
Name of subsidiary companies |
Capital India Home Loans Limited |
Capital India Wealth Management Private Limited |
Capital India Asset Management Private Limited |
CIFL Holdings Private Limited |
CIFL Investment Manager Private Limited |
1 |
The date since when subsidiary was acquired |
11 August 2017 |
29 August 2017 |
12 September 2017 |
18 September 2017 |
14 September 2017 |
2. |
Reporting year for the subsidiary |
31 March 2018 |
31 March 2018 |
31 March 2018 |
31 March 2018 |
31 March 2018 |
3. |
Reporting currency and exchange rate as on the last date of the relevant Financial year in the case of foreign subsidiaries. |
Not Applicable |
Not Applicable |
Not Applicable |
Not Applicable |
Not Applicable |
4. |
Share Capital |
150,000,000 |
100,000 |
100,000 |
100,000 |
100,000 |
5. |
Reserves & surplus |
(1,471,308) |
(31,985) |
(32,010) |
(31,960) |
(31,960) |
6. |
Total Assets |
152,662,557 |
99,950 |
99,925 |
99,975 |
99,975 |
7. |
Total Liabilities |
4,133,865 |
31,935 |
31,935 |
31,935 |
31,935 |
8. |
Investments |
- |
- |
- |
- |
- |
9. |
Turnover |
3,369,636 |
- |
- |
- |
- |
10. |
Profit before tax |
(1,981,560) |
(31,985) |
(32,010) |
(31,960) |
(31,960) |
11. |
Provision for tax |
(510,252) |
- |
- |
- |
- |
12. |
Profit after tax |
(1,471,308) |
(31,985) |
(32,010) |
(31,960) |
(31,960) |
13. |
Proposed dividend |
0% |
0% |
0% |
0% |
0% |
14. |
% of shareholding |
100% |
100% |
100% |
100% |
100% |
Â
Sr. No. |
Name of subsidiary companies |
Net Assets (i.e. Total Assets Less Total Liabilities |
Share in profit & loss |
||
As a % of Consolidated Assets |
Amount |
% of profit or loss |
Amount |
||
 |
Parent |
 |
 |
 |
 |
 |
Capital India Finance Limited |
31.69% |
6,90,18,874 |
105.73% |
2,94,86,596 |
 |
Subsidiaries |
 |
 |
 |
 |
 |
Indian: |
 |
 |
 |
 |
1. |
Capital India Home Loans Limited |
68.19% |
14,85,28,692 |
-5.28% |
(14,71,308) |
2. |
Capital India Wealth Management Private Limited |
0.03% |
68,015 |
-0.11% |
(31,985) |
3. |
Capital India Asset Management Private Limited |
0.03% |
67,990 |
-0.11% |
(32,010) |
4 |
CIFL Holdings Private Limited |
0.03% |
68,040 |
-0.11% |
(31,960) |
5 |
CIFL Investment Manager Private Limited |
0.03% |
68,040 |
-0.11% |
(31,960) |
 |
Foreign: |
 |
 |
 |
 |
 |
None |
 |
 |
 |
 |
 |
Minority interest in all subsidiaries |
NA |
- |
NA |
- |
 |
Associates (Investments as per the Equity method) |
NA |
- |
NA |
- |
 |
Joint Ventures (as per proportionate consolidation / investment as per the Equity method) |
NA |
 |
NA |
 |
Notes:
1. Name of the Subsidiaries which are yet to commence operations:-
a. Capital India Home Loans Limited
b. Capital India Wealth Management Private Limited
c. Capital India Asset Management Private Limited
d. CIFL Holdings Private Limited
e. CIFL Investment Manager Private Limited
2. Names of subsidiaries which have been liquidated or sold during the year: NIL
Part B: Statement Pursuant to Section 129(3) of the Companies Act. 2013 related to Associate Companies and Joint Ventures:
The Company has no Associate or Joint Venture Company.
For and on behalf of Board of Directors |
 |
 |
|
Sd/- DIN - 06706341 |
Sd/- DIN - 07869849 |
Sd/- PAN - ACCPT2249N |
Sd/- M. No. - A39894 |
 |  |  |  |
Annexure- II
Particulars of employees for the year ended March 31, 2018 as required under Section 197 of the Companies Act, 2013 read with Rule 5 of Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014:
The ratio of the remuneration of each director to the median remuneration of the employees of the company for the financial year; |
Name of the Director |
Ratio to the median |
Amit Sahai Kulshreshtha |
10:1 |
|
Keshav Porwal |
10:1 |
|
The percentage increase in remuneration of each director, Chief Financial Officer, Chief Executive Officer, Company Secretary or Manager, if any, in the financial year; |
Name of Dircctor/CS/CFO |
% increase |
Nil |
Nil |
|
The percentage increase in the median remuneration of employees in the financial year; |
There was no increase in the remuneration of employees during the Financial year 2016-17 |
|
The number of permanent employees on the rolls of Company; |
32 |
|
Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration; |
There was no increase in the remuneration of employees during the Financial year 2016-17 |
|
Affirmation that the remuneration is as per the remuneration policy of the company. |
Yes; the remuneration is as per the remuneration policy of the company. |
B. Particulars of employees for the year ended March 31, 2018 as required under Section 197 of the Companies Act, 2013 read with rule 5(2) of Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014
In terms of the provisions of Section 136(1) of the Companies Act, 2013 read with the said rules, the Directors' Report is being sent to all the shareholders of the Company excluding the annexure on the names and other particulars of employees, required in accordance with Rule 5.2 of said rules, which is available for inspection by the members, subject to their specific written request, in advance, to the Company Secretary. The inspection is to be carried out at the Company's Registered Office or at its Corporate Office, during business hours on working days of the Company up to date of ensuing Annual General Meeting.Â
Mar 31, 2015
Dear Members,
The directors have pleasure in presenting their 21st Annual Report
together with the Audited Statement of Accounts for the year ended on
31st March 2015.
