Mar 31, 2014
Dear Members,
The Directors are pleased to have this opportunity to present the
Twenty First Annual Report of the Company along with and Audited
Statement of Accounts for the year ended 31st March, 2014.
FINANCIAL HIGHLIGHTS (amount in Rs.)
2013-201 2012-2013
Revenue from operations 63,53,802.00 40,38,117.00
Other Income 17,60,962.00 3,46,854.00
Total Expenditure 43,91,237.00 38,95,525.00
Profit / (Loss) before Tax &
Provision for NPA 37,23,527.00 4,89,446.00
Provision for Tax 7,21,092.00 1,59,840.00
Net Profit / (Loss) 30,02,435.00 3,29,606.00
Deficit brought forward from
previous year (95,21,288.00) (98,50,893.87)
Deficit carried over to Balance Sheet (6,518,853.00) (95,21,288.00)
OVERALL PERFORMANCE
The Income from operations during the year has been Rs. 63.53 Lacs
approx as against Rs. 40.38 lacs approx in the previous year. The
financial year under review resulted in Net Profit of Rs. 30.02 Lacs,
as compared to Rs. 3.29 Lacs in the previous year.
During the financial year under review the performance of the company
has a steep increase by approx 57.33 % over the performance during the
last financial year, the net profit decreased due to increased cost of
finance to expand the scale of the business operations of the Company.
The management of the company has positive outlook for the future
growth.
DIVIDEND
In view of the huge accumulated losses incurred by the company in the
past and future capital requirements, your directors do not recommend
payment of any dividend for the year.
CORPORATE GOVERNANCE
The Company is required to implement various compliances of Corporate
Governance in accordance with the requirements of the Standard Listing
Agreement entered into by the Company with the Stock Exchanges namely
Bombay Stock Exchange (BSE), Delhi Stock Exchange(DSE) and Company has
delisted its Securities from Ludhiana Stock Exchange(LSE) w.e.f. 08th
February, 2014 vide letter No. LSE/ 2013-14 dated 11th February, 2014.
Your Company had taken adequate steps to ensure compliance of the
requirements of Corporate Governance and accordingly, 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
is made part of this Annual Report.
FUTURE PROSPECTS
The management is very optimistic and aggressively focusing on to
exploit the opportunities available to NBFC in India and exploring and
evaluating various business models for implementation in order to
enhance to turnover of the Company to escalate to new heights. The
Board expects that the Company will continue to improve its overall
performance and excel to enhance the profitability of the Company, in
the present economic scenario and growth momentum of Indian economy,
via its strategy competency, operational efficiencies and successful
implementation of its new business models.
REGISTRATION WITH RBI
The Company being a Non-Banking Finance Company (NBFC) and is
registered with the Reserve Bank of India(RBI), with RBI Registration
No, 14-00332. The Company had complied with the Non- Banking Financial
(Non - Deposit Accepting or Holding) Companies Prudential Norms
(Reserve Bank) Directions, 2007 as amended.
AUDITORS
M/s. G.L. Gupta & Associates, Chartered Accountants, Statutory Auditors
of the company hold office until the conclusion of the ensuing Annual
General Meeting (AGM) and being eligible offer themselves for
re-appointment. They have confirmed that their appointment, if made,
would be within the prescribed limits.
Pursuant to the provisions of section 139 of the Companies Act, 2013
and the Rules framed thereunder, it is proposed to appoint M/s. G.L.
Gupta & Associates, Chartered Accountants, as statutory auditors of the
Company from the conclusion of the forthcoming AGM till the conclusion
of the Twenty Fourth Annual General Meeting to be held in the year
2017, subject to ratification of their appointment at every AGM.
Yours Directors recommend reappointment of M/s. G.L. Gupta &
Associates, Chartered Accountants, as Auditors of the company at the
ensuing Annual General Meeting through the Notice convening the AGM.
The notes to the accounts referred to in the Auditor''s Report and the
observations made in the Report under Companies (Auditor''s Report)
Order, 2003 are self-explanatory and therefore do not call for any
further comments.
