Mar 31, 2018
DIRECTORS'' REPORT AND MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Dear Members,
Your Directors are pleased to present their Twenty First Report together with Audited Financial Statements for the financial year ended March 31, 2018:
FINANCIAL HIGHLIGHTS:
The summary of financial performance of the Company for the year under review is as given below:
|
(Rs in Lakhs) |
|||
Standalone |
Consolidated |
|||
For the Year ended March 31 , 2018 |
For the Year ended March 31 , 2017 |
For the Year ended March 31 , 2018 |
For the Year ended March 31 , 2017 |
|
Total Income |
8606.67 |
273.10 |
14148.00 |
540.92 |
Profit before Depreciation & Tax |
8449.78 |
187.17 |
13810.69 |
336.37 |
(-) Depreciation |
1.06 |
1.23 |
1.06 |
1.23 |
Prof it/(Loss) before Tax |
8448.72 |
185.94 |
13809.63 |
335.14 |
Add: Excess/(Short) Provision of Tax of earlier years |
-0.13 |
376.32 |
-4.06 |
375.82 |
(-) Tax for Current Year |
900.64 |
0.77 |
1676.77 |
18.67 |
(-) Deferred Tax |
- |
- |
- |
- |
Prof it/(Loss) after Tax |
7547.95 |
561.50 |
12128.80 |
692.28 |
Appropriation: |
||||
Less: Transfer to Special Reserve |
1509.59 |
112.30 |
3894.96 |
138.46 |
Add: Balance brought forward |
4554.43 |
4105.23 |
10469.89 |
9916.06 |
Balance Profit/(Loss) transferred to Balance Sheet |
10592.80 |
4554.43 |
18703.74 |
10469.89 |
FINANCIAL PERFORMANCE:
Revenue:
The total revenue for FY 2017-18 was Rs. 8606.67 lakhs as compared to revenue of Rs. 273.10 lakhs of the previous year. The increase in revenue is on account of dividends, interest income and profit on sale of long term investments. Rs. 7398.28 lakhs and Rs. 10750.90 lakhs in the Standalone and Consolidated revenues, respectively, is on account of sale of long term investments.
Expenses:
The total expenses for FY 2017-18 were Rs. 157.95 lakhs as compared to expenses of Rs. 133.54 lakhs of the previous year, mainly on account of increase in legal & professional fees and miscellaneous expenses.
Profit After Tax:
Profit after Tax (PAT) for FY 2017-18 was Rs. 7547.95 lakhs in comparison to PAT of Rs. 561.49 lakhs during the previous year. The increase in profit is on account of dividend, interest income, profit on sale of long term investments and adjustment of the provision for tax of the earlier years. Tax expense for current year pertains mainly to Minimum Alternate Tax (MAT) arising on account of gains booked on sale of long term investments.
Amounts proposed to be carried to reserves:
An amount of Rs. 1509.59 lakhs has been transferred to Special Reserve as per the statutory requirements.
DIVIDEND:
With a view to conserve resources and based on the cash balance position of the Company, your Directors consider it prudent not to recommend any dividend for the year under review.
MANAGEMENT DISCUSSION AND ANALYSIS:
a. Industry Structure & Developments, Opportunities and Future Outlook:
The global economy experienced a cyclical recovery in 2017-18, showing signs of stronger investment and manufacturing activity. However, global trade faced several challenges with geopolitical issues occupying the centre stage.
India emerged amongst the fastest growing major economies in the world with GDP growth at about 6.7% in 2017-18 and is expected to grow above 7.3% in 2018-19.
Major reforms were undertaken over the past year including the transformational Goods and Services Tax (GST) that was launched on July 1, 2017. The long-festering Twin Balance Sheet problem was decisively addressed by the Government by formulating the new Indian Bankruptcy Code (IBC) and implementing a major recapitalization package to strengthen the public sector banks. The IBC has provided a resolution framework that will help corporates clean up their balance sheets and reduce their debts. However, addressing the Non Performing
Assets (NPA) issue of the banks remains a task for the Government and the RBI.
The Company, being a Non-Banking Financial Company (''NBFC'') registered with RBI as a Non-Deposit Accepting NBFI, derives major revenue from its investments. Sectoral policy changes by the Government, therefore, have direct impact on the profitability of the Company, as the value of the stocks, shares and bonds depends on the prevailing capital markets scenario. The future success of the Company continues to depend on its ability to anticipate the volatility of the Stock Markets, minimising risks and increasing returns through prudent investment decisions.
The investments of the Company are typically long term in nature and predominantly in the equity markets. All investments decisions are reviewed by the Board of Directors on a periodic basis.
b. Risks, Threats and Concerns:
Risk management can be construed as the identification, assessment, and prioritization of risks followed by co-ordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realisation of opportunities.
The Risk Management Committee (''RMC'') of the Board of Directors manages and monitors the Company''s risks, as detailed herein below under the heading "Risk Management Process".
c. Internal control systems and their adequacy:
The Company has an adequate internal audit and control system commensurate with its size and nature of business to ensure operational efficiency, accuracy and promptness in financial reporting and compliance of various laws and regulations. The Audit Committee of the Board of Directors reviews the Internal Audit Report and the adequacy and effectiveness of internal controls periodically.
d. Human Resources:
Employee relations continued to remain cordial during the year under review. As on March 31, 2018, there were eight (8) employees including Key Managerial Personnel (''KMP'') of the Company.
CAUTIONARY STATEMENT:
Statements in the Management Discussion and Analysis describing the Company''s objectives, projections, estimates and expectations may constitute "forward looking statements" within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied.
MATERIAL CHANGES AND COMMITMENTS:
There are no material changes and commitments, affecting the financial position of the Company which have occurred between the end of the financial year on March 31, 2018 to which the financial statements relate and the date of this report.
CONSOLIDATED FINANCIAL STATEMENTS:
In accordance with Section 129(3) of the Companies Act, 2013 (''the Act'') and Regulation 34 of the Securities
and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, (''the Listing Regulations'') the Consolidated Financial Statements of the Company and its subsidiaries, including the statement containing salient features of the financial statements of all the subsidiary companies of the Company as set out in prescribed Form AOC-1, forms part of this Annual Report 2017-18.
The Consolidated Financial Statements have been prepared in accordance with the Accounting Standards issued by the Institute of Chartered Accountants of India.
SUBSIDIARY COMPANIES:
There was no change in the subsidiaries, joint ventures or associates during the year under review.
Further, the Financial Statements of these subsidiaries are uploaded on the website of the Company in accordance with Section 136 of the Act. The Annual Accounts of these subsidiaries and the other related information will be made available to any Member of the Company seeking such information and also available for inspection at the Registered Office of the Company.
As required under Regulation 16(1)(c) of the Listing Regulations, the Company has formulated the Policy on Materiality of Subsidiaries and the same is published on the Company''s web-site at the link http://summitsecurities. net/PolicyonMaterialSubsidiary.pdf.
RISK MANAGEMENT PROCESS:
Though, the requirements of constitution of the Risk Management Committee contained in Regulation 21 of the Listing Regulations are not yet applicable to the Company, the Board of Directors has constituted the Risk Management Committee of the Board of Directors (''Risk Management Committee'') in terms of the Guidelines on Corporate Governance issued by the RBI in the year 2010. The terms of reference of the Risk Management Committee are in accordance with the aforesaid Guidelines, the Act and Listing Regulations as well.
The Risk Management Committee has formulated a Risk Management Policy. This policy defines a process to ensure that a structured, disciplined and consistent risk strategy, providing guidance for risk activity within the Company by embedding Enterprise Risk Management within the culture of the business is in place.
One of the element in the Risk Management Process as defined in the Risk Management Policy is identification and assessment of risks. The identified risks pertaining to the nature of business carried out by the Company comprise of Business Risks, Finance Risks, Regulatory Risks, Environment Risks, Information Technology Risks etc. Risk mitigation measures are also reviewed alongside the identified risks. A report on risk evaluation and mitigation covering the elements of risks, impact and likelihood, mitigation measures and risk assessment is periodically presented before the Risk Management Committee for review and also placed before the Board of Directors for information.
RELATED PARTY TRANSACTIONS:
The Company had formulated a Policy on Related Party Transactions for purpose of identification and monitoring of Related Party Transactions. The Policy on Related Party Transactions as approved by the Board is uploaded on the
Company''s website under the link http://summitsecurities. net/Related Party Transaction Policy.pdf.
The details of the transactions entered into by the Company with related parties during the year under review which requires reporting in Form AOC-2 in terms of the Section 134(3) and 188(1) of the Act read with Rule 8(1) of the Companies (Accounts) Rules, 2014 is appended with this report as Annexure A.
There are no relationships between the Directors inter-se nor any relationship between the Key Managerial Personnel inter-se.
None of the Directors or KMP had any pecuniary relationships or transactions vis-a-vis the Company except the sitting fees paid to Directors and remuneration paid to KMPs.
EXTRACT OF THE ANNUAL RETURN:
An extract of the Annual Return pursuant to Section 92(3) of the Act read with Rule 12 of the Companies (Management and Administration) Rules, 2014 in the Form MGT-9 is appended with this report as Annexure B.
PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS:
The Company is registered as non-banking financial company not accepting public deposits, with the Reserve Bank of India and having its principal business of making investments, the Company is exempted from the provisions of sub-section(l) of Section 186 of the Act.
PUBLIC DEPOSITS:
The Company has not accepted any deposits within the meaning of sub-section (31) of Section 2 and Section 73 of the Act and the Rules framed thereunder.
DIRECTORS AND KEY MANAGERIAL PERSONNEL:
a. Directors :
In accordance with the provisions of the Act, and Articles of Association of the Company, Mr. A. N. Misra, Non-Executive Director, retires by rotation and being eligible, has offered himself for re-appointment.
b. Key Managerial Personnel:
Pursuant to the provisions of Section 2(51) and Section 203 of the Act read with the rules framed thereunder, the following persons are the Key Managerial Personnel of the Company:
1. Mr. Rohin Bomanji, Manager;
2. Mr. Paras Mai Rakhecha, Chief Financial Officer; and
3. Ms. Jiya Gangwani, Company Secretary.
Further, there was no change in the Key Managerial Personnel of the Company during the year under review.
c. Declarations from Independent Directors:
The Company has received declarations as required under Section 149(7) of the Act from all the Independent Directors stating that they meet the criteria of independence pursuant to Section 149(6) of the Act.
d. Training and Familiarisation Programme for Independent Directors:
Pursuant to the Code of Conduct for Independent Directors specified underthe Act and Regulation 25(7) of the Listing Regulations, the Company familiarises
its Independent Directors on their roles, rights, responsibilities in the Company, nature of the industry in which the Company operates and business model of the Company, etc. The note on this familiarisation programme is also posted on the Company''s website under the link http://summitsecurities.net/ DetailsofFamiliarisationProgramme.pdf.
MEETINGS OF THE BOARD OF DIRECTORS:
The Board of the Company has met four times during the year ended March 31, 2018, the details of the meetings of the Board of Directors held during the year are mentioned under the Corporate Governance Report, which forms part of this Annual Report.
BOARD COMMITTEES:
The Board Committees comprise of mandatory committees as per the Act and Listing Regulations viz., Audit Committee, Nomination and Remuneration Committee and the Stakeholders Relationship Committee. The non-mandatory Board committees comprise of the Risk Management Committee and Asset Liability Management Committee constituted as per applicable RBI guidelines. Further, the IT Strategy Committee was also constituted under the RBI guidelines. Details of composition of these committees alongwith number of meetings held during the year and other related details are set out in the Corporate Governance Report which forms part of this Report.
AUDIT COMMITTEE:
The detailed composition of the Audit Committee is set out in the Corporate Governance Report which forms part of this Report.
There have been no situations where the Board has not accepted any recommendations of the Audit Committee.
ANNUAL PERFORMANCE EVALUATION OF BOARD AND ITS COMMITTEES:
The Annual Evaluation as required underthe Act and the Listing Regulations has been carried out by the Board of its own performance, the performance of each individual Director (including chairperson of Board and Committees) and its Committees. For this purpose, an Evaluation Questionnaire was circulated to all the Directors and their responses were received in a sealed envelope addressed to the Chairman of the Board of Directors and results thereof were then discussed in the next meeting of the Board of Directors.
The said questionnaire was prepared considering the criteria for evaluation in accordance with the Company''s Policy on Appointment, Training, Evaluation and Remuneration approved by the Board on recommendation of the Nomination and Remuneration Committee, interalia comprising of:
(a) attendance at meetings of the Board and Committees thereof,
(b) participation in meetings of the Board or Committee thereof,
(c) contribution to strategic decision making,
(d) review of risk assessment and risk mitigation,
(e) review of financial statements and business performance,
(f) contribution to the enhancement of brand image of the Company.
REMUNERATION POLICY:
The Board of Directors has on the recommendation of the Nomination and Remuneration Committee formulated
a policy on "Appointment, Training, Evaluation and Remuneration of Directors, Key Managerial Personnel and Senior Management Personnel". This policy interalia covers the requirements specified under Section 178(3) of the Act comprising of criteria for determining qualifications, positive attributes and independence of a director, etc.
The Policy provisions covering the requirements under Section 178 of the Act is given as Annexure C to this report
DIRECTORS RESPONSIBILITY STATEMENT:
Pursuant to Section 134(3)(c) of the Act, your Directors to the best of their knowledge and belief confirm that:
(a) in the preparation of the annual accounts, the applicable accounting standards have been followed alongwith proper explanation relating to material departures, if any;
(b) such accounting policies have been selected and applied consistently and such judgements and estimates have been made that are reasonable and prudent to give a true and fair view of the state of affairs of the Company in the Balance Sheet as at March 31, 2018 and the Statement of Profit and Loss for the financial year ended March 31, 2018;
(c) proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
(d) the annual accounts have been prepared on a going concern basis;
(e) the proper internal financial controls were in place and that such internal financial controls were adequate and were operating effectively;
(f) the systems to ensure compliance with the provisions of all applicable laws were in place and that such systems were adequate and operating effectively.
WHISTLE BLOWER POLICY:
The Company has a vigil mechanism named Whistle Blower Policy (''WBP'') for directors and employees to report their concerns about unethical behavior, actual or suspected fraud or violation of the Company''s code of conduct or ethics policy. The WBP is also posted in the Company''s website at the link: http://summitsecurities.net/ Whistle Blower Policy.pdf.
PARTICULARS OF EMPLOYEES:
a. During the year under review, no employee was in receipt of remuneration which in aggregate was equal or more than the limit specified under Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
b. Statement containing the Disclosures pursuant to Section 197(12) of the Act and Rule 5 of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is attached as Annexure D to this Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, RESEARCH AND DEVELOPMENT, FOREIGN EXCHANGE EARNINGS AND OUTGO:
The Company is a Non-Banking Financial Company and engaged in investments and financial activities and, as such, its operations do not account for substantial energy consumption. However, the Company adopts all possible measures to conserve energy and at the same time several environment friendly measures are adopted by the Company.
The provisions relating to research and development and technology absorption are not applicable to the Company. During the year under review, there have been no transactions in the Company relating to foreign exchange earnings and outgo.
CORPORATE SOCIAL RESPONSIBILITY:
The provisions of Section 135 of the Act were not applicable to the Company during the financial year ended March 31, 2018, as the Company did not fall into the criteria specified in sub-section (1) of Section 135 of the Act.
STATUTORY AUDITORS:
Messrs Chaturvedi & Shah, Chartered Accountants were appointed as the Statutory Auditors of the Company at the Seventeenth AGM of the Company held on September 27, 2014 to hold office for a period of 4 (four) consecutive years from the conclusion of the Seventeenth AGM till the conclusion of the Twenty First AGM subject to ratification by the members at every AGM of the Company. Their term accordingly expires at the conclusion of the ensuing Twenty First AGM.