1. FINANCIAL RESULTS
(Amount in Rupees)
Particulars 2014-15 2013-14
Total Income 4,38,60,865 1,53,72,859
Less: Total Expenditures 4,25,21,373 1,46,35,346
Net Profit before Tax 13,39,492 7,37,513
Less: Tax Expenses
- Tax for earlier years 19,484 1,026
- Provision for Income Tax-Current 2 55,240 1,40,533
Profit after Tax 10,64,768 5,98,006
Provision for transfer to Special Reserve Fund 2,12,954 1,19,601
(During the year under review, the Company has transferred
Rs.2,12,954/- to the Special Reserve Fund in Compliance of Section 45IC
of the Reserve Bank of India Act, 1934.)
2. OPERATIONS OF THE COMPANY
During the year under review, the company was engaged in carrying on
the business as Non -Banking Financial Company without accepting public
deposit for which the Certificate of Registration has been obtained
from the Department of Non-Banking Supervision, Reserve Bank of India,
New Delhi. Your directors also intend to diversify its operation into
another area/business in order to make the Company more profitable.
3. PERFORMANCE REVIEW
During the year under review, the Company's total income has increased
to Rs. 438.61 Lacs from Rs.153.73 Lacs in the previous year and Profit
(before tax) has increased to Rs.13.39 Lacs from Rs.7.38 Lacs in the
previous year.
4. DIVIDEND
Your directors do not recommend any dividend for payment to the
shareholders for the financial year ended on 31st March, 2015.
5. DIRECTORS
Mr. Satish Kumar Sharma, Director of the Company retires by rotation
and being eligible, has offered himself for re-appointment. Your
Directors recommend his re-appointment as director of the Company.
During the year under review, Mr. Vadake Chundayil Sreenivasan, an
Independent Director has tendered his resignation from the Board due to
his preoccupation w.e.f. 30th March, 2015 and Mrs. Seema Kumari has
been appointed as Woman Independent Director on the Board of the
Company w.e.f. 30th March, 2015.
Mrs. Seema Kumari (DIN 07158452), who was appointed as an additional
director w.e.f. 30th March, 2015 on the Board of the Company in terms
of Section 161 of the Companies Act, 2013 and who holds office up to
the date of ensuing Annual General Meeting and in respect of whom the
Company has received a notice in writing from a member proposing her
candidature for the office of Director, is proposed to be appointed as
an Woman Independent Director of the Company for a period upto 29th
March, 2020, not liable to retire by rotation.
The requisite resolution for the appointment of Mrs. Seema Kumari (DIN
07158452) as a Woman Independent Director is being proposed in the
Notice of the ensuing Annual General Meeting for the approval of the
Members.
The Company has received declarations from all the Independent
Directors of the Company confirming that they meet the criteria of
independence as prescribed in Section 149(6) of the Companies Act, 2013
and clause 49 of the Listing Agreement.
As required under Clause 49 of the Listing Agreement with the Stock
Exchange, the information on the particulars of the Directors proposed
for appointment/ re-appointment has been given in the Notice of the
Annual General Meeting.
Board Evaluation
Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of
the Listing Agreement, the Board has carried out an evaluation of its
own performance, the directors individually as well as the evaluation
of the working of its Audit, Nomination and Remuneration Committees.
The manner in which the evaluation has been carried out has been
explained in the Corporate Governance Report.
Remuneration Policy
The Board has, on the recommendation of the Nomination and Remuneration
Committee framed a policy for selection and appointment of directors,
senior management and to fix their remuneration. The Nomination and
Remuneration Policy is stated in the Corporate Governance Report.
Meetings
During the year under review, (8) Eight Board Meetings were convened
and held. The details of which are given in the Corporate Governance
Report. The intervening gap between the Board Meetings was within the
period prescribed under the Companies Act, 2013.
6. KEY MANAGERIAL PERSONNEL
Mr. Rahul Jogi (Membership No.A38723) was appointed as Company
Secretary, Mr. Himmat Singh Bedla was appointed as Chief Executive
Officer and Mr. Sukomal Bhunya was appointed as Chief Financial Officer
of the Company w.e.f. 31st March, 2015.
7. DEMATERIALISATION OF SHARES:
43.03% of the Company's paid up Equity Share Capital is in
dematerialized form as on 31st March, 2015 and balance 56.97% is in
physical form. The Company's Registrars & Transfer Agent is M/s Indus
Portfolio Private Limited, having their communication office at G-65,
Bali Nagar, New Delhi -110015.
8. MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
As required under Clause 49 of the Listing Agreements with Stock
Exchanges, the Management Discussion and Analysis Report is enclosed as
a part of this report.