DIRECTORS
In accordance with the provisions of Section 149 and 152 of the
Companies Act, 2013 and Rules made thereunder as amended from time to
time, the Company has recommended appointments of Independent Directors
as stipulated in item Nos. 3 to 6 of the Notice of the ensuing 21st
Annual general meeting of the Company. In view of all other directors
being recommended for appointment as Independent directors except Mr.
Rakesh Jain, Managing Director, therefore there is no director liable
to retire by rotation.
DIRECTORS RESPONSIBILITY STATEMENT
The information required to be furnished in terms of section 134(5) of
the Companies Act, 2013 (erstwhile Section 217(2AA) of the Companies
Act, 1956) are set out hereunder:
Your Directors confirm:
i) that in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures;
ii) 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;
iii) 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 and other irregularities;
iv) that the directors had prepared the annual accounts on a going
concern basis. PARTICULARS AS PER SECTION 134 OF THE COMPANIES ACT,
2013
Your company does not have any employee, whose particulars are required
to be given under the provision of Section 134 of The Companies Act,
2013 (erstwhile section 217 (2A) of the Companies Act, 1956) read with
the Companies (Accounts) Rules, 2014.
Disclosure with respect to Conservation Of Energy, Technology
Absorption & Foreign Exchange Earning And Outgo, pursuant to section
217 (1)(e) of the Companies Act, 1956 is not applied to the Company.
LISTING OF SHARES
The shares of the company are listed on Bombay Stock Exchange & Delhi
Stock Exchange. The listing fees has been paid in full to all the stock
exchanges during the year. Company has voluntarily delisted its
Securities from Ludhiana Stock Exchange w.e.f. 8th February, 2014.
FIXED DEPOSITS
The Company has not accepted any fixed deposits till date within the
meaning of Section 58A of the Companies Act, 1956 and rules made there
under.
ACKNOWLEDGEMENT
Your Directors place on record their warm appreciation of the
assistance and cooperation extended by various Government Departments,
Authorities, Reserve Bank of India, Business Partners etc. Your
Directors also place on record their deep appreciation of the support
provided by the Bankers associated with the company.
Your support as shareholders is greatly value. Your directors thank you
and look forward to your continuance support.
EKAM LEASING & FINANCE CO. LIMITED By order of the Board of
Directors
Registered Office:
IIIrd Floor, 14, Rani Jhansi Road,
New Delhi - 110 055. Rakesh Jain Saurabh Jain
Corporate Identity Number: Managing Director Director
L74899DL1993PLC055697 DIN.00061737 DIN : 02815972
Tel : 011-32033277,
Fax: 91-11-23528015
Email: [email protected]
Website: www.ekamleasing.com
September 03, 2014
New Delhi
Mar 31, 2013
TO THE MEMBERS OF EKAM LEASING AND FINANCE CO. LIMITED
The Directors are pleased to have this opportunity to present the
Twentieth Annual Report of the Company along with and Audited Statement
of Accounts for the year ended 31st March, 2013.
FINANCIAL HIGHLIGHTS famounf (amount in Rs.)
2012-2013 2011-2012
Revenue from operations 40,38,117.00 36,25,119.00
Other Income 3,46,854.00 13,18,586.00
Total Expenditure 38,95,525.00 42,04,157.00
Profit / (Loss) before Tax &
Provision for NPA 4,89,446.00 7,39,548.00
Provision for Tax 1,59,840.00 1,50,720.00
Net Profit / (Loss) 3,29,606.00 5,88,828.00
Deficit brought forward
from previous year (98,50,893.87) (1,04,39,721.87)
Deficit carried over to Balance
Sheet (95,21,288) (98,50,893.87)
OVERALL PERFORMANCE
The Income from operations during the year has been Rs. 40.38 Lacs
approx as against Rs. 36.25 lacs approx in the previous year. The
financial year under review resulted in Net Profit of Rs. 3.29 Lacs as
compared to Rs. 5.89 Lacs the previous year.
During the financial year under review the performance of the company
has improved by approx 11.41% over the performance of the last
financial year, the net profit decreased due to increased cost of
finance to expand the scale of the business operations of the Company.
The management of the company has positive outlook for the future
growth.
DIVIDEND
In view of the Insignificant Profit for the year under review and huge
accumulated losses incurred by the company in the past, your directors
do not recommend payment of any dividend for the year.