Messrs Chaturvedi & Shah, Chartered Accountants have confirmed that they are eligible to act as Statutory Auditors, if appointed, in accordance with Sections 139 and 141 of the Act and Rules made thereunder.
The Board of Directors after considering the recommendation of the Audit Committee recommends the re-appointment of Messrs Chaturvedi & Shah, Chartered Accountants as the Statutory Auditors of the Company to hold office for a period of five years from the conclusion of the ensuing Twenty First AGM up to the conclusion of the Twenty Sixth AGM.
INTERNAL AUDITORS:
M/s. Dinesh Jain & Co., Chartered Accountants are the Internal Auditors of the Company.
SECRETARIAL AUDITORS:
M/s. Parikh Parekh & Associates, Company Secretaries were appointed as the Secretarial Auditors for conducting the Secretarial Audit in accordance with Section 204 of the Act for the year ended March 31,2018. The Secretarial Audit Report prepared in accordance with sub-section (3) of Section 134 and Section 204(1) of the Act in prescribed Form MR-3 by M/s. Parikh Parekh & Associates, Company Secretaries is attached as Annexure E to this Report.
EXPLANATION AND COMMENTS ON AUDITORS'' REPORT AND SECRETARIAL AUDIT REPORT:
There are no qualification, reservations or adverse remark or disclaimer made either by the Statutory Auditor in Auditors Report or by the Company Secretary in Practice (Secretarial Auditor) in his Secretarial Audit Report.
CORPORATE GOVERNANCE:
A report on Corporate Governance along with a certificate from the Auditors of the Company stipulated pursuant to Regulation 34 of the Listing Regulations are annexed as Annexure F to this Report.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS:
There are no significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and Company''s operations in future.
CHANGE IN THE NATURE OF BUSINESS:
During the year under review, there was no change in the nature of business.
INTERNAL FINANCIAL CONTROL:
Details in respect of adequacy on internal financial controls with reference to the financial statements are stated in the Management Discussion and Analysis section of this Report.
DISCLOSURE UNDER SEXUAL HARASSMENT OF WOMEN AT WORK PLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013:
The Company has in place a policy on Prevention of Sexual Harassment of Women at Workplace in accordance with the provisions of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act,
2013. Internal Complaints Committee (''ICC'') had been set up to redress complaints. ICC has not received any complaints during the year under review.
SECRETARIAL STANDARDS:
The Directors have devised proper systems to ensure compliance with the provisions of all applicable Secretarial Standards issued by the Institute of Company Secretaries of India and that such systems are adequate and operating effectively.
ACKNOWLEDEMENTS:
The Board of Directors wishes to place on record its gratitude for the continued support and co-operation extended by the Government authorities, banks, members and employees of the Company.
On behalf of the Board of Directors |
|
Ramesh D. Chandak |
|
Chairman |
|
DIN: 00026581 |
|
Place : Mumbai |
|
Date : May 23, 2018 |
Annexure
A FORM NO. AOC.2
Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arms length transactions under third proviso thereto
(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)
1. Details of contracts or arrangements or transactions not at arm''s length basis: None.
(a) Name(s) of the related party and nature of relationship
(b) Nature of contracts/arrangements/transactions
(c) Duration of the contracts/arrangements/transactions
(d) Salient terms of the contracts or arrangements or transactions including the value, if any
(e) Justification for entering into such contracts or arrangements or transactions
(f) date(s) of approval by the Board
(g) Amount paid as advances, if any:-
(h) Date on which the special resolution was passed in general meeting as required under first proviso to section 188.
2. Details of material contracts or arrangement or transactions at arm''s length basis:
(a) Name(s) of the related party and nature of relationship |
; a) Instant Holdings Limited (''Instant''), Wholly owned subsidiary of the Company; b) Sudarshan Electronics &T.V. Limited (''Sudarshan''), Wholly owned subsidiary of Instant Holdings Limited |
(b) Nature of contracts / arrangements / transactions |
; a) Investment in Rights Issue of Instant b) Sale of shares to Sudarshan |
(c) Duration of the contracts/ arrangements / transactions |
a) Date of Allotment: 29.03.201 8 b) Date of Sale: 06. 03.201 8 |
(d) Salient terms of the contracts or arrangements or transactions including the value, if any |
; Not Applicable |
(e) Date(s) of approval by the Board, if any |
; February 7, 2018 |
(f) Amount paid as advances, if any |
; Not Applicable |
On behalf of the Board of Directors |
|
Ramesh D. Chandak |
|
Chairman |
|
DIN: 00026581 |
|
Place : Mumbai |
|
Date : May 23, 201 8 |
Annexure B
FORM NO. MGT 9
EXTRACT OF ANNUAL RETURN as on the financial year ended on March 31, 2018.
{Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Company (Management & Administration) Rules, 2014}
I. REGISTRATION AND OTHER DETAILS:
i |
CIN |
L65921MH1997PLC1 94571 |
ii |
Registration Date |
January 30, 1997 |
iii |
Name of the Company |
Summit Securities Limited |
iv |
Category/Sub-category of the Company |
Company Limited by Shares Indian Non-Government Company |
V |
Address of the Registered office and contact details |
213, Bezzola Complex, B Wing, 71 , Sion-Trombay Road, Chembur, Mumbai- 400 071 Tel No : 91-22-25292152 | Fax: 91-22-25297423 E-mail: [email protected] Website: www.summitsecurities.net |
vi |
Whether listed company |
Yes on BSE Limited and National Stock Exchange of India Limited |
vii |
Name , Address & contact details of the Registrar & Transfer Agent, if any. |
TSR Darashaw Limited; 6-10, Haji Moosa Patrawala Industrial Estate, 20, Dr. E. Moses Road, Mahalaxmi, Mumbai -400 011. Tel: 022-66568484; Fax: 022-66568494 Email: [email protected] Website: www.tsrdarashaw.com |
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY:
All the business activities contributing 10% or more of the total turnover of the company shall be stated:-
SI. No. |
Name & Description of main products/ services |
NIC Code of the Product /service |
% to total turnover of the company |
1. |
Investments in Securities |
64990 |
100% |
III. PARTICULARS OF HOLDING , SUBSIDIARY & ASSOCIATE COMPANIES:
SI. No. |
Name & Address of the Company |
CIN/GLN |
Holding/ Subsidiary/ Associate |
% of Shares held |
Applicable Section |
1. |
Instant Holdings Limited (''Instant'') 213, Bezzola Complex, "B" Wing, 71, Sion-Trombay Road, Chembur, Mumbai -400071. |
U65990MH2005PLC152062 |
Subsidiary Company |
100% |
2(87) |
2. |
Sudarshan Electronics & T.V. Limited 213, Bezzola Complex, "B" Wing, 71, Sion-Trombay Road, Chembur, Mumbai -400071. |
U32100MH1979PLC021889 |
Subsidiary Company of Instant |
2(87) |
IV. SHAREHOLDING PATTERN (Equity Share Capital Break up as % to total Equity):
(i) Category wise Shareholding
Category of Shareholders |
No. of Shares held at the beginning of the year i.e. April 01, 2017 |
No. of Shares held at the end of the year i.e. March 31 , 2018 |
% change during the year |
||||||
Demat |
Physical |
Total |
% of Total Shares |
Demat |
Physical |
Total |
% of Total Shares |
||
A. PROMOTERS: |
|||||||||
(1) Indian: |
|||||||||
a) Individual/HUF |
3,682 |
0 |
3,682 |
0.03 |
3,682 |
0 |
3,682 |
0.03 |
0.00 |
b) Central Government |
0 |
0 |
0 |
0.00 |
0 |
0 |
0 |
0.00 |
0.00 |
c) State Government(s) |
0 |
0 |
0 |
0.00 |
0 |
0 |
0 |
0.00 |
0.00 |
d) Bodies Corporate |
80,46,789 |
0 |
80,46,789 |
73.81 |
80,46,789 |
0 |
80,46,789 |
73.81 |
0.00 |
e) Bank/FI |
0 |
0 |
0 |
0.00 |
0 |
0 |
0 |
0.00 |
0.00 |
f) Any Other: (Specify) |
|||||||||
(f-1) Trusts |
16,162 |
0 |
16,162 |
0.15 |
16,162 |
0 |
16,162 |
0.15 |
0.00 |
SUB TOTAL: (A)(1) |
80,66,633 |
0 |
80,66,633 |
73.99 |
80,66,633 |
0 |
80,66,633 |
73.99 |
0.00 |
(2) Foreign: |
|||||||||
a) NRI- Individuals |
0 |
0 |
0 |
0.00 |
0 |
0 |
0 |
0.00 |
0.00 |
b) Other Individuals |
0 |
0 |
0 |
0.00 |
0 |
0 |
0 |
0.00 |
0.00 |
c) Bodies Corp. |
0 |
0 |
0 |
0.00 |
0 |
0 |
0 |
0.00 |
0.00 |
d) Banks/FI |
0 |
0 |
0 |
0.00 |
0 |
0 |
0 |
0.00 |
0.00 |
e) Any other... |
0 |
0 |
0 |
0.00 |
0 |
0 |
0 |
0.00 |
0.00 |
SUB TOTAL: (A)(2) |
0 |
0 |
0 |
0.00 |
0 |
0 |
0 |
0.00 |
0.00 |
Total Shareholding of Promoter (A)=(A)(1) (A)(2) |
80,66,633 |
0 |
80,66,633 |
73.99 |
80,66,633 |
0 |
80,66,633 |
73.99 |
0.00 |
B. PUBLIC SHAREHOLDING: |
|||||||||
(1) Institutions: |
|||||||||
a) Mutual Funds |
85,526 |
339 |
85,865 |
0.79 |
85,526 |
339 |
85,865 |
0.79 |
0.00 |
b) Banks/FI |
491 |
438 |
929 |
0.01 |
1,925 |
436 |
2,361 |
0.02 |
0.01 |
c) Cental Government |
0 |
538 |
538 |
0.00 |
0 |
538 |
538 |
0.00 |
0.00 |
d) State Governments(s) |
0 |
0 |
0 |
0.00 |
0 |
0 |
0 |
0.00 |
0.00 |
e) Venture Capital Fund |
0 |
0 |
0 |
0.00 |
0 |
0 |
0 |
0.00 |
0.00 |
f) Insurance Companies |
3,57,831 |
5 |
3,57,836 |
3.28 |
3,34,486 |
5 |
3,34,491 |
3.07 |
-0.21 |
g) Foreign Institutional Investors |
7 |
951 |
958 |
0.01 |
7 |
951 |
958 |
0.01 |
0.00 |
h) Foreign Venture Capital Funds |
0 |
0 |
0 |
0.00 |
0 |
0 |
0 |
0.00 |
0.00 |
i) Others (specify) |
0 |
0 |
0 |
0.00 |
0 |
0 |
0 |
0.00 |
0.00 |
SUB TOTAL (B)(1): |
4,43,855 |
2,271 |
4,46,126 |
4.09 |
4,21,944 |
2,269 |
4,24,213 |
3.89 |
-0.2C |
(2) Non Institutions: |
|||||||||
a) Bodies Corporates: |
|||||||||
i) Indian |
4,63,883 |
2,119 |
4,66,002 |
4.27 |
6,01,546 |
2,013 |
6,03,559 |
5.54 |
1.26 |
ii) Overseas |
0 |
99,122 |
99,122 |
0.91 |
0 |
99,122 |
99,122 |
0.91 |
0.00 |
b) Individuals: |
|||||||||
i) Individual shareholders holding nominal share capital upto Rs.1 lakhs |
11,16,240 |
1,01,213 |
12,17,453 |
11.17 |
9,71,380 |
98,365 |
10,69,745 |
9.81 |
-1.3E |
ii) Individuals shareholders holding nominal share capital in excess of Rs. 1 lakhs |
4,56,461 |
0 |
4,56,461 |
4.19 |
4,95,422 |
0 |
4,95,422 |
4.54 |
0.36 |
c) Others (specify): |
|||||||||
(i) Trusts |
7,440 |
0 |
7,440 |
0.07 |
7,320 |
0 |
7,320 |
0.07 |
0.00 |
(ii) Unclaimed Securities Suspense Account |
25,497 |
0 |
25,497 |
0.23 |
25,451 |
0 |
25,451 |
0.23 |
0.00 |
(iii) Director and Relatives |
0 |
101 |
101 |
0.00 |
0 |
101 |
101 |
0.00 |
0.00 |
(iv) Non-Resident Indian (NRI) |
32,695 |
97 |
32,792 |
0.30 |
28,265 |
97 |
28,362 |
0.26 |
-0.04 |
(v) HUF |
41,530 |
0 |
41,530 |
0.38 |
42,079 |
0 |
42,079 |
0.39 |
0.01 |
(vi) Clearing Members |
36,317 |
0 |
36,317 |
0.33 |
31,987 |
0 |
31,987 |
0.29 |
-0.04 |
(vii) LLP |
3,308 |
0 |
3,308 |
0.03 |
4,843 |
0 |
4,843 |
0.04 |
0.01 |
(viii)BC- NBFC |
2,912 |
0 |
2,912 |
0.03 |
2,857 |
0 |
2,857 |
0.03 |
0.00 |
(ix) Other |
82 |
5 |
87 |
0.00 |
82 |
5 |
87 |
0.00 |
0.00 |
SUB TOTAL: (B)(2) |
21,86,365 |
2,02,657 |
23,89,022 |
21.91 |
22,11,232 |
1,99,703 |
24,10,935 |
22.12 |
0.2C |
Total Public Shareholding (B)= (B)(1) (B)(2) |
26,30,220 |
2,04,928 |
28,35,148 |
26.01 |
26,33,176 |
2,01,972 |
28,35,148 |
26.01 |
0.00 |
C. Shares held by Custodian for GDRs & ADRs |
0 |
0 |
0 |
0.00 |
0 |
0 |
0 |
0.00 |
0.00 |
Grand Total (A) (B) (C) |
1,06,96,853 |
2,04,928 |
1,09,01,781 |
100.00 |
1,06,99,809 |
2,01,972 |
1,09,01,781 |
100.00 |
0.00 |
(ii) Share Holding of Promoters:
SI. No. |
Shareholder''s Name |
Shareholding at the begining of the year i.e. 01.04.2017 |
Shareholding at the end of the year i.e. 31 .03.2018 |
% change in share holding during the year |
||||
No. of Shares |
% of total shares of the company |
% of shares pledged/ encumbered to total shares |
No. of Shares |
% of total shares of the company |
% of shares pledged/ encumbered to total shares |
|||
1. |
ANANTVARDHAN GOENKA |
1,318 |
0.01 |
0.00 |
1,318 |
0.01 |
0.00 |
0.00 |
2. |
HARSH VARDHAN GOENKA |
2,153 |
0.02 |
0.00 |
2,153 |
0.02 |
0.00 |
0.00 |
3. |
HARSH VARDHAN GOENKA (Trustee, Monitor Portfolio Trust) |
16,157 |
0.15 |
0.00 |
16,157 |
0.15 |
0.00 |
0.00 |
4. |
HARSH VARDHAN GOENKA (Trustee, Crystal India Tech Trust) |
1 |
0.00 |
0.00 |
1 |
0.00 |
0.00 |
0.00 |
5. |
HARSH VARDHAN GOENKA (Trustee, Nucleus Life Trust) |
1 |
0.00 |
0.00 |
1 |
0.00 |
0.00 |
0.00 |
6. |
HARSH VARDHAN GOENKA (Trustee, Stellar Energy Trust) |
1 |
0.00 |
0.00 |
1 |
0.00 |
0.00 |
0.00 |
7. |
HARSH VARDHAN GOENKA (Trustee, Secura India Trust) |
1 |
0.00 |
0.00 |
1 |
0.00 |
0.00 |
0.00 |
8. |
HARSH VARDHAN GOENKA (Trustee, Prism Estates Trust) |
1 |
0.00 |
0.00 |
1 |
0.00 |
0.00 |
0.00 |
9. |
RAMA PRASAD GOENKA |
211 |
0.00 |
0.00 |
211 |
0.00 |
0.00 |
0.00 |
10. |
STEL HOLDINGS LIMITED |
69,815 |
0.64 |
0.00 |
69,815 |
0.64 |
0.00 |
0.00 |
11. |
JUBILEE INVESTMENTS AND INDUSTRIES LTD** |
2,285 |
0.02 |
0.00 |
2,285 |
0.02 |
0.00 |
0.00 |
12. |
RPG CELLULAR INVESTMENTS AND HOLDINGS PVT LTD *** |
2,90,799 |
2.67 |
0.00 |
2,90,799 |
2.67 |
0.00 |
0.00 |
13. |
SWALLOW ASSOCIATES LLP |
73,29,731 |
67.23 |
0.00 |
73,29,731 |
67.23 |
0.00 |
0.00 |
14. |
CARNIWAL INVESTMENTS LTD |
3,54,159 |
3.25 |
0.00 |
3,54,159 |
3.25 |
0.00 |
0.00 |
Total |
80,66,633 |
73.99 |
0.00 |
80,66,633 |
73.99 |
0.00 |
0.00 |
** Jubilee Investments & Industries Limited merged with RPG Cellular Investments and Holdings Private Limited (''RCIHPL'') pursuant to the Scheme of Amalgamation between RPG Communication & Holdings Private Limited, KTL Industrial Finance Company Limited, Kocilim Breweries Private Limited, Yield Investments Private Limited and Jubilee Investments & Industries Limited with RCIHPL duly sanctioned by the Honorable High Court of Calcutta on June 11, 2009. RCIHPL merged with Swallow Associates Limited (''SAL'') pursuant to the Scheme of Amalgamation and Arrangement between SAL and Blue Miles Holdings Limited, South Asia Electricity Holdings Limited, Kestral Investments Limited, Petrochem International Limited and RCIHPL duly sanctioned by the Honorable High Court of Judicature at Bombay w.e.f. March 27, 2012. Further, SAL has been converted into a Limited Liability Partnership with effect from October 31, 2012 and now is known as Swallow Associates LLP.