9. DIRECTORS RESPONSIBILITY STATEMENT
The Board of Directors acknowledges the responsibility for ensuring
compliance with the provisions of section 134(3) (c) read with section
134(5) of the Companies Act, 2013 and Clause 49(III) (D) (4) (a) of the
listing agreement with Stock Exchanges in the preparation of the
Financial Statement for the financial year ended on 31st March, 2015
and state that:
i) That in the preparation of Annual Accounts for the financial year
ended as at 31st March, 2015, the applicable Accounting Standards have
been followed along with proper explanation relating to the material
departures.
ii) That the Directors have selected such Accounting Policies and
applied them consistently and made judgements and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the financial year ended as at 31st March,
2015 and of the profit and loss of the Company for the financial year
ended on 31st March, 2015.
iii) That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the Assets of the Company and
for preventing and detecting fraud or other irregularities.
iv) That the Directors have prepared the Annual Accounts on a Going
Concern basis.
v) The Directors have laid down internal financial controls to be
followed by the Company and that such internal financial controls are
adequate and are operating effectively; and
vi) There is a proper system to ensure compliance with the provisions
of all applicable laws and that such systems are adequate and operating
effectively.
10. PUBLIC DEPOSITS
The Company has not invited or accepted any public deposits within the
meaning of Section 73 of the Companies Act, 2013 and the rules made
thereunder and section 45-I(bb) of the Reserve Bank of India Act, 1934
during the year under review. The Company does not hold any public
deposit as on date and will not accept the same in future without the
prior approval of Reserve Bank of India in writing.
11. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
The Company, being a non-banking finance company registered with the
Reserve Bank of India and engaged in the business of giving loans or
finance & investment activities, is exempt from complying with the
provisions of section 186 of the Companies Act, 2013. Accordingly, the
disclosures of the loans given as required under the aforesaid section
have not been given in this Report.
12. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has an Internal Control System, commensurate with the size,
scale and complexity of its operations. Such Internal Control measures
and systems are established to ensure the correctness of the
transactions and safe guarding of the assets. The Management ensures
adherence to all internal control policies and procedures as well as
compliance with regulatory guidelines. The Audit Committee of the Board
of Directors reviews the adequacy of internal controls. This has
improved the management of the affairs of the Company and strengthened
transparency and accountability. No significant audit observations and
recommendations have been received from the Internal Auditors of the
Company.
13. CORPORATE GOVERNANCE REPORT
The Company is committed to good Corporate Governance as the
requirement of the Clause 49 of the Listing Agreement. As required
under Clause 49 of the Listing Agreement, a detailed report on
Corporate Governance together with Auditor's Certificate on compliance
of conditions of Corporate Governance is annexed herewith as "Annexure
- A" and is forming integral part of this Report.
14. AUDITORS REPORT
The Auditors' Report on financial statement of the Company for the
financial year ended on 31st March, 2015 is self-explanatory. Hence, no
explanation is required to be given.
15. AUDITORS
a) STATUTORY AUDITORS:
Pursuant to Section 139, 142 and other applicable provisions of the
Companies Act, 2013 and the Rules made thereunder, pursuant to the
recommendations of the audit committee of the Board of Directors, and
pursuant to the resolution passed by the members at the AGM held on
30th September, 2014, the appointment of M/s Nagar Goel & Chawla,
Chartered Accountants, New Delhi, (bearing ICAI Registration
No.009933N) as the auditors of the Company to hold office till the
conclusion of the 23rd AGM of the Company to be held for the financial
year ending on 31st March 2017 is required to be ratified at the
ensuing Annual General Meeting. Your Directors recommend ratification
for their re-appointment.
b) SECRETARIAL AUDITORS:
Pursuant to the provisions of section 204 of the Companies Act 2013
read with rule the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014 the company has, at its meeting held
on 21st August, 2014 appointed M/s Kashif Ali & Associates, a firm of
Company Secretaries in practice to undertake the Secretarial Audit of
the Company for the financial year 2014-15. The Secretarial Audit
report is annexed herewith as "Annexure B".
16. EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in form
MGT-9 is annexed herewith as "Annexure C".
17. RELATED PARTY TRANSACTIONS
The main business of the company is financing & investment in shares
and granting loans. All related party transactions proposed to be
entered into with related parties at commencement of the financial year
were placed before the Audit Committee for their approval. The audit
committee decided that such transactions are in ordinary course of
business and are on arm's length basis. However, there are no related
party transactions made by the Company during the financial year under
review.
Your Board of Directors of the Company has, on the recommendation of
the Audit Committee, adopted a policy to regulate transactions between
the Company and its related Parties, in compliance with the applicable
provisions of the Companies Act 2013, the rules made thereunder and the
Listing Agreement. This Policy was considered and approved by the Board
has been placed on the Company's website www.bhilwaratexfin.com
18. CODE OF CONDUCT
The Board of Directors has approved a Code of Conduct which is
applicable to the members of the Board and all employees in the course
of day to day business operations of the company. The Code has been
placed on the Company's website www.bhilwaratexfin. com
The Code lays down the standard procedure of business conduct which is
expected to be followed by the Directors and the designated employees
in their business dealings and in particular on matters relating to
integrity in the work place, in business practices and in dealing with
stakeholders. All the Board Members and the Senior Management personnel
have confirmed compliance with the Code.
19. VIGIL MECHANISM / WHISTLE BLOWER POLICY
Pursuant to the provisions of section 177(9) & (10) of the Companies
Act, 2013 read with the rules made thereunder and pursuant to the
provision of clause 49(II)(f) of Listing Agreement, the Company has
established a vigil mechanism to be known as the 'Whistle Blower
Policy' for its Directors and employees, to report instances of
unethical behaviour, actual or suspected, fraud or violation of the
Company's code of conduct. The aim of the policy is to provide adequate
safeguards against victimization of whistle blower who avails of the
mechanism and also provide direct access to the Chairman of the Audit
Committee, in appropriate or exceptional cases.