CORPORATE GOVERNANCE
The Company is required to implement various compliances of Corporate
Governance in accordance with the requirements of the Standard Listing
Agreement entered into by the Company with the Stock Exchanges namely
Bombay Stock Exchange (BSE), Delhi Stock Exchange(DSE) & Ludhiana Stock
Exchange(LSE) wherein the shares of the Company are Listed. Your
Company had taken adequate steps to ensure compliance of the
requirements of Corporate Governance and accordingly, 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
is made part of this Annual Report.
FUTURE PROSPECTS
The management is very optimistic and aggressively focusing on to
exploit the opportunities available to NBFC in India and exploring and
evaluating various business models for implementation in order to
enhance to turnover of the Company to escalate to new heights. The
Board expects that the Company will continue to improve its overall
performance and excel to enhance the profitability of the Company, in
the present economic scenario and growth momentum of Indian economy,
via its strategy competency, operational efficiencies and successful
implementation of its new business models.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Forward-Looking Statements:
Certain statements in this MD&A Report which are not historical facts
constitute forward-looking statements or forward-looking information
within the meaning of applicable laws ("forward-looking statements").
Forward-looking statements are based on certain assumptions and
expectations of future events. The Company cannot guarantee that these
assumptions and expectations are accurate or will be realized. The
Company''s actual results, performance or achievements could thus differ
materially from those projected in any such forward-looking statements.
The Company assumes no responsibility to publicly amend, modify or
revise any forward looking statements, on the basis of any subsequent
developments, information or events.
Ekam Leasing & Finance Co. Ltd. registered with RBI as a non banking
financial company(non deposit accepting), professionally managed
Company where customer-satisfaction is of paramount consideration and
matters most above all others.
The Industry: Opportunities & Threats:
NBFCs have been playing a complimentary role to the banking sector,
catering to the unbanked sectors and promoting financial inclusion;
NBFCs have been vital to the growth of the economy by providing
financial support to some of the important segments of the economy.
Gradually, they are being recognised as complementary to the banking
sector due to their customer-oriented services: simplified procedures;
attractive rates of return on deposits; flexibility and timeliness in
meeting the credit needs of specified sectors; etc. NBFCs are
heterogeneous group of institutions (other than commercial and co-
operative banks) performing financial intermediation in a variety of
ways, like accepting deposits, making loans and advances, leasing, hire
purchase, etc. They raise funds from the public, directly or
indirectly, and lend them to ultimate spenders. They advance loans to
the various wholesale and retail traders, small-scale industries and
self-employed persons. Thus, they have broadened and diversified the
range of products and services offered by a financial sector.
Opening up of economy gave a further boost to the demand for credit. A
developing economy like India always craves for financial resources and
NBFCs account for 12.3% of assets of the total financial system. Due to
the global economic slowdown and its impact on the domestic economy,
NBFC sector faced significant stresses on asset quality, liquidity and
funding costs.
Business Outlook and Overview:
Demand for credit is great and often organized traditional financing
institutions (like banks and financial institutions) do not meet such
demand thus creating a space for other types of financing. Money lender
is an age old institution filling such space. Bank borrowings and
debentures have remained the prominent source of funding for NBFCs
After a long depressing performance in the past, the Company with its
pragmatic approach in line with the objectives of Long-term growth, is
developing the strategic competency and enhancing its operational
efficiencies. Our strategy to enhance scale of operations, strengthen
business, where we have competencies.
Company''s future earnings largely depend upon successful implementation
of its strategies in its core competence portfolio. Further the Company
is going to enlarge its area and scale of operations to the existing
portfolio to capture business opportunities growth and to consolidate
customer relationship this year.
Performance:
The Income from operations during the year has been Rs. 40.38 Lacs
approx as against Rs. 36.25 lacs approx in the previous year. The
financial year under review resulted in Net Profit of Rs. 3.29 Lacs as
compared to Rs. 5.89 Lacs the previous year.
Internal Control Systems and Cost:
The Company endeavors to ensure that an adequate internal control
system is in place. The company has undertaken an extensive exercise to
control the overall cost and to explore and finalise ways of cost
reduction and optimizing resources.