*** RPG Cellular Investments and Holdings Private Limited merged with Swallow Associates Limited (''SAL'') pursuant to the Scheme of Amalgamation and Arrangement between SAL and Blue Miles Holdings Limited, South Asia Electricity Holdings Limited, Kestral Investments Limited, Petrochem International Limited and RCIHPL duly sanctioned by the Honorable High Court of Judicature at Bombay w.e.f. March 27, 2012. Further, SAL has been converted into a Limited Liability Partnership with effect from October 31, 2012 and now is known as Swallow Associates LLP.
(iii) Change in Promoters'' Shareholding (please specify, if there is no change):
SI. No. |
Share holding at the beginning of the year |
Date |
Increase/ (Decrease) in Shareholding |
Reason |
Cumulative Share holding during the year |
|||
No. of Shares |
% of total shares of the company |
No of shares |
% of total shares of the company |
|||||
1. |
At the beginning of the Year |
80,66,633 |
73.99 |
80,66,633 |
73.99 |
|||
2. |
Date wise Increase/Decrease in Promoters Shareholding during the year specifying the reasons for Increase/ Decrease (e.g. allotment/ transfer/bonus/sweat equity etc) |
None |
||||||
3. |
At the end of the Year |
80,66,633 |
73.99 |
80,66,633 |
73.99 |
(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters & Holders of GDRs &
ADRsH Refer Note 1):
SI. No. |
For Each of the Top 10 Shareholders |
Shareholding at the beginning of the year |
Cumulative Shareholding at the end of the year |
||
No.of shares |
% of total shares of the company |
No. of shares |
% of total shares of the company |
||
1. |
Life Insurance Corporation of India |
2,97,152 |
2.73 |
2,97,152 |
2.73 |
2. |
VLS Finance Limited |
1,81,561 |
1.67 |
1,81,561 |
1.67 |
3. |
Chinappa M B |
1,75,799 |
1.61 |
1,61,910 |
1.49 |
4. |
SMIFS Capital Markets Limited |
1,56,500 |
1.44 |
1,56,500 |
1.44 |
5. |
Reliance Financial Limited |
- |
- |
1,33,500 |
1.22 |
6. |
Societe Ceat D Investissementen Asie S A |
99,019 |
0.91 |
99,019 |
0.91 |
7. |
Kevin Dsilva |
1,03,493 |
0.95 |
98,061 |
0.90 |
8. |
Seetha Kumari |
91,994 |
0.84 |
91,500 |
0.84 |
9. |
SBI Mutual Fund |
85,188 |
0.78 |
85,188 |
0.78 |
10. |
The Oriental Insurance Company Limited |
35,770 |
0.33 |
35,770 |
0.33 |
Note: 1. The shares of the Company are traded on daily basis. Hence, the date wise increase/decrease in the shareholding of the above shareholders is not provided.
2. The shareholdings of the above shareholders are consolidated based on the name of the first named holder of the shares, consolidated on basis of the PAN, irrespective of sub-accounts.
(v) Shareholding of Directors and Key Managerial Personnels (KMP): Name: Mr. H. N. Singh Rajpoot
Sr. No. |
For Each of the Directors & KMP |
Shareholding at the end of the year |
Cumulative Shareholding during the year |
||
No.of shares |
% of total shares of the company |
No of shares |
% of total shares of the company |
||
1. |
At the beginning of the year i.e. April 1, 2017 |
101 |
0 |
101 |
0 |
2. |
Date wise increase/decrease in Promoters Share holding during the year specifying the reasons for increase/decrease (e.g. allotment/ transfer/ bonus/ sweat equity, etc.) |
0 |
0 |
0 |
0 |
3. |
At the end of the year i.e. March 31, 2018 |
101 |
0 |
101 |
0 |
Note: Apart from above no other Director or KMP held any shares in the Company at the beginning and at the end of the FY 2017-18.
V. INDEBTEDNESS:
Indebtedness of the Company including interest outstanding/accrued but not due for payment: Amount in ?
Secured Loans Unsecured Deposits excluding deposits Loans |
Total Indebtedness |
|
Indebtness at the beginning of the financial year |
||
i) Principal Amount |
None |
|
ii) Interest due but not paid |
||
iii) Interest accrued but not due |
||
Total (i ii iii) |
||
Change in Indebtedness during the financial year |
I |
|
Additions |
None |
|
Reduction |
||
Net Change |
||
Indebtedness at the end of the financial year |
I |
|
i) Principal Amount |
None |
|
ii) Interest due but not paid |
||
iii) Interest accrued but not due |
||
Total (i ii iii) |
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL:
Remuneration to Managing Director, Whole time Director and/or Manager: Amount in Rs |
|||
SI. No. |
Particulars of Remuneration |
Mr. Rohin Bomanji (Manager) |
Total Amount |
1. |
Gross salary |
||
(a) Salary as per provisions contained in section 17(1) of the Income Tax Act, 1961 |
6,000 |
6,000 |
|
(b) Value of perquisites u/s 17(2) of the Income Tax Act, 1961 |
0 |
0 |
|
(c) Profits in lieu of salary under section 1 7(3) of the Income Tax Act, 1 961 |
0 |
0 |
|
2. |
Stock option |
0 |
0 |
3. |
Sweat Equity |
0 |
0 |
4. |
Commission |
0 |
0 |
- as % of profit |
0 |
0 |
|
- others (specify) |
0 |
0 |
|
5. |
Others, please specify |
0 |
0 |
6. |
Total (A) |
6,000 |
6,000 |
7. |
Ceiling as per the Act |
As per Section 1 97 of Companies Act, 201 3 |
B. F |
Remuneration to other Directors: Amount in Rs |
|||||||
SI. No. |
Particulars of Remuneration |
Name of the Directors |
Total Amount |
|||||
1. |
Independent Directors |
Mr. H. C. Dalai |
Mr. Prem Kapil |
Mrs. Sneha Ranade |
Mr. Abhay Nerurkar |
Mr. R. D. Chandak |
||
(a) Fee for attending board and committee meetings |
34,000 |
22,000 |
36,000 |
25,000 |
20,000 |
1 ,37,000 |
||
(b) Commission |
Nil |
Nil |
Nil |
Nil |
Nil |
Nil |
||
(c) Others, please specify |
Nil |
Nil |
Nil |
Nil |
Nil |
Nil |
||
Total (1) |
34,000 |
22,000 |
36,000 |
25,000 |
20,000 |
1,37,000 |
||
2. |
Other Non Executive Directors |
Mr. A. N. Misra |
Mr. H. N. Singh Rajpoot |
|||||
(a) Fee for attending board and committee meetings |
24,000 |
28,000 |
52,000 |
|||||
(b) Commission |
Nil |
Nil |
Nil |
|||||
(c) Others, please specify. |
Nil |
Nil |
Nil |
|||||
Total (2) |
24,000 |
28,000 |
52,000 |
|||||
Total (B) = (1 2) |
1,89,000 |
|||||||
Total Managerial Remuneration |
1 ,89,000 |
|||||||
Overall Ceiling as per the Act |
Rs 1,00,000/- per meeting. |
C. F |
|
Remuneration to Key Managerial Personnel other than MD/Manager/WTD: |
Amount in Rs |
||
SI. No. |
Particulars of Remuneration |
Key Managerial Personnel |
|||
1. |
Gross Salary |
Ms. Jiya Gangwani (Company Secretary) |
Mr. Paras Mai Rakhecha (CFO) |
Total Amount |
|
a) Salary as per provisions contained in Section 17(1) of the Income Tax Act, 1961 |
15,21,946 |
39,16,412 |
54,38,358 |
||
b) Value of perquisites u/s 17(2) Income-tax Act, 1961 |
0 |
0 |
0 |
||
c) Profits in lieu of salary under section 17(3) Income Tax Act, 1961 |
0 |
0 |
0 |
||
2. |
Stock options |
0 |
0 |
0 |
|
3. |
Sweat Equity |
0 |
0 |
0 |
|
4. |
Commission |
0 |
0 |
0 |
|
- as % of Profit |
0 |
0 |
0 |
||
- others, specify |
0 |
0 |
0 |
||
5. |
Others please specify |
0 |
0 |
0 |
|
Total |
54,38,358 |
VII. PENALTIES/ PUNISHMENT/ COMPOUNDING OF OFFENCES:
Type |
Section of the Brief Details of Penalty/ Authority Appeal Companies Act Description Punishment/ (RD/NCLT/ made if any Compounding fees imposed Court) (give details) |
|
A. COMPANY |
||
Penalty/ Punishment/ Compounding |
None |
|
B. DIRECTORS |
||
Penalty/ Punishment/ Compounding |
None |
|
C. OTHER OFFICERS IN DEFAULT |
||
Penalty/ Punishment/ Compounding |
None |
On behalf of the Board of Directors |
|
Ramesh D. Chandak |
|
Chairman |
|
Place : Mumbai |
DIN: 00026581 |
Date : May 23, 2018 |
Policy on Appointment, Training, Evaluation and Remuneration of Directors and Senior Management Personnel.
1. OBJECTIVE:
(i) Ensure compliance of the applicable provisions of the Companies Act, 2013 (''the Act''), and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 entered into with the Stock Exchanges (as amended or re-enacted from time to time) (''Listing Regulations'') related to the Appointment, Training, Evaluation and Remuneration of the Directors, Senior Management Personnel, including Key Managerial Personnel and in accordance with the directions of Reserve Bank of India as applicable to the Company.
(ii) Adopt best practices to manage the affairs of the Company in seamless manner and achieve corporate governance as well as sustained long-term value creation for stakeholders.
2. CONSTITUTION OF THE NOMINATION AND REMUNERATION COMMITTEE:
The Board had re-constituted the Nomination and Remuneration Committee on October 29, 2015 and revised its terms of reference in accordance with the Listing Regulations on February 09, 2016.
3. DEFINITIONS:
(i) "Act" means the Companies Act, 2013 and Rules framed thereunder, as amended from time to time.
(ii) "Board" means Board of Directors of the Company.
(iii) "Company" means Summit Securities Limited, (iv) "Directors" means Directors of the Company.
(v) "Managing Director (MD)" means a director who, by virtue of the articles of a Company or an agreement with the Company or a resolution passed in its general meeting, or by its Board of Directors, is entrusted with substantial powers of management of the affairs of the Company and includes a director occupying the position of managing director, by whatever name called.
(vi) "Whole-time Director (WTD)" in relation to Company includes a director in whole-time employment of the Company.
(vii) "Non Executive Director (NED)" in relation to Company means a member of a Company''s Board of Directors who is not in whole time employment of the Company.
(viii) "Independent Director (ID)" in relation to Company shall have the same meaning as defined under Section 149(6) of the Act and Regulation 16(1) (b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
(ix) Key Managerial Personnel (KMP) means:
(i) the Chief Executive Officer (CEO) or the Managing Director(MD) or the Manager;
(ii) the Company Secretary (CS); Annexure C
(iii) the Whole-time Director (WTD); (iv) the Chief Financial Officer (CFO);
(x) "Senior Management Personnel (SMP)" means personnel of the company who are members of its core management team excluding Board of Directors comprising all members of management one level below the executive directors, including the functional heads.
Any word or term not defined in this Policy shall have the same meaning assigned under the Companies Act, 2013 read with Rules framed thereunder, if any else as per the General Clauses Act, 1897.
DIVERSITY IN THE BOARD OF DIRECTORS:
Diversity refers to the variety of attributes of diverse nature between people and encompasses acceptance, respect and an understanding that each individual is unique. These differences can include age, gender, ethnicity, physical abilities, marital status, ideologies, background, knowledge and skills.
REQUIREMENTS RELATING TO APPOINTMENT OF DIRECTORS:
(i) The Company shall appoint only those persons who possess requisite qualifications and experience and positive attributes within overall framework of diversity and are able to provide policy direction to the Company, including directions on good Corporate Governance. Prior experience of being a CEO, MD, WTD of any company shall be given importance while considering appointment.
(ii) Additional Requirement for appointment of Audit Committee member:
a) He/she should be financially literate and possess the ability to read and understand basic financial statements i.e. Balance Sheet, Statement of Profit and Loss Account and Cash Flow Statement.
b) He/she should have accounting or related financial management expertise. A person will be considered to have accounting or related financial management expertise if he/she possesses experience in finance or accounting or requisite professional certification in accounting, or any other comparable experience or background which results in the financial sophistication.
c) He/she is or has been CEO, CFO or other senior officer with financial oversight responsibilities.
(iii) Disqualifications:
Any person to be appointed as Director shall not possess the following disqualifications prescribed in Section 164 (1) of the Companies Act, 2013:
(a) He/she shall not be less than 21 years of age.
(b) He/she shall not be of unsound mind nor stand so declared by a competent court.
(c) He/she shall not be an undischarged insolvent.
(d) He/she has not applied to be adjudicated as an insolvent and his/her application is pending.
(e) He/she has not been convicted of an offence, whether involving moral turpitude or otherwise, and sentenced in respect thereof to imprisonment for not less than six months and a period of five years has not elapsed from the date of expiry of the sentence.
(f) A person shall however not be appointed as director of the Company, if he is a director in a company which has failed to:
(i) File Financial Statements or Annual Returns for any continuous period of three financial years;
(ii) Repay deposits or pay interest thereon on due date;
(iii) Redeem debentures on due date or pay interest due thereon;
(iv) Pay dividend already declared by the said Company and such defaults continue for one year or more;
(iv) Automatic vacation of the office:
A Director shall automatically vacate his office in the following cases:
a) He/she attracts any disqualification mentioned herein above;
b) He/she absents from all the meetings of the Board of Directors held during a period of twelve months with or without seeking leave of absence of the Board of Directors;
c) He/she acts in contravention of the provisions of section 184 relating to entering into contracts or arrangements in which he is directly or indirectly interested.
d) He/she fails to disclose his interest any contract or arrangement in which he is directly or indirectly interested, in contravention of the provisions of section 184.