Accordingly, Vigil Mechanism / Whistle Blower Policy have been
formulated with a view to provide a mechanism for the Directors and
employees of the Company to approach the Ethics Officer or the Chairman
of the Audit Committee of the Company.
The purpose of this policy is to provide a framework to promote
responsible and secure whistle blowing. It protects employees willing
to raise a concern about serious irregularities with in the Company.
20. PREVENTION OF INSIDER TRADING
The Company has adopted a Code of Conduct for Prevention of Insider
Trading with a view to regulate trading in securities by the Directors
and designated employees of the Company. The Code requires
pre-clearance for dealing in the Company's shares and prohibits the
purchase or sale of Company shares by the Directors and the designated
employees while in possession of unpublished price sensitive
information in relation to the Company and during the period when the
trading window is closed. The Board is responsible for implementation
of the Code.
All Board Directors and the designated employees have confirmed
compliance with the Code.
21. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE
EARNINGS AND OUTGO
During the year under review, the provisions of Section 134 (3) (m) of
the Companies Act, 2013 read with Rule 8 of the companies (Accounts)
Rules, 2014 were not applicable to our Company. Hence, Statement
detailing the particulars required under the said Section and rules are
not being furnished. There was no foreign exchange earnings and outgo
in the Company during the financial year.
22. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
The Company, being a non-banking finance company registered with the
Reserve Bank of India and engaged in the business of giving loans or
finance & investment activities, is exempt from complying with the
provisions of section 186 of the Companies Act, 2013. Accordingly, the
disclosures of the loans given as required under the aforesaid section
have not been given in this Report.
23. CORPORATE SOCIAL RESPONSIBILITY (CSR)
During the year under review, provision of section 135 and Schedule VII
of the Companies Act, 2013, pertaining to Corporate Social
Responsibility are not applicable to our Company. Hence, details of
expenditure of CSR Committee are not being furnished.
24. LISTING OF SECURITIES
Presently, the Securities of the Company are listed on Bombay Stock
Exchange Limited, Mumbai. The listing fee for the financial year
2015-16 has been paid.
Your directors would like to place their grateful appreciation for the
assistance and co-operation received from the Company's bankers during
the year under review. The directors also acknowledge with appreciation
the support and co-operation rendered by various Government Agencies
and Departments. Your Directors would also wish to place on record
their deep sense of appreciation for the continued support of all the
investors of the Company.
By order and on behalf of the Board
Bhilwara Tex-Fin Limited
Sd/- sd/-
Place: New Delhi (Satish Kumar Sharma) (Sanjay Hasija)
Date : 28th August, 2015 Director Director
(DIN: 00536970) (DIN: 00090672)
Mar 31, 2014
The Members,
BHILWARA TEX-FIN LIMITED
The directors have pleasure in presenting their 20th Annual Report
together with the Audited Statement of Accounts for the year ended on
31st March 2014.
1. FINANCIAL RESULTS
(Amount in Rupees)
Particulars 2013-14 2012-13
Income 1,53,72,859 87,82,974
Less: Total Expenditure 1,46,35,346 79,84,309
Net Profit/(Loss) before Tax &
Depreciation (PBDT) 7,37,513 7,98,665
Less: Depreciation - -
Net Profit/(Loss) after Depreciation
before Tax (PBT) 7,37,513 7,98,665
Add: Excess income tax provision
pertaining to earlier assessment 1,026 -
years, now reserved
Less: Provision for Income Tax-Current 1,40,533 1,52,186
Profit after Tax 5,98,006 6,46,479
Less: Provision for transfer to Special
Reserve Fund 1,19,601 1,29,296
Net profit after transfer to Special
Reserve Fund 4,78,405 5,17,183
(During the year under review, the Company has transferred Rs.
1,19,601/-to the Special Reserve Fund in Compliance of Section 45 IC of
the Reserve Bank of India Act, 1934.)
2. BUSINESS OPERATIONS
During the year under review, the Company is engaged in business of
investment & financing. The RBI has issued Certificate of Registration
No. B-14.03278 dated 6th day of June, 2013 in lieu of old CoR No.
10-00047 dated 24th March, 1998 for engaging in business of non-banking
financial activities other than accepting deposits from public.
3. DIVIDEND
Your directors do not recommend any dividend for the financial year
ended on 31st March, 2014.
4. DIRECTORS
Sh. Satish Kumar Sharma, Director of the Company who retires by
rotation and being eligible, has offered himself for re-appointment.
Your Directors recommend his re-appointment as Director of the Company.
In compliance of the provisions of clause 49 of listing agreement, the
Company has 3 independent directors out of total 4 directors of the
Company. However, pursuant to the provisions of section 149 of the
Companies Act, 2013, the Company shall have at least 1/3 of total
numbers of directors as independent directors. As the provisions of
section 149(10) of the Companies Act, 2013 (effective from 1st April,
2014), such independent directors shall hold office for a term of upto
five consecutive years on the Board of a company; and shall be eligible
for re-appointment on passing a special resolution by the shareholders
of the Company for another term of upto five consecutive years on the
Board. Such independent directors shall not be eligible to appoint as
such for more than two consecutive terms of five years but shall be
eligible for appointment after the expiration of three years ceasing to
become an independent director. The provision of retirement by rotation
as defined in the sub-section (6) and (7) of section 152 of the
Companies Act 2013 shall not apply to such independent directors.