Human Resource Development:
Ekam Leasing & Finance Co. Ltd. strives to create a culture of openness
and empowerment amongst its employees and provide good career
development. The Company is committed to the welfare of the employees
and their families. The Company believes that human resources are the
key resources for the success of any organization.
Your Company belief in trust, transparency & teamwork to improve
employee''s productivity at all levels.
REGISTRATION WITH RBI
The Company being a Non-Banking Finance Company(NBFC) and is registered
with the Reserve Bank of India(RBI), with RBI Registration No,
14-00332. The Company had complied with the Non-Banking Financial (Non
- Deposit Accepting or Holding) Companies Prudential Norms (Reserve
Bank) Directions, 2007 as amended.
AUDITORS
M/s. G.L. Gupta & Associates,Chartered Accountants, New Delhi,
Statutory Auditors of the company, retire from their office at the
ensuing Annual General Meeting. They are, however, eligible for re-
appointment pursuant to Section 224(1 B) of the Companies Act, 1956
they have confirmed their eligibility for re-appointment as the
Auditors of the company. Members are requested to consider their
re-appointment.
The observations of the Auditors in their report on Annual Accounts of
the Company read with the relevant notes are self explanatory and
therefore do not call for any further comments.
DIRECTORS
In accordance with the provisions of Companies Act, 1956 and Company''s
Articles of Association, Mr. Vishal Jain retires by rotation at the
ensuing Annual General Meeting and is eligible for re-appointment.
DIRECTORS RESPONSIBILITY STATEMENT
The information required to be furnished in terms of section 217 (2AA)
of the Companies Act, 1956 are set out hereunder:
Your Directors confirmed:
i) that in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures;
ii) 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;
iii) 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 and other irregularities;
iv) that the directors had prepared the annual accounts on a going
concern bas
.
PARTICULARS AS PER SECTION 217 OF THE COMPANIES ACT, 1956
Your company does not have any employee, whose particulars are required
to be given under the provision of section 217 (2A) of the Companies
Act, 1956 read with the Companies (Particulars of Employees) Rules,
1975, as amended up to date.
Disclosure with respect to Conservation Of Energy, Technology
Absorption & Foreign Exchange Earning And Outgo, pursuant to section
217 (1) (e) of the Companies Act, 1956 is not applied to the Company.
LISTING OF SHARES
The shares of the company are listed on Bombay Stock Exchange, Delhi
Stock Exchange and Ludhiana Stock Exchange. The listing fees are paid
in full to a''l the stock exchanges during the year. Bombay Stock
Exchange, Ludhiana Stock Exchange and Delhi stock exchange has revoked
suspension of the trading in the shares of the company.
FIXED DEPOSITS
The Company has not accepted any fixed deposits till date within the
meaning of Section 58A of the Companies Act, 1956 and rules made there
under.
ACKNOWLEDGEMENT
Your Directors place on record their warm appreciation of the
assistance and cooperation extended by various Government Departments,
Authorities, Reserve Bank of India, Business Partners etc. Your
Directors also place on record their deep appreciation of the support
provided by the Bankers associated with the company.
Your support as shareholders is greatly value. Your directors thank you
and look forward to your continuance support.
For & On behalf of the Board of
EKAM LEASING & FINANCE CO. LIMITED
Place: New Delhi RAKESH JAIN
Date :28th August, 2013 CHAIRMAN
Mar 31, 2010
The Directors are pleased to have this opportunity to present the
SEVENTEENTH ANNUAL REPORT of the Company along with and Audited
Statement of Accounts for the year ended 31s March, 2010.
FINANCIAL RESULTS (Amount in Rs.)
2009-20T0 2008-2009
Sales/ Income from operations 1,63,12,800.00 15,21,152.00
Total Expenditure 2,96,45,636.00 2,37,156.00
Profit / (Loss) before
Tax & Provision for NPA (1,33,32,836.00 12,83,996.00
Provision for Tax Nil 1,50,000.00
Tax Related to earlier years 1,83,833.00 Nil
Net Profit / (Loss) (1,35,16,669.00) 11,33,996.00
Deficit brought forward from
previous year (2,69,82,262.87) (2,81,16,259.00)
Deficit carried over to BalanSheet (1,15,03,155.87) 2,69,82,262.87
Share Capital 3,00,00,000.00 2,98,86,250.00
OVERALL PERFORMANCE
The year under review resultedin Net Loss of Rs. 135.17 Lacs as
compare to Net Profit of Rs. 11.34 Lacs during the previous year. The
Income from operations during the year has been Rs. 163.13 Lacs as
against Rs. 15.21 lacs in the previous year.