(v) Applicability of Policies:
All persons appointed as Directors of the Company including the MD and the Executive Director(s), KMPs and SMPs shall ensure compliance with the Policies and Procedures adopted by the Company from time to time such as the Code of Conduct for Directors and Senior Management Personnel, the Code of Conduct for Prevention of Insider Trading, Whistle Blower Policy, Code of Corporate Governance and Ethics or any other Company''s policy applicable to them.
6. APPOINTMENT OF KMP''s/SMP''s:
a) The appointment of the MD, CEO, WTD, CFO, and the CS shall be approved by the Board of Directors by means of a resolution.
b) The appointments of SMP shall be approved by MD, if any or the Department Head on recommendation of the Human Resources Department (HRD).
7. EVALUATION OF PERFORMANCE:
a) The Nomination and Remuneration Committee (NRC) shall carry out the evaluation of performance of every Director as under:
⢠Before re-appointment of Executive and
Non-Executive Directors.
⢠At the time of recommendation of any remuneration payable to Executive and Non-Executive Directors or changes therein.
⢠At such other time, as the applicable laws or the circumstances may require.
b) The evaluation of all SMPs and KMPs shall be carried out by the Departmental Head, excluding himself/herself and the MD/CEO/WTD, if any.
The evaluation process adopted by the Company shall always consider the appropriate benchmarks set as per industry standards, performance of the Industry, the Company and of the individual KMP/ SMP.
8. REMUNERATION OF NEDs, KMPs AND SMPs:
(i) The remuneration to the MD/CEO/Manager/ WTD at the time of his/her appointment shall be recommended by the NRC and approved by the Board of Directors. Such remuneration shall be subject to approval of the shareholders of the Company, whenever required.
(ii) Annual increment/ subsequent variation in remuneration to the MD/CEO/Manager/ WTD shall be approved by the NRC/ Board of Directors, within the overall limits approved by the shareholders of the Company.
(iii) The NEDs shall be entitled to receive the following within overall limits prescribed in the Act:
⢠Sitting fees as may be decided by the Board of Directors from time to time for attending the meeting of the Board and of the Committee thereof.
⢠Payment of Commission, as upto the limits permitted under Section 197 of the Act and approved by the shareholders wherever required.
⢠The NEDs shall be eligible for remuneration of such professional services rendered if in the opinion of the NRC, the NED possesses the requisite qualification for rendering such professional services.
(iv) The remuneration payable to the KMP''s mentioned shall be recommended by the NRC considering relevant qualification and experience of the individual as well as the prevailing market condition, and approved by the Board.
(v) The remuneration to be paid to SMP''s shall be determined by the MD, if any or the Department Head, considering evaluation mechanism and guiding principles of remuneration as mentioned in this Policy.
(vi) The NRC may consider grant of Stock Options to KMP''s & SMP''s pursuant to any Stock Option Plan adopted by the Company, if any.
9. DIRECTOR ANDOFFICERLIABILITYINSURANCE:
The Company shall provide an insurance cover to Directors, KMPs & SMPs for indemnifying them against any liability in respect of any negligence, default, misfeasance, breach of duty or breach of trust shall not be treated as a part of remuneration paid to them.
Statement containing the Disclosures pursuant to Section 197(12) of the Companies Act, 2013 and Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
(i) The ratio of the remuneration of each director to the median remuneration of the employees of the company for the financial year:
No director has received remuneration from the Company apart from sitting fees for attending the meetings of the Board, Audit Committee, Stakeholders Relationship Committee and Nomination and Remuneration Committee held from time to time.
Based on the sitting fees for attending the meetings held during the F.Y. 2017-18 attended by each Director, the ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the financial year is as under:
Sr. No. |
Name of Director |
Ratio |
1. |
Mr. Ramesh D. Chandak |
0.04 |
2. |
Mr. H. N. Singh Rajpoot |
0.06 |
3. |
Mr. A. N. Misra |
0.05 |
4. |
Mr. H. C. Dalai |
0.07 |
5. |
Mr. Prem Kapil |
0.05 |
6. |
Ms. Sneha Ranade |
0.08 |
7. |
Mr. Abhay V. Nerurkar |
0.05 |
(ii) The percentage increase/(decrease) in remuneration of each Director, Chief Financial Officer (CFO), Chief Executive Officer (CEO), Company Secretary (CS) or Manager, if any in the financial year:
As stated above, none of the Directors received remuneration apart sitting fees for attending the meetings of the Board, Audit Committee, Stakeholders Relationship Committee and Nomination and Remuneration Committee, where they are members. There has been no increase in the amount of sitting fee paid per meeting for attending the meetings during the year under review as compared to the financial year 2016-17.
Further, there has been no increase in remuneration of Manager during the year under review.
Annexure D
The percentage increase in remuneration of CFO during the year under review as compared to the previous year is 8.49%
The percentage increase in remuneration of CS during the year under review as compared to the previous year is 9.11%
(iii) The percentage increase in the median remuneration of the employees in the financial year: 8.17%
(iv) The number of permanent employees on the rolls of the Company:
As on March 31, 2018, the Company has eight employees on its rolls, including Key Managerial Personnel of the Company.
(v) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration:
Average percentage increase made in the salaries of employees other than the Manager during the previous FY 2017-18 was 12.52%
The increment given to each employee is based on criterias such as performance of the company and of the individual employee during the financial year.
There was no increase made in the remuneration of Manager during the year under review.
(vi) Affirmation that the remuneration is as per the remuneration policy of the company:
Remuneration paid during the year ended March 31, 2018 is as per Remuneration Policy of the Company
On behalf of the Board of Directors
Ramesh D. Chandak Chairman DIN:00026581
Place : Mumbai
Date : May 23, 2018
FORM No. MR-3 SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED MARCH 31, 2018
(Pursuant to section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014)
To,
The Members,
SUMMIT SECURITIES LIMITED
We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by Summit Securities Limited (hereinafter called "the Company"). Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon.
Based on our verification of the Company''s books, papers, minute books, forms and returns filed and other records maintained by the Company, the information provided by the Company, its officers, agents and authorised representatives during the conduct of secretarial audit, the explanations and clarifications given to us and the representations made by the Management, we hereby report that in our opinion, the Company has, during the audit period covering the financial year ended on March 31, 2018, generally complied with the statutory provisions listed hereunder and also that the Company has proper Board processes and compliance mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:
We have examined the books, papers, minute books, forms and returns filed and other records made available to us and maintained by the Company for the financial year ended on March 31, 2018 according to the applicable provisions of:
(i) The Companies Act, 2013 (the Act) and the rules made thereunder;
(ii) The Securities Contract (Regulation) Act, 1956 (''SCRA'') and the rules made thereunder;
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunderto the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings;
(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (''SEBI Act''):
(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
Annexure E
(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 and amendments from time to time; (Not applicable to the Company during the audit period)
(d) The Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014; (Not applicable to the Company during the audit period)
(e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008; (Not applicable to the Company during the audit period)
(f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with client; (Not applicable to the Company during the audit period)
(g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009; (Not applicable to the Company during the audit period) and
(h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998; (Not applicable to the Company during the audit period)
(vi) Other laws applicable specifically to the Company namely:-
1. The Reserve Bank of India Act, 1934
2. Directions issued under The Reserve Bank of India Act, 1934
We have also examined compliance with the applicable clauses of the following:
(i) Secretarial Standards issued by The Institute of Company Secretaries of India with respect to board and general meetings.
(ii) The Listing Agreements entered into by the Company with National Stock Exchange of India Limited and BSE Limited read with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
During the period under review, the Company has generally complied with the provisions of the Act, Rules, Regulations, Guidelines, standards etc. mentioned above.
We further report that:
The Board of Directors of the Company is constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors subject to the representation made by the Company in this regard. The changes in the composition of the Board of Directors that took place during the period under review were carried out in compliance with the provisions of the Act.
Adequate notice was given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least seven days in advance for meetings other than those held at shorter notice, and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting.
Decisions at the Board Meetings were taken unanimously.
We further report that there are adequate systems and processes in the Company commensurate with the size and operations of the Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines etc.
We further report that during the audit period the Company had following events which had bearing on the Company''s affairs in pursuance of the above referred laws, rules, regulations, guidelines, standards etc.
For Parikh Parekh & Associates
Company Secretaries
Shalini Bhat
Place : Mumbai Partner
Date : May 23, 2018
PCS No: 6484 CP No: 6994
This Report is to be read with our letter of even date which is annexed as Annexure A and Forms an integral part of this report.
''Annexure A to the Secretarial Audit Report''
To,
The Members
SUMMIT SECURITIES LIMITED
Our report of even date is to be read along with this letter.
1. Maintenance of secretarial record is the responsibility of the management of the Company. Our responsibility is to express an opinion on these secretarial records based on our audit.
2. We have followed the audit practices and process as were appropriate to obtain reasonable assurance about the correctness of the contents of the secretarial records. The verification was done on test basis to ensure that correct facts are reflected in secretarial records. We believe that the process and practices, we followed provide a reasonable basis for our opinion.
3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.
4. Where ever required, we have obtained the Management Representation about the Compliance of laws, rules and regulations and happening of events etc.
5. The Compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of management. Our examination was limited to the verification of procedure on test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness with which the management has conducted the affairs of the Company.
For Parikh Parekh & Associates Company Secretaries
Shalini Bhat
Place : Mumbai Partner
Date : May 23, 2018
PCS No: 6484 CP No: 6994
Mar 31, 2016
Dear Members,
The Directors are pleased to present their Nineteenth Report together with Audited Financial Statements for the year ended March 31, 2016:
FINANCIAL HIGHLIGHTS:
The Summary of financial performance of the Company for the year under review is as given below:
(Rs.in lakhs)
Standalone |
Consolidated |
|||
For the Year ended March 31, 2016 |
For the year ended March 31,2015 |
For the Year ended March 31,2016 |
For the Year ended March 31, 2015 |
|
Total Income |
1713.99 |
916.24 |
5342.20 |
2627.43 |
Profit before Depreciation & Tax |
1579.33 |
792.85 |
5066.63 |
2473.49 |
(-) Depreciation |
1.07 |
1.36 |
1.07 |
1.88 |
Profit/(Loss) before Tax |
1578.26 |
791.49 |
5065.56 |
2471.61 |
Add: Excess/(Short) Provision of tax of earlier years |
8.49 |
(6.06) |
45.82 |
(15.69) |
(-) Tax for Current Year |
0.02 |
10.50 |
13.04 |
22.31 |
(-) Deferred Tax |
- |
- |
- |
- |
Profit/(Loss) after Tax |
1569.75 |
787.05 |
5006.70 |
2464.99 |
Appropriation: |
||||
Less: Transfer to Statutory Reserve |
313.95 |
157.41 |
1001.34 |
491.05 |
Add: Balance brought forward |
2849.42 |
2219.78 |
5910.70 |
3936.76 |
Balance Profit/(Loss) transferred to Balance Sheet |
4105.22 |
2849.42 |
9916.06 |
5910.70 |
FINANCIAL PERFORMANCE:
Revenue:
The total revenue for FY 2015-16 at Rs.1713.99 lacs increased by over 87.07% as compared to revenue of Rs.916.24 lacs of the previous year. The increase in revenue is due to increase in dividend and interest income.
Expenses:
The total expenses for FY 2015-16 at Rs.135.73 lacs increased by over 8.80% as compared to expenses of Rs.124.75 lacs of the previous year, mainly on account of marginal increase in the amount of employee benefit expense and other expenses and loss occurred on sale of investment.
Profit After Tax:
Profit after Tax (PAT) for FY 2015-16 was Rs.1569.75 lacs as compared to PAT of Rs.787.05 lacs pertaining to previous year. This was mainly on account of interim dividend received from investee companies.
Amounts proposed to be carried to any reserves:
An amount of Rs.313.95 lacs has been transferred to Statutory Reserve as per the statutory requirement.
DIVIDEND:
With a view to conserve resources, your Directors consider it prudent not to recommend any dividend for the year under review.
MANAGEMENT DISCUSSION AND ANALYSIS:
a. Industry Structure & Developments, Opportunities and Future Outlook:
The world economy stumbled in 2015, amid weak aggregate demand, falling commodity prices and increasing financial market volatility in major economies. These developments have tightened financial conditions, reduced risk appetite, raised credit risks, and stymied balance sheet repair. The moderate pace of global growth, in an environment of weak investment growth, has failed to create a sufficient number of jobs to close the gap in the employment rate (employment-to-population ratio) that opened up during the global financial crisis. The global recovery has been at an ever-slowing and increasingly fragile pace.
During the global stock market rout witnessed in the mid 2015, India had also witnessed a sharp fall in stock markets and the rupee weakened. It was repeated again in January 2016. The risk of further global slowdown and turbulence continues.
India achieved moderate growth amidst unfavourable global conditions and two consecutive years of shortfall in monsoon by 13%.
Several initiatives of the Government of India and key policy reforms with emphasis on ease of doing business, coal mining auctions, infrastructure project approvals, increase of FDI inflows in India, deregulation of prices of Natural Gas, Kerosene, Diesel, Fertilizers, etc. Entry of private sector entities in sectors like defense manufacturing, One Nation-One Market - the turning point for agriculture across India introduced by the government apart sustained spending on infrastructural reforms will be key factors to look out for that give a boost to the Indian Economy.
As a move to improve liquidity in the market, RBI has under its Liquidity Adjustment facility cut the Repo rate from 7.25% to 6.50% and enhanced the Reverse Repo rate from 5.75% to 6.00%. Driven by these initiatives, FY 2016-17 is expected to witness better growth around as compared with the previous year. Markets are expected to reform on expectation of good monsoon and better interest rates.
The Company, being a Non-Banking Financial Company (NBFC) registered with RBI, derives major revenue from its investments. Sectoral policy changes by the Government, therefore, have direct impact on the profitability of the Company, as the value of the stocks, shares and bonds depends on the prevailing capital markets scenario. The future success of the Company would therefore depend on its ability to anticipate the volatility of the Stock Markets, minimizing risks and increasing returns through prudent investment decisions.
The investments of the Company are typically long term in nature and predominantly in the equities market. All investments decisions are reviewed by the Board of Directors on a quarterly basis.
b. Risks, Threats and Concerns:
Risk management can be construed as the identification, assessment, and prioritization of risks followed by co-ordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities.
The Risk Management Committee (RMC) of the Board of Directors manages and monitors the Company''s risks, as detailed herein below under the heading âRisk Management Processâ.
c. Internal control systems and their adequacy:
The Company has an adequate internal audit and control system commensurate with its size and nature of business to ensure operational efficiency, accuracy and promptness in financial reporting and compliance of various laws and regulations. The Audit Committee of the Board of Directors reviews the Internal Audit Report and the adequacy and effectiveness of internal controls periodically.
d. Human Resources:
Employee relations continued to remain cordial during the year under review. As on March 31, 2016, there were six (6) employees including Key Managerial Personnel of the Company.
CAUTIONARY STATEMENT:
Statements in the Management Discussion and Analysis describing the Company''s objectives, projections, estimates and expectations may constitute âforward looking statements'''' within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied.
MATERIAL CHANGES AND COMMITMENTS:
There are no material changes and commitments, affecting the financial position of the Company which have occurred between the end of the financial year on March 31, 2016 to which the financial statements relate and the date of this report.