Therefore, Sh. Samai Singh, Sh. Vadake Chundayil Sreenivasan and Sh.
Sanjay Hasija, Directors of the Company who were appointed as Non-
executive independent directors and liable to retire by rotation under
the provisions of erstwhile Companies Act, 1956, shall be reappointed
as independent directors under the provisions of the Companies Act,
2013. They being eligible have offered themselves to be appointed as
independent directors of the Company under the provisions of the
Companies Act 2013. They have given declaration to the Board that they
meet the criteria of independence as provided under section 149(6) of
the Companies Act, 2013. Consequently, your directors recommend their
appointment as independent directors of the Company.
5. PARTICULARS OF EMPLOYEES U/S 217(2A) OF THE COMPANIES ACT, 1956
None of the employees of the Company has drawn salary in excess of the
limits prescribed in the said section of Companies Act, 1956 read with
Companies (Particular of Employees) Rules, 1975 and hence no such list
is being provided.
6. DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to requirement under Section 217(2AA) of the Companies
(Amendment) Act, 2000 with respect to Directors Responsibility
Statement, it is hereby confirmed:
i) That in the preparation of Annual Accounts for the financial year
ended as at 31st March, 2014, the applicable Accounting Standards have
been followed along with proper explanation relating to the material
departures.
ii) That the Directors have selected such Accounting Policies and
applied them consistently and made judgements and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the financial year ended as at 31st March,
2014 and of the profit or loss of the Company for the financial year
ended on 31st March, 2014.
iii) That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies (Amendment) Act, 2000 for safeguarding the
Assets of the Company and for preventing and detecting fraud or other
irregularities.
iv) That the Directors have prepared the Annual Accounts on a Going
Concern basis.
7. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE
EARNINGS AND OUTGO
During the year under review, the provisions of Section 217(1) (e) of
the Companies Act, 1956 were not applicable to our Company. Hence,
Statement detailing the particulars required under the said Section
read with the Companies (Disclosures of particulars in the report of
Board of Directors) Rules, 1988 are not being furnished. There was no
foreign exchange earnings and outgo in the Company during the financial
year.
8. PUBLIC DEPOSITS
The Company has not invited or accepted any public deposits within the
meaning of Section 58A & 58AA of the Companies Act, 1956 and section
45-I(bb) of the Reserve Bank of India Act, 1934 during the year under
review. The company does not hold any public deposit as on date and
will not accept the same in future without the prior approval of
Reserve Bank of India in writing.
9. COMMITTEE OF BOARD OF DIRECTORS
The Company, in order to comply with the provisions the Companies Act,
2013 read with rule framed thereunder and the provision of the listing
agreement, has constituted or renamed various committees of the Board
of Directors of the Company which includes Nomination and Remuneration
of Committee, Audit Committee and Stakeholder Relationship Committee.
10. AUDITORS REPORT
The Report of Auditors'' on Annual Accounts of the Company for the year
ended on 31st March, 2014 is self- explanatory. Hence, no explanation
is required to be given.
11. AUDITORS OF THE COMPANY
M/s Nagar Goel & Chawla, Chartered Accountants, New Delhi, (bearing
ICAI Registration No. 009933N) retiring Statutory Auditors of the
Company are proposed to be re-appointed as Statutory Auditors of the
Company from the date of conclusion of the ensuing Annual General
Meeting (AGM) till the date of conclusion of the twenty-third AGM of
the Company to be held for the financial year ended on 31st March,
2017, subject to ratification of their appointment by the members at
every AGM held after the ensuing AGM. As required under Section 139 of
the Companies Act, 2013, the Company has obtained a written consent
from M/s Nagar Goel & Chawla, Chartered Accountants, to such
appointment and also a certificate to the effect that their
appointment, if made, would be in accordance with Section 139(1) of the
Companies Act, 2013 and the rules made there under, as may be
applicable. Your directors recommend their re-appointment as statutory
auditors of the Company.
12. CORPORATE GOVERNANCE REPORT
The Company is committed to good Corporate Governance as the
requirement of the Clause 49 of the Listing Agreement. As required
under Clause 49 of the Listing Agreement, a detailed report on
Corporate Governance together with Auditor''s Certificate on compliance
of conditions of Corporate Governance is annexed herewith as Annexure Â
1 and is forming integral part of this Report.
13. LISTING OF SECURITIES
Presently, the Securities of the Company are listed on Bombay Stock
Exchange Limited, Mumbai. The listing fee for the financial year
2014-15 has been paid.
14 SECRETARIAL COMPLIANCE CERTIFICATE:
The Secretarial Compliance Certificate, pursuant to proviso to
sub-section (1) of section 383A of the Companies Act, 1956, is obtained
from Practicing Company Secretary and the same is annexed herewith.
15. ACKNOWLEDGEMENT
Your directors would like to place their grateful appreciation for the
assistance and co-operation received from the Company''s bankers during
the year under review. The directors also acknowledge with appreciation
the support and co-operation rendered by various Govt. agencies and
Departments. Your Directors would also wish to place on record their
deep sense of appreciation for the continued support of all the
investors of the Company.