The performance of the company has improved further during the year
under review. The management of the company has positive outlook for
the future and hopefully to have impetus to the growth.
DIVIDEND
In view of the loss for the year, your directors do not recommend
payment of any dividend for the year.
CORPORATE GOVERNANCE
As per the Listing Agreement with the Stock Exchanges, your Company was
required to implement various requirements of Corporate Governance.
Your Company had taken adequate steps to ensure compliance of the
requirements of Corporate Governance and accordingly, 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
is made part of this Annual Report.
FUTURE PROSPECTS
The Board expects that the Company will continue to improve its overall
performance and excel to enchance the profitability of the Company, in
the present economic scenario and growth momentum of Indian economy,
via its strategy competency, operational efficiencies. We expect a
robust growth and enhanced market share on the strength of its existing
product portfolio, operational efficiency and enhanced network
alongwith the successful implementation of strategies in future.
AUDITORS
M/s. G.L Gupta & Associates. Chartered Accountants, New Delhi, Auditors
of the company, retire from their office. They are. however, eligible
for re-appointment. Pursuant to Section 224(1 B) of the Companies Act,
1956 they have confirmed their eligibility for re-appointment as the
Auditors of the company. Members are requested to consider their
re-appointment.
The observations of the Auditors in their report on Annual Accounts of
the Company read with the relevant notes are self explanatory and
therefore do not call for any further comments.
DIRECTORS
During the year under review, there was no change in the Directorship
of the company.
In accordance with the provisions of Companies Act, 1956 and Companys
Articles of Association, Mr. Nirmal Kumar Jain retires by rotation at
the ensuing Annual General Meeting and is eligible for re- appointment.
Mr. Nirmal Kumar Jain is recommended to be appointed as a director
liable to retire by rotation.
On 22nd June, 2010, Mr. Narendra Kumar Jain was appointed as a Director
of the company to fill the casual vacancy caused due to resignation of
Mr. Bimal Kumar Jain, Director of the company
DIRECTORS RESPONSIBILITY STATEMENT
The information required to be furnished in terms of section 217 (2AA)
of the Companies Act, 1956 are set out hereunder:
Your Directors confirmed:
i) that in the preparation of the annual accounts, the applicable
accounting standards had
been followed along with proper explanation relating to material
departures: in 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; iii) 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 and other irregularities; iv) that the directors had prepared the
annual accounts on a going concern bas,s. Pmnlovees) Rules. 1975. as
amended up to dale
Disclosure with respect to Conservation Of Energy, Technology
Absorption & Foreign Exchange Earning And Outgo, pursuant to section
217 (1)(e) of the Companies Act, 1956 is not applied to the Company.
LISTING OF SHARES
The shares of the company are listed on Bombay Stock Exchange, Delhi
Stock Exchange and Ludhiana Stock Exchange. The listing fees are paid
in full to all the stock exchanges during the year. Delhi stock
exchange has revoked suspension of the trading in the shares of the
company. The company is endeavoring for revocation of suspension of
trading in shares with Bombay and Ludhiana Stock Exchange,
FIXED DEPOSITS
The Company has not accepted any fixed deposits till date within the
meaning -of Section 58A of the Companies Act, 1956 and rules made there
under.
ACKNOWLEDGEMENT
Your Directors place on record their warm appreciation of the
assistance and cooperation extended by various Government Departments,
Authorities, Reserve Bank of India, Business Partners etc. Your
Directors also place on record their deep appreciation of the support
provided by the Bankers associated with the company.
Your support as shareholders is greatly value. Your directors thank you
and look forward to your continuance support.
For & On behalf of the Board
Place: New Delhi Prakash Chand Didwania
Date:1 September 2010 Chairman