CONSOLIDATED FINANCIAL STATEMENTS:
In accordance with Section 129(3) of the Companies Act, 2013 (âthe Act'') and Regulation 34 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, (âthe Listing Regulations'') the Consolidated Financial Statements of the Company and its subsidiaries, including the statement containing salient features of the financial statements of all the subsidiary companies of the Company as set out in prescribed Form AOC-1, forms part of this Annual Report 2015-16.
The Consolidated Financial Statements have been prepared in accordance with the Accounting Standards issued by the Institute of Chartered Accountants of India.
SUBSIDIARY COMPANIES:
There was no change in the subsidiaries, joint ventures or associates during the year under review. As at March 31, 2016, the Company had one wholly owned subsidiary viz. Instant Holdings Limited and one step down subsidiary viz. Sudarshan Electronics and T.V. Limited.
Further, the Annual Accounts of these subsidiaries are uploaded on the website of the Company in accordance with Section 136 of the Act. The Annual Accounts of these subsidiaries and the other related information will be made available to any Member of the Company seeking such information and also available for inspection at the Registered Office of the Company.
As required under Regulation 16(1 )(c) of the Listing Regulations read with [Clause 49(III)(V)(D) of the erstwhile Listing Agreement], the Company has formulated the Policy on Materiality of Subsidiaries and the same is published on the Company''s website www.summitsecurities.net at the link http://summitsecurities.net/PolicyonMaterialSubsidiary.pdf
RISK MANAGEMENT PROCESS:
Risk Management Committee of the Board of Directors (Risk Management Committee) was set up in terms of the Guidelines on Corporate Governance issued by the Reserve Bank of India in the year 2010. Though, the requirements of constitution of the Risk Management Committee contained in Regulation 21 of the Listing Regulations is not yet applicable to the Company, its terms of reference had, however been widened considering the provisions of the Listing Regulations (Clause 49 of the erstwhile Listing Agreement) read with applicable provisions under the Companies Act, 2013 and Rules made there under.
Risk Management Policy has been formulated by the Risk Management Committee of the Board of Directors in accordance with its terms of reference. This policy defines a process for adoption so that a structured, disciplined and consistent risk strategy, providing guidance for risk activity within the Company by embedding Enterprise Risk Management within the culture of the business is in place.
One of the element in the risk management process as defined in the Risk Management Policy is identification and assessment of risks. Some of the identified risks pertaining to the nature of business carried out by the Company comprise of Business Risks, Finance Risks, Regulatory Risks, Environment Risks, etc. risk mitigation measures are also reviewed alongside the identified risks. A report on risk evaluation and mitigation covering the elements of risks, impact and likelihood, mitigation measures and risk assessment is periodically presented before the Committee for review and also placed before the Board of Directors for information.
RELATED PARTY TRANSACTIONS:
The Company has formulated a Policy on Related Party Transactions for purpose of identification and monitoring of Related Party Transactions. The Policy on Related Party Transactions as approved by the Board is uploaded on the Company''s website www.summitsecurities.net at the link http://summitsecurities.net/RelatedPartyTransactionPolicy. pdf
The Company has not entered into any transaction with related parties during the year under review which requires reporting in Form AOC-2 in terms of the Section 134(3) and 188(1) of the Companies Act, 2013 read with Rule 8(1) Companies (Accounts) Rules, 2014.
None of the Directors or Key Managerial Personnel had any pecuniary relationships or transactions vis a vis the Company except the sitting fees paid to Directors and remuneration paid to KMPs.
EXTRACT OF THE ANNUAL RETURN:
An extract of the Annual Return pursuant to section 92(3) of the Companies Act, 2013 read with Rule 12 of the Companies (Management and Administration) Rules, 2014 in Form MGT-9 is appended with this report as Annexure A.
PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS:
The Company, registered as non-banking financial company not accepting public deposits, with the Reserve Bank of India and having its principal business of making investments, is exempted from the provisions of sub-section(1) of Section 186 of the Act.
PUBLIC DEPOSITS:
The Company has not accepted any deposits within the meaning of sub-section (31) of Section 2 and Section 73 of the Act and the Rules framed there under.
DIRECTORS AND KEY MANAGERIAL PERSONNEL:
a. Directors:
Mr. S. K. Tamhane, Independent Director resigned from the directorship w.e.f. November 1, 2015. The Board records its appreciation for the services rendered by Mr. Tamhane during his tenure as Director.
Mr. Abhay V. Nerurkar was appointed as an Additional Director (Independent) of the Company by the Board of Directors at its meeting held on October 29, 2015.
Pursuant to Section 161 of the Act, Mr. Abhay Nerurkar holds office up to the date of the ensuing Annual General Meeting of the Company (AGM) and is eligible for appointment as Director. Mr. Nerurkar qualifies to be an Independent Director pursuant to Section 149 (6) of the Act.
Accordingly, it is proposed to appoint Mr. Nerurkar as Independent Director for a term of 5 (five) consecutive years with effect from October 29, 2015 and he shall not be liable to retire by rotation.
In accordance with the provisions of the Act, and Articles of Association, Mr. Ramesh D. Chandak is liable to retire by rotation and being eligible has offered himself for re-appointment.
b. Key Managerial Personnel:
Ms. Shruti Joshi was re-appointed as the Manager of the Company w.e.f. April 3, 2016 for a period of three years. However she has tendered her resignation as the Manager of the Company effective August 4, 2016. The Board of Directors have approved the appointment of Mr. Rohin Bomanji as the Manager in her place with effect from August 5, 2016 for a period of three years and the necessary resolution for the approval of share holders has been proposed in the Notice of the ensuing Nineteenth Annual General Meeting.
Ms. Shruti Joshi who was also the Company Secretary of the Company resigned with effect from June 01, 2015 and Ms. Jiya Gangwani was appointed as the Company Secretary of the Company w.e.f. June 1, 2015.
c. Declarations from Independent Directors:
The Company has received declarations as required under Section 149(7) of the Act from all the Independent Directors stating that they meet the criteria of independence pursuant to Section 149(6) of the Act.
d. Training and Familiarization Programme for Independent Directors:
Pursuant to the Code of Conduct for Independent Directors specified under the Act and Regulation 25(7) of the Listing Regulations, (Clause 49(II) (B)(7) of the erstwhile Listing Agreement entered into with the Stock Exchanges), the Company familiarised its Independent Directors on their roles, rights, responsibilities in the Company, nature of the industry in which company operates, business model of the Company, etc. The note on this familiarization program is also posted on the Company''s website under the link http://summitsecurities.net/ DetailsofFamiliarisationProg.pdf
MEETINGS OF THE BOARD OF DIRECTORS:
The Board of the Company has met four times during the year ended March 31, 2016, the details of the meetings of the Board of Directors held during the year are mentioned under the Corporate Governance Report, which forms part of this Annual Report.
BOARD COMMITTEES:
Detailed Composition of the Board Committees comprising of mandatory and non-mandatory committees viz., Audit Committee, Nomination and Remuneration Committee,
Stakeholders Relationship Committee, Risk Management Committee and Asset Liability Management Committee, number of meetings held during the year and other related details are set out in the Corporate Governance Report which forms part of this Report.
As on March 31, 2016, the Audit Committee comprised of 4 members namely, Mr. H. N. Singh Rajpoot (NonIndependent Director), Mr. H.C. Dalal (Independent Director), Ms. Sneha Karmarkar (Independent Director) and Mr. Abhay V. Nerurkar (Independent Director). Mr. Abhay Nerurkar is the Chairman of the Audit Committee.
There have been no situations where the Board has not accepted any recommendations of the Audit Committee.
ANNUAL PERFORMANCE EVALUATION OF BOARD AND ITS COMMITTEES:
The Annual Evaluation as required under the Companies Act, 2013 read with relevant rules made there under and Regulation 17(10) and other applicable regulations of the Listing Regulations (Clause 49 of the erstwhile Listing Agreement) has been carried out by the Board of its own performance, the of each individual Director and its Committees. For this purpose, an Evaluation Questionnaire was circulated to all the Directors and their responses were received in a sealed envelope addressed to the Chairman of the Board of Directors and results thereof were then discussed in the next meeting of the Board of Directors.
The said questionnaire was prepared considering the criteria for evaluation was in accordance with the Company''s Policy on Appointment, Training, Evaluation and Remuneration approved by the Board on recommendation of the Nomination and Remuneration Committee, interalia comprising of:
(a) attendance at meetings of the Board and Committees thereof,
(b) participation in meetings of the Board or Committee thereof,
(c) contribution to strategic decision making,
(d) review of risk assessment and risk mitigation,
(e) review of financial statements and business performance,
(f) contribution to the enhancement of brand image of the Company.
REMUNERATION POLICY:
The Board of Directors has on the recommendation of the Nomination and Remuneration Committee formulated a policy on âAppointment, Training, Evaluation and Remuneration of Directors, Key Managerial Personnel and Senior Management Personnelâ. This policy interalia covers the requirements specified under Section 178(3) of the Act comprising of criteria for determining qualifications, positive attributes and independence of a director, etc.
The Policy provisions covering the requirements under Section 178 of the Act, is given as Annexure B to this report.
DIRECTORS RESPONSIBILITY STATEMENT:
Pursuant to Section 134(3)(c) of the Act, your Directors to the best of their knowledge and belief confirm that:
(a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanations relating to material departures, if any;
(b) such accounting policies have been selected and applied consistently and such judgments and estimates have been made that are reasonable and prudent to give a true and fair view of the state of affairs of the Company in the Balance Sheet as at March 31, 2016 and the Statement of Profit and Loss for the said financial year ended March 31, 2016;
(c) proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
(d) the annual accounts have been prepared on a going concern basis;
(e) the proper internal financial controls were in place and that such internal financial controls were adequate and were operating effectively;
(f) the systems to ensure compliance with the provisions of all applicable laws were in place and that such systems were adequate and operating effectively.
WHISTLE BLOWER POLICY:
The Company has a vigil mechanism named Whistle Blower Policy (âWBP'') for directors and employees to report concerns about unethical behavior, actual or suspected fraud or violation of the Company''s code of conduct or ethics policy. The WBP is also posted in the Company''s website namely www.summitsecurities.net at the weblink: http://www.summitsecurities.net/WhistleBlowerPolicy.pdf
PARTICULARS OF EMPLOYEES:
a. During the year under review, no employee was in receipt of remuneration which in aggregate was equal or more than the limit specified under Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
b. Statement containing the Disclosures pursuant to Section 197(12) of the Act and Rule 5 of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is attached as Annexure C to this Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, RESEARCH AND DEVELOPMENT, FOREIGN EXCHANGE EARNINGS AND OUTGO:
The Company is a Non-Banking Financial Company and engaged in investments and financial activities and, as such, its operations do not account for substantial energy consumption. However, the Company is taking all possible measures to conserve energy and several environment friendly measures are adopted by the Company. The management ensures strict compliance of the measures adopted.
The provisions relating to research and development and technology absorption are not applicable to the Company. During the year under review, there have been no transactions in the Company relating to foreign exchange earnings and outgo.
CORPORATE SOCIAL RESPONSIBILITY:
The provisions of Section 135 of the Act are not applicable to the Company as the Company does not fall into the criteria specified in sub-section (1) of Section 135 of the Act.
SECRETARIAL AUDITORS:
M/s. Parikh Parekh & Associates, Company Secretaries were appointed as the Secretarial Auditors for conducting the Secretarial Audit in accordance with Section 204 of the Act for the year ended March 31, 2016. The Secretarial Audit Report required pursuant to sub-section (3) of Section 134 and Section 204(1) of the Act in prescribed Form MR-3 furnished by M/s. Parikh, Parekh & Associates, Company Secretaries is attached as Annexure D to this Report.
CORPORATE GOVERNANCE:
A report on Corporate Governance along with a certificate from the Auditors of the Company stipulated pursuant to Regulation 34 of the Listing Regulations are annexed as Annexure E to this Report.
STATUTORY AUDITORS:
Messrs Chaturvedi & Shah, Chartered Accountants were appointed as the Statutory Auditors of the Company at the Seventeenth AGM of the Company held on September 27, 2014 to hold office for a period of 4 (four) consecutive years from the conclusion of the Seventeenth AGM till the conclusion of the Twenty First AGM subject to ratification by the members at every AGM of the Company.
Messrs Chaturvedi & Shah, Chartered Accountants have confirmed that they are eligible to act as Statutory Auditors, if appointed, in accordance with Sections 139 and 141 of the Companies Act, 2013 and Rules made there under.
The Board of Directors after considering the recommendation by the Audit Committee recommends the ratification of appointment of Messrs Chaturvedi & Shah, Chartered Accountants as the Statutory Auditors of the Company to hold office from the conclusion of the ensuing Nineteenth AGM till the conclusion of the next AGM.
EXPLANATION AND COMMENTS ON AUDITORSâ REPORT AND SECRETARIAL AUDIT REPORT:
There are no qualification, reservations or adverse remark or disclaimer made either by the Statutory Auditor in Auditors Report or by the Company Secretary in practice (Secretarial Auditor) in his Secretarial Audit Report.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS:
There are no significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and Company''s operations in future.
CHANGE IN THE NATURE OF BUSINESS:
During the year under review, there was no change in the nature of business.
INTERNAL FINANCIAL CONTROL:
Details in respect of adequacy on internal financial controls with reference to the financial statements are stated in the Management Discussion and Analysis section of this Report.
DISCLOSURE UNDER SEXUAL HARASSMENT OF WOMEN AT WORK PLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013:
The Company has in place a policy on Prevention of Sexual Harassment at Workplace in accordance with the provisions of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013. Internal Complaints Committee (ICC) had been set up to redress complaints. ICC has not received any complaints during the year under review.
ACKNOWLEDEMENTS:
The Board of Directors wishes to place on record its gratitude for the continued support and co-operation extended by the Government authorities, banks, members and employees of the Company.
On behalf of the Board of Directors
Ramesh D. Chandak
Place: Mumbai Chairman
Date: August 2, 2016 DIN: 00026581
Mar 31, 2015
Dear Members,
The Directors are pleased to present their Eighteenth Report together
with Audited Financial Statements for the year ended March 31,2015:
FINANCIAL HIGHLIGHTS:
The Summary of financial performance of the Company for the year under
review is as given below:
(Rs. in lakhs)
Standalone Consolidated
For the For the For the For the
Year Year Year year
ended ended ended ended
March March March March
31,2015 31,2014 31,2015 31,2014
Total Income 916.24 620.30 2627.43 1490.80
Profit before 792.84 523.25 2473.49 1311.76
Depreciation & Tax
(-) Depreciation 1.36 0.48 1.88 0.80
Profit/(Loss) 791.49 522.77 2471.61 1310.96
before Tax
Add: Excess/ (6.06) 22.05 (15.69) 23.01
(Short)
Provision of tax
of earlier years
(-) Tax for 10.50 0.82 22.31 6.43
Current year
(-) Deferred Tax - (0.36) - (0.59)
Profit/(Loss) 787.05 500.26 2464.99 1282.11
after Tax
Appropriation:
Less: Transfer 157.41 100.05 491.05 257.25
to Statutory
Reserve
Add: Balance 2219.78 1819.57 3936.76 2911.90
brought
forward
Balance 2849.42 2219.78 5910.70 3936.76
Profit/(Loss)
transferred to
Balance Sheet
FINANCIAL PERFORMANCE:
Revenue:
Total revenue for FY 2014-15 at Rs. 916.24 lacs increased by over 47.71%
over the previous year revenue of Rs. 620.31 lacs. The increase in
revenue is due to increase in dividend and interest income and profit
on sale of certain shares.
Expenses:
Total expenses for FY 2014-15 at Rs. 124.75 lacs increased by over 61.72%
over the previous year expenses of Rs. 77.14 lacs, on account of
appointment of Chief Financial Officer and increase in postage and
courier expenses to comply with the provisions of the Companies Act,
2013 relating to appointment of KMP and dispatch of Annual Reports for
FY 2013-14 respectively.