By order and on behalf of the Board
Bhilwara Tex-Fin Limited
Sd/- Sd/-
Place: New Delhi (Satish Kumar Sharma) (Sanjay Hasija)
Date: 21-08-2014 Director Director
(DIN: 00536970) (DIN: 00090672)
Mar 31, 2013
The Members of BHILWARA TEX-FIN LIMITED
The directors have pleasure in presenting their 19th Annual Report
together with the Audited Statement of Accounts for the year ended on
31st March 2013,
1. FINANCIAL RESULTS
(Amount in Rupees)
Particulars 2012-13 2011 -12
Income 87,82,974.00 62,86,452.00
Less: Total Expenditure 79,84,309.00 57,43,226.00
Net Profit/(Loss) before
Tax & Depreciation (PBDT) 7,98,665.00 5,43,226.00
Less: Depreciation
Net Profit/(Loss) after
Depreciation before Tax (PBT) 7,98,665.00 5,43,226.00
Less: Provision for
Income Tax-Current 1,52,186.00 1,03,512.00
Provision for transfer to
Special Reserve Fund 1,29,296.00 87,943.00
Profit after Tax 5,17,183.00 3,51,771.00
(The Company has transferred Rs. 129,296/- to the Special Reserve Fund
in Compliance of Section 45 IC of the Reserve Bank of India Act, 1934.)
2. BUSINESS OPERATIONS
During the year under review, the Company is engaged in business of
investment & financing. The Company was originally registered as Non-
Banking Finance Company with Reserve Bank of India,
Branch Jaipur under Registration No.-10-00047 dated 24th March, 1998.
In the year 2004-2005, the registered office of the Company had been
shifted from the State of Rajasthan to NCT of Delhi under confirmation
by the order of Hon''ble Company Law Board, Northern Region Bench, New
Delhi vide :
C.P. No. 65/17/200''ICLB dated July 20, 2001. In order to give effect of
the change of the registered office of the Company from the State of
Rajasthan to NCT of Delhi and on the request of the Company, the
Reserve Bank of India, Branch- New Delhi, has issued a fresh
Certificate of Registration No. B-I4.03278 dated 6fh day of June, 2013
in lieu of old CoR No. 10-00047 dated 24th March, 1998.
3. DIVIDEND
Your directors do not recommend any dividend for the financial year
ended on 31st March, 2013.
4. DIRECTORS
During the year under review, there was no change in board of directors
of the Company. However, Sh.
Sanjay Hasija, Director of the Company who retires by rotation and
being eligible, has offered himself for re-appointment. Your Directors
recommend his re-appointment as Director of the Company.
5. PUBLIC DEPOSITS
The Company has not invited or accepted any public deposits within the
meaning of Section 58A & 58AA of the Companies Act, 1956 and section
45-I(bb) of the Reserve Bank of India Act, 1934 during the year under
review. The Company does not hold any public deposit as on date and
will not accept the same in future without the prior approval of
Reserve Bank of India.
6. CONSTITUTION OF AUDIT COMMITTEE
The Company, in order to comply with the provision of section 292A of
the Companies Act, 1956 and the provision of the listing agreement, has
constituted an Audit Committee of the Board of Directors of the
Company.
7. AUDITORS REPORT
The Report of Auditors'' on Annual Accounts of the Company for the
year ended on 31st March, 2013 is self-explanatory. Hence, no
explanation is required to be given.
8. APPOINTMENT OF STATUTORY AUDITORS
M/s Nagar God & Chawla, Chartered Accountants, New Delhi, retiring
Statutory Auditors of the Company retire at the conclusion of this
annual general meeting and being eligible, have offered themselves for
re-appointment. The Company has received a certificate from them
pursuant to Section 224(1B) of the Companies Act 1956, confirming their
eligibility for re-appointment. Your directors recommend their
re-appointment for the period commencing from the conclusion of ensuing
Annual General Meeting till date of conclusion of the next Annual
General Meeting of the Company.
10. PARTICULARS OF EMPLOYEES U/S 217 (2A) OF THE COMPANIES ACT, 1956
None of the employees of the Company has drawn salary in excess of the
limits prescribed in the Section 217(2A) of the Companies Act, 1956
read with Companies (Particulars of employees) Rules, 1975 and hence no
such list is being provided.
11. DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to requirement under Section 217(2AA) of the Companies
(Amendment) Act, 2000 with respect to Directors Responsibility
Statement, it is hereby confirmed:
a) That in the preparation of the Annual Accounts for the financial
year ended on 31st March, 2013, the applicable Accounting Standards had
been followed along with proper explanation relating to the material
departures.
b) That the Directors had selected such Accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the Financial year and of the profit or
loss of the Company for that period.
c) That the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the Assets of the Company and
for preventing and detecting fraud or other irregularities.
d) That the Directors had prepared the Annual Accounts on a going
concern basis.
12. CORPORATE GOVERNANCE REPORT
A detailed report on Corporate Governance prepared in accordance with
the Clause 49 of the Listing Agreement is annexed herewith and is
forming integral part of this Annual Report.
13. SECRETARIAL COMPLIANCE CERTIFICATE:
The Secretarial Compliance Certificate, pursuant to proviso to
sub-section (1) of section 383A of the Companies Act, 1956, is obtained
from Practicing Company Secretary and the same is annexed herewith. ;
14. ACKNOWLEDGEMENT
Your directors would like to place their grateful appreciation for the
assistance and co-operation received from the Company''s bankers
during the year under review. The directors also acknowledge with
appreciation the support and co-operation rendered by various Govt,
agencies and Departments. Your Directors would also wish to place on
record their deep sense of appreciation for the continued support of
all the investors of the Company.
By Order of the Board of Directors
Bhilwara Tex-Fin Limited
Place: New Delhi Sanjay Hasija Satish Kumar Sharma
Date: 27 August, 2013 Director Director
Mar 31, 2012
To The Members of BHILWARA TEX-FIN LIMITED
The directors have pleasure in presenting their 18th Annual Report
together with the Audited Statement of Accounts for the year ended on
31st March 2012.