Profit After Tax:
The Profit after Tax (PAT) stood at Rs. 787.05 lacs for FY 2014-15 as
against PAT of Rs. 500.26 lacs for FY 2013-14.
Amounts proposed to be carried to any reserves:
An amount of Rs. 157.41 lacs has been transferred to Statutory Reserve as
a part of the statutory requirement.
DIVIDEND:
with a view to conserve resources, your Directors consider it prudent
not to recommend any dividend for the year under review.
MATERIAL CHANGES AND COMMITMENTS, IF Any:
Change in Registered Office:
The Company changed its Registered Office with effect from November
11,2014 to the following address:
213, Bezzola Complex, B wing, 71, Sion-Trombay Road, Chembur, Mumbai
400 071.
The new office is within the local limits of the city and within the
jurisdiction of the Registrar of Companies, Maharashtra, Mumbai. The
Company has complied with the disclosure requirments and necessary
intimation has been given to RBI as well.
CONSOLIDATED FINANCIAL STATEMENTS:
In accordance with Section 129(3) of the Companies Act, 2013 and Clause
32 of the Listing Agreement entered into with the Stock Exchanges, the
Consolidated Financial Statements of the Company, including the
financial details of all the subsidiary companies of the Company, forms
part of the Annual Report 2014-15. The Consolidated Financial
Statements have been prepared in accordance with the Accounting
Standards issued by the Institute of Chartered Accountants of India.
RISK MANAGEMENT PROCESS:
The Risk Management Committee of the Board of Directors (Risk
Management Committee) was set up in terms of the Guidelines on
Corporate Governance issued by the Reserve Bank of India in the year
2010 and was reconstituted during the FY 2014-15. Its terms of
reference were also revised to widen its scope in accordance with
Clause 49 of the Listing Agreement entered into with the Stock
Exchanges read with applicable provisions under the Companies Act, 2013
and Rules made thereunder.
Risk Management Policy has been formulated by the Risk Management
Committee of the Board of Directors in accordance with its terms of
reference. This policy defines a process for adoption so that a
structured, disciplined and consistent risk strategy, providing
guidance for risk activity within the Company by embedding Enterprise
Risk Management within the culture of the business is in place.
One of the element in the Risk Management Process as defined in the
Risk Management Policy is identification and assessment of risks. Some
of the identified risks pertaining to the nature of business carried
out by the Company comprise of Business Risks, Finance Risks,
Regulatory Risks, Environment Risks, etc. Risk Mitigation measures are
also reviewed alongside the identified risks. A Report on Risk
Evaluation and Mitigation covering the elements of risks, impact and
likelihood, mitigation measures and risk assessment is periodically
presented before the Committee for review and also placed before the
Board of Directors for information.
SUBSIDIARY COMPANIES:
As at March 31, 2015, the Company had one wholly owned subsidiary viz.
Instant Holdings Limited and one step down subsidiary viz. Sudarshan
Electronics and T.V. Limited.
Statement containing salient features of financial statements and
performance of the Company's subsidiaries for the year ended March 31,
2015 in accordance with sub-section (3) of Section 129 of the Act read
with the Rule 5 of the Companies (Accounts) Rules, 2014 in the
prescribed Form AOC-1 forms part of the Annual Report of the Company.
Further, the Annual Accounts of these subsidiaries are uploaded on the
website of the Company in accordance with Section 136 of the Act. The
Annual Accounts of these subsidiaries and the other related information
will be made available to any Member of the Company seeking such
information and is also available for inspection at the Registered
Office of the Company.
As required under Clause 49(NI)(V)(D), the Company has formulated the
Policy on Materiality of Subsidiaries and the same is published on the
Company's website www. summitsecurities.net at the link
http://summitsecurities.net/ PolicvonMaterialSubsidiarv.pdf
RELATED PARTY TRANSACTIONS:
The Company has formulated a Policy on Related Party Transactions for
purpose of identification and monitoring of related party transactions.
The policy on Related Party Transactions as approved by the Board is
uploaded on the Company's website www.summitsecurities.net at the link
http:// summitsecurities.net/RelatedPartyTransactionPolicy.pdf
The Company has not entered into any transaction with related parties
during the year under review which requires reporting in Form AOC-2 in
terms of the Section 134(3) and 188(1) of the Companies Act, 2013 read
with Rule 8(1) Companies (Accounts) Rules, 2014.
Further, there were no materially significant related party
transactions during the year under review. None of the Directors or Key
Managerial Personnel had any pecuniary relationships or transactions
vis a vis the Company except the sitting fees paid to Directors and
remuneration paid to KMP's.
EXTRACT OF THE ANNUAL RETURN:
An extract of the Annual Return pursuant to Section 92(3) of the
Companies Act, 2013 read with Rule 12 of the Companies (Management and
Administration) Rules, 2014 in the Form MGT-9 is appended with this
report as Annexure A.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:
The Company, registered as Non-Banking Financial Company not accepting
public deposits with the Reserve Bank of India and having its principal
business of making investments, is exempted from the provisions of
sub-section(1) of Section 186 of the Act.
DIRECTORS AND Key MANAGERIAL PERSONNEL:
a) Directors and Key Managerial Personnel:
Mr. Paras Mal Rakhecha was appointed as the Chief Financial Officer of
the Company w.e.f. May 23, 2014. Further, the following Directors have
been appointed as the Independent Directors at the Seventeenth AGM of
the Company held on September 27, 2014 for a tenure of five years with
effect from the Seventeenth AGM:
1. Mr. S. K. Tamhane
2. Mr. H. C. Dalal
3. Mr. Prem Kapil
4. Ms. Sneha Karmarkar
In accordance with the provisions of the Companies Act, 2013 ('the
Act') and Articles of Association, Mr. A. N. Misra is liable to retire
by rotation and being eligible has offered himself for re-appointment.
b) Declarations from Independent Directors:
The Company has received declarations as required under Section 149(7)
of the Companies Act, 2013 from all the Independent Directors stating
that they meet the criteria of independence pursuant to Section 149(6)
of the Act.
c) Training and Familiarisation Programme for Independent Directors:
Pursuant to the Code of Conduct for Independent Directors specified
under the Act and Clause 49(II)(B)(7) of the Listing Agreement entered
into with the Stock Exchanges, the Company familiarised its Independent
Directors on their roles, rights, responsibilities in the Company,
nature of the industry in which Company operates, business model of the
Company, etc. The note on this familiarization program is also posted
on the Company's website under the link http://
summitsecurities.net/DetailsofFamiliarisationProg.pdf
MEETINGS OF THE BOARD OF DIRECTORS:
The Board of the Company has met five times during the year ended March
31,2015, the details of the meetings of the Board of Directors held
during the year are mentioned under the Corporate Governance Report,
which forms part of this Annual Report.
BOARD COMMITTEES:
Detailed Composition of the Board Committees comprising of mandatory
and non-mandatory committees viz., Audit Committee, Nomination and
Remuneration Committee, Stakeholders Relationship Committee, Risk
Management Committee and Asset Liability Management Committee, number
of meetings held during the year and other related details are set out
in the Corporate Governance Report which forms part of this Report.
As on March 31, 2015, the Audit Committee comprised of 4 members
namely, Mr. H. N. Singh Rajpoot (Non-Independent Director), Mr. H.C.
Dalal (Independent Director), Ms. Sneha Karmarkar (Independent
Director) and Mr. S. K. Tamhane (Independent Director). Mr. S. K.
Tamhane is the Chairman of the Audit Committee.
There have been no situations where the Board has not accepted any
recommendations of the Audit Committee.
ANNUAL EVALUATION OF BOARD AND ITS COMMITTEES:
The Annual Evaluation as required under the Companies Act, 2013 read
with relevant rules made thereunder and Clause 49 of the Listing
Agreement has been carried out by the Board of its own performance, the
performance of each individual Director and its Committees. For this
purpose, an Evaluation Questionnaire was circulated to all the
Directors and their responses were received in a sealed envelope
addressed to the Chairman of the Board of Directors and results thereof
were then discussed in the next meeting of the Directors.
The said questionnaire was prepared considering the criteria for
evaluation and was in accordance with the Company's Policy on
Appointment, Training, Evaluation and Remuneration approved by the
Board on recommendation of the Nomination and Remuneration Committee,
interalia comprising of:
(a) attendance at meetings of the Board and Committees thereof,
(b) participation in Meeting of the Board or Committee thereof,
(c) contribution to strategic decision making,
(d) review of risk assessment and risk mitigation,
(e) review of financial statements and business performance,
(f) contribution to the enhancement of brand image of the Company.
REMUNERATION POLICY:
The Board of Directors has on the recommendation of the Nomination and
Remuneration Committee formulated a policy on "Appointment, Training,
Evaluation and Remuneration of Directors, Key Managerial Personnel and
Senior Management Personnel". This policy interalia covers the
requirements specified under Section 178(3) of the Act comprising of
criteria for determining qualifications, positive attributes and
independence of a director, etc.
The Policy provisions covering the requirements under Section 178 of
the Act, is given as Annexure B to this report.
DIRECTORS RESPONSIBILITY STATEMENT:
Pursuant to Section 134(3)(c) of the Act, your Directors to the best of
their knowledge and belief confirm that:
(a) in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures, if any;
(b) such accounting policies have been selected and applied
consistently and such judgements and estimates have been made that are
reasonable and prudent to give a true and fair view of the state of
affairs of the Company in the Balance Sheet as at March 31, 2015 and
the Statement of Profit and Loss for the said financial year ended
March 31, 2015;
(c) proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Act for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities;
(d) the annual accounts have been prepared on a going concern basis;
(e) the proper internal financial controls were in place and that such
internal financial controls were adequate and were operating
effectively;
(f) the systems to ensure compliance with the provisions of all
applicable laws were in place and that such systems were adequate and
operating effectively.
WHISTLE BLOWER Policy:
The Company has a vigil mechanism named whistle Blower Policy (wBP) for
directors and employees to report concerns about unethical behavior,
actual or suspected fraud or violation of the Company's code of conduct
or ethics policy. The wBP is also posted in the Company's website
namely www.summitsecurities.net.
PARTICULARS OF EMPLOYEES:
a. During the year under review, no employee was in receipt of
remuneration which in aggregate was equal or more than the limit
specified under Rule 5(2) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014.
b. Statement containing the Disclosures pursuant to Section 197(12) of
the Companies Act, 2013 and Rule 5 of The Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 is attached as
Annexure C to this Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, RESEARCH AND
DEVELOPMENT, FOREIGN EXCHANGE EARNINGS AND OUTGO:
The Company is a Non-Banking Financial Company and engaged in
investments and financial activities and, as such, its operations do
not account for substantial energy consumption. However, the Company
is taking all possible measures to conserve energy and several
environment friendly measures are adopted by the Company. The
management ensures strict compliance of the measures adopted.
The provisions relating to research and development and technology
absorption are not applicable to the Company. During the year under
review, there have been no transactions in the Company relating to
foreign exchange earnings and outgo.
CORPORATE SOCIAL RESPONSIBILITY:
The provisions of Section 135 of the Companies Act, 2013 are not
applicable to the Company as the Company does not fall into the
criteria specified in sub-section (1) of Section 135 of the Act.
CORPORATE GOVERNANCE:
A report on Corporate Governance along with a certificate from the
Auditors of the Company stipulated under Clause 49 of the Listing
Agreement, are annexed to this Report.
SECRETARIAL AUDITORS:
M/s. Parikh Parekh & Associates, Company Secretaries were appointed as
the Secretarial Auditors for conducting the Secretarial Audit in
accordance with Section 204 of the Act for the year ended March 31,
2015. The Secretarial Audit Report required pursuant to sub-section (3)
of Section 134 and Section 204(1) of the Act in prescribed Form MR-3
furnished by M/s. Parikh Parekh & Associates, Company Secretaries is
attached as Annexure D to this Report.
STATUTORY AUDITORS:
Messrs Chaturvedi & Shah, Chartered Accountants were appointed as the
Statutory Auditors of the Company at the Seventeenth AGM of the Company
held on September 27, 2014 to hold office for a period of 4 (four)
consecutive years from the conclusion of the Seventeenth AGM till the
conclusion of the Twenty First AGM subject to ratification by the
members at every AGM of the Company.
They have confirmed that they are eligible to act as Statutory
Auditors, if appointed, in accordance with Sections 139 and 141 of the
Companies Act, 2013 and Rules made thereunder.
The Board of Directors after considering the recommendation by the
Audit Committee recommends the ratification of appointment of Messrs
Chaturvedi & Shah, Chartered Accountants as the Statutory Auditors of
the Company to hold office from the conclusion of the ensuing AGM till
the conclusion of the next AGM.
EXPLANATION AND COMMENTS ON AUDITORS' REPORT AND SECRETARIAL AUDIT
REPORT:
There is no qualification, reservation or adverse remark or disclaimer
made either by the Statutory Auditor in Auditors Report or by the
Company Secretary in practice (Secretarial Auditor) in his Secretarial
Audit Report.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR
TRIBUNALS IMPACTING THE GOING CONCERN STATUS:
There are no significant and material orders passed by the Regulators
or Courts or Tribunals impacting the going concern status and Company's
operations in future.
CHANGE IN THE NATURE OF BUSINESS:
During the year under review, there was no change in the nature of
business.
INTERNAL FINANCIAL CONTROL:
Details in respect of adequacy on internal financial controls with
reference to the Financial Statements are stated in the Management
Discussion and Analysis section of this Report.
DISCLOSURE UNDER SEXUAL HARASSMENT OF WOMEN AT WORK PLACE (PREVENTION,
PROHIBITION AND REDRESSAL) ACT, 2013:
The Company has in place a Policy on Prevention of Sexual Harassment at
workplace of the Sexual Harassment of women at the workplace
(Prevention, Prohibition and Redressal) Act, 2013. Internal Complaints
Committee has been set up to redress complaints.
The Company has not received any complaints during the year under
review.
ACKNOWLEDEMENTS:
The Board of Directors wishes to place on record its gratitude for the
continued support and co-operation extended by the Government
authorities, banks, members and employees of the Company.
On behalf of the Board of Directors
Ramesh D. Chandak
Chairman
Place : Mumbai
Date : 28.05.2015
Mar 31, 2014
Dear Members,
The Directors have pleasure in presenting their Report together with
audited accounts for the year ended March 31, 2014:
FINANCIAL HIGHLIGHTS:
(Rs. In lakhs)
For the Year For the year ended
March ended March
31,2014 31,2013
Total Income 620.30 1,281.99
Profit before Depreciation 523.25 1,017.10
&Tax
(-) Depreciation 0.48 0.40
Profit/(Loss) before Tax 522.77 1,016.70
Add: Excess/(Short) (22.05) (111.74)
Provision of tax of earlier
years
(-) Tax 0.82 87.50
(-) Deferred Tax (0.36) (0.01)
Profit/(Loss) after Tax 500.26 817.47
Appropriation:
Less: Transfer to Statutory 100.05 163.49
Reserve
Add: Balance brought 1,819.57 1165.60
forward
Balance Profit/(Loss) 2,219.78 1819.57
transferred to Balance Sheet
DIVIDEND:
With a view to conserve resources, your Directors consider it prudent
not to recommend any dividend for the year under review.
INDUSTRY STRUCTURE, BUSINESS OVERVIEW AND FUTURE OUTLOOK:
India has traversed a long way since the economic reforms started in
the early 1990''s. The reforms of the early 1990''s were focused on three
pillars - Liberalisation, Privatisation and Globalisation. The
financial sector has also undergone significant changes during the
period to not only support the rapid growth, but also to do so without
disruptive episodes. The financial market performance is considered as
a barometer of the economy.
The Indian economy went through challenging times since the crisis in
the Euro area in FY 2011-12 with a cyclical down turn with growth
slowdown, elevated current account deficit, persistent inflation and
the need to restore fiscal policy to a sustainable path. Current
account deficit continued to remain elevated in FY2013-14 and in tandem
with market misperception of an imminence of the rollback of
quantitative easing in the US assumed a serious dimension with the
sharp depreciation of the rupee. A series of measures put up by the
Government have significantly let up in the challenges on the trade and
balances of payment front in FY 2013-14.
Despite all out efforts of the Government to boost the economy through
appropriate calibration of the fiscal policy, India''s real GDP growth
moderated significantly to 4.9% in FY 2013-14. The slow down reflects
continued sluggish investment activity in the economy as well as slow
down in consumption demand. While slower growth is a major worry, there
are other headwinds in the economy as well.
However, the macro cycle, it is believed is turning for the better and
certain reforms in the sector introduced by the Government and Reserve
Bank of India (RBI) have changed sentiments. Various steps are being
proposed for augmenting reforms in the capital and financial markets,
including simplified process of Initial Public Offer, allowing
Qualified Foreign Investors to access the Indian Bond Market, etc.
The Company, being a Non-Banking Financial Company (NBFC) registered
with RBI, is deriving major revenue from its investments. Sectoral
policy changes by the Government, therefore, have direct impact on the
profitability of the Company as the value of the stocks, shares and
bonds depends on the prevailing capital market scenario. The future
success of the Company would depend on its ability to anticipate the
volatility of the Stock Markets and minimizing risks through prudent
investing decisions.
The investments of the Company are typically long term in nature and
predominantly in the equities market. All investments decisions are
reviewed by the Board of Directors on a quarterly basis. As at March
31, 2014, the market value of the Company''s quoted investment portfolio
stood at Rs. 424.93 crores.
FINANCIAL PERFORMANCE:
Revenue:
Total revenue for FY 2013-14 at Rs. 6.20 crores fell by over 51.61% over
the previous year revenue of Rs. 12.82 crores. The decrease in revenue is
due to lower dividend declared by the investee companies as compared to
dividend declared for FY 2011-12.
Expenses:
Total expenses for FY 2013-14 at Rs. 0.77 crores fell by over 70.92% over
the previous year expenses of Rs. 2.65 crores.
Profit After Tax:
The Profit after Tax (PAT) stood at Rs. 5.00 crores for FY 2013-14 over
PAT of Rs. 8.17 crores for last fiscal. The said profit is after the
extraordinary/exceptional items of Rs. 0.20 crores.
RISKS, THREATS AND CONCERNS:
The objective of risk management process is to insulate the Company
from risks associated with the business, while simultaneously creating
an environment conducive for its growth. It entails a comprehensive
estimation, control and review of risks to protect organisational
value. The Risk Management Committee (RMC) of the Board of Directors
has a well defined organisational structure and well documented
policies to ensure efficiency of operations and compliance with
internal and regulatory requirements. Risk mitigation policies are
reviewed periodically by the RMC.
The identification of risks is the first step in the risk management
process. The purpose of identification of risks is to describe events
that may have an adverse impact on the achievement of the business
objectives. In order to identify risks, a range of potential events is
considered while taking into account past events and trends, as well as
future exposures.
BUSINESS RISKS:
The Company''s revenue is predominantly derived from dividends that may
be receivable on investments held by it. Any adverse impact on the
industries in which the Company has made investments will, therefore,
have a bearing on the performance of the Company. Towards this, the
Company has a diversified investment portfolio spread across different
industries to mitigate the impact.
MARKET RISKS:
The Company''s performance is also dependant on the performance of the
economy and financial markets. The health of the economy and the
financial markets in turn depends on the domestic economic growth,
state of the global economy and business and consumer confidence, among
other factors. Any event disturbing the dynamic balance of these
diverse factors would directly or indirectly affect the performance of
the Company. Further, any slowdown in the growth of Indian economy or
any volatility in global financial market could also adversely affect
the business. Moreover, the Company is also prone to risks pertaining
to change in Government regulations, tax regimes, other statutes and
capital market fluctuations in respect of investments held by the
Company. Towards mitigation of this risk, the Company has diversified
its investments in various sectors and across multiple product lines
and businesses. The Company has also been on the look out for newer
avenues of investments and has adopted a policy of investing only in
companies which have a proven track record and stability.
COMPLIANCE RISKS:
The nature of the Company''s business involves an ongoing compliance
with various regulators wherein the compliance requirements are
constantly evolving. Any violation or transgression of the various
compliances would not only affect the business of the Company but also
affect the reputation of the Company.
The Company follows a robust system of compliance and maximum care is
taken by the management to ensure no violation or transgression of the
various compliances with the regulatory authorities occur. All reports
are placed by the management before the meetings of the Board of
Directors and the Audit Committee.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The Company has an adequate internal audit and control system
commensurate with its size and nature of business to ensure operational
efficiency, accuracy and promptness in financial reporting and
compliance of various laws and regulations. The Audit Committee
appointed by the Board reviews the Internal Audit Report and the
adequacy and effectiveness of internal controls periodically.
CAUTIONARY STATEMENT:
Statements in this Report describing the Company''s objectives,
projections, estimates and expectations may constitute "forward looking
statements'' within the meaning of applicable laws and regulations.
Actual results might differ materially from those either expressed or
implied.
HUMAN RESOURCES:
Employee relations continued to remain cordial during the year under
review.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO:
The Company is a Non-Banking Financial Company and engaged in
investments and financial activities and, as such, its operations do
not account for substantial energy consumption. However, the Company
is taking all possible measures to conserve energy and several
environment friendly measures are adopted by the Company. The
management ensures strict compliance of the measures adopted.
The provisions relating to research and development and technology
absorption, adaptation and innovation are not applicable to the
Company. During the year under review, there have been no transactions
in the Company relating to foreign exchange earnings and outgo.
SUBSIDIARY:
As at March 31, 2014, the Company had one wholly owned subsidiary viz.
Instant Holdings Limited and one step down subsidiary viz. Sudarshan
Electronics and TV. Limited.
During the year under review, the Company has made further investments
in equity shares of Instant Holdings Limited by way of subscription to
its Rights Issue. The Company has been allotted 1,12,750 equity shares
of face value of Rs. 10/- each at a premium of Rs. 770/- per share on
September 16, 2013.
The Ministry of Corporate Affairs vide its circular no.5/12/2007-
CL-III dated February 8, 2011 has, subject to compliance of certain
conditions, granted general exemption to companies from attaching the
Annual Report and accounts of its subsidiary companies. As per this
circular, a statement containing brief financial details of the
subsidiaries for financial year ended March 31, 2014 is included in
this Annual Report. Pursuant to the Listing Agreement entered into with
the Stock Exchanges and also as per this circular, the consolidated
financial statements of the Company form part of the Annual Report.
These statements have been prepared in compliance with the applicable
Accounting Standards issued by the Institute of Chartered Accountants
of India.
The Annual Accounts of the subsidiaries and the related detailed
information will be made available to the members seeking such
information at any point of time and are also available for inspection
at the registered office of the Company and that of its subsidiaries.
DIRECTORS:
In accordance with the provisions of the Companies Act, 2013 (''the
Act''), Mr. H. N. Singh Rajpoot is liable to retire by rotation and
being eligible has offered himself for re-appointment.
Ms. Sneha Karmarkar and Mr. Prem Kapil were appointed as Additional
Directors of the Company by the Board of Directors at its meetings held
on May 23, 2014 and August 13, 2014 respectively. Pursuant to Section
161 of the Act, Ms. Karmarkar and Mr. Kapil hold office upto the date
of the ensuing Annual General Meeting of the Company (AGM) and are
eligible for appointment as Directors. Ms. Karmarkar and Mr. Kapil,
both qualify to be Independent Directors pursuant to Section 149 (6) of
the Act.
Further, Mr. S.K Tamhane and Mr. H.C. Dalai also qualify to be
Independent Directors pursuant to Section 149 (6) of the Act.
Accordingly, it is proposed to appoint Ms. Karmarkar, Mr. Kapil, Mr.
Tamhane and Mr. Dalai as Independent Directors for a term of 5 (five)
consecutive years with effect from the date of the Seventeenth AGM, and
they shall not be liable to retire by rotation.
EMPLOYEE STATEMENT:
During the year under review, no employee was in receipt of
remuneration which in aggregate was equal or more than that specified
under Section 217(2A) of the Companies Act, 1956.
CORPORATE GOVERNANCE:
A report on Corporate Governance along with a certificate from the
Auditors of the Company regarding the compliance of conditions of
Corporate Governance and also the Management Discussion and Analysis
Report, as stipulated under Clause 49 of the Listing Agreement, are
annexed to this Report.
DIRECTORS'' RESPONSIBILITY STATEMENT:
Pursuant to Section 217(2AA) of the Companies Act, 1956, your
Directors, to the best of their knowledge and belief confirm that:
i) the applicable Accounting Standards have been followed in the
preparation of the annual accounts.
ii) such Accounting Policies have been selected and applied
consistently and such judgement and estimates have been made that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company in the Balance Sheet as at March 31, 2014 and
the Statement of Profit & Loss for the year ended on that date.
iii) properandsufficientcare has been taken forthe maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities.
iv) the annual accounts have been prepared on a going concern basis.
AUDITORS:
Messrs Chaturvedi & Shah, Chartered Accountants were appointed as the
Statutory Auditors of the Company at the AGM of the Company held on
September 30, 2013.
Messrs Chaturvedi & Shah have confirmed that they are eligible to act
as Statutory Auditors, if appointed, in accordance with Sections 139
and 141 of the Companies Act, 2013 and Rules made thereunder.
The Board of Directors after considering the recommendation by the
Audit Committee recommends the appointment of Messers Chaturvedi &
Shah, Chartered Accountants as the Statutory Auditors of the Company to
hold office for a period of 4 (four) consecutive years commencing from
the conclusion of the ensuing AGM.
ACKNOWLEDEMENTS:
The Board of Directors wishes to place on record its gratitude for the
continued support and co-operation extended by the Government
authorities, banks, members and employees of the Company.
On behalf of the Board of Directors
A. N. Misra H. N. Singh Rajpoot
Director Director
Place : Mumbai
Date : August 13, 2014
Mar 31, 2013
Dear Members,
The Directors have pleasure in presenting their Report together with
audited accounts for the year ended March 31, 2013.
FINANCIAL HIGHLIGHTS
(Rs. in lacs)
For the year For the year
ended March ended March
31, 2013 31, 2012
Total Income 1,281.98 798.23
Proft before Depreciation, 1,017.09 730.91
and Tax
(-) Depreciation 0.40 0.39
Proft/(Loss) before tax 1,016.69 730.52
Add: Excess / (Short) (111.73) (10.18)
Provision of tax of earlier
years
(-) Tax 105.00 13.10
(-) Deferred Tax (0.01) -
Proft/(Loss) after tax 817.47 707.24
Appropriation:
Less: Transfer to Statutory 163.49 141.45
Reserve
Add: Balance brought forward 1,165.60 599.81
Balance Proft/(Loss) 1,819.58 1,165.60
transferred to Balance Sheet
DIVIDEND
With a view to conserve resources, your Directors consider it prudent
to not recommend any dividend for the year under review.
FINANCIAL PERFORMANCE
During the fnancial year under review, the Total Income and Proft
before Depreciation and Tax (PBDT) were Rs. 1,281.98 lacs and Rs.
1,017.09 lacs respectively as against Rs. 798.23 lacs and Rs. 730.91 lacs
in the previous year.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
Due to the nature of business, this provision is not applicable to the
Company.
SUBSIDIARY
During the year under review, Sudarshan Electronics & T.V. Limited has
ceased to be a subsidiary of the Company with effect from March 5,
2013.
As on March 31, 2013, the Company had one subsidiary company viz.
Instant Holdings Limited and one step down subsidiary viz. Sudarshan
Electronics & T. V. Limited.
The Ministry of Corporate Affairs vide its circular no.
5/12/2007-CL-III dated February 8, 2011 has subject to compliance of
certain conditions, granted general exemption to the companies from
attaching the annual report and accounts of its subsidiary companies.
As per this circular, a statement containing brief fnancial details of
the subsidiaries for fnancial year ended March 31, 2013 is included in
this Annual Report. Further, pursuant to the Listing Agreement entered
into with the Stock Exchanges and also as per this circular, the
consolidated fnancial statements of the Company form part of the Annual
Report. These statements have been prepared in compliance with the
applicable Accounting Standards issued by the Institute of Chartered
Accountants of India.
The Annual Accounts of the subsidiaries and the related detailed
information will be made available to the members seeking such
information at any point of time and are also available for inspection
at the registered offce of the Company and that of its subsidiaries.
DIRECTORS
In accordance with the Companies Act, 1956 (the Act) and the Articles
of Association of the Company, Mr. A. N. Misra and Mr. Ramesh D.
Chandak, Directors, retire by rotation and being eligible offer
themselves for re-appointment.
During the year under review, Mr. S. K. Tamhane was appointed in the
causal vacancy caused due to the resignation of Mr. Paras K. Chowdhary
and would hold offce up to the date of this Annual General Meeting. A
Notice has been received from a member proposing the name of Mr. S.K.
Tamhane as Director retiring by rotation. Members are requested to
appoint Mr. Tamhane as Director at this Annual General Meeting. The
Board of Directors recommends the appointment of Mr. S.K. Tamhane as
Director of the Company.
Mr. H. C. Dalal was appointed by the Board of Directors as an
Additional Director of the Company with effect from November 8, 2012 in
terms of Section 260 of the Act and pursuant to the provisions of the
Articles of Association of the Company. He would therefore, hold offce
up to the date of the ensuing Annual General Meeting. A Notice has been
received from a member proposing the appointment of Mr. Dalal as a
Director of the Company liable to retire by rotation. The Board of
Directors recommends the appointment of Mr. Dalal as a Director of the
Company.
The Board of Directors deeply mourn the sad demise of Mr. T. M.
Elavia, Director of the Company on August 18, 2013 and place on record
their sincere appreciation for the invaluable service rendered by him
during his tenure as Director of the Company.
EMPLOYEE STATEMENT
During the period under review, no employee was in receipt of
remuneration which in aggregate was equal or more than that specifed
under Section 217(2A) of the Act.
CORPORATE GOVERNANCE
A report on corporate governance, along with a certifcate from the
auditors of the Company, regarding the compliance of conditions of
Corporate Governance, as stipulated under Clause 49 of the Listing
Agreement, is annexed to this Report.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 217 (2AA) of the Act, your Directors, to the best
of their knowledge and belief confrm that:
i) the applicable Accounting Standards have been followed in the
preparation of the annual accounts.
ii) such accounting policies have been selected and applied
consistently and such judgements and estimates have been made that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company in the Balance Sheet as at March 31, 2013 and
of the Statement of Proft and Loss for the said fnancial year viz.
April 1, 2012 to March 31, 2013.
iii) proper and suffcient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Act, for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities.
iv) the annual accounts have been prepared on a going concern basis.
AUDITORS
Messrs N. M. Raiji & Co., Chartered Accountants were appointed as the
Statutory Auditors of the Company at the Annual General Meeting held on
December 31, 2009. The Company has received a Special Notice under
Section 225 of the Act from one of its members requesting that Messrs
N. M. Raiji & Co. should not be re-appointed at the ensuing Annual
General Meeting due to ongoing arbitration in the frm amongst the
partners. Instead, the said member has proposed the appointment of
Messrs Chaturvedi & Shah, Chartered Accountants as the Company''s
Statutory Auditors.
Messrs Chaturvedi & Shah, are one of the leading frms of Chartered
Accountants, who have confrmed that they are eligible to act as
Statutory Auditors, if appointed. The Board of Directors therefore,
recommends the appointment of Messrs Chaturvedi & Shah, Chartered
Accountants as the Statutory Auditors of the Company.