1. FINANCIAL RESULTS
(Amount in Rupees)
Particulars 2011-12 2010 -11
Income 62,86,452.00 4,136,653.00
Less: Total Expenditure 57,43,226.00 3,929,132.00
Net Profit/(Loss) before Tax &
Depreciation (PBDT) 5,43,226.00 2,07,520.00
Less: Depreciation - -
Net Profit/(Loss) after Depreciation
before Tax (PBT) 5,43,226.00 2,07,520.00
Less: Provision for Income Tax-Current 1,03,512.00 38,474.00
Provision for transfer to Special
Reserve Fund 87,943.00 33,809.00
Provision for Fringe Benefit Tax for
earlier year - 236.00
Profit after Tax 3,51,771.00 1,35,001.00
(The Company has transferred Rs. 87,943/- to the Special Reserve Fund
in Compliance of Section 45 IC of the Reserve Bank of India Act, 1934.)
2. DIVIDEND
Your directors do not recommend any dividend for the financial year
ended on 31st March, 2012.
3. DIRECTORS
During the year under review, Sh. Rajendra Prasad Baldwa tendered his
resignation from the Board of Directors of the Company with effect from
22nd February, 2012. Further, Sh. Satish Kumar Sharma, Director of the
Company who retires by rotation and being eligible, has offered himself
for re-appointment. Your Directors recommend his re-appointment as
Director of the Company.
4. PUBLIC DEPOSITS
The Company has not invited or accepted any public deposits within the
meaning of Section 58A & 58AA of the Companies Act, 1956 and section
45-I(bb) of the Reserve Bank of India Act, 1934 during the year under
review. The Company does not hold any public deposit as on date and
will not accept the same in future without the prior approval of
Reserve Bank of India.
5. CONSTITUTION OF AUDIT COMMITTEE
The Company, in order to comply with the provision of section 292A of
the Companies Act, 1956 and the provision of the listing agreement, has
constituted an Audit Committee of the Board of Directors of the
Company.
6. AUDITORS REPORT
The Report of Auditors' on Annual Accounts of the Company for the year
ended on 31st March, 2012 is self-explanatory. Hence, no explanation
is required to be given.
7. APPOINTMENT OF STATUTORY AUDITORS
M/s Nagar Goel & Chawla, Chartered Accountants, New Delhi, retiring
Statutory Auditors of the company retire at the conclusion of ensuing
Annual General Meeting and being eligible, have offered themselves for
re-appointment. The Company has received a certificate from them
pursuant to Section 224(1B) of the Companies Act 1956, confirming their
eligibility for re- appointment. Your directors recommend their
re-appointment for the period commencing from the conclusion of ensuing
Annual General Meeting till date of conclusion of the next Annual
General Meeting of the Company.
8. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE
EARNINGS AND OUTGO
The provisions of Section 217(1) (e) of the Companies Act, 1956 is not
applicable to our Company. Hence, Statement detailing the particulars
required under the said Section read with the Companies (Disclosures of
particulars in the report of Board of Directors) Rules, 1988 are not
being furnished. There was no foreign exchange earnings and outgo in
the Company during the financial year.
9. PARTICULARS OF EMPLOYEE U/S 217 (2A) OF THE COMPANIES ACT, 1956
None of the employees of the Company has drawn salary in excess of the
limits prescribed in the Section 217(2A) of the Companies Act, 1956
read with Companies (Particulars of employees) Rules, 1975 and hence no
such list is being provided.
10. DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to requirement under Section 217(2AA) of the Companies
(Amendment) Act, 2000 with respect to Directors Responsibility
Statement, it is hereby confirmed:
a) That in the preparation of the Annual Accounts for the financial
year ended on 31st March, 2012, the applicable Accounting Standards had
been followed along with proper explanation relating to the material
departures.
b) That the Directors had selected such Accounting policies and applied
them consistently and made judgements and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the Financial year and of the profit or
loss of the Company for that period.
c) That the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the Assets of the Company and
for preventing and detecting fraud or other irregularities.
d) That the Directors had prepared the Annual Accounts on a going
concern basis.
11. CORPORATE GOVERNANCE REPORT
A detailed report on Corporate Governance prepared in accordance with
the Clause 49 of the Listing Agreement is annexed herewith and is
forming integral part of this Annual Report.
12. SECRETARIAL COMPLIANCE CERTIFICATE:
The Secretarial Compliance Certificate, pursuant to proviso to
sub-section (1) of section 383A of the Companies Act, 1956, is obtained
from Practicing Company Secretary and the same is annexed herewith.
13. ACKNOWLEDGEMENT
Your directors would like to place their grateful appreciation for the
assistance and co-operation received from the CompanyÃs bankers during
the year under review. The directors also acknowledge with appreciation
the support and co-operation rendered by various Govt. agencies and
Departments. Your Directors would also wish to place on record their
deep sense of appreciation for the continued support of all the
investors of the Company.
For and on behalf of Board of Directors
Bhilwara Tex-Fin Limited
Sd/-
Satish Kumar Sharma
Director
Sd/-
Sanjay Hasija
Director
Place: New Delhi
Date : 27th August, 2012
Mar 31, 2010
The directors have pleasure in presenting their 16th Annual Report
together with the Audited Statement of Accounts for the year ended on
31st March 2010.
1. FINANCIAL RESULTS
(In Rs.)
Particulars 2009-10 2008-09
Income 2,15,821.00 2,41,999.00
Less: Total Expenditure 3,02,800.59 5,07,403.11
Net Profit/(Loss) before Tax
& Depreciation (PBDT) (86,979.59) (2,65,404.11)
Less: Depreciation - -
Net Profit/(Loss) after
Depreciation before Tax (PBT) (86,979.59) (2,65,404.11)
Less: Provision for Income
Tax-Current 9,506.39 -
Provision for Income Tax-
Deferred - -
Provision for Fringe Benefit Tax - -
Profit after Tax (96,485.98) (2,65,404.11)
Less: Transfer to
Special Reserve Fund - -
Add: Balance brought forward
from Previous Year (35,27,752.74) (32,62,348.63)
Balance carried forward to
the Balance Sheet (36,24,238.72) (35,27,752.74)
The Company has not earned any profits during the year under review
hence no amount is required to be transferred to the Special Reserve
Fund in Compliance of Section 45 IC of the Reserve Bank of India Act,
1934.
2. DIVIDEND
Your directors do not recommend any dividend for the financial year
ended on 31st March, 2010.
3. DIRECTORS
Sh. Satish Kumar Sharma and Sh. Raj endra Prasad Baldwa, Directors of
the Company retire by rotation and being eligible, has offered
themselves for re-appointment. Your directors recommend their
re-appointment subject to retirement by rotation as per the provisions
of the Companies Act, 1956.
4. PUBLIC DEPOSITS
The Company has not invited or accepted any public deposits within the
meaning of Section 58A & 58AA of the Companies Act, 1956 and section
45-I(bb) of the Reserve Bank of India Act, 1934 during the year under
review. The Company does not hold any public deposit as on date and
will not accept the same in future without the prior approval of
Reserve Bank of India in writing.
5. AUDITORS REPORT
The Report of Auditors on Annual Accounts of the Company for the year
ended on 31st March, 2010 is self explanatory. Hence, no explanation is
required to be given.
6. APPOINTMENT OF STATUTORY AUDITORS
M/s Nagar Goel & Chawla, Chartered Accountants, New Delhi, retiring
Statutory Auditors of the company retire at the conclusion of this
annual general meeting and being eligible, have offered themselves for
re- appointment. The Company has received a certificate from them
pursuant to Section 224(1 B) of the Companies Act 1956, confirming
their eligibility for re-appointment. You directors recommend their
re-appointment for the period commencing from the conclusion of this
Annual General Meeting till the conclusion of the next Annual General
Meeting of the Company.
7. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE
EARNINGS AND OUTGO
The provisions of Section 217(1) (e) of the Companies Act, 1956 is not
applicable to our Company. Hence, Statement detailing the particulars
required under the said Section read with the Companies (Disclosures of
particulars in the report of Board of Directors) Rules, 1988 are not
being furnished. There was no foreign exchange earning and outgo in the
Company during the financial year.
8. PARTICULARS OF EMPLOYEE U/S 217 (2A) OF THE COMPANIES ACT, 1956
None of the employees of the Company has drawn salary in excess of the
limits prescribed in the Section 217(2A) of the Companies Act, 1956
read with Companies (Particulars of employees) Rules, 1975 and hence no
such list is being provided.
9. DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to requirement under Section 217(2AA) of the Companies
(Amendment) Act, 2000 with respect to Directors Responsibility
Statement, it is hereby confirmed:
a) That in the preparation of the Annual Accounts for the financial
year ended on 31st March, 2010, the applicable Accounting Standards had
been followed along with proper explanation relating to the material
departures.
b) That the Directors had selected such Accounting policies and applied
them consistently and made judgements and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the Financial year and of the profit or
loss of the Company for that period.
c) That the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the Assets of the Company and
for preventing and detecting fraud or other irregularities.
d) That the Directors had prepared the Annual Accounts on a going
concern basis.
10. CORPORATE GOVERNANCE REPORT
A Report on Corporate Governance, as required under Clause 49 of the
Listing Agreement, is annexed herewith.
11. SECRETARIAL COMPLIANCE CERTIFICATE:
The Secretarial Compliance Certificate, pursuant to proviso to
sub-section (1) of section 383A of the Companies Act, 1956 is received,
considered and the same is annexed herewith.
12. LISTING OF SHARES
Presently the Equity Shares of the Company are listed on Bombay Stock
Exchange and Delhi Stock Exchange. Listing fees for the financial year
2010-11 has been paid by the Company to all the Stock Exchanges. The
Company has filed applications for voluntary delisting of its equity
shares to Delhi Stock Exchange Limited and Jaipur Stock Exchange
Limited on 14th December, 2009. During the year under review, the
Company has received approval for Voluntary Delisting of the Securities
from Jaipur Stock Exchange Limited vide its letter ref. No.
JSEL/2010/500 dated 4th March, 2010. However, the application for
Voluntary Delisting of securities with Delhi Stock Exchange is still
pending.
13. ACKNOWLEDGEMENT
Your directors would like to place their grateful appreciation for the
assistance and co-operation received from the Companys bankers during
the year under review. The directors also acknowledge with appreciation
the support and co-operation rendered by various Govt, agencies and
Departments. Your Directors would also wish to place on record their
deep sense of appreciation for the continued support of all the
investors of the Company.
By Order of the Board of Directors
For Bhilwara Tex-Fin Limited
Sd/-
Place: New Delhi (Satish Kumar Sharma)
Date: 4th September, 2010 Chairman