ACKNOWLEDGEMENT
The Board of Directors wishes to place on record its gratitude for the
faith reposed in the Company and the co-operation extended by
government authorities, members and employees of the Company.
On behalf of the Board of Directors
A.N. Misra H.N. Singh Rajpoot
Director Director
Place: Mumbai,
Date : August 19, 2013
Mar 31, 2012
The Directors have pleasure in presenting their Report together with
audited accounts for the year ended March 31, 2012. FINANCIAL
HIGHLIGHTS
(Rs. in lacs)
For the For the
year ended year ended
March 31, March 31,
2012 2011
Total Income 798.23 625.73
Profit before Depreciation 730.91 341.03
and Tax
(-) Depreciation 0.39 0.33
Profit/(Loss) before tax 730.52 340.70
Add: Excess / (Short) Provision (10.18) 96.82
of tax of earlier years
(-) Tax 13.10 -
(-) Deferred Tax - (117.13)
Profit/(Loss) after tax 707.24 320.39
Appropriation:
Less: Transfer to Statutory 141.45 64.08
Reserve
Add: Balance brought forward 599.81 343.50
Balance Profit/(Loss) transferred 1,165.60 599.81
to Balance Sheet
DIVIDEND
With a view to conserve resources, your Directors consider it prudent
not recommend any dividend for the year under review.
FINANCIAL PERFORMANCE
During the financial year under review, the Total Income and Profit
before Depreciation and Tax (PBDT) were Rs. 798.23 lacs and Rs. 730.91 lacs
respectively as against Rs. 625.73 lacs and Rs. 341.03 lacs in the previous
year.
INDUSTRY AND BUSINESS OVERVIEW AND FUTURE OUTLOOK
Economic liberalization, including industrial de-regulation,
privatization of state-owned enterprises, and reduced controls on
foreign trade and investment, began in the early 1990s and has served
to accelerate the country's growth, which has averaged more than 7%
per year since 1997. India's diverse economy encompasses traditional
village farming, modern agriculture, a wide range of modern industries,
and a multitude of services. However, the financial year 2011-12 was
particularly challenging on account of the slowdown in industrial
activity, increased inflation, weakening rupee and global recessionary
trends. India's long term challenges include widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, insufficient access to quality basic and
higher education, and accommodating rural-to-urban migration.
Though economy is predicted to grow at 7.6% in FY 2013 and 8.6% in FY
2014, the mood prevalent in the country is subdued.
The Company being a Non Banking Financial Company (NBFC) registered
with the Reserve Bank of India and deriving its major revenue from its
investments, sectoral policy changes by the government and performance
of industry sectors where the Company has invested have an impact on
the profitability of the Company. The basic business of the Company is
investing in stocks, shares and bonds. The value of the stocks, shares
and bonds in addition to be above also depend on the prevailing capital
market scenario. The future success of the Company would depend on its
ability to anticipate the volatility of the Stock Markets and
minimizing risks through prudent investing decisions. THREATS AND
CONCERNS
The Company's revenue is majorly derived from dividends receivable on
investments held by it. Any adverse impact on the industries in which
the Company has made investment will have a bearing on the performance
of the Company. The Company's performance is also dependant on the
performance of the economy and financial markets. The health of the
economy and financial markets in turn depends on the domestic economic
growth, state of the global economy and business and consumer
confidence, among other factors. Any event disturbing the dynamic
balance of these diverse factors would directly or indirectly affect
the performance of the Company. Further, any slowdown in the growth of
Indian economy or any volatility in global financial market, could also
adversely affect the business. Moreover, the Company is also prone to
risks pertaining to change in government regulations, tax regimes,
other statutes and capital market fluctuations in respect of
investments held by the Company.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has adequate internal audit and control system commensurate
with its size and nature of business to ensure operational efficiency,
accuracy and promptness in financial reporting and compliance of
various laws and regulations. The Audit Committee appointed by the
Board reviews the Internal Audit Report and the adequacy and
effectiveness of internal controls periodically.
CAUTIONARY STATEMENT
Statements in this report describing the Company's objectives,
projections, estimates and expectations may constitute "forward
looking statements" within the meaning of applicable laws and
regulations. Actual results might differ materially from those either
expressed or implied.
HUMAN RESOURCES
Employee relations continued to remain cordial during the year under
review.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
Due to the nature of business, this provision is not applicable to the
Company.
SUBSIDIARY
During the year under review, your Company became a subsidiary of
Swallow Associates Limited, as a result of merger of Blue Niles
Holdings Limited, Kestrel Investments Limited, Petrochem International
Limited, RPG Cellular Investments and Holdings Private Limited, South
Asia Electricity Holdings Limited with Swallow Associates Limited
pursuant to the Scheme of Amalgamation and Arrangement sanctioned by
the Hon'ble High Court of Judicature at Bombay on February 10, 2012.
This Scheme has become effective on March 27, 2012 with effect from the
Appointed Date i.e. December 1, 2011.
As on March 31, 2012, the Company had two subsidiaries viz. Instant
Holdings Limited and Sudarshan Electronics & T. V. Limited.
During the year under review, Instant Holdings Limited had filed a
petition with the Hon'ble High Court of Judicature at Bombay for
sanction under Section 394 of the Companies Act, 1956 to a Scheme of
Amalgamation for merger of Idea Tracom Private Limited (wholly owned
subsidiary of Instant Holdings Limited) and Goodhope Sales Private
Limited (wholly owned subsidiary of Instant Holdings Limited) with
Instant Holdings Limited. This Scheme has been approved by the High
Court of Judicature at Bombay on April 13, 2012 and has become
effective on May 15, 2012 with effect from the Appointed Date i.e.
March 31, 2012.
The Ministry of Corporate Affairs vide its circular no. 5/1
2/2007-cL-III dated February 8, 2011 has subject to compliance of
certain conditions, granted general exemption to the companies from
attaching the annual report and accounts of its subsidiary companies.
As per this circular, a statement containing brief financial details of
the subsidiaries for financial year ended March 31, 2012 is included in
this Annual Report. Further, pursuant to the Listing Agreement entered
into with the Stock Exchanges and also as per this circular, the
consolidated financial statements of the Company form part of the
Annual Report. These statements have been prepared in compliance with
the applicable Accounting Standards issued by the Institute of
Chartered Accountants of India.
The Annual Accounts of the subsidiaries and the related detailed
information will be made available to the shareholders seeking such
information at any point of time and are also available for inspection
at the registered office of the Company and that of its subsidiaries.
DIRECTORS
In accordance with the Companies Act, 1956 and the Articles of
Association of the Company, Mr. Ramesh D. Chandak and Mr. H. N. Singh
Rajpoot, Directors, retire by rotation and being eligible offer
themselves for re-appointment.
Mr. Suresh Mathew and Mr. Paras K. Chowdhary, Directors of the Company
resigned with effect from August 13, 2012. The Board places on record
its appreciation for the valuable services rendered by Mr. Mathew and
Mr. Chowdhary. Mr. T. M. Elavia and Mr. S. K. Tamhane were appointed as
Directors in the casual vacancy caused due to the resignation of Mr.
Mathew and Mr. Chowdhary.
EMPLOYEE STATEMENT
During the period under review, no employee was in receipt of
remuneration which in aggregate was equal or more than that specified
under Section 217(2A) of the Companies Act, 1956. CORPORATE GOVERNANCE
A report on corporate governance, along with a certificate from the
auditors of the Company, regarding the compliance of conditions of
Corporate Governance, as stipulated under Clause 49 of the Listing
Agreement, is annexed to this Report.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to Section 217 (2AA) of the Companies Act, 1956, your
Directors, to the best of their knowledge and belief confirm that:
i) the applicable Accounting Standards have been followed in the
preparation of the annual accounts.
ii) such accounting policies have been selected and applied
consistently and such judgements and estimates have been made that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company in the Balance Sheet as at March 31, 2012 and
of the Statement of Profit and Loss for the said financial year viz.
April 1, 2011 to March 31, 2012.
iii) proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities.
iv) the annual accounts have been prepared on a going concern basis.
AUDITORS
Messrs N. M. Raiji & Co., statutory auditors of the Company, retire at
the ensuing Annual General Meeting and being eligible, offer themselves
for re-appointment.
ACKNOWLEDGEMENT
The Board of Directors wishes to place on record its gratitude for the
faith reposed in the company and the co-operation extended by
government authorities, shareholders and employees of the Company.
On behalf of the Board of Directors
Ramesh D. Chandak A. N. Misra
Director Director
Mumbai,
13th August, 2012
Mar 31, 2011
Dear Shareholders,
The Directors have pleasure in presenting their Report together with
audited accounts for the year ended March 31, 2011.
FINANCIAL HIGHLIGHTS
(Rs. in lacs)
For the For the
year ended year ended
31.3.2011 31.3.2010
Total Income 625.73 679.36
Profit before Depreciation and 341.03 455.53
Tax
(-) Depreciation 0.33 0.24
Profit/(Loss) before tax 340.70 455.29
Add: Excess / (Short) Provision 96.82 (9.90)
of tax of earlier years
(-) Tax - (6.00)
(-) Deferred Tax (117.13) (8.90)
Profit/(Loss) after tax 320.39 430.50
Appropriation:
Less: Transfer to Statutory 64.08 87.00
Reserve
Add: Balance brought forward 343.50 -
Balance Profit/(Loss) transferred 599.81 343.50
to Balance Sheet
DIVIDEND
With a view to conserve resources, your Directors have not recommended
any dividend for the year under review.
FINANCIAL PERFORMANCE
During the financial year under review, the Total Income and Profit
before Depreciation and Tax (PBDT) were Rs. 625.73 lacs and Rs. 341.03
lacs respectively as against Rs. 679.36 lacs and Rs. 455.53 lacs in
the previous year (including an excess provision of Rs. 123.83 lacs
written back).
LISTING ON STOCK EXCHANGES
The Securities and Exchange Board of India (SEBI) vide its letter dated
December 24, 2010 granted necessary relaxation from applicability of
Rule 19(2)(b) of Securities Contracts (Regulation) Rules, 1957, for
listing of the equity shares of the Company. Consequently, the equity
shares of the Company were listed on January 28, 2011 on Bombay Stock
Exchange Limited and National Stock Exchange of India Limited.
SALE OF FRACTIONAL ENTITLEMENTS
Pursuant to the Scheme of Arrangement, the fractional entitlements
arising out of the issue of shares under the said Scheme were
consolidated into 60,707 equity shares of Rs. 10/- each. The entire
60,707 equity shares of the Company were sold and the net sale
proceeds of Rs. 66.19 lacs were distributed to the shareholders in
April, 2011 who were entitled to such sale proceeds in proportion
to their respective fractional entitlements.
INDUSTRY AND BUSINESS OVERVIEW AND FUTURE OUTLOOK
Growth in India is expected to be moderate, with GDP growth of 8.30
percent in 2011 and a projected growth of above 7.50 percent in 2012.
Infrastructure will remain a key contributor to growth and corporate
investment is essential as capacity constraints start to build.
However, cost of funds has become a major hurdle to availment of credit
by companies. This may affect investment and capital expenditure in
several sectors. The Company is a Non Banking Financial Company (NBFC)
registered with Reserve Bank of India.
THREATS AND CONCERNS
The Company's income is mainly derived from the dividends on
investments held by it. Any adverse impact on the industries in which
the Company has made investment will have direct bearing on the
performance of the Company. Any slowdown in the growth of Indian
economy or any volatility in global financial market, could also
adversely affect the business. Moreover, the Company is also prone to
risks pertaining to change in government regulations, tax regimes,
other statutes and capital market fluctuations in respect of
investments held by the Company.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has adequate internal audit and control system commensurate
with its size and nature of business to ensure operational efficiency,
accuracy and promptness in financial reporting and compliance of
various laws and regulations. The Audit Committee appointed by the
Board reviews the internal Audit Report and the adequacy and
effectiveness of internal controls periodically.
CAUTIONARY STATEMENT
Statements in this Report describing the Company's objectives,
projections, estimates and expectations may constitute "forward looking
statements" within the meaning of applicable laws and regulations.
Actual results might differ materially from those either expressed or
implied.
HUMAN RESOURCES
The Company has already formulated the organization structure and has
recruited employees as per its requirements. It is now in process of
putting in place, various human resources, policies and procedures.
Employee's relations remain cordial during the year under review.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
Due to the nature of business, this provision is not applicable to the
Company.
SUBSIDIARY
As on March 31, 2011, the Company has two subsidiaries, Instant
Holdings Limited and Sudarshan Electronics & T. V. Limited and two step
down subsidiaries viz; Idea Tracom Private Limited and Goodhope Sales
Private Limited, being the wholly owned subsidiaries of Instant
Holdings Limited.
The Ministry of Corporate Affairs vide its circular no. 5/12/2007-CL-
III dated February 8, 2011 has subject to compliance of certain
conditions, granted general exemption to the companies from attaching
the annual report and accounts of its subsidiary companies. As per this
circular, a statement containing brief financial details of the
subsidiaries for financial year ended March 31, 2011 is included in
this Annual Report. Further, pursuant to the Listing Agreement entered
into with the Stock Exchanges and also as per this circular, the
consolidated financial statements of the Company form part of the
Annual Report. These statements have been prepared in strict compliance
with the applicable Accounting Standards issued by the Institute of
Chartered Accountants of India.
The Annual Accounts of the subsidiaries and the related detailed
information will be made available to the shareholders seeking such
information at any point of time and are also available for inspection
at the registered office of the Company and that of its subsidiaries.
DIRECTORS
During the year under review, Mr. A. N. Misra was appointed as an
Additional Director of the Company on October 7, 2010 and he would hold
office upto the date of the ensuing Annual General Meeting. A Notice
has been received from a member proposing the name of Mr. Misra as
Director retiring by rotation.
Mr. Aditya Atal resigned as the Director of the Company during the year
under review.
In accordance with the Companies Act, 1956 and the Articles of
Association of the Company, Mr. Paras. K. Chowdhary retires by rotation
and being eligible offers himself for re-appointment.
EMPLOYEE STATEMENT
During the period under review, no employee was in receipt of
remuneration which in aggregate was equal or more than that specifi ed
under Section 217(2A) of the Companies Act, 1956.
GROUP
The names of the Promoters and entities comprising 'Group' as defi ned
under the Monopolies and Restrictive Trade Practices ("MRTP") Act, 1969
are disclosed in the Annual Report for the purpose of SEBI (Substantial
Acquisition of Shares and Takeovers) Regulations, 1997.
CORPORATE GOVERNANCE
A report on corporate governance, along with a certifi cate from the
auditors of the Company, regarding the compliance of conditions of
Corporate Governance, as stipulated under Clause 49 of the Listing
Agreement, is annexed to this Report.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to Section 217 (2AA) of the Companies Act, 1956, your
Directors, to the best of their knowledge and belief confi rm that:
i) the applicable Accounting Standards have been followed in the
preparation of the annual accounts.
ii) such accounting policies have been selected and applied
consistently and such judgements and estimates have been made that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company in the Balance Sheet as at March 31, 2011 and
of the Profit and Loss Account for the said financial year viz April
1, 2010 to March 31, 2011.
iii) proper and suffi cient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities.
iv) the annual accounts have been prepared on a going concern basis.
AUDITORS
Messrs N. M. Raiji & Co., Chartered Accountants, statutory auditors of
the Company, retire at the ensuing Annual General Meeting and being
eligible, offer themselves for re-appointment.
ACKNOWLEDGEMENT
The Board of Directors wishes to place on record its gratitude for the
faith reposed in the Company and the co-operation extended by
government authorities, shareholders and employees of the Company.
For and on behalf of the Board of Directors
Ramesh D. Chandak Suresh Mathew
Director Director
Mumbai,
Date : May 30, 